The development of smarter algorithms and higher processing power to drive deeper artificial intelligence (AI) adoption must be accompanied by efforts to capture, analyse, and optimise data more efficiently. Cities that position themselves as testbeds for innovation are experimenting with ways to combine infrastructure, policy, and talent to make this possible.

Dubai is one example. Its pragmatic approach to business has attracted interest from Singapore for years, with Singapore ranking among the top 10 sources of foreign direct investment (FDI) into the city. According to the Dubai FDI Results & Rankings – Highlights Report 2024, 22 per cent of all project announcements from Singapore fall in the software and IT services segment.

This dovetails with the trajectory of Southeast Asia’s tech start-up ecosystem, which reached a combined market valuation of US$454 billion in H1 2024, according to the Destination Southeast Asia Report 2024 published by Founders Forum Group in partnership with EDB Singapore.

The report underscores the growing potential for Southeast Asian enterprises to expand their footprint globally, including into Middle Eastern markets. Dubai’s role as a growing technology hub highlights one pathway for such collaborations, particularly in AI, smart cities, and fintech.

Shared ambition and vision

For mature and late-stage Southeast Asian startups exploring international expansion, Dubai offers a case study in how supportive ecosystems are structured.

The city combines legislation designed to streamline business operations with infrastructure and amenities that support socioeconomic development. Its geographic position at the crossroads of Europe, Asia, and Africa strengthens this appeal by connecting global experts who are focused on improving data curation, accessibility, and application.

Policy instruments such as long-term visas, including Golden and Remote Working Visas, illustrate how talent mobility is being addressed, while strategies such as the Dubai Economic Agenda ‘D33’ and UAE Digital Economy Strategy frame the city’s broader innovation goals. Together, these measures highlight the role of policy frameworks in creating environments conducive to research, development, and international collaboration.

Also Read: B Capital General Partner Yanda Erlich on the red flags he notices when investing in AI space

An evolving ecosystem

Over the past 25 years, Dubai Internet City has become a focal point for this shift. It has served as a base for global firms as well as start-ups and scale-ups, and today hosts more than 4,000 companies and 31,000 professionals, along with innovation and R&D centres. Singaporean companies such as Wego, an online travel marketplace, are among those that have established a presence there.

The district’s initiatives — including mentorship programmes, co-working spaces, incubators like in5 Tech, and flexible platforms such as D/Quarters — offer a glimpse into how ecosystems can be structured to support entrepreneurs. According to publicly available figures, companies within Dubai Internet City’s ecosystem have collectively raised around AED 8 billion in investment to date.

Looking ahead

These developments connect with broader regional conversations. At events such as the debut edition of GITEX Asia in Singapore in April, the emphasis on fostering talent and data-driven innovation resonated with Southeast Asia’s own ambitions. Both Singapore and Dubai are prioritising ecosystems that enable experimentation, scaling, and cross-border collaboration.

Efficient data management will be central to accelerating AI adoption. As Southeast Asian start-ups look to new markets, examining how ecosystems such as Dubai’s are structured provides lessons on what it takes to integrate infrastructure, policy, and global talent into meaningful innovation pathways.

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Artificial Intelligence is reshaping industries across the world. For small and medium enterprises in South Asia, the question is no longer whether AI will matter but how it will transform the way these businesses operate.

SMEs in India and Sri Lanka stand at an important juncture. They face challenges of limited budgets, lean teams, and rising competition. Yet they also hold the potential to become more agile and competitive by adopting AI in ways that are practical, affordable, and aligned with local realities.

Why AI matters for SMEs

SMEs are the backbone of South Asia’s economies. India is home to more than 73 million micro, small and medium enterprises (MSMEs) that contribute nearly a third of its GDP. In Sri Lanka, an estimated 1.3 million MSMEs are active, representing more than 75 per cent of all businesses. They account for around 45 per cent of employment and contribute 52 per cent to GDP. These enterprises are the backbone of the economy, supporting employment, innovation, and regional development.

Despite this importance, SMEs in Sri Lanka and India often operate with structural bottlenecks in finance, operations, and market access. Many, particularly in Sri Lanka, function informally, which limits access to credit and technology. AI presents an opportunity to change this landscape by offering a set of adaptable tools that address these constraints directly.

The most important shift is accessibility. In the past, advanced technologies required heavy investments and were available only to large corporations. Today, cloud platforms, no-code applications, and software-as-a-service make AI affordable even for smaller firms.

The future of AI for SMEs will not rely on building expensive in-house systems. Instead, it will depend on adopting lightweight, cost-effective solutions that solve specific business problems.

Where AI will shape the future of SMEs

• Customer engagement and sales

In the coming years, AI-driven personalisation will be essential. A retailer in Colombo could recommend products based on past purchases, while a travel agency in Chennai could create tailored itineraries through an AI assistant. Vernacular AI will grow in importance, given South Asia’s vast linguistic diversity.

Systems that understand Sinhala, Tamil, Hindi, or Bengali will enable businesses to connect with customers more effectively. Predictive analytics will also help businesses forecast demand, reduce stock imbalances, and capture sales opportunities.

• Financial management and access to credit

Cash flow is one of the toughest challenges for SMEs. AI will help by predicting payment delays, assisting with working capital planning, and automating bookkeeping. Another important use is AI-driven credit scoring.

Many SMEs, particularly those in informal sectors, lack long credit histories. AI can help financial institutions evaluate them more accurately, enabling faster and fairer access to loans. In the future, SME owners will rely on real-time dashboards that replace guesswork with data-driven insights.

Also Read: Ecosystem Roundup: Asia’s climate-health crisis deepens as funding lags | SEA tech VC hits US$1.4B | Qapita raises US$26.5M Series B

• AI for fintech in the region

Fintech is emerging as one of the most powerful enablers of SME growth in South Asia. AI is at the core of this transformation.

AI-driven credit risk models allow lenders to extend financing to small businesses that were previously excluded due to lack of formal credit history. By analysing transaction data, utility payments, and digital footprints, AI expands access to working capital.

AI-powered fraud detection systems are also strengthening trust in digital payments. With the rapid rise of mobile wallets and online transactions in both India and Sri Lanka, SMEs can now adopt digital payment platforms with greater confidence.

Customer-facing AI chatbots in fintech apps are improving financial literacy by explaining loan terms, repayment schedules, and investment options in local languages. This democratises access to financial services and builds trust among first-time users.

For SMEs, the fusion of fintech and AI will reduce dependency on informal lenders, lower transaction risks, and provide the tools to integrate into formal financial ecosystems. Over time, this will boost both resilience and competitiveness.

• Operations and supply chains

Volatility in supply chains has become a constant reality. AI can support SMEs by anticipating disruptions, forecasting material needs, and identifying alternative suppliers. Route optimisation will lower logistics costs, while computer vision will improve quality control in production.

For Sri Lankan apparel exporters or Indian auto-component suppliers, these capabilities will be critical for maintaining competitiveness in international markets.

• Talent and workforce productivity

AI will not eliminate SME jobs but will reshape the way employees work. Routine tasks such as data entry, invoice processing, and report drafting will be automated. This will free employees to focus on relationship management, product design, and strategy. SMEs that invest in up-skilling will be better positioned to attract and retain talent. In the future, even small teams will achieve the efficiency of much larger organisations.

• Sustainability and ESG compliance

Sustainability is moving from optional to mandatory in global trade. AI will help SMEs track energy use, improve waste management, and generate automated sustainability reports. This will simplify compliance for export-oriented SMEs and open new opportunities with global buyers who demand responsible sourcing.

Challenges SMEs must overcome

The opportunities are significant, but the path forward is not without obstacles.

• The first challenge is data readiness. Most SMEs lack clean and structured data, which limits the effectiveness of AI tools. Data collection and standardisation will be the foundation of successful adoption.
• The second challenge is cultural resistance. Many business owners rely on instincts built over decades. Building trust in AI will require patience and small, visible successes.
• The third challenge is infrastructure. In rural areas, poor connectivity and unstable power supply make cloud-based AI tools difficult to use. Offline-first designs will be necessary.
• The fourth challenge is cost. Even as AI becomes more affordable, SMEs will hesitate unless the return on investment is clear. Flexible pricing models such as pay-per-use AI will be crucial.
• The fifth challenge is the skills gap. Many SME employees have little exposure to AI systems. Up-skilling programs delivered through industry associations, government initiatives, and training providers will be vital.

Also Read: AI for SMEs in Southeast Asia: From everyday experiments to emerging frontiers

The role of policy and ecosystem support

For SMEs to benefit fully, supportive policies and ecosystems are essential. India’s National AI Mission emphasises inclusion and SME-focused applications, while Sri Lanka has introduced programs promoting smart manufacturing. Both countries recognise that SMEs must be AI-ready to remain globally competitive.

In Sri Lanka, the SME sector has struggled in the context of recent economic challenges. Surviving amidst a financial crisis has made resilience a priority. Policymakers are now considering future directions that combine access to finance, digitalisation, and AI adoption to strengthen the sector.

Industry associations, chambers of commerce, and accelerators will also be critical. Their role is to demystify AI, offer training, and encourage pilot projects that allow SMEs to adopt AI at a manageable scale.

A practical path for SME leaders

For SME leaders in South Asia, the path forward is best taken step by step.

The first step is to identify a clear business problem. This could be customer service delays, cash flow challenges, or high defect rates in production.

The second step is to test affordable AI tools that address that specific issue. A chatbot, a predictive sales dashboard, or an automated invoicing system can provide immediate value.

The third step is to iterate and scale. If the pilot succeeds, resources can be directed toward expanding AI use. If it does not, lessons can be applied to the next experiment. Flexibility is the greatest advantage that SMEs hold over larger competitors.

Also Read: Balancing growth and security: How AI is transforming business and cyber threats

A vision for 2030

By 2030, AI will be deeply embedded in the daily operations of SMEs across South Asia. Local retailers will use voice assistants in regional languages to serve customers. Exporters will employ AI-powered quality checks to meet international standards. Farmers’ cooperatives will benefit from AI-driven climate forecasts to protect yields.

Professional firms will deliver services faster and more efficiently with AI copilots. Fintech platforms will integrate seamlessly with AI systems to offer SMEs tailored credit, secure payments, and real-time financial insights.

This transformation will not involve SMEs imitating large corporations. It will involve SMEs using AI to compete on their own terms, staying lean, responsive, and resilient.

Conclusion

The future of AI for SMEs in South Asia is not about dramatic overnight change. It is about small, focused applications that address everyday challenges. AI will steadily improve customer interactions, enhance financial access, lower costs, and unlock new avenues for growth.

For SMEs willing to experiment, the next decade presents extraordinary opportunities. The lesson is clear. Do not wait for the perfect solution. Start with one problem, adopt a practical tool, and learn from the experience. In this way, AI will become not just a trend but an everyday partner in the success of South Asia’s SMEs.

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Verta Bioenergy, a Singapore-headquartered climate-tech startup, has closed SGD 1.1 million (US$845,000) in seed funding from investors, including ENGIE Factory, Wright Partners, AlphaGen VC, and Auravia Capital.

Jun Umali from the Manila Angel Investors Network (MAIN) also participated.

The fresh capital will fuel the launch of Verta’s first commercial-scale manufacturing plant.

Also Read: EcoSfera helps turn your household waste into energy in the comfort of your home

Per a press statement, the funding injection arrives just one year after the company’s inception, during which Verta claims it has secured more than US$10 million in Letters of Intent (LOIs) with multinational corporations.

Co-created with ENGIE Factory, Wright Partners, and Ming Labs, Verta Bioenergy was incubated under the Singapore Economic Development Board’s (EDB) Corporate Venture Launchpad (CVL) programme.

The startup focuses on transforming agricultural waste into high-quality biomass pellets that are positioned as a cost-competitive, drop-in replacement for industrial coal usage.

With current operations established in the Philippines and plans for broader expansion across Southeast Asia, Verta Bioenergy is preparing to launch a commercial-scale manufacturing plant with an initial production capacity of 12,000 tonnes per year. The company is also developing a solar-powered dryer to enhance the overall sustainability of its process.

Verta’s leadership is bullish on its immediate financial outlook, expecting to achieve positive cash flow within the next 12 months.

Also Read: Turning trash into treasure: How Blue Planet tackles Southeast Asia’s waste crisis

Jeremy Tan, CEO of Verta Bioenergy, confirmed the strategic direction the funding will enable: “Our mission is clear: to replace coal with a cheaper, cleaner, drop-in alternative.” He added: “With the support of ENGIE Factory and our investors, we’re on track to achieve commercial-scale production and expect to generate positive cash flow within the next 12 months.”

 

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A noticeable step back yesterday after President Donald Trump floated the idea of halting trade in cooking oil with China. This comment stirred up new uncertainties in the already fragile ties between the two economic giants, reminding everyone how quickly trade disputes can escalate and ripple through markets. Investors reacted by pulling back from riskier assets, seeking shelter in safer havens.

At the same time, Federal Reserve Chair Jerome Powell offered some stability with his remarks. He noted that the economic picture looked much the same as it did during the September meeting, and he hinted strongly at another quarter-point cut in interest rates coming up later this month. These words from Powell helped temper some of the anxiety, as markets priced in the likelihood of easier monetary policy to support growth amid these tensions.

US stocks wrapped up Tuesday with mixed results, reflecting the push and pull between trade worries and Fed expectations. The Dow Jones Industrial Average climbed 0.44 per cent, showing resilience in some blue-chip names, while the S&P 500 slipped 0.16 per cent, and the Nasdaq dropped a steeper 0.76 per cent.

Tech-heavy indexes felt the brunt of the caution, as investors worried about how trade frictions might hit supply chains and corporate earnings. Bond markets told a similar story of caution. Treasury yields declined as people flocked to government debt for safety. The 10-year yield dropped three basis points to 4.02 per cent, and the two-year yield fell five basis points to 3.47 per cent. This movement underscores how quickly sentiment can shift toward defence when geopolitical headlines dominate.

The dollar weakened a bit in response, with the US Dollar Index down 0.22 per cent to 99.04. Gold, on the other hand, gained 0.4 per cent to reach 4126.47 dollars per ounce. This uptick in gold prices makes sense given the dual drivers of an anticipated Fed rate cut and the safe-haven appeal amid trade and geopolitical strains.

Oil markets faced their own pressures. Brent crude settled 1.47 per cent lower at 62.39 dollars per barrel, influenced by the International Energy Agency’s warning about a massive supply glut looming in 2026. That kind of forecast weighs heavily on energy prices, as it signals potential oversupply that could keep lids on any rebounds.

Also Read: From Tokyo to crypto: How political shifts and policy bets are reshaping global markets

Asian stocks mostly ended lower on Tuesday, mirroring the global unease, but they perked up in early trading today. Optimism around the possible Fed rate cut boosted moods, leading to gains that suggest some recovery in sentiment. US equity futures pointed to a higher open stateside, which could carry over if the positive vibes hold. From my perspective, this back-and-forth highlights the market’s sensitivity to policy signals right now.

Trump’s offhand remark about the cooking oil trade might seem niche, but it taps into broader fears of escalating tariffs or restrictions that could disrupt global supply chains. Powell’s steady hand provides a counterbalance, and I see the Fed’s path as a stabilising force, potentially cushioning against worse outcomes if trade talks sour further. The mixed stock closes remind us that not all sectors benefit equally from lower rates, especially tech, which relies on smooth international flows.

Looking to the cryptocurrency space, the market endured a 1.66 per cent drop over the last 24 hours, building on a 7.57 per cent slide over the week. This downturn stems from a combination of regulatory pressures and a major scam revelation, which together amplified the risk-off mood. Technical signals indicate oversold territory, suggesting a potential bounce if sentiment shifts; however, caution remains the order of the day.

Regulatory developments hit hard, with US authorities charging Chen Zhi, the chairman of Cambodia’s Prince Holding Group, in connection with laundering 14 billion dollars through crypto scams, as reported by Nikkei Asia. At the same time, Japan outlined plans to prohibit insider trading in crypto by 2026, also per Nikkei Asia. These moves rattled investors, reinforcing the view that digital assets carry significant oversight risks. Institutions grew wary, and retail traders sold off, fearing broader crackdowns.

In my humble perspective, these regulatory steps mark a maturing phase for crypto, where governments aim to curb abuses that have plagued the sector. The 14 billion dollar scam case stands out as a stark example of how fraud can undermine trust, and Japan’s insider trading ban signals a push toward mainstream financial standards.

While this might sting in the short term, it could build longer-term credibility if implemented thoughtfully. Investors should monitor the evolving details of Japan’s legal changes and any potential spillover from the seizure in the scam probe. Such events often lead to temporary sell-offs but can pave the way for more robust frameworks that attract serious capital.

Derivatives markets showed clear signs of stress, adding to the bearish tone. Total open interest in derivatives decreased 1.73 per cent to 989.73 billion dollars, and average funding rates plummeted 36.3 per cent in just 24 hours. Perpetual contracts volume rose 1.69 per cent to 697.74 trillion dollars, indicating frantic trading amid the panic.

This unwind of leverage came after Bitcoin dipped briefly below 105 thousand dollars, sparking 19 billion dollars in liquidations earlier in the week. The spot-to-perpetual ratio of 0.21 underscores how speculation dominated, making the market vulnerable to sharp corrections.

Also Read: Global markets freeze as Trump-Putin summit fails: What’s next?

I think this leverage purge reflects a healthy, if painful, reset. High funding rates often signal overextended positions, and their sharp drop shows traders rushing to exit as prices fall. The surge in perpetual volume points to knee-jerk reactions, where fear drives more activity rather than conviction.

In broader terms, this dynamic exposes crypto’s volatility, amplified by leveraged bets that can turn minor dips into cascades. From an optimistic angle, clearing out excess leverage might set the stage for more sustainable growth, reducing the risk of even larger blowups down the line.

Sentiment metrics captured the prevailing fear. The Crypto Fear and Greed Index slid to 37, squarely in fear territory, down from 42 the day before. This drop illustrates eroding confidence, as participants grapple with the regulatory and market pressures. Technically, the picture looked grim too.

The overall crypto market capitalisation stood at 3.84 trillion dollars, below the 50 per cent Fibonacci retracement level of 3.98 trillion dollars. The seven-day Relative Strength Index hit 28.38, indicating extreme oversold conditions, while the MACD histogram at negative 33.12 billion confirmed ongoing bearish momentum. Bitcoin’s dominance climbed to 58.59 per cent, suggesting a shift toward it as a relatively safe haven within the crypto ecosystem.

From where I stand, these technical breakdowns reveal how algorithms and momentum traders can exacerbate declines. Crossing below key Fibonacci levels often triggers automated selling, and the low RSI screams oversold, which historically precedes rebounds in other markets. But in crypto, with its unique mix of retail enthusiasm and institutional hedging, the MACD’s bearish read might prolong the pain.

The rise in Bitcoin dominance tells me investors are hunkering down in the biggest name, viewing it as less risky than altcoins during turmoil. Overall, this setup feels like a capitulation phase, where fear dominates but could flip if positive catalysts emerge, like clearer Fed actions or easing trade tensions.

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A report by AVPN and Prudence Foundation, in partnership with Catalyst Management Services (CMS), finds that as climate shocks intensify across Asia, traditional risk management and health surveillance systems are proving inadequate. Investors are now focusing on the convergence of digital innovation, climate data, and finance to create scalable safety nets.

This confluence manifests in two high-potential areas: AI-driven early warning systems and climate-linked parametric insurance models.

Also Read: Asia’s climate-health crisis deepens amid massive funding gaps

According to the ‘Unlocking Capital For Climate x Health: The Investment Landscape in Asia’ report, investors view climate-linked insurance as a “catalytic frontier”. Parametric models, which trigger automatic payouts based on pre-defined index thresholds (like rainfall, temperature, or disease incidence), eliminate lengthy claims processes, providing rapid financial relief to households and local authorities.

Applications of parametric models

These models have several practical applications that attract blended capital:

• Heat-index insurance: Providing rapid payouts for informal workers affected by extreme heat days.
• Vector-linked payouts: Offering immediate funds to public health providers when disease vectors (like mosquitoes) cross defined population thresholds.
• Bundled crop-health-risk covers: Protecting smallholder farmers against agricultural losses and subsequent health impacts following extreme weather.

Case study: WRMS SecuRisk platform

India’s Weather Risk Management Services (WRMS) and its SecuRisk platform provide a blueprint for this model.

• The technology: SecuRisk links climate data, collected via satellite and IoT, with parametric insurance to trigger automatic payouts instantly when climate thresholds (e.g., specific rainfall amounts or heat indices) are crossed.
• Impact and scale: This model reduces disaster-driven health losses and strengthens household resilience. It has successfully integrated with digital payment systems and Aadhaar, demonstrating scalability. WRMS has secured a significant grant of approximately US$2.268 million (€2.1 million) from the InsuResilience Solutions Fund and aims to expand its reach from 1,300 households to over 85,000 users.
• Investment potential: The global parametric insurance market is projected to surpass US$29 billion by 2031, signalling strong long-term commercial interest.

The role of AI surveillance

In parallel, AI surveillance and remote sensing tools are vital for adaptation, enabling governments to pilot early-warning systems for altered disease patterns. However, investors classify AI surveillance as a high-risk category (MVS 3.9-4.0) due to long development cycles, reliance on public data, and algorithmic bias and data privacy hurdles. Monetisation often depends on software as a service (SaaS) models licensed to health authorities, making government integration and policy buy-in essential for adoption. The success of these deeptech solutions hinges on integrating interdisciplinary capacity: technology, epidemiology, and policy expertise.

Also Read: Asia’s climate x health startups struggle in the ‘missing middle’ funding void

Ultimately, these investments turn climate risk into a measurable, insurable, and manageable metric, moving finance from reactive crisis response to proactive resilience building.

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For much of the past decade, venture capital in Southeast Asia was synonymous with hypergrowth: writing large cheques, chasing valuations, and celebrating fundraising milestones as the ultimate marker of success. In those years, capital alone often seemed like the fuel that could propel startups into market leadership.

But the environment has shifted. Fundraising is slower, scrutiny from LPs is sharper, and macroeconomic headwinds mean investors can no longer assume that money by itself will deliver scale. The conversation has moved from “how much was raised” to “how resilient is the business model.” Nowhere is this more evident than in B2B technology, where long sales cycles, enterprise compliance demands, and complex go-to-market strategies mean that maturity and operational discipline are prerequisites—not afterthoughts.

Where equity alone falls short

B2B startups don’t scale like consumer platforms. Long sales cycles, compliance hurdles, and enterprise buyer scepticism mean cash alone cannot guarantee traction. Founders in the region often bring vision and technical brilliance, but lack depth in:

• Financial governance to produce board-ready forecasts and disciplined cash controls.
• Enterprise sales execution to build structured pipelines and customer success models.
• Operational maturity to manage scale, risk, and compliance across multiple geographies.

When these disciplines are missing, portfolios suffer a “barbell effect”: a handful of companies thrive, while the rest stagnate.

Also Read: Navigating VC funding: The crucial role of a well-managed cap table

Why operational value creation matters

Across the industry, operating leverage is now the main driver of returns. Nearly half (47 per cent) of PE/VC value creation today comes from operational improvements, up from just 18 per cent in the 1980s. Firms that embed governance and discipline early are rewarded with stronger exits and faster follow-on rounds.

Examples from the region show this clearly:

• A Singapore cybersecurity startup closed a strong Series A after introducing structured board reporting and financial forecasting.
• A Malaysia-based SaaS company improved retention by adopting customer success practices.
• An Indonesian deep-tech firm unlocked strategic investment by professionalising operations with COO-level processes.

The common thread: once governance and scalability were evident, investors doubled down.

How VCs can differentiate

The most forward-leaning B2B VCs in Southeast Asia are already moving beyond capital by:

• Embedding operating partners and fractional C-suite talent to instil governance and GTM rigour.
• Providing structured frameworks that standardise reporting across portfolios, improving board communication.
• Incentivising operating support through performance-linked models that align outcomes with fund returns.

This is not simply nice-to-have. In markets where capital efficiency is scrutinised and enterprise buyers are risk-averse, these interventions are the difference between a portfolio company raising its Series B (or running out of runway).

Beyond capital lies capability

The days when capital alone could mask gaps in governance, sales discipline, or operational maturity are fading quickly. The pressure to demonstrate capital efficiency, credible growth, and resilience is now front and centre. For investors, the real differentiator lies in helping portfolio companies build the structures that endure beyond the next funding round.

In Southeast Asia’s B2B venture landscape, this evolution is already underway. The companies that will stand the test of time are not those that raise the largest rounds or capture headlines for sky-high valuations, but those that combine vision with capability. Beyond capital lies the true currency of value creation: the ability to build organisations that can grow, adapt, and thrive long after the initial cheque is written.

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The Climate Impact Innovations Challenge (CIIC) has awarded IDR10 billion (US$635,000) in catalytic funding to three early-stage startups to pilot their breakthrough technologies in Indonesia.

The three winners are Aslan Renewables (Energy Transition) which offers dam-free modular hydropower systems delivering up to 86 per cent efficiency at low cost; Arukah Capital (Sustainable Agriculture) which aims to transform agricultural waste into biochar, sharing 50 per cent of carbon revenues with smallholder farmers; and SXD AI (Circular Economy) which leverages AI to co-design zero-waste garments, achieving 10x material savings and 80 per cent lower CO₂ emissions.

Organised by East Ventures and Temasek Foundation, the third edition of CIIC culminated in a high-profile finale on October 11 at the Indonesia International Sustainability Forum (ISF) in Jakarta.

The competition, which drew nearly 500 applicants from over 50 countries, spotlighted emerging innovations across energy transition, sustainable agriculture, and the circular economy.

Also Read: The executive’s guide to enterprise AI: Reading the organisational climate

CIIC provides seed capital and a structured launchpad to de-risk innovation and connect startups with local partners and policymakers.

“As a robust sustainability launchpad, CIIC can help these innovators move from pitch to pilot, and scale their solutions for impact across Indonesia and beyond,” said Heng Li Lang, Head of Climate and Liveability at Temasek Foundation.

Andrew Murray, Founder and CEO of Aslan Renewables, shared plans to deploy the company’s first Indonesian pilot site by 2026, adding: “Through CIIC’s process, we’ve been able to collaborate closely with local partners … we can’t wait to start breaking ground.”

Arukah Capital, which also received an additional US$50,000 grant from Sinar Mas Agribusiness & Food, plans to expand its carbon revenue-sharing model with local farmers. CEO Joanna Yeo emphasised the importance of strong local partnerships and supportive regulation in scaling their biochar-based decarbonisation approach.

Indonesia’s dual identity as a major climate risk zone and emerging manufacturing hub gives it a unique role in the climate tech landscape.

“Indonesia is special to us: while among the most climate-exposed geographies, it is also a manufacturing powerhouse,” said Shelly Xu, Founder of SXD AI. “We are excited to partner with supplier leaders-from apparel to automotive—to make zero-waste design the new standard.”

CIIC, backed by ecosystem partners such as PLN, Triputra Agro Persada, and Sinar Mas Agribusiness, is building a pipeline of solutions ready to scale in a region that sorely needs them.

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Image Credit: East Ventures

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Sam Altman’s GITEX message lands like a checklist for the next three years of AI, and a reality check for policymakers. Agents aren’t a demo anymore; they’re quietly doing cognitive work today, the way coding copilots already rewired software teams. If that productivity curve spills into finance, ops, and science, expect decision cycles to compress and the bar for “good enough” to rise fast.

Altman’s sharpest point isn’t even technical: the bottleneck is energy. If the cost of intelligence converges on the cost of power, then grid capacity, transmission, siting, and clean baseload become the real competitive advantages. Nations that treat energy + compute as one policy stack will compound; everyone else will ration.

Altman’s timeline–agents (2025), novel insights (2026), capable robots (2027)–is less sci-fi than a sprint plan. But his framing matters more: tech and society co-evolve. Bring AI into public workflows, teach it at a population scale, and measure outcomes in minutes saved, not pilots launched. That’s how you avoid an AI divide.

The human role doesn’t disappear; it concentrates. Systems surface what’s happening and what could happen. People own the why and what next. Leaders who internalise that division of labour–and fund the energy to match–will set the pace of the decade.

REGIONAL

Court rejects Gojek founder’s pretrial motion in corruption case: A Jakarta court found that the Attorney General’s Office followed proper legal procedures and had sufficient evidence to designate Nadiem Makarim as a suspect. Legal experts presented by both Nadiem’s team and prosecutors were considered in the ruling.

Circles Life’s parent firm sues M1 over virtual network contract
The dispute centres on a contract signed in May 2019, with Liberty Wireless claiming that M1 refused to negotiate changes to address regulatory updates introduced by Singapore’s IMDA in January 2020.

Roblox expected to contribute US$8.2M to Indonesia’s GDP: report: According to the Roblox Economic Impact Report, the platform’s ecosystem supported 310 jobs in Indonesia in 2024, and that this figure rose by 298% since 2019.

Nanyang Biologics to list on Nasdaq at US$1.5B valuation: The Singapore-based AI drug discovery startup will go public on Nasdaq in Q1 2026 through a merger with RF Acquisition Corp II. Nanyang is pre-revenue and has five drug candidates for cancer and cardiovascular diseases in development.

Green SM debuts EV taxi service in Surabaya, offering discounts: The company, which began in Jakarta in December 2024, uses VinFast EVs and allows bookings through its app. Green SM previously expanded to Makassar and Bekasi earlier this month.

REPORTS, FEATURES & INTERVIEWS

Billions lost to heat: Urgent investment needed to cool Asia’s overheating economies: A report titled ‘Unlocking Capital For Climate x Health: The Investment Landscape in Asia’ report has found that in 2023, warns Asia’s economies are losing billions to extreme heat, urging urgent investment in cooling and climate resilience technologies.

India and Indonesia emerge as Asia’s power anchors for climate x health investment: India experienced extreme heat alerts on 93% of days in 2024. This high-heat exposure affects over 90% of its population. Air pollution intensifies cardiovascular risk, and coastal districts face storm-surge flooding.

Singapore HR leaders double down on overseas talent amid local shortage, finds Remote: Singapore companies now employ talent in an average of three or more countries, and this number is poised to grow by 2026. With homegrown talent pipelines unable to meet demand, international expansion is no longer just about market access but about survival.

Singapore businesses face ‘laser-focused’ cyberattacks as AI lowers entry barriers: Kaspersky warns of AI-powered ransomware groups targeting Singapore’s high-value enterprises, marking a shift toward precision-driven, scalable, and harder-to-detect cyberattacks.

Influencers, interactivity drive consumer response in Singapore: AnyMind: The survey of 1,255 consumers across the region has revealed that Singaporean audiences are significantly more responsive to influencer-driven content, video advertising, and in-game marketing than their regional counterparts.

ChatGPT, commerce, and cloud: How NetSuite sees the future of work and business: NetSuite’s Evan Goldberg and Amit Suxena share how AI-driven automation, conversational interfaces, and cloud integration are reshaping global business operations.

INTERNATIONAL

Altman at GITEX: The cost of intelligence will equal the cost of energy: The OpenAI co-founder predicts AI’s progress hinges on energy, urging national strategies as agents scale productivity and data centres become bottlenecks.

“Build bridges, not walls”: Inside the UAE’s Operating System for AI at scale: Golden/Green visas, MBZUAI, and data-driven public services position the UAE as a neutral hub for global founders--linking East, West, and real enterprise demand.

PayPay valuation could hit US$20B in US IPO: sources: SoftBank is preparing to list the Japanese payments app operator in a US IPO as early as December. PayPay leads Japan’s QR code payments market and recently began allowing users to make payments abroad.

MENA venture funding tops US$3B in 2025, surpasses SEA: According to a report, the total was raised across 469 deals, more than doubling year-on-year and already exceeding the region’s full-year 2024 tally. Q3 2025 marked MENA’s strongest quarter on record, with US$1.2 billion invested.

China’s EV sales hit record high as buyers seek tax breaks: EV sales reached a record 826,000 units in Sept., up 28.5% y-o-y. The previous monthly record was 762,000 in December 2024. The sales surge came as consumers rushed to benefit from tax breaks and subsidies set to expire at the end of the year.

Generative AI could lift global GDP: Broadcom CEO: Hock Tan told CNBC that knowledge-based and technology-intensive sectors now make up about 30% of the estimated US$110T global GDP, which could rise to 40% with the growth of generative AI.

Musk’s Boring Company plans to launch Dubai Loop by 2026: The first phase will include 17 kilometres of tunnels and could carry up to 20,000 passengers per hour. The project aims to ease congestion in the fast-growing city, which has also tested air taxi services from Joby Aviation and other firms.

Naver faces lawsuits over AI use of news content: Rep. Choi Soo-jin of the People Power Party said Korea’s three major broadcasters are seeking US$140,000 each from Naver and its affiliate Naver Cloud for using news articles without authorisation to train AI models.

ECHELON

From intelligence to impact: How AI is redefining trust, speed, and infrastructure in fintech: Panellists discussed the transition from digital to AI-native banks and highlighted how AI is transforming IT optimisation and credit decision-making while emphasising the importance of data integrity and sound risk controls.

Lift off: Building the space tech ecosystem in Southeast Asia: In this panel discussion at Echelon Singapore 2025, we learn that 80% of the entire space tech ecosystem is actually built on multiple sectors, business models, and uses cases.

SEMICONDUCTOR

Nvidia unveils its smallest desktop AI supercomputer: The company says the DGX Spark integrates its Grace Blackwell architecture with GPUs, CPUs, networking, and AI software, aiming to support advanced AI workloads locally. Nvidia reports the system delivers up to 1 petaflop of AI performance and 128GB of unified memory.

TSMC set to post record Q3 profit on AI chip boom: The Taiwanese semiconductor giant is expected to report a 28% rise in Q3 profit to a record US$13.6B, driven by strong demand for AI chips. The chipmaker, which supplies Nvidia and Apple, has already flagged a 30% jump in Q3 revenue, beating market forecasts.

US AI chipmaker Cerebras to expand AI infra in UAE, CEO says: The infrastructure will support the region’s growing AI sector and expand into markets in India and Pakistan. The company is targeting large-scale projects, including the Stargate UAE data centre initiative.

AI

AI still missing in action: Global firms lag in using tech for M&A and compliance: In response to market volatility and challenges, many organisations have adopted a more cautious and measured approach to M&A. Actions taken by respondents include delaying deals (49%) and enhancing due diligence processes (40%).

Beyond the code: Why AI literacy is the next great leadership skill for Southeast Asia: The AI black box is a ticking time bomb of unseen biases, a direct reflection of the data the AI was trained on. In a region as culturally, ethnically, and linguistically diverse as Southeast Asia, this can have disastrous consequences.

The executive’s guide to enterprise AI: Reading the organisational climate: AI has become a core executive priority as leaders adopt an “organisational climate” model to navigate pressure systems shaping transformation.

THOUGHT LEADERSHIP

The macro bet: Singapore is all-in on innovation (and what it means for businesses): The country’s Global Innovation Alliance Co-Innovation Programme is helping firms translate R&D into global pilots and cross-border growth.

Work from anywhere in Malaysia: How remote work and co-working spaces are thriving: The demand for co-working spaces is surging. In 2024, Common Ground expanded its portfolio by approximately 100K square feet across Kuala Lumpur. Similarly, WORQ achieved 100% occupancy at its Menara UOA Bangsar location a month before its official launch.

Gold soars, crypto bleeds: The fragile balance of a world on the brink of trade war: The current market downturn is not a simple correction but the result of a perfect storm. A geopolitical shockwave from a proposed 100% tariff has collided with a structurally over-leveraged crypto market, creating a feedback loop of forced liquidations and panic selling.

Why founder-founder fit matters more than funding in Southeast Asia: Structural and cultural contexts in SEA intensify founder conflicts. Corporate frameworks are still maturing, and governance mechanisms like shareholder agreements are often seen as optional, especially in earlier markets like Thailand.

How technology is addressing the manpower crunch in Singapore’s security sector: With technological tools, security officers can increase accuracy, productivity and efficiency using biometric readers, surveillance robots and smart access cards. Digital solutions can also alleviate headcount issues in the security industry.

Are retail malls dead? Time for big tech to disrupt landlords at their own game: E-commerce is new, shiny, and revolutionary. Physical marketplaces, on the other hand, has been around for centuries. With this, malls must disrupt thexmselves and meet evolving consumer demands and behaviours.

The post Ecosystem Roundup: Altman at GITEX: Intelligence cost = energy cost | Asia’s heat costs billions | Court rejects Gojek founder’s pretrial motion appeared first on e27.

Taiwan’s startup ecosystem continues to expand its footprint across Southeast Asia, this time marking its first official presence in Malaysia. It is co-led by Startup Island TAIWAN, Taiwan’s national startup brand under the National Development Council (NDC), and Startup Terrace, a leading innovation hub under the Ministry of Economic Affairs.

A total of 17 outstanding startups engaged with Malaysia’s key innovation stakeholders. This includes Cradle Fund, Malaysia Digital Economy Corporation (MDEC), Petronas Innovation Garage(PING), MRANTI and SIDEC. They aim to explore collaboration in AI, Sustainability and Digital Transformation. This is while supporting Taiwanese startups in accessing broader market and investment opportunities.

This first step into Malaysia marks Startup Island TAIWAN’s continued mission to build cross-border connections in the ASEAN region. Malaysia’s strong industrial base and AI infrastructure complement Taiwan’s strengths in deep tech, AI, and digital innovation. As a result, it creates significant synergy potential between the two ecosystems.

Also read: Taiwan’s AI ecosystem shines at SuperAI 2025: From Silicon to storytelling

Outstanding startups bridging Taiwan–Malaysia innovation

• INFINITIX Inc. delivers AI infrastructure solutions with AI-Stack, boosting GPU efficiency and accelerating enterprise AI growth, attracting high profile investors interest.
• KDAN provides AI-driven workflow and data solutions with self-hosted deployment options, empowering businesses to optimize efficiency, enhance agility, and create value through digital innovation, local customer profile includes Malaysian top real-estate company.
• FunNow is GSEA’s leading lifestyle app for on-demand dining, wellness, beauty, and stay bookings, with teams operating in Malaysia, Singapore, Thailand and the Philippines. 
• Startup Terrace highlighted 3 companies:
• SOIC Marine Solutions introduces AI Sailor, an intelligent navigation system integrating environmental sensing and GPS data to help ships autonomously adjust courses and avoid risks. 
• eCloudEdge, backed by eCloudvalley, develops NeoEdge, an AIoT Edge Orchestration Platform that enables data-driven decision-making for industries such as manufacturing and energy. 
• AIRA, an AI video recognition company with over two decades of expertise, delivers real-time tracking and safety solutions for construction, factories, and retail through its airaTrack and smart surveillance technologies.

Also read: Why Taiwan’s tech ecosystem is ASEAN’s next big growth driver

Expanding Taiwan’s ASEAN footprint

In recent years, Startup Island TAIWAN has actively deepened its presence across Southeast Asia. This spans from Singapore and Vietnam to Thailand, the Philippines, and Indonesia. This drives stronger innovation linkages across the region. The latest visit to Malaysia further underscores Taiwan’s growing role as a trusted innovation partner in Asia.

Through these cross-border initiatives, Startup Island TAIWAN continues to empower startups to build local connections, attract investors, and accelerate regional expansion. At the same time, it welcomes global talents and stakeholders seeking opportunities in capital collaboration, market soft-landing, and strategic partnerships. This reinforces Taiwan’s position as a vibrant and reliable hub for innovation in Asia.

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Early July, I had a quiet Monday evening run with a friend who leads a 20-person startup. From the outside, it looked like everything was going well — press features, public praise, and the kind of traction that many founders work years to build.

But as we laced up and jogged beneath Singapore’s skyline, he confided that he was considering a painful team restructure. Not because of performance issues or financial strain, but because of something deeper: a growing misalignment between the company’s current operations and his personal values.

This conversation stayed with me.

We often talk about startups in terms of metrics and milestones: product-market fit, burn rate, scaling strategies, and funding rounds. But rarely do we ask the more personal questions:

• What if the company I’m building no longer reflects who I am?
• What if our success comes at a cost I’m no longer willing to pay?
• What happens when the direction we’re heading no longer aligns with the deeper mission that inspired it in the first place?

These aren’t hypothetical questions. They are the quiet dilemmas many founders face but rarely voice. And they sit at the heart of a simple but powerful framework I often return to when coaching founders: Head, Heart, and Hand.

The head: Vision, strategy, and hard truths

The “head” is where most startups begin. It’s the space of logic, strategy, and planning. It’s about solving real problems, mapping growth trajectories, testing business models, and making hard calls.

But the head can’t do it alone.

One founder I spoke with built a platform designed to support individuals facing mental health challenges, especially those with limited access to care. The idea was deeply personal and ethically driven. In the early days, the team leaned heavily on trained volunteers, offering the service free during the soft launch. But as the platform scaled, cracks emerged. Volunteer capacity and training quality became issues. Bookings remained low, not because demand was lacking, but because people were still reluctant to reach out.

The mission was heartfelt. But the infrastructure — the “head” work — needed to catch up. And in this case, the founder made the tough call to pause and rebuild, knowing that goodwill alone doesn’t guarantee sustainable impact.

Also Read: Running on empty: What happens when AI models run out of data?

The heart: Purpose, alignment, and ethical tension

The “heart” is what fuels the late nights and early mornings. It’s the passion, the belief in what you’re building, and the drive to make a difference beyond profits.

But what happens when the heart starts to pull in a different direction?

My friend in tourism tech realised his platform, while driving impressive growth, could unintentionally contribute to overtourism and environmental strain in already fragile destinations. The success was real. But the unintended impact was equally real. He and his co-founders faced a crossroads: continue with the current trajectory or have the difficult conversations about pivoting toward more sustainable, responsible models.

Everything was working — except the heart.

And sometimes, that’s enough to justify change.

The hand: Action, execution, and showing up

Then there’s the “hand.” The doing. The building. The showing up when no one’s watching. Especially for young founders, this can be the hardest part, figuring out what to do next when both the head and heart are buzzing with ideas.

A mentee of mine, fresh out of national service and heading into his first year at NTU, is already contemplating his next startup. He’s previously worked in two early-stage companies and is passionate about robotics and AI. The heart and head are aligned, but the question now is about action. Should he launch something new? Intern? Explore the industry? How do you choose where to put your hands, especially when opportunities are everywhere?

This isn’t a bad problem to have. But it underscores a truth many founders forget: strategy and passion mean little without consistent, focused execution. The hand is where dreams become prototypes, where decks become MVPs, and where pivots become reality.

When one is missing

Each part — head, heart, and hand — plays a different but essential role in the startup journey. And when one is missing, things wobble.

• A great idea (head) with no execution (hand) stays a dream.
• A well-built product with no purpose (heart) risks becoming hollow.
• A passionate mission with no strategy (head) struggles to survive.

Startups aren’t just businesses. They are living systems, shaped by the founders’ inner alignment as much as by market forces. In this sense, building a startup isn’t just about what you’re building — it’s about how and why you’re building it. And who you’re becoming in the process.

Also Read: The Founder’s blind spot: Lessons in money management

The inner startup

There’s a beautiful parallel here. Building a startup is much like growing as a person. There are stages of self-awareness, misalignment, recalibration, and growth. The glitches you encounter — internally or externally — aren’t signs of failure. They’re invitations to pause and reflect. To realign your head, heart, and hand.

So the next time you find yourself wondering whether to pivot, double down, or take a break, don’t just look at the numbers. Ask yourself:

• Does this still make sense?
• Does this still feel right?
• Am I still willing to show up and build, even on the hard days?

These questions won’t show up in your pitch deck. But they just might be the most important ones you ask.

Because in the end, the startups that endure — and the founders who thrive — are the ones who find a way to align their strategy, their spirit, and their effort.

The head, the heart, and the hand — working together, not perfectly, but in honest, evolving harmony.

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