On Monday, the Cyber Security Agency of Singapore (CSA) and the National University of Singapore (NUS) launched a centre that aims to uplift talent, innovation, and growth programmes in cybersecurity.

The CyberSG Talent, Innovation, and Growth (TIG) Collaboration Centre was opened by Dr Janil Puthucheary, Senior Minister of State for Digital Development and Information.

At the same event, NUS also forged strategic partnerships through Memorandums of Understanding (MOU) with SGInnovate and Plexal to drive innovation and growth in Singapore’s cybersecurity ecosystem. This MOU will enhance the centre’s effectiveness and reach.

First unveiled in September 2023, the centre is a joint initiative backed by S$20 million in funding from the government and NUS. According to a press statement, this strategic partnership aims to establish Singapore as the premier global cybersecurity innovation hub, fostering economic growth and addressing the increasing demand for robust cybersecurity solutions.

Also Read: Phishing remains top cybersecurity concern, but AI will drive it to next level: Zscaler CSO Deepen Desai

Located at LaunchPad @ one-north, the centre will serve as a central nexus, bringing government, academia, and industry together to catalyse impactful initiatives in the cybersecurity sector and leverage opportunities posed by digitalisation. It will also build upon NUS Enterprise’s extensive global BLOCK71 network and innovation infrastructure, providing cybersecurity talents and companies with access to resources and opportunities for growth.

“We are excited to mark the official opening of the CyberSG TIG Collaboration Centre. NUS Enterprise is committed to continue pushing the boundaries of innovation and entrepreneurship to develop a thriving cybersecurity innovation ecosystem from Singapore,” said Associate Professor Benjamin Tee, Vice President (Ecosystem Building), NUS.

“This centre will synergise and leverage the combined expertise and resources of academia, industry, government, local and international industry partners. Our partnerships with Plexal and SGInnovate are a step forward to further support promising startups that drive global innovation and business opportunities towards a more secure digital future in Singapore and beyond.”

The centre’s strategic initiatives are structured around three core pillars:

Talent
The centre aims to cultivate a diverse talent pool equipped with the skills to apply cybersecurity capabilities across various industries and functions. Simultaneously, it trains a critical mass of professionals with advanced cybersecurity expertise. Core programmes include SG Cyber Associates, SG Cyber Youth, SG Cyber Professionals, and SG Cyber Talent Development Fund.

Innovation
The centre seeks to drive co-innovation with industry to bridge the path from innovation to commercialisation, nurturing promising cybersecurity companies for Singapore and the region. This will be through core programmes Cybersecurity Industry Call for Innovation (CyberCall) and CyberBoost.

Also Read: Uncovering the rise and challenges faced by deep tech startups in Singapore

Growth
Lastly, the centre aims to enable cybersecurity companies anchored in Singapore to scale regionally and globally. The core programme, CyberGrowth, is a dedicated cybersecurity-focused export programme that facilitates the expansion of promising cybersecurity companies and leverages NUS’ BLOCK71 incubation hubs in Southeast Asia, East Asia, and the US.

“We are thrilled to mark this important milestone of the opening of the CyberSG TIG Collaboration Centre, which brings some of our talent and ecosystem development efforts under one roof. Our partners, whether they are government entities, industry, or academia, all have a key role to play in this effort. We look forward to the continued support of our stakeholders in this journey to establish Singapore at the forefront of cybersecurity innovation,” said Phua Puay Li, Assistant Chief Executive (Policy and Corporate Development) Assistant Chief Executive, CSA.

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Image Credit: NUS Entreprise

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In recent years, there has been a notable shift in the digital lending industry, primarily due to the advancements in artificial intelligence (AI) and data analytics. Financial organisations are continuously adjusting to meet the evolving needs of customers in a world that is becoming more and more digitised.

According to a report by IIFL Fintech, the digital lending market in India had a value of US$38.2 billion in 2021 and is expected to reach US$515 billion by 2030. This represents a compounded annual growth rate (CAGR) of 33.5 per cent, underscoring the increasing significance of digital lending solutions in the global financial landscape. The integration of AI technology will be instrumental in driving this growth and offering exciting prospects for improving efficiency, mitigating risk, and delivering customised lending experiences.

Let us explore the future of AI in digital lending and its ability to bring about transformative changes.

Enhanced risk management

Lenders must have a clear understanding of the borrower’s creditworthiness in order to assess risk effectively. AI can analyse vast amounts of data, even from alternate sources like social media and cash flow patterns, to assess the creditworthiness of the borrower in a more accurate manner. This, in turn, can minimise the risk of default.

Further, AI models can identify subtle patterns in existing data through machine learning to identify patterns in loan repayment behaviour. 

Streamlined operations

The process of Robotic process automation (RPA) involves utilising AI-powered software robots to handle routine tasks such as document validation, data input, and eligibility assessments for loans. By doing so, it allows human employees to dedicate their attention to more intricate matters and providing exceptional customer service.

Fraud detection

Fraud poses a significant risk to lenders. AI algorithms have the ability to identify red flags and inconsistencies in loan applications such as information mismatch and suspicious activities by the borrower. AI can also step in to keep a tab on ongoing behaviour such as irregular payments. This helps lenders to protect your financial interests and promote trust at the same time. 

Offering personalised loan products

With the ability to analyse vast amounts of data, AI and automation can help to offer customised loan products to customers based on suitable loan terms, repayment methods and, more importantly, loan amounts tailored to the borrower’s financial situation. Further, AI can fine-tune rates on a real time basis based on the borrower’s risk profile. 

Also Read: Embracing automation and phygital models: The future of mortgage companies

Reduced operational costs

Businesses constantly seek opportunities to enhance efficiency while simultaneously reducing operational expenses. In a highly competitive lending industry, lower costs can provide a significant edge. By minimising the reliance on manual labour, artificial intelligence (AI) allows for the allocation of resources to other aspects of the business. Ultimately, this results in cost optimisation. 

Increased loan volumes

A lender aims to expand their loan portfolio and capture a larger market share. Utilising AI technology allows lenders to tap into a broader range of potential borrowers and accelerate the loan application process, ultimately enhancing the lender’s profitability.

In addition, AI not only enhances operational efficiency for lenders but also contributes to an enhanced customer experience. These two aspects are intertwined and complement each other perfectly.

Faster loan approval

We have previously examined the capacity of AI to analyse extensive quantities of data, thereby removing the necessity for intricate documentation and manual verifications. This means that borrowers can expect their loan applications to be approved in hours or even minutes.

Further, customised loan offerings make the loan process hassle-free for the borrower, thus augmenting borrower satisfaction. Thus, AI is a game changer for borrowers who need a loan immediately for an emergency or time-sensitive purchases. 

More transparency

AI also helps lenders provide real-time updates on the loan application. Thus, the borrower is kept informed throughout the process. This helps build trust, and since the borrower gets real-time updates, it helps reduce the anxiety that one may relate to waiting for a decision.

When it comes to artificial intelligence and the process of lending and managing loans, it has provided lenders with the ability to originate loans more quickly and gain a deeper understanding of their customers’ creditworthiness. From cost savings to improved processes, AI and automation have immense benefits for both lenders and borrowers.

Going forward, lenders will continue to make substantial investments in AI, leading to positive outcomes for all parties involved.

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Singapore-based data and AI-as-a-service company Tictag has completed its Series A round with undisclosed funding led by Telkomsel Ventures.

Existing investors M Venture Partners, East Ventures, and Investible participated. SBI Ven Capital, a subsidiary of Japan’s SBI Holdings, joined the round through its joint fund with South Korea’s Kyobo Securities and NTU Singapore’s NTUitive.

Also Read: Embracing AI in Southeast Asia: The strategy for avoiding cost overruns

Operating in Singapore, South Korea, Indonesia, Malaysia, and Hong Kong, the company will use the funds to engage more businesses and expand its presence in Indonesia and the rest of Asia.

Established in 2019, Tictag is a data-centric startup aiming to simplify data collection and annotation by breaking tasks into manageable portions via its app-based crowdsourcing platform. It empowers organisations with business-ready AI without worrying about their core problem—data.

The company recently expanded its capabilities to include applied data-centric AI and consulting services.

The data-centric approach allows Tictag to deploy business-focused AI with state-of-the-art models to deliver accurate results with actual data rather than just stopping at proof of concepts.

Tictag’s expertise in applied AI spans industries like agriculture, construction and manufacturing, security, smart cities, audio and languages and more.

The startup claims to have served over 50 corporations in various sectors, such as real estate, autonomous vehicles, agriculture, and media across Asia.

“We see our social and commercial missions as intertwined. As we enhance companies’ competitive advantages through AI-driven ROI, we are also expanding the AI economy in Asia,” stated Kevin Quah, co-founder and CEO of Tictag.

Also Read: AI powerhouses: Unveiling Singapore’s top 30 funded innovators

“Our work strengthens AI ecosystems by enriching partnerships and growing a diverse community of data annotation contributors, from students to the disabled, enabling their participation in the AI economy. Indonesia represents a thriving bedrock of AI talent and businesses on the brink of AI enablement, areas we have been focusing on intensively. With Telkomsel Ventures’s support, we will gain the right expertise, knowledge, and access to significantly expand our impact in the market,” Quah added.

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Image Credit: Tictag.

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Asia is currently navigating through economic fluctuations, with shifts in the global market presenting complex challenges for even the most robust economies. As the US dollar strengthened against Asian currencies, there are emerging concerns about capital movement, reduced exports, and potential currency devaluation in countries closely tied to the dollar.

Economic challenges are increasingly apparent, particularly in China, which has recently lost its position as ASEAN’s largest export market. Across Southeast Asia, the economic situation is marked by significant inflation spikes, with Laos experiencing rates as high as 31 per cent. Meanwhile, unemployment rates show notable variation across the region, from 1.10 per cent in Thailand to 4 per cent in the Philippines.

Despite these challenges, businesses and investors are exploring innovative strategies to stimulate economic activity. One promising approach is the adoption of Web3 technologies, particularly the tokenisation of Real-World Assets (RWAs), which could provide new avenues for growth and resilience in these turbulent times.

How tokenised RWAs can improve Asia’s economies

RWAs are tangible and intangible assets that exist in the real world and have unassailable value in real-world trade and commerce. These include real estate, infrastructure, financial contracts, and intellectual properties. They can be tokenised or converted to digital tokens on a blockchain, unlocking a new frontier for Asian economies.

This tokenisation is not a mere concept. Companies such as MakerDAO, Mantra, and Polymesh have been tokenising real-world assets and enabling users to invest, trade, and otherwise utilise these to keep track of data and ownership.

Currently, the estimated total value of the tokenised asset market is around US$116 billion. However, this value is projected to multiply, reaching $3 trillion to $10 trillion by 2030. Asia has an enormous expanse of assets that can be tokenised and used to help drive economies.

Also Read: AI at work: Moving forward with employee engagement

Tokenised RWAs can help Asia navigate the ongoing Asian economic storm in several ways. They can help improve access to capital and enhance transparency and efficiency, which are crucial as economies make the most of their limited resources and unlock new investment opportunities.

RWAs on improving financial systems

As a capital access augmentation solution, tokenised RWAs help make traditionally illiquid assets easier to convert to cash or cash equivalents. Tokenisation enables the fragmentation of assets into smaller digitised units that are easier to trade. This process makes them more accessible to investors who have limited cash.

For example, owners of a large tract of land or a building can more easily convert their properties to cash by offering their tokenised assets to multiple investors around the globe instead of finding a single regional buyer to acquire the property. It creates democratisation for global investment opportunities, which is particularly advantageous for countries that large investors rarely consider.

Individual or small-scale investors can fund economic activity through tokenised assets that can be digitally transacted, and physical barriers can be removed.

On the other hand, RWAs empower transparency and efficiency in financial systems. They obtain a secure and tamper-proof digital ownership record, which is essential in building investor confidence amid economic uncertainties.

RWAs help investors avoid fraud found through traditional investment services while providing a way to streamline transactions. Also, efficiency and transparency benefits attract domestic investors and foreigners who previously hesitated to invest their money beyond territorial borders.

Lastly, RWAs help create new investment opportunities as they make it possible to offer investment schemes that were previously impossible because of the limitations of traditional finance. Through tokenised RWAs, anyone from around the world can, for instance, invest in a solar farm in China or an agricultural business venture in the Philippines.

To obtain funding, businesses looking for capital can offer their tokenised assets, new technology patents, or smart contracts for a guaranteed share of the net revenue facilitated by smart contracts.

According to global consultancy firm Roland Berger, “The tokenisation of real-world assets isn’t a thing of the future; it’s happening now. We estimate that the total market for tokenisation, by conservative estimates, will significantly exceed US$10 trillion by 2030. This is setting the stage for a financial ecosystem where digital tokens represent real-world assets, making them more accessible than ever before—not only to the privileged or institutional investors but to the public at large”​

RWA tokenisation for economic empowerment

The concept of tokenised RWAs may sound intimidating to those with little knowledge about modern investment opportunities. However, it helps broaden investment opportunities even for those who do not consider themselves tech-savvy.

Tokenisation companies like Go! SmartChain AI emphasises user-friendliness, providing a simple and rapid way to tokenise assets with minimal technical requirements. Processes are made more accessible for businesses, asset issuers and investors to lessen the restrictive requirements and procedures associated with traditional financial transactions and investment products.

Also Read: Real world tokenisation fireside chat with Anndy Lian: Unpacking the landscape

Anthony Diaz, Founder and Chief Executive Officer of Go! SmartChain AI notes how tokenisation and blockchain technology provide better resource access. This new technology gives individuals representation and access to financial systems and investment opportunities, especially in developing economies.

“This approach democratises access, allowing for more inclusive participation and fostering economic empowerment by giving individuals in these communities a stake and a voice in ecosystems that were previously beyond their reach,” Diaz says.

Adding to their innovative approach, Go! SmartChain AI has developed an AI-driven RPG that gamifies social achievements, fitness goals, and wellness habits in nutrition. This platform allows children and adults to earn rewards while engaging in activities promoting economic empowerment and healthy living.

Understandably, many will continue to doubt the viability of RWAs. RWA tokenisation doubters may find it reassuring that tokenisation companies have already built an ecosystem that relies on the reliability and reputation of established tech players.

Go! SmartChain AI has partnered with Google Cloud to support enterprise and large-scale activities fueling the tokenisation of global assets. The platform also benefits from the NVIDIA Inception Program, which boosts its AI and data science capabilities, which are crucial for refining asset management and personalisation algorithms.

Users of Go! SmartChain AI will experience seamless payments and manage RWA assets securely through integration with Google Wallet, using an interface they are familiar with. Additionally, Go! SmartChain AI will incorporate Google Fit to use health data for personalised wellness tips, real-time fitness tracking, and rewards for achieving health goals, making health management both convenient and innovative.

Weathering the storm

Tokenised RWAs present a silver lining that provides challenged economies with new ways to navigate an economic storm. The democratisation of capital and the creation of new investment schemes enable the flow of funds from various sources to help struggling businesses and support innovative ventures.

Meanwhile, the advantages of transparency and efficiency also help build trust in investment opportunities. As tech-savvy Asia faces economic uncertainties, it makes sense to turn to new technology through RWA tokenisation.

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Niv Della Beauty Innovations, the Filipino beauty and skincare company behind the D2C brands Colourette and Fresh Formula, has closed a US$2 million funding round.

Singapore-based DSG Consumer Partners led the round, with participation from existing investor Foxmont Capital Partners.

Also Read: Foxmont backs Filipino D2C cosmetics startup Niv Della’s seed round

The funds will be used to hire key talent to propel Niv Della’s strategic initiatives forward. Product development efforts will also be amplified, along with the launch of more campaigns, including beauty events, social media campaigns, and collaborations.

Founded in 2015 by entrepreneur-turned-content creator Nina Dizon-Cabrera, Niv Della provides makeup products suited for the Filipino lifestyle, skin tones, and the country’s hot and humid climate. Its shade ranges and diverse marketing campaigns highlight its commitment to inclusivity.

The startup has launched a product line with 7-Eleven nationwide and is available in 80 physical stores in leading department stores around the country.

“Colourette and Fresh Formula celebrate the modern Filipino with each brand’s unique DNA,” said newly appointed COO Stephanie Tanjuatco.

“The company grew rapidly by recognising untapped needs in the Philippine market, and I definitely believe the company can achieve exponential growth; this fundraise will help us achieve it by amplifying our voice to reach more consumers,” added Tanjuatco, who joined the company at the end of 2023.

Also Read: How technology can influence the beauty and cosmetics industry

In 2022, Niv Della raised an undisclosed sum in seed capital from Foxmont Capital Partners.

The Philippines has emerged as the fastest-growing e-commerce industry in the world. The beauty and cosmetics industry’s young and tech-savvy population create a vast opportunity for homegrown beauty brands like Colourette to reach new heights and gain market share.

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Image Credit: Niv Della.

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D3 Labs, a provider of blockchain solutions for enterprises in Indonesia, has announced a partnership with Tether, a global blockchain platform designed to facilitate the use of fiat currencies in a digital manner.

This partnership aims to assess the deployment of a cutting-edge blockchain-based asset management platform and Web3 ecosystem to transform the fintech industry in Indonesia.

Also Read: What are the possible investment strategies after ETH spot approval?

The parties will also explore new use cases for USDt and EURt tokens, with the possibility of driving their adoption at an institutional and banking level using Real-World Asset (RWA) solutions.

They will also evaluate the development of comprehensive educational blockchain-related events to foster innovation and collaboration within the local blockchain community.

The partnership will also facilitate discussions on collaboration opportunities with industry participants in Indonesia to promote the crypto ecosystem, highlighting the benefits of Bitcoin, Stablecoins, Blockchain, and P2P technology.

Chung Ying (CY), CEO of D3 Labs, said: “We are confident that our efforts will potentially bring significant advancements to the fintech landscape, particularly in asset management. The upcoming launch of SeaSeed Network will enable revolutionary use cases in the Web3 ecosystem. This MoU is pivotal in driving blockchain education across Southeast Asia and beyond.”

D3 Labs aims to leverage programmable assets and blockchain technology to revolutionise the financial landscape. Powered by blockchain technology, programmable assets can bridge the gap between underserved individuals, businesses, and the formal financial sector. They provide broader access to digital financial services, enabling seamless and secure transactions while removing barriers such as geographical limitations, high costs, and lack of transparency and documentation.

“This MoU with D3 Labs could potentially expand our footprint in Southeast Asia as part of our commitment to fostering a thriving blockchain ecosystem and exploring new opportunities for growth and development,” said Paolo Ardoino, CEO of Tether.

Also Read: Tether under scrutiny: A deep dive into cryptocurrency crime allegations

Launched in 2014, Tether facilitates the digital use of traditional currencies (a familiar, stable accounting unit) to democratise cross-border transactions across a blockchain. It allows customers to transact with traditional currencies across a blockchain without the inherent volatility and complexity typically associated with a digital currency.

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Image Credit: D3 Labs.

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With Southeast Asia experiencing unprecedented growth in startup activity and investment, understanding the future of venture capital is crucial for entrepreneurs, investors, and ecosystem players alike.

As part of e27‘s flagship conference, the Echelon X panel discussion, titled ‘Unveiling VC 2.0 or Navigating the Chaos? Decoding the Future of SEA Venture Capital in 2024’, delved into the evolving landscape of venture capital in Southeast Asia, exploring the trends, challenges, and opportunities shaping VC 2.0.

Moderated by Jeremy Au, an investor and podcaster from BRAVESEA.com, the distinguished panellists included Audra Pakalnyte, Partner at First Move; Ray Alimurung, Partner at Kaya Founders; and Ankit Upadhyay, Founder and CEO of A2D Ventures.

The discussion highlighted the potential of early-stage startups, regional resilience, and diversification opportunities, highlighting the importance of understanding local markets for fair valuations, balancing founder dilution with investor stakes, and having supportive regulatory frameworks to foster innovation and technology adoption.

Evolution of venture capital dynamics in Southeast Asia

A distinct approach to VC fundraising emphasises a localised strategy rather than dependence on US-based limited partners (LPs). With significant funding sourced from the Philippines and occasional support from Singapore and the US, VCs in the region remain resilient amid fluctuating US interest rates.

The confidence in Southeast Asia’s resilience fosters a trend towards establishing smaller pre-seed funds. This strategic diversification aims to mitigate risks while capitalising on the lucrative potential of early-stage investments. The 500 Rise report, which forecasts robust growth in Southeast Asian economies, affirms the region’s appeal for long-term investment, particularly in the nascent pre-seed stage.

The evolving landscape sees non-institutional entities like family offices and micro LPs becoming increasingly pivotal in early-stage funding. This diversification counters conventional investment challenges, buoyed by a surge in angel investments despite market downturns.

Impact of technological advances

Upadhyay observes a growing trend in Southeast Asia, where derivative AI products are gaining traction. While these may not match the scale of large-scale models like GPT-5, regional founders are innovating with hyper-localised solutions. This includes applications like GPS-enabled speech-to-text technology tailored to address regional challenges effectively. Upadhyay remains optimistic about these localised innovations, foreseeing enhanced efficiency as broader AI capabilities evolve.

Investors like Pakalnyte stress the importance of discernment in AI investments, emphasising practical applications over hype. Despite strides in talent development and regulatory frameworks, the region faces challenges in deep AI expertise. Pakalnyte advocates for investments that demonstrate genuine technological advancement and tangible benefits across sectors.

Also Read: Funding the future: A guide for social entrepreneurs

Alimurung adopts a cautious approach towards AI investments in Southeast Asia. Reflecting on global trends from events like Y Combinator’s Demo Day, he notes a proliferation of AI startups, albeit with mixed success stories in the region. Kaya’s investment strategy prioritises AI applications that augment existing solutions, such as enhancing communication and data interpretation in B2B and freight forwarding sectors. This practical approach aims to leverage AI to streamline operations and solve specific business challenges effectively.

Promising sectors in Southeast Asia’s VC landscape

From a VC perspective, a consumer-centric approach is pivotal, with a strong focus on health tech and preventive healthcare solutions. This includes innovations in localised consumer products and services, such as beauty and healthcare offerings tailored to regional needs and the expanding middle class.

Strategic initiatives in Southeast Asia drive interest across diverse sectors. There’s a notable push towards enhancing tourism efficiency and rejuvenating traditional industries like agriculture and consumer packaged goods (CPG). Innovations in functional and alternative energy drinks underscore a broader shift towards sustainable agricultural practices and product innovation within the CPG sector.

In the Philippines, the startup ecosystem presents abundant early-stage opportunities across various sectors. Investment strategies emphasise vertical marketplaces, B2B solutions, and critical gaps in sectors such as construction materials and agricultural inputs. Healthcare solutions targeting underserved markets and software-as-a-service (SaaS) platforms for SMEs further highlight growth potential and strategic investment priorities in the region.

Strategic approaches to startup valuation and metrics in VC investments

A balanced approach is crucial in navigating startup valuation. Founders are advised to conduct comprehensive market analysis, examining local, regional, and global benchmarks to gauge fair valuations. Avoiding outdated metrics from previous years, startups should aim for a valuation that aligns with current market trends and investor expectations. This ensures realistic expectations and minimises undue pressure on future performance.

Historically, startups have grappled with overvaluation during market peaks, which risks excessive founder dilution. Conversely, undervaluation can hinder growth potential and investor interest. It’s essential to align valuation with fund constraints and investment mandates to maintain equitable founder stakes and sustainable growth trajectories.

Ultimately, achieving a mutually beneficial valuation involves iterative discussions and adjustments based on market dynamics and negotiation strategies. Understanding these complexities is crucial for founders seeking to secure investments that accurately reflect their enterprise’s potential.

Predictions for Southeast Asia’s venture landscape by 2030

Looking ahead to 2030, stakeholders in Southeast Asia’s venture landscape foresee several transformative shifts and opportunities:

Evolving ecosystem and success stories

There’s a collective aspiration for increased exit stories across the region. Successes in exits are pivotal as they fuel the ecosystem by inspiring new founders and attracting reinvestment from both entrepreneurs and capitalists. This anticipated growth in exits is expected to bolster confidence and stimulate further venture activity, particularly in sectors like AI, agritech, healthcare, and consumer goods. Audra also anticipates advancements in regulatory frameworks, similar to those seen in fintech, which could facilitate broader adoption of innovative technologies.

Philippine perspective and foundational tech

The Philippines is in an advantageous position, being several years behind its regional peers like Indonesia. This lag presents an opportune moment for strategic investments, especially in foundational technologies. Key areas such as APIs for data integration across sectors (e.g., financial services, healthcare, government) are highlighted as critical for enabling the next wave of startups. Regulatory reforms that mandate data accessibility could unlock significant entrepreneurial potential akin to developments observed in more advanced markets.

Also Read: Echelon Philippines opens growth opportunities in the Philippines and beyond

Impact of AI and regulatory changes

AI emerges as a transformative force capable of enhancing operational efficiency and reshaping business landscapes across Southeast Asia. Despite current hesitancy among some businesses regarding tech adoption, the next five years are expected to witness a significant shift towards AI-driven solutions. This transition promises accelerated business processes and cost efficiencies, potentially altering market dynamics fundamentally.

Talent and innovation

The influx of talent is crucial for driving innovation in Southeast Asia. The current surplus of skilled individuals, driven by recent economic shifts, presents a unique opportunity for the region. This talent pool is poised to innovate regionally relevant solutions, fostering sustainable growth and attracting further investment.

In conclusion, the evolution of VCs in Southeast Asia over the next few years promises significant transformation. More VC partners will bring deep operational and entrepreneurial experience, acting not only as financiers but also as mentors and coaches to founders. This approach aims to enrich the ecosystem by providing startups with strategic guidance and expertise.

The growing trend of early-stage VCs led by former founders or operators will further enhance decision-making capabilities and accelerate funding for nascent startups, potentially catalysing broader recognition and increased investment interest from larger VCs.

Ultimately, there is optimism that VCs will be increasingly sought after by investors and communities, highlighting their pivotal role in national development while ensuring relevance and resonance with early-stage founders through strong operational backgrounds.

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TikTok Shop surpasses Tokopedia to become the second-largest e-commerce platform in Southeast Asia in 2023, according to a Momentum Works report.

Shopee still maintained its dominant position with a GMV of US$55.1 billion, securing a 48 per cent market share.

TikTok Shop, which quadrupled its annual GMV to US$16.3 billion in 2023, is now at the same scale as Lazada and Tokopedia. TikTok Shop’s merger with Tokopedia pits it against Shopee at a similar scale.

Also Read: TikTok vs Shopee EC battle in SEA: Unveiling strategies for startups

There is more to this report; while Shopee, Lazada, and Tokopedia all reduced their workforce between 2022 and 2024, TikTok Shop has expanded its workforce to over 8,000 employees since December 2021. It means it optimises its investments for healthier growth in the region.

The findings were part of Momentum Works’s ‘The Ecommerce in Southeast Asia 2024’ report. which provides comprehensive insights into the region’s six key e-commerce markets, analysing the competitive landscape and ecosystem players, including logistics.

The report further revealed that Southeast Asia’s e-commerce market continues its impressive growth, achieving a total Gross Merchandise Value (GMV) of US$114.6 billion in 2023, a 15 per cent increase from the previous year, reveals a study.

Indonesia remains the largest e-commerce market in the region, contributing 46.9 per cent to the region’s GMV. This is a lower share compared to 54 per cent in 2022. However, the archipelago’s e-commerce growth rate of 3.7 per cent is the slowest in the region.

Vietnam and Thailand are the fastest-growing markets, with GMV increases of 52.9 per cent and 34.1 per cent year-on-year, respectively. Vietnam has now surpassed the Philippines to become the third-largest e-commerce market in the region.

The other three key markets, the Philippines, Malaysia and Singapore, all registered double-digit or very close to double-digit growth.

Also Read: The evolution and regulation of social commerce in Indonesia: The TikTok Shop ban

Temu, Pinduoduo’s global arm that shook up the e-commerce landscape in the US, has also entered Southeast Asia in 2023. While it is finding a way to enter Indonesia, its current cross-border model will not be welcome in the country. However, the platform might turn more attention to the region after ROl declines in other markets such as North America and Europe.

The report also highlighted four key trends shaping Southeast Asia’s e-commerce landscape:

Live commerce: Leading Key Opinion Leaders (KOLs) in Vietnam, Thailand, and Indonesia are achieving multi-million dollar sales in single live sessions.

Generative AI: E-commerce platforms in the region are beginning to adopt generative AI applications, enhancing user experience and operational efficiency.

E-commerce enablers: Faced with market constraints and reduced brand market shares on platforms, many e-commerce enablers are diversifying their business models.

E-commerce logistics: Third-party logistics providers are experiencing increased pressure as platforms begin to in-source parcel delivery services.

According to Jianggan Li, Founder and CEO of Momentum Works, “The competitive landscape of e-commerce in Southeast Asia remains dynamic and constantly transforming. With markets like Vietnam and Thailand showing remarkable growth and platforms like TikTok Shop rapidly expanding, it’s clear that innovation and adaptation are key to success in this region. The adoption of generative AI and the evolution of live ecommerce are reshaping the industry, and we are excited to see these trends drive continued growth and opportunities for businesses across Southeast Asia.”

Also Read: GoTo completes merger with TikTok Shop Indonesia

Headquartered in Singapore, Momentum Works builds, scales, and manages tech ventures across emerging markets. The company leverages its extensive knowledge, community, and experience to inform, connect, and enable the tech and new economy ecosystem. Key business areas include ventures, insights, immersions, and advisory services.

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The National Innovation Agency (Public Organisation), or NIA, continues its mission to drive Thailand towards becoming a nation of innovation. This year, NIA is set to host the highly anticipated “STARTUP THAILAND x INNOVATION THAILAND EXPO 2024” (SITE 2024), under the theme “Innovation for Growth and Sustainability.” The event, designed to foster sustainable growth for Thai businesses and startups, will take place from July 22-28, 2024, at the Queen Sirikit National Convention Center in Bangkok.

Dr Krisphaka Bunfueang, Director of NIA, emphasised the significance of this event in advancing Thailand’s position on the global innovation stage. “Our goal is to propel Thailand into the top 30 of the Global Innovation Index by 2030. Through strategic collaborations with both domestic and international partners, NIA aims to support innovation-based entrepreneurs, creating sustainable economic and social impacts. SITE 2024 is a crucial platform to elevate Thai startups and entrepreneurs, fostering continuous innovation,” stated Dr Krisphaka.

Also read: Kitabisa bolsters online giving through improved user journey

Highlights of SITE 2024

1. Forum: A prestigious stage featuring leading Thai and international innovators and experts, providing insights into global innovation trends and inspiring innovation development.
2. Marketplace: An extensive showcase of over 300 startups and innovative entrepreneurs, presenting cutting-edge products and services that align with future business sustainability trends.
3. Business Matching: A pivotal opportunity for startups and innovative entrepreneurs to expand their ideas into thriving businesses, find partners, and receive expert advice for robust business growth.
4. Prime Minister Award: A ceremony recognising and honouring individuals and organisations that have significantly contributed to the development of Thailand’s startup ecosystem and enhanced the potential of Thai startups on the global stage.
5. Startup Thailand League 2024: The national pitching competition, where the top 14 teams from higher education institutions compete under the theme “Change your dreams, create a business with a different idea.”

Also read: Asia’s climate tech: Communicating solutions and avoiding greenwashing

Special feature: SCI Power

This year, SITE 2024 introduces the “SCI Power” expo, promoting the sustainable use of resources through interdisciplinary collaboration. This platform showcases the potential of economic development driven by higher education, science, research, and innovation, inspiring scientific learning and improving the quality of life for all ages.

Dr Krisphaka concluded, “SITE 2024 will ignite new ideas and technologies, enhancing commercial opportunities and business expansion for startups. With support from the government and related agencies, this event will boost Thailand’s international competitiveness and economic reputation.”

To check out the registration details, visit NIA and follow them on Facebook: NIA – National Innovation Agency, Thailand.

Explore more about NIA and its initiatives at NIA.

For more information, contact the National Innovation Agency (Public Organisation) through Dujrapee Chaovanapricha at dujrapee.c@nia.or.th

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This article is sponsored by NIA.

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With the emergence of blockchain and AI, the digital landscape is starting to change in front of our eyes. Established Web2 business models are starting to get disrupted by Web3 ideas. The emergence of generative AI opens up a lot of business opportunities that were totally
unimaginable before.

Let’s identify the business models poised for disruption in the coming years. Rather than examining each specific model, I want to concentrate on innovative business structures that can transform multiple sectors.

Business models poised for disruption

It has always been clear that blockchain has a huge potential to disrupt traditional business models in finance and beyond. We have experienced different attempts to apply blockchain tech to various business sectors, from logistics to loyalty programs and real estate.

These attempts have been varied in nature; some focused on integrating blockchain into the business infrastructure itself, creating business-specific enterprise blockchains, while others concentrated on bringing more Web3-like business models and tools, such as tokenisation or NFTs, to real-world business.

The enterprise blockchain trend, championed by major corporations like IBM with its Hyperledger blockchain, seems to have lost some momentum. Originally, the idea was to implement closed (permissioned) blockchains in businesses requiring coordination between different units, automated business logic execution, and enhanced transparency.

Also Read: Understanding the role of fintech, blockchain in transitioning to net zero

While this approach has seen moderate success in financial applications, such as interbank settlement networks, its future might hinge on the adoption of Central Bank Digital Currencies (CBDCs).

However, the trend is currently being overshadowed by the use of open blockchain tools and techniques, such as tokenisation, in traditional business models. This shift is quite telling, as the core principle of blockchain technology is openness—an aspect that holds significant potential for improvement.

Areas for disruption: Finance, marketing, and social networking

One of the major areas for disruption is, of course, traditional finance. There’s a tangible improvement when we put finance applications on a blockchain footing. A lot of inefficiencies in traditional finance get immediately eliminated when underpinned by blockchain. The execution of traditional finance business logic, as seen in trade finance, can be fully automated through blockchain smart contracts.

Blockchain also creates financial markets that are available 24×7, which significantly improves on traditional platforms. For the new generation of millennials, it is probably totally unclear why they cannot trade Tesla stock on Sundays (but can trade any crypto token any time they wish).

It is inevitable for finance to move to blockchain rails; it is just a natural development fueled by the obvious improvements that blockchain brings to finance, which will be unfolding in the next decade.

Tokenisation can also be a great marketing tool for businesses. NFTs have already been used by major businesses to engage customers. Triggered by the obvious success of meme coins (tradable crypto assets associated with popular memes), we will see similar instruments being used in traditional business marketing and customer acquisition.

Loyalty reward programs can be tokenised, and token airdrops can be used to onboard new customers. It is important to note that open blockchain tools, which are publicly available, are required for this. No blockchain integration into business structures themselves is needed; rather, traditional Web2 businesses start to absorb Web3 ideas and instruments into their operations.

Also Read: Mastering the art of fundraising: Winning strategies to engage investors

Another major area for disruption is social networking. Web2 has been successful in onboarding billions of users into major social networks, but now their inefficiencies and drawbacks are becoming more apparent. Being a very traditional centralised structure, they can be heavily abused when moderation algorithms fail to deal with bot activity efficiently.

This, in turn, leads to tighter centralised control over the posted content and censorship. Social network users do not pay to use it since they are essentially the product; their private data, shared with the network, is used for targeted advertising and resold without explicit consent from the user. Emerging Web3 social networks allow explicit control of all the data shared by the user, which can be monetised by the users themselves.

We should also mention the (in)famous Metaverse narrative, which is also closely connected to blockchain. Although its successful adoption may be more distant, an immersive andall-encompassing digital experience is something that the digital world is converging towards. Despite its early setbacks, we will definitely see a revival of interest in the Metaverse, fueled by progress in hardware and AI.

Final thoughts

The disruption brought about by AI will be massive, and it is really hard to estimate its scale yet. It really depends on how fast we will be able to achieve Artificial General Intelligence (AGI), whose potential role in human progress can probably only be compared to the invention of the wheel.

Large Language Models and generative AI will be disruptive in changing roles in the digital world; most mundane tasks will be handled by LLMs, which can free up a lot of human resources to deal with the tasks that AI can’t handle yet.

Despite the current rather authoritarian trends in the world, which are also partially enabled by IT technology, we can see that the ideas of openness that blockchain brought about are finding their way into the business world, and this trend will be growing.

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