In today’s interconnected world, where consumers are increasingly conscious about the values upheld by the brands they support, integrating diversity and inclusion (D&I) into a company’s ethos is no longer optional; it is imperative. Embracing D&I not only creates a more just and equitable society but also catalyses building well-developed products and services that resonate with diverse consumer bases.

In a survey conducted by Deloitte, 83 per cent of respondents affirmed that they are more likely to trust a company that promotes D&I. Customers increasingly want to associate themselves with brands that align with their values.

The realm of technology is not exempted. In fact, tech continues to serve as an immutable enabler in facilitating D&I. Another survey conducted by RedThread Research on D&I tech vendors reveals promising market traction. The findings show that nearly 60 per cent of the vendors surveyed have generated revenue of over US$100,000, and more than a third of them have acquired more than 100 customers.

To adapt to the changing demands of customers, investing in technologies that improve user experiences, such as text-to-speech (TTS) technology, is crucial.

TTS provides a multisensory reading experience that combines seeing with hearing. This innovation was originally intended to eradicate accessibility barriers, a purpose it still serves that enables individuals with disabilities, non-native speakers, and seniors who face difficulties navigating complex interfaces to access digital content.

For consumer-facing brands, TTS has become increasingly popular among the younger generation, as evidenced by a 2022 survey showing that 70 per cent of respondents aged 18 to 25 viewed content with simultaneous audio and captioning “most of the time.” Social media platforms like TikTok and Instagram have also incorporated TTS features, making it an anticipated feature across various content consumption platforms.

The benefits of TTS go beyond meeting regulatory requirements or promotional activities. It also serves as a valuable tool for faith-based apps, such as the Muslim Pro app, that cater to a global audience and aim to reach a diverse range of users. 

Fostering inclusivity

Today, Islam is not only the world’s fastest-growing religion but it is projected to be the largest one by 2075. Despite technological advancements, there is still a notable absence of groundbreaking innovation that could significantly transform how Muslims practice their faith.

Also Read: How faith-based lifestyle apps can raise the bar to become super apps

In a world where many Muslims struggle to find the time and space for daily prayers and spiritual practices, TTS offers a convenient solution. For instance, Muslims who are visually impaired may require such tools to access religious texts, such as the Quran, in audio format. For us, implementing TTS is a promising step forward in this regard.

With over 148 million downloads worldwide to date, our app has demonstrated the potential of engineering to promote inclusivity and accessibility for faith-based communities. It has made great strides in reaching a global audience by incorporating the latest TTS technology for reciting Quran translation with support for over 20 languages, including Česko, Korean, Norsk, Italiano, Português, Romanian, and more.

For Muslims, prayers, known as duas and supplications, are often recited in Arabic at various times throughout the day. This makes prayers attainable to users in a user-friendly and comprehensible manner, irrespective of their proficiency in the language. This is an example of how it can be used to bridge cultural and linguistic barriers.

It is also a valuable resource for Muslims who are still learning the Arabic script. Making it available allows us to ensure that all Muslims can engage with their faith on their own terms on the go.

Whether you’re in the tech industry or not, the benefits of incorporating innovative tools are evident. As more people turn to digital tools to deepen their connection with their faith, tech companies must prioritize diversity and inclusivity in their products and services. By investing in innovative solutions like TTS, we can improve user experiences and reach a broader audience, promoting a more inclusive and accessible digital landscape.

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This article was first published on May 25, 2023

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The threat landscape in cybersecurity and data protection is evolving, and startups now face new challenges as AI technology rapidly advances and cyber attackers look to employ new tactics. From realistic phishing emails to deepfaked videos, malicious actors are leveraging AI to craft highly convincing and targeted attacks with greater precision and scale.

For startups and SMEs, it is essential that they are well prepared for these challenges and are aware of some of the major threats, both in the present and short-term future. Let’s take a look at three ways in which cybercrime is set to evolve over the next five years.

Commodification of malicious services

The emergence of new tactics such as Jailbreak-as-a-Service highlights the democratisation of cyber threats, underscoring the need for startups to stay ahead of the curve. Recent technological developments mean that hostilities can now come from anywhere, which makes threat detection increasingly complex, particularly as we look ahead to the future.

Ransomware rendered by Malware-as-a-service is becoming more frequent – this is where a ransomware group or gang sells its ransomware code or malware to other hackers, who then use it to carry out their own ransomware attacks. This sort of activity makes it considerably easier for less sophisticated actors to attack businesses independently. 

With the commodification of deepfake services, cybercriminals can easily bypass security measures, leading to devastating consequences such as financial loss and reputational damage. The now infamous case of the Hong Kong finance worker who transferred US$25 million to a fake CFO serves as a cautionary tale to organisations to be more vigilant in the new landscape.

Also Read: From grid to code: Why good cybersecurity will help deliver net zero

High-profile individuals tend to be more prone to spoofing, while government and financial institutions are more attractive targets of ransomware for the amount of sensitive information they hold.

AI model theft and misuse

The potential theft or unauthorised access to AI models developed by startups is another rising issue that will continue to proliferate as more tech startups come onto the scene with proprietary AI solutions over the next couple of years. Stolen models could be misused for malicious purposes or replicated by competitors, leading to intellectual property theft.

Techniques like model extraction attacks pose such a risk, where an adversary prompts the chatbot to divulge information that allows it to recreate its model. Model inversion techniques that enable output data to be used to reconstruct sensitive input data are also gaining ground.

The data is then exposed to further misuse. Adversarial attacks are another form of model misuse that is increasing in prominence, too – they aim to manipulate the model’s inputs to generate incorrect outputs, undermining its reliability and integrity.

AI supply chain attacks

The complex AI supply chain, involving data sourcing, model training, and deployment, presents multiple attack vectors that startups must secure. But this doesn’t only apply to AI software in general, which is experiencing more supply chain attacks.

Bad actors increasingly see software, developer infrastructure and third-party providers as entry vectors into governments and corporations. This is a threat that will only proliferate as organisations continue to integrate AI into their infrastructures.

Cybercriminals will look to attack AI supply chains via a variety of methods, including data poisoning attacks, which involve injecting malicious data into training datasets to compromise the model’s performance and introduce vulnerabilities. Meanwhile, model skewing attacks manipulate the training process to introduce targeted biases, backdoors, or other vulnerabilities into the AI model. 

The expanded requirements and capabilities of data protection and data governance 

To mitigate these risks, startups should implement robust data governance practices, invest in explainable AI technologies, as well as conduct regular audits for bias and fairness to maintain human oversight in critical decision-making processes involving AI. Collaboration with security experts and staying updated on the latest AI threats and best practices is also essential.

Also Read: The ever-present threat: Why businesses need robust cybersecurity

Organisations must adopt a comprehensive approach to data governance, especially when adopting AI to process personal information. In practice, this requires a layered strategy accompanied by accountable data handling practices by humans. With many tech startups seeking to roll out their own AI solutions, adopting a privacy-by-design approach where privacy considerations are integrated into every stage of the development and operation of a system is expected.

Proactive threat intelligence, conducting robust third-party due diligence, and implementing stringent data protection and encryption protocols are valuable precautions. Startups that collect, use, process or disclose personal data with Gen AI, may consider adopting Privacy Enhancing Technologies (PETs) that enable data analysis without compromising personal information, such as differential privacy, federated learning, and homomorphic encryption.

As many technological controls one can take, human error is still one of the key causes of high-profile data breaches, especially in rapidly growing startups. As such, educating employees and executives on data handling best practices and the risks of AI is crucial. 

Educated leaders and staff training are essential in the age of AI

Effective data handling and security, especially when leveraging AI as part of your product or services, hinges on a well-informed workforce that is not limited to IT professionals. Staff training programmes tailored to individual roles and responsibilities should be carried out, including realistic simulations that provide practical experience in handling cyber threats.

There are also internationally recognised courses that integrate data governance, generative AI and privacy security, suited for CTOs and IT personnel in tech startups looking to forward their venture. The International Association of Privacy Professionals’ (IAPP) Certified Privacy Information Technologist (CIPT) course imparts techniques to manage cybersecurity risks while enabling prudent data use for business purposes.

Continuous vigilance and accountability are paramount to strengthening organisational resilience against social engineering tactics and human error-induced breaches. With the right knowledge and training, leaders and employees will be better equipped to successfully implement best practices and processes early in your startup’s stage of growth so that you can sustainably adapt to evolving regulations and business growth.

—

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Venture debt is a form of financing specifically designed for, more often than not, venture-backed startups. It is typically offered as a supplement to equity financing and is aimed at providing companies with additional runway or funding for specific needs. This financing method has gained popularity in Singapore and Southeast Asia’s startups in recent years because it allows startups to secure funds without significant equity dilution.

Some features of venture debt

• Unlike equity financing, venture debt involves little to no dilution of ownership. Lenders may require warrants (options to purchase company stock at a set price), but this typically results in less than one per cent dilution.
• Lenders often require collateral in the form of company assets, such as intellectual property, accounts receivable, or other tangible assets.
• Venture debt agreements may include financial or operational covenants, such as maintaining a minimum cash balance or meeting revenue targets. Non-compliance with these covenants can lead to default.

When to consider venture debt

• Strong revenue growth: Startups with measurable and consistent revenue growth are more likely to secure venture debt.
• Market adoption: Evidence of a strong product-market fit, such as increasing sales, customer base expansion, or recurring revenue, are things that lenders look at.
• Unit economics: Lenders may look for signs of positive unit economics or a clear path to profitability.

Also Read: The ethical dilemma of dynamic pricing in online retail

Key differences between venture debt and traditional loans

• Repayment terms: Venture debt repayment typically starts within 12 months of drawing down the funds and with principal payments over 3–4 years. Traditional loans may have shorter or longer repayment terms depending on the loan type and lender.
• Cost: Venture debt can be considered a hybrid between equity investment and loans. Lenders factor in the potential upside and offer a lower interest rate upfront. However, the long-term cost may be higher as your equity could be worth a lot more.
• Covenants: Venture debt has financial or operational covenants, as mentioned above whereas a loan has none.
• Stage/sector: Venture debt is often only available to tech startups and depending on the lender, at times further restricted to high-growth sectors or startups that are profitable. For loans, one can almost always find a lender for your company’s stage and sector, so long as you can demonstrate the ability to repay it.

Conclusion

Venture debt can be a powerful tool for startups looking to extend their financial runway without diluting equity. However, its suitability depends on the company’s specific needs, growth stage, and ability to handle repayment. Founders should carefully evaluate their financial position, consult with their existing investors or engage experts to ensure they secure the most favourable terms.

You can also read The Entrepreneur’s Dilemma: Fundraising or Taking a Loan? if you would like to compare VC investment versa taking a loan.

—

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Dear reader,

The long-rumoured Grab-GoTo merger is back in the spotlight, and this time, the deal seems more plausible. Reports suggest Grab is considering an all-share acquisition of GoTo at a valuation exceeding US$7 billion—offering a 20% premium over its pre-rumour market price.

Several factors strengthen the case for a merger. Grab’s stock has surged 45% in the past year, while GoTo’s has stagnated, making an all-share deal attractive. Additionally, some GoTo investors, including SoftBank, may be eager for an exit amid Indonesia’s illiquid market. A merger would also unlock synergies—Maybank estimates annual efficiency gains of up to US$209 million from improved driver utilisation and reduced costs.

Regulatory scrutiny remains a hurdle, as Indonesian authorities have previously raised concerns over monopolistic practices. However, the recent approval of TikTok Shop’s acquisition of Tokopedia suggests flexibility if economic benefits align with national interests. If Grab commits to further investment in Indonesia, regulatory concerns could be mitigated.

If realised, this merger would reshape Southeast Asia’s ride-hailing and food delivery landscape. And at the very least, it might put an end to the recurring “Groundhog Day” of Grab-GoTo deal speculation.

Sainul,
Editor.

NEWS & VIEWS

Grab-GoTo deal buzz returns: why it might be real this time
The deal might value GoTo at more than US$7B | One option being discussed is an all-share purchase, which would value GoTo at over US$0.006 per share, a premium of about 20% over its value before news of the potential deal broke.

Maybank foresees positive synergy from potential Grab-Gojek merger
The merger in the on-demand services will positively impact GoJek’s operations as it will end the marketing war and make capex/opex more efficient |A potential tie-up could result in a near-monopolistic presence in Indonesia with 80-90% market share.

SEEDS Capital and partners to inject US$222M into Singapore’s deeptech startups
This initiative, under the Startup SG Equity scheme, will see SEEDS Capital allocate US$111M over the next three years, with the aim of catalysing an additional US$222M through its private sector partners.

eFishery faces restructuring after fraud allegations
An internal investigation claims eFishery inflated its revenue by approximately US$600M in the first nine months of 2024, representing over 75% of its reported revenue.

Cake Group’s Bake shuts down in Singapore after buyout
This comes after the platform was transferred to new management | Cake Group sold Bake to fintech-focused GSTechnologies Ltd. last month, according to a statement issued by the London Stock Exchange on January 2, 2025.

SoftBank nears US$6.5B deal to acquire chipmaker Ampere
Ampere, which receives backing from Oracle and Carlyle Group, specialises in creating processors for data centres that use Arm’s technology | An announcement about the transaction may occur within the next few weeks.

Sika acquires Singapore’s green roof provider Elmich
The acquisition complements Sika’s roofing portfolio in the region and strengthens its specification business for commercial and residential projects |With this acquisition, Sika is gaining a new platform for growth in the Asia/Pacific region.

MUFG unit buys 49% stake in Carsome
This collaboration aims to improve auto financing solutions in Malaysia, particularly for underserved segments | There will be an emphasis on enhancing risk assessments and credit governance for financial sustainability.

Syfe to acquire Australia’s Selfwealth for US$40M to expand investment offerings
The acquisition will significantly expand Syfe’s Australian footprint by incorporating Selfwealth’s platform, which will continue operating as usual, with enhancements over time, benefiting from the former’s technology and scale.

Blockchain recovery in SEA: US$592M raised in 2024, up 45% from 2023
Singapore led the region in blockchain funding, with startups raising US$483M; Hanoi and Kuala Lumpur followed, raising US$18M and US$12M, respectively.

Digital payments drive Asia’s fintech to US$19T, nearly half of global market
Digital payments and transfers are the primary drivers of growth of fintech, contributing 40%, followed by digital commerce (21%) and digital banking (32.9%).

KMP invests in Swift Bridge to boost Malaysia’s semiconductor, RF industries
The funding will enable Swift Bridge Technologies to acquire advanced testing equipment for developing RF cables exceeding 110GHz, expand its product range to include high-frequency RF cables up to 145GHz and enhance low-frequency cable solutions.

SEA’s tech funding skyrockets in January, shattering previous records
This funding injection marks a remarkable 291% increase compared to December 2024 and an impressive 230.5% rise from January 2024.

Only 26% of Indonesian organisations implement AI: Report
For markets like Indonesia, addressing regulatory uncertainties and workforce development could be key enablers for AI growth | Singapore stands out as a leader, with 57% of large organisations having integrated AI into their operations.

Report: APAC demonstrates stronger cryptocurrency resilience, growth in 2024
Since the market downturn in December 2022, APAC has recorded a 6.4 per cent year-over-year (YoY) supply growth in cryptocurrency.

Nibertex secures funding to boost sustainable textile production
The investors include Foxmont Capital Partners and ADB Ventures | Nibertex eliminates the use of these harmful chemicals, significantly reducing environmental pollution and potential health hazards associated with traditional waterproof textiles.

FEATURES & INTERVIEWS

‘Lack of exit opportunities is a big challenge for SEA’s venture ecosystem’: Kadan Capital’s Rei Murakami
Japan’s capital market is significantly larger and deeper than SEA, providing potential IPO avenues for startups from the region, says the Kadan Capital founding partner.

e27 Startup Milestones: 10 inspiring achievements you need to know this week
We’re thrilled to spotlight ten startups that have recently shared their milestones using this feature.

2025 trends: Tech investment remains a priority for APAC business leaders, but regional disparities persist
APAC business leaders recognise the importance of digital transformation but may face constraints that prevent them from matching US levels.

High costs, space constraints make APAC markets ripe for automation: XSquare CEO
The Asia Pacific warehouse automation market is projected to grow from US$10.76B in 2023 to US$28.02B by 2029, at a CAGR of 17.3%.

FROM THE ARCHIVES

Love yourself and others: A playful guide to self-care in business
Cherish your team members and clients, but don’t forget to express your love through actions, not just words.

AI is not slowing demand for software developers in the Philippines
While AI is often perceived as a threat to human programmers, it is more accurate to view it as a productivity enhancer rather than a replacement.

Breaking barriers: Hidden hurdles faced by women entrepreneurs
By showcasing their skills, expertise, and successes, women entrepreneurs can challenge biases and change perceptions.

A paradigm shift needed: Hiring within the tech startup ecosystem
Embracing transformative change in hiring practices will undoubtedly pave the way for a prosperous future for tech startups.

How to embrace optimal efficiency in the future of work
Hybrid work modernisation is an organisation-wide transformation which seeks all hands on deck to establish new processes.

Empowering women at work: Pre-hiring stage is the key
The greatest push for gender equality at work starts from the very beginning of the funnel: even before the hiring stage.

The best New Year resolutions for startup founders: Offering ESOPs that actually work
I want to share key takeaways for founders who are thinking of designing competitive ESOPs in 2022 in order to attract and retain talent.

Equity, flexibility, recognition: The future of startup compensation in SEA
As startups in Southeast Asia navigate through bear market realities, rethinking compensation is more important than ever.

Bridging the gap: Merging tech expertise and entrepreneurship
As the world adapts to post-pandemic, we are witnessing the boom of two key areas of expertise, namely, tech and entrepreneurship.

Is blockchain the future of medicine in creating more secure healthcare?
Security breaches are so common in the healthcare industry. This is due to the lack of trust between cybersecurity experts and doctors.

Temu takes on Vietnam: The impact on domestic manufacturing and marketing
Explore Temu’s global expansion and its impact on Vietnam, highlighting opportunities and challenges for the local industry.

How to scale up your DTC game with payments
Those looking to grow their business must move fast and embrace new ways of operating, and payments is an integral part of the plan.

Why Singapore’s traditional sectors need a digital makeover
Starting on a digital transformation journey is like starting a good habit, it spills over to other areas and reinforces positive change.

THOUGHT LEADERSHIP

The new norm: Stabilising global risk sentiment in a volatile market
This week’s market trends show stabilisation amid volatility, driven by economic data, policy signals, and geopolitics.

AI productivity boom: SEA’s race to adapt in a rapidly evolving workplace
Future developments show the world is rapidly adapting to AI to tackle challenges, drive innovation, and boost global competitiveness.

Why great entrepreneurs obsess over recruitment and why you should too
If you’re a leader who believes recruitment should be left to a department, it’s time to rethink your role in attracting and nurturing talent.

Navigating the new financial terrain: From geopolitical shifts to crypto volatility
The growing complexity between traditional markets and digital assets demands a nuanced investment approach.

Empathy-first algorithms: The marriage of AI and human psychology in marketing
The future of marketing is about more than timing — it’s about understanding and responding to customers’ emotions with genuine empathy.

How electric luxury cars are reshaping the industry
In the future, I think the luxury automotive industry will keep changing as people’s needs and technology grow.

The post Ecosystem Roundup: Is Grab-GoTo merger imminent? | SEEDS Capital to inject US$222M into SG’s deeptech startups | eFishery faces restructuring appeared first on e27.

Indonesia is planning to launch an MSME Holding within the next five years to create a stronger connection between small businesses and large industries.

This initiative, originally proposed by MSME Minister Maman Abdurrahman, will be based on an inclusive cluster business model similar to those used in Germany and China.

Also Read: Leveling the playing field: Oracle NetSuite on AI’s role for SMEs

The “Mittelstand” model in Germany connects small and medium-sized enterprises (SMEs) with large corporations, where SMEs supply components and services. In China, industrial clusters also operate with small businesses working within larger ecosystems, often with support from the state or corporations. These clusters provide SMEs with resources, infrastructure, and access to broader markets.

The Indonesian MSME Holding aims to group MSMEs into clusters across various sectors, such as culinary, services, and education. Medium-sized enterprises will play an important role in bringing together smaller businesses to increase market influence. This will help the MSMEs produce goods in larger quantities and at competitive prices and reduce production costs.

The ministry has already identified ten priority MSME clusters for this initiative. Four clusters are being explored in Malang, East Java, with sectors like sports and tourism being focused on.

For example, the Wendit Recreational Park has the potential to integrate up to 150 MSMEs, allowing these businesses to supply goods and services to the tourism sector.

The success of MSME Holding will also rely on the support of state-owned banks and credit schemes such as Kredit Usaha Rakyat (KUR). The ministry plans to develop 2-3 clusters by 2025 as a model for the broader initiative, with the goal of creating a self-sustaining ecosystem that enables MSMEs to be more competitive in both local and international markets.

Also Read: Tech SMEs play key role in fuelling Asia’s digital economy boom

Currently, MSMEs’ engagement with large industries is mostly limited to corporate social responsibility, missing out on opportunities for greater collaboration.

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Key highlights:

• Non-farm payroll data could influence interest rate decisions, impacting market sentiment
• The yen hits a high after BOJ signals potential rate hikes, affecting global currency markets
• Brent crude remains volatile amid US-China trade tensions and Trump’s energy policies
• More traders engage with digital assets, while regulatory efforts aim for clarity
• Investors hedge risks through defensive stocks, gold, and treasuries amid uncertainty

7 February 2025 marks a pivotal moment for global markets as investors grapple with a confluence of critical economic indicators, shifting currency dynamics, and transformative developments in the cryptocurrency space. Wall Street traders are on edge, awaiting the release of US non-farm payroll data that could illuminate the Federal Reserve’s next move on interest rates, while the Japanese yen surges to its highest level since early December, buoyed by hawkish comments from a Bank of Japan official.

Meanwhile, Amazon’s disappointing profit projections send ripples through after-hours trading, and the cryptocurrency market sees increased institutional engagement alongside significant regulatory milestones. As a journalist deeply attuned to the pulse of global finance, I believe this week underscores the intricate balance between risk and opportunity, with profound implications for investors, policymakers, and the broader economy.

Let’s begin with the US jobs data, which has become the focal point for Wall Street traders. The non-farm payroll report is more than just a snapshot of employment trends; it is a critical barometer for the Federal Reserve’s monetary policy trajectory. A weak print could reignite expectations for further interest rate cuts, providing a much-needed boost to risk assets and potentially alleviating some of the pressure on equity markets.

Conversely, a stronger-than-expected report might temper hopes for additional easing, reinforcing the Fed’s cautious stance on inflation. The stakes are high, particularly as Wall Street also anticipates a revision to previous job growth figures—a development that could further complicate the Fed’s decision-making process.

The interplay between these data points highlights the fragility of the current economic recovery, with markets hanging on every decimal point. From my perspective, the Fed faces an unenviable task: balancing the need to support growth while guarding against inflationary pressures. A misstep here could have profound consequences, not just for the US economy but for global financial stability.

Also Read: The new norm: Stabilising global risk sentiment in a volatile market

Beyond the jobs data, the broader US market landscape offers mixed signals. The MSCI US index edged higher by 0.4 per cent, with the Consumer Staples sector outperforming at 0.9 per cent. This resilience in defensive sectors suggests that investors are hedging their bets, seeking safety amid uncertainty.

At the same time, US Treasury yields ticked upward, with the 10-year yield rising by 1.6 basis points to 4.43 per cent and the 2-year yield climbing by 2.5 basis points to 4.21 per cent. These modest increases reflect a market grappling with the potential for higher interest rates, even as the US Dollar Index consolidated its recent losses with a slight 0.1 per cent uptick.

Gold, often seen as a safe-haven asset, saw its upward momentum persist, albeit with a slight 0.4 per cent pullback, as it continued its march toward the US$2,900 per ounce mark. These movements paint a picture of a market in flux, with investors seeking refuge in traditional safe havens while cautiously navigating the shifting sands of monetary policy.

On the global stage, the Japanese yen’s appreciation to its highest level since early December is a development worth noting. The currency’s gains were spurred by comments from Bank of Japan (BOJ) board member Naoki Tamura, who made a compelling case for higher interest rates. This hawkish stance contrasts sharply with the BOJ’s historically dovish policies, signaling a potential shift in Japan’s monetary strategy. The yen’s strength is a double-edged sword: while it bolsters the purchasing power of Japanese consumers and importers, it poses challenges for exporters and could dampen economic growth.

From my vantage point, Tamura’s comments are a bold move, reflecting the BOJ’s growing confidence in Japan’s economic recovery. However, the central bank must tread carefully, as premature rate hikes could undermine the fragile progress made in combating deflation. The yen’s appreciation also has broader implications for global currency markets, potentially influencing the relative strength of the US dollar and other major currencies.

Shifting gears to the commodity markets, Brent crude oil hovered just below US$75 per barrel, weighed down by concerns over President Trump’s proposed tariffs on China. These tariffs, if implemented, could reduce global crude demand, particularly from one of the world’s largest oil consumers. At the same time, Trump’s pledge to boost US oil output adds another layer of complexity, potentially offsetting the impact of sanctions on Iran. This delicate balance between supply and demand dynamics underscores the geopolitical risks embedded in the oil market.

As a journalist, I find it striking how political decisions in one corner of the world can ripple through global commodity markets, affecting everything from energy prices to inflation expectations. The mixed performance of Asian equities and the flat outlook for US equity index futures further highlight the uncertainty permeating global markets, as investors grapple with these intersecting forces.

Turning to the cryptocurrency space, this week brought several notable developments that reflect the sector’s growing maturity. JP Morgan’s latest eTrading survey revealed a significant uptick in institutional engagement with cryptocurrencies, with 13 per cent of the 4,200 surveyed institutional traders actively trading digital assets, up from nine per cent in 2024.

This increase aligns with the launch of US Bitcoin ETFs in January 2024 and the remarkable 120 per cent surge in Bitcoin prices over the course of the year. The contrast with 2023, a period marked by the fallout from the FTX collapse, is stark. The recovery and subsequent growth in 2024 underscore the resilience of the crypto market and its ability to attract institutional capital.

However, it’s worth noting that 71 per cent of surveyed traders still have no plans to trade cryptocurrencies, down from 78 per cent the previous year. This cautious stance suggests that while the crypto market is gaining traction, significant barriers to adoption remain, including regulatory uncertainty and concerns about volatility.

Also Read: What startup should I start based on market trends in 2025?

The survey also highlighted the relative importance of various technologies, with artificial intelligence extending its dominance, followed by APIs. Blockchain, while still a distant third at six per cent (down from seven per cent last year), remains a critical technology for the crypto ecosystem. The decline in blockchain’s perceived importance is intriguing, particularly in light of the SEC’s recent launch of a Crypto Task Force website aimed at clarifying regulations for digital assets.

This initiative, which focuses on token classification and compliance, is a step in the right direction, providing much-needed guidance for market participants. Similarly, Franklin Templeton’s bid to launch a new crypto index ETF signals growing institutional interest in diversified crypto exposure. These developments are emblematic of the broader trend toward mainstream acceptance of digital assets, even as challenges persist.

In my view, the cryptocurrency market is at a pivotal moment. The increased institutional engagement and regulatory clarity are positive signs, but the sector must continue to address concerns about transparency, security, and systemic risk. The lessons of the FTX collapse and other high-profile failures must not be forgotten.

As the crypto ecosystem evolves, it will be crucial for regulators and industry players to work collaboratively to build a framework that fosters innovation while protecting investors. The golden age of crypto, as some have dubbed it, is within reach, but it will require careful navigation of the complex interplay between technology, regulation, and market dynamics.

To conclude, this week’s developments paint a picture of a global financial landscape marked by uncertainty and opportunity. From the anticipation surrounding US jobs data to the yen’s resurgence and the evolving dynamics in the cryptocurrency space, the forces shaping markets are multifaceted and interconnected.

As a journalist, I remain cautiously optimistic about the future, but I am mindful of the risks that lie ahead. The path forward will require vigilance, adaptability, and a commitment to balancing innovation with stability. The global economy stands at a critical juncture, and the decisions made in the coming months will reverberate for years to come.

—

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Join us on Instagram, Facebook, X, and LinkedIn to stay connected.

Image courtesy of the author.

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A potential merger between Southeast Asia’s ride-hailing giants Grab and Gojek is once again making headlines, with reports suggesting the Indonesian player could be valued at over US$7 billion.

While discussions of such a deal have emerged multiple times over the years, recent developments indicate a stronger possibility of the merger materialising.

A Bloomberg report suggests that an all-share transaction is being explored, potentially offering GoTo shareholders a 20 per cent premium over the pre-announcement share price. Grab’s strong stock market performance, with a 45 per cent increase in share value over the past year, enhances the feasibility of such a transaction.

In contrast, GoTo’s stock has stagnated, making the prospect of exchanging illiquid shares for Nasdaq-listed Grab stock an attractive option for investors.

Many of GoTo’s institutional investors, including SoftBank, are approaching the typical lifecycle end of their funds. These investors are under pressure to generate returns, and the illiquidity of the Indonesia Stock Exchange complicates their ability to exit. A merger with Grab would provide a more straightforward exit strategy.

Also Read: Grab’s new programme aims to bring more women drivers on board

Maybank Investment Bank sees significant synergies from the potential merger, estimating annual cost savings and efficiency gains of between US$106 million and US$209 million by 2027. Improved driver utilisation, reduced incentives, and streamlined operations could contribute to an EBITDA margin increase for the combined entity.

Moreover, Grab’s dominance in food delivery and ride-hailing across ASEAN would be further cemented, while GoTo would secure a more stable position in Indonesia.

Despite financial and strategic incentives, regulatory challenges remain a key roadblock. The Indonesian Competition Commission has previously expressed concerns over monopolistic practices that could arise from the merger.

In response, Maybank suggests that regulatory scrutiny could be mitigated through structural adjustments, such as Gojek potentially exiting Singapore to reduce market concentration.

Indonesia’s political landscape could also influence the outcome. With President Prabowo Subianto prioritising foreign investment, a commitment from Grab to increase its investment in Indonesia may help ease regulatory concerns. However, past opposition from driver unions and the broader implications for market competition remain factors to watch.

If the deal proceeds, it would mark a significant milestone in Southeast Asia’s tech landscape. While regulatory barriers exist, financial pressures on GoTo’s investors and the potential for operational synergies suggest that, this time, the merger may have a better chance of crossing the finish line.

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In the dynamic landscape of the Asia Pacific region, where high labour costs and space constraints pose significant operational hurdles, a Singapore-based tech startup, XSQUARE Technologies, is emerging as a key player in warehouse automation.

Founded in 2019, XSQUARE seeks to revolutionise the industry with innovative solutions designed to enhance productivity and optimise space utilisation. CEO Jens Bohnwagner recently shared insights into the company’s journey, technological advancements, and vision for the future of warehousing in the region.

Also Read: XSQUARE lands US$7.8M in Series A financing

XSQUARE’s mission is to tackle inefficiencies in warehouse operations by introducing advanced automation solutions that seamlessly integrate with existing systems. Bohnwagner explained that recurring labour shortages and the need to automate complex operations in both brownfield and greenfield environments drove the company’s inception.

From its beginnings as a startup focused on autonomous forklifts, the startup has evolved into a leading provider of integrated warehouse automation solutions.

“During the early days, overcoming initial client hesitation about adopting new automation technologies and managing the capital expenditure involved were significant challenges,” he tells e27. “However, XSQUARE built credibility by focusing on understanding customer needs and steadily improving its solutions, becoming a reliable name in the industry.”

Key milestones in XSQUARE’S journey include the launch of its flagship range of Autonomous Forklifts. These forklifts meet stringent safety and hygiene standards across various industries, featuring gas detectors for hazardous environments. In the food sector, they can autonomously manage steel barrels, transporting them to and from dispensing stations.

Equipped with high-precision navigation, these forklifts operate in tight spaces, coordinate multiple units, and lift goods up to 17 meters, optimising space and minimising bottlenecks.

“Another significant achievement is the development of Xymphony, our proprietary Warehouse Orchestrator System,” he adds. “This central intelligence system enables real-time material flow orchestration, seamlessly integrating with autonomous forklifts and third-party systems like shutter doors, conveyor systems, and Automated Storage and Retrieval Systems (ASRS). This comprehensive integration enhances visibility and control, enabling businesses to optimise operations efficiently. Xymphony leverages data analytics and intelligent algorithms for real-time workflow optimisation.”

The Asia Pacific market presents substantial opportunities for warehouse automation. According to Mordor Intelligence, the Asia Pacific warehouse automation market is projected to grow from US$14.8 billion in 2025 to US$32.87 billion by 2035.

Bohnwagner also highlighted the rapid growth of e-commerce in Southeast Asia, which is expected to reach a gross merchandise value of US$230 billion by 2026, driving the demand for efficient supply chain operations. These factors make the region “ripe for automation solutions that maximise productivity and optimise space utilisation”.

According to him, XSQUARE’s solutions are designed for flexibility and scalability, meeting the specific needs of diverse industries, including manufacturing, retail, and logistics. “By avoiding one-size-fits-all approaches and prioritising customer-centric innovation, XSQUARE remains adaptable in deploying its advanced capabilities, including high-lifting solutions like Reach Trucks and Very Narrow Aisle (VNA) trucks, as well as autonomous container stuffing and unstuffing.”

XSQUARE’s adaptability as a startup allows them to tailor solutions for complex workflows and challenging environments. Its cost-effective robotics-as-a-service (RaaS) model enhances accessibility by eliminating the need for significant upfront investment.

Integrating legacy systems in existing warehouses is a key challenge that XSQUARE addresses by leveraging Xymphony’s integration capabilities. This ensures that their solutions work alongside existing machinery. XSQUARE’s key advantage over competitors is its ability to offer flexible, scalable solutions, adapting to unique customer needs, as well as its strong post-deployment support, continuous improvement, and cost-effective RaaS model.

Looking ahead, Bohnwagner anticipates key trends in intralogistics and warehouse automation, including increased demand for high-density storage solutions, seamless integration of autonomous systems into legacy workflows, and flexible automation models like RaaS.

Also Read: Revolutionising warehousing: An in-depth conversation with XSQUARE

“XSQUARE stays ahead of the curve by prioritising R&D, fostering partnerships with technology leaders, and staying in touch with customers for feedback,” he shares.

Last May, the automation startup raised US$7.8 million in Series A funding, led by Wavemaker Partners and with participation from SEEDS Capital and Goldbell Corporation.

XSQUARE’s growth strategy includes strengthening partnerships, increasing production capacity, and exploring new markets in Australia, Hong Kong, South Korea, Japan, Vietnam, Malaysia, and the Middle East. They also plan to improve services for existing customers by establishing regional hubs and collaborating with local distributors. The goal is to become a global leader in intelligent warehousing by expanding reach and service levels across Asia Pacific and worldwide.

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Key highlights:

February 6, 2025: We’ve recently witnessed a stabilisation of risk sentiment following a tumultuous week marked by volatile price action. Despite the tech sector’s underwhelming earnings, the MSCI US index managed to eke out a modest gain of 0.4 per cent, buoyed by a broader rally across other sectors. This resilience in the face of disappointing tech earnings speaks volumes about the current market dynamics, where diversification across sectors seems to be paying dividends.

The week’s economic data provided a mixed bag of signals. The US ISM services data, which fell unexpectedly to 52.8 against a consensus forecast of 54.1, sent ripples through the financial markets. This decline in service sector activity led to a significant drop in US Treasury (UST) yields, with the 2-year yield softening by three basis points to 4.19 per cent and the 10-year yield dropping eight basis points to 4.42 per cent.

This adjustment in yields reflects a cautious optimism among investors, perhaps taking some comfort in the narrowing of the 10s2s yield curve, which tightened by another 6 basis points to 23 basis points. This movement in the yield curve suggests that while the market anticipates no immediate rate hikes, the long-term outlook might be less hawkish than previously thought.

Amidst this backdrop, the voices from the Federal Reserve, including Jefferson, Barkin, and Goolsbee, maintained a steady drumbeat of “no rush on rate cuts,” although Goolsbee struck a surprisingly hawkish tone, cautioning about inflation risks stemming from potential tariffs.

This nuanced shift in narrative was further complicated by comments from Treasury Secretary Scott Bessent, who indicated that the Trump administration’s focus on reducing borrowing costs would target the 10-year Treasury yields rather than the Fed’s short-term rates. This policy direction could have profound implications for long-term investment strategies and the broader economic landscape.

The US Dollar Index, reflecting these shifts in economic policy and investor sentiment, fell by 0.4 per cent, reaching its lowest point in over a week. This decline was partly due to receding fears of a global trade war, which also influenced currency pairs like USD/JPY, dropping from 154.50 to 152.50 after Japan reported stronger-than-expected wage growth, sparking speculation of another Bank of Japan rate hike.

Gold, often seen as a safe-haven asset, continued its bull run, climbing to a new high of US$2,865 per ounce. This surge was fuelled not only by the general risk-off sentiment but also by fears that higher tariffs might extend to precious metals and commodities imports from the UK and the European Union.

Conversely, Brent crude oil prices fell by 2.1 per cent after an EIA report highlighted an increase in crude oil inventories, adding to the overhang of geopolitical risks in the oil market.

Looking at the equity front, Asian markets took their cues from Wall Street, opening higher, while US equity futures suggested a positive start for American stocks, indicating a potential continuation of the stabilisation trend.

The week wasn’t just about traditional markets; significant strides were made in the digital asset space. White House Crypto Czar David Sacks announced that the first priority for the administration would be stablecoin legislation. This move comes at a time when stablecoins, despite their popularity mainly overseas, have yet to find a clear regulatory path in the US The establishment of a Crypto Task Force, with SEC Commissioner Hester Peirce at the helm, aims to carve out a regulatory framework that balances innovation with investor protection.

The task force’s agenda is ambitious but necessary. It seeks to eliminate the regulatory ambiguity that has long plagued the crypto industry, where businesses operate under the shadow of potential legal repercussions without clear guidelines. Commissioner Peirce emphasised in her statement that the SEC’s initiative isn’t an endorsement of any crypto asset but rather an effort to provide a regulatory environment that makes sense for crypto while safeguarding investors from fraudulent schemes. The focus on stablecoins is particularly pertinent, given their role in providing liquidity and stability within the volatile crypto market.

This regulatory push could potentially be legislated within six months, according to Sacks, which is a bold timeline considering the complexities involved. Yet, it signals a significant shift towards integrating cryptocurrencies into the mainstream financial system, recognising their potential while addressing the inherent risks.

In conclusion, this week’s market movements reflect a broader narrative of stabilisation amidst volatility, driven by economic data, policy signals, and geopolitical developments. The focus on stablecoin regulation could be a game-changer for the crypto market, potentially fostering an environment where digital assets can thrive under a clearer legal framework.

However, the journey towards such stability in both traditional and digital markets is fraught with challenges, requiring a delicate balance between fostering innovation and ensuring economic and financial integrity. As we move forward, the interplay between market sentiment, regulatory actions, and global economic policies will continue to shape our financial landscape in unpredictable but potentially rewarding ways.

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Artificial intelligence (AI) adoption continues to grow globally, but a new report from Hitachi Vantara reveals that organisations face significant challenges in managing data infrastructure effectively.

The 2024 global study, based on insights from 1,200 IT decision-makers across 15 countries, highlights concerns about data quality, security, sustainability, and the complexities of hybrid environments. While IT leaders acknowledge the importance of high-quality data in driving AI success, many are failing to prioritise it in practice.

The report indicates that AI adoption varies significantly across regions. Singapore stands out as a leader, with 57 per cent of large organisations having integrated the tech into their operations. This high adoption rate suggests that Singaporean businesses are better positioned to leverage their data for AI-driven insights and automation.

By contrast, Indonesia exhibits much slower adoption, with only 26 per cent of large organisations having implemented AI solutions.

Other markets with comparatively low adoption rates include the US (32 per cent), the UK (27 per cent), and Brazil (27 per cent).

The disparity between Singapore and Indonesia suggests that readiness depends on various factors, including regulatory clarity, available resources, and organisational priorities.

Also Read: Report: APAC demonstrates stronger cryptocurrency resilience, growth in 2024

Barriers to AI adoption

The report does not pinpoint a single reason for Indonesia’s slow AI adoption but provides valuable context.

A lack of clear regulatory guidance on AI has led many IT leaders to deprioritise sustainable AI practices. More than a third (34 per cent) of respondents cited the absence of industry standards as a significant barrier to implementing responsible AI initiatives. Limited resources also play a crucial role in slowing adoption.

Key concerns for IT leaders include:

Data quality (37 per cent)
Inconsistent or incomplete data undermines AI model performance.

Skilled workforce (31 per cent)
A shortage of AI and data science talent hinders progress.

Data storage (31 per cent)
Organisations struggle to manage vast amounts of AI-generated data.

Processing power (28 per cent)
Computing constraints limit scalability.

Additionally, speed and cost are prioritised over return on investment (ROI) as organisations focus on iterating AI implementations quickly. This cautious approach may further contribute to slower adoption rates in some regions.

Also Read: The new norm: Stabilising global risk sentiment in a volatile market

In Malaysia, processing power emerges as a key concern. Nearly half (43 per cent) of IT leaders in Malaysia emphasise the need for optimised software and applications that can run efficiently on existing infrastructure.

The path forward

As AI adoption accelerates, businesses must address foundational challenges to maximise its benefits.

The Hitachi Vantara report underscores the importance of prioritising data quality, ensuring regulatory clarity, and investing in infrastructure improvements. By doing so, organisations can build a more resilient ecosystem that is both scalable and sustainable.

For markets like Indonesia, where adoption lags, addressing regulatory uncertainties and workforce development could be key enablers for AI growth.

Meanwhile, in leading markets like Singapore, the focus may shift towards optimising applications and enhancing data governance practices.

As businesses worldwide navigate the evolving AI landscape, the ability to manage data infrastructure effectively will remain a decisive factor in long-term success.

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Image Credit: True Agency on Unsplash

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