The international trade landscape is undergoing significant upheaval as the United States, under President Donald Trump’s administration, implements stringent tariffs on key trading partners: Canada, Mexico, and China. These measures, driven by the “America First” policy agenda, are reshaping global economic relations and supply chain dynamics.

Amid this complex environment, SSL Logistics emerges as a pivotal player, leveraging digital transformation to enhance global logistics efficiency and resilience.

US tariffs and their impact

On March 4, 2025, the US enforced unilateral tariffs under the International Emergency Economic Powers Act (IEEPA), citing national security concerns linked to unlawful migration and the illicit flow of fentanyl. The tariffs imposed are as follows:

• Canada and Mexico: A 25 per cent tariff on all imports, except Canadian energy imports, which face a revised 10 per cent duty.
• China: Tariffs on Chinese goods increased from an initial 10 per cent in February to 20 per cent, doubling the previous rate.

These tariffs target a substantial US$2.2 trillion in annual trade, significantly impacting various economic sectors, including agriculture, electronics, and the automotive industry. The decision led to retaliatory measures from China, Canada, and Mexico, heightening trade tensions and fostering a volatile economic climate.

Global economic implications

The imposition of these tariffs signals a resurgence of protectionist policies, potentially escalating into a broader trade war. The OECD forecasts a slowdown in global growth, declining from 3.2 per cent in 2024 to 3.1 per cent  in 2025 and further to 3.0 per cent in 2026.

Also Read: Trump’s tariff bombshell: A US$660 billion shake-up for global trade

The increased tariffs are expected to introduce a 15 per cent effective tariff rate (ETR) on Europe, Canada, and Mexico, and a staggering 35 per cent ETR on China. These measures are likely to disrupt global trade networks, creating uncertainty for businesses and investors alike.

Key implications include:

• Supply chain disruptions: Companies may accelerate shifts in sourcing strategies, relocating production to mitigate tariff impacts. This realignment could alter global supply chain dynamics, with a potential move towards the EU and ASEAN regions.
• Economic volatility: Stock markets have reacted negatively to the uncertainty, prompting discussions on strategic responses such as tariff exemptions and diplomatic negotiations.
• Sectoral impacts: Industries like agriculture, automotive, and energy face significant disruptions, while US services sectors such as software and cybersecurity may remain relatively insulated from tariff-induced challenges.

Business opportunities amid tariff expansion

Despite the challenges, the expansion of tariffs presents several business opportunities, particularly for domestic industries:

• Agriculture and food production: Increased tariffs on imported agricultural products shield US-based food producers from foreign competition, potentially boosting their market share and profitability.
• Automotive and energy: Domestic industries can leverage tariffs to enhance their competitive positioning, encouraging innovation and process optimisation.
• Service industries: Sectors less impacted by tariffs, such as software, cybersecurity, and defense technology, can capitalise on reduced competition and continue to thrive.

Businesses can adapt by diversifying supply chains, investing in domestic production, and exploring new markets. Leveraging technology for better supply chain management and negotiating with suppliers can help companies mitigate the impact of tariffs and capitalise on new opportunities.

Also Read: Wall Street’s reckoning: How Trump’s words sparked a global sell-off

SSL Logistics: A digital transformation leader

In an era of shifting global trade dynamics, SSL Logistics emerges as an example of how digital transformation can reshape the logistics industry.

As the global trade landscape continues to evolve, SSL Logistics remains committed to innovation and strategic expansion. The company’s digital transformation initiatives empower businesses to navigate trade and tariff challenges with agility and precision. 

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Velocity Ventures, a leading travel and hospitality tech investor with a strong foothold in Southeast Asia, has released its “Innovation & Deal Flow Report 1Q2025 [Transportation]”, offering a glimpse into the evolving landscape of the transportation industry.

While providing a global overview, the report illuminates crucial trends and potential investment opportunities within the Southeast Asian tech startup ecosystem.

Also Read: Data security, solo travel, and space tourism drive growth in travel services: Report

The report highlights several key innovation areas shaping the transportation sector globally, with implications for Southeast Asia. Blockchain in logistics demonstrated the highest compound annual growth rate (CAGR) at 58 per cent, followed by Hyperloop at 40.1 per cent and electric vehicles (EVs) at 34.2 per cent.

Notably, the top increases in CAGR were observed in Hyperloop (+23.9 per cent), blockchain in logistics (+18.2 per cent), and EVs (+16.4 per cent). These figures suggest a significant and accelerating interest in these technologies, which could translate to burgeoning opportunities for Southeast Asian startups focused on these areas.

Based on the Velocity Ventures report, another key theme is global venture capital activity within the transportation industry. The report highlights recent funding rounds for several companies across different regions, providing a snapshot of where investment is currently flowing.

For instance, in February 2025, Buser, a collaborative charter platform based in Sao Paulo, Brazil, raised US$1.64 million in a venture round. In the same month, Pointship, an online travel platform from Tallinn, Estonia, secured US$1.9 million in a Seed round with Startup Wise Guys participating.

Moving into March 2025, Taxina Mobility, an Indian company providing ride-hailing solutions, raised US$175,000 in a Seed round with Navyug Global Ventures as a notable investor. Additionally, Movv, a South Korean mobility service focused on safe and convenient movement using dedicated drivers and vehicles, raised US$3.4 million in a Venture round.

These examples demonstrate that venture capital is being deployed in diverse transportation-related startups worldwide, ranging from ride-hailing in India to charter platforms in Brazil. The funding stages also vary, with seed and venture rounds prominent in these recent activities. This global overview, although not solely focused on Southeast Asia, provides context for the investment landscape in which Velocity Ventures operates and identifies potential areas of growth and interest in the broader transportation technology market.

The report also touches upon the increasing integration of artificial intelligence (AI) into transportation technology stacks. This trend is not specific to Southeast Asia but will likely be a significant factor driving innovation and efficiency across the region’s transportation startups, extending beyond customer service to areas like data parsing and processing.

Also Read: Driving change: How women are redefining ride-hailing

Velocity Ventures’ “Pipeline Observation” focuses more on urban mobility startups looking to fundraise globally this quarter. This aligns with the presence of Circuit, an on-demand electric shuttle service in the US, and suggests a potential wave of investment and development in urban mobility solutions within Southeast Asian cities as well.

In conclusion, Velocity Ventures’ 1Q2025 Transportation report indicates a vibrant and evolving transportation tech landscape, with significant momentum in areas like blockchain, hyperloop, and EVs.

The highlighted trends of AI integration and a focus on urban mobility are also pertinent for Southeast Asian startups aiming to disrupt the traditional transportation paradigms.

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As financial markets navigated the Easter holiday weekend of April 21, 2025, a confluence of significant events underscored a transformative period for global investors. The synchronised surge of gold and Bitcoin to new highs, coupled with a weakening US dollar amid speculation about Federal Reserve Chairman Jerome Powell’s potential removal, painted a complex picture of risk sentiment, economic uncertainty, and evolving market dynamics.

Against the backdrop of recovering global optimism around US trade negotiations, the week’s market movements offered critical insights into the interplay of macroeconomic forces, technical signals, and geopolitical developments. I explore these events in depth, weaving together their implications for investors, traders, and policymakers, while offering a grounded perspective on the broader financial landscape.

The week ending April 18, 2025, saw global risk sentiment rebound, driven by optimism surrounding potential trade resolutions between the US and key partners like Japan, Mexico, and Canada. This optimism was reflected in Asian equity markets, with the MSCI Asia ex-Japan index posting a modest 0.16 per cent gain on Friday and a more robust 2.35 per cent weekly increase, snapping a three-week decline totalling 8.5 per cent.

Notable performers included Malaysia’s KL Composite (+1.09 per cent), Thailand’s SET (+0.85 per cent), South Korea’s KOSPI (+0.53 per cent), and Taiwan’s TAIEX (+0.29 per cent), while China’s CSI 300 remained nearly flat. These gains, achieved in thin holiday trading conditions, suggested cautious investor confidence amid ongoing trade talks. However, US equity markets, closed for Good Friday, ended the week on a weaker note.

The S&P 500 fell 1.5 per cent, the Dow Jones Industrial Average slumped 2.7per cent, and the Nasdaq Composite dropped 2.6 per cent, reflecting concerns over trade uncertainties and mixed corporate earnings expectations. Looking ahead, investors are poised to scrutinise earnings from heavyweights like Tesla and Alphabet, which could set the tone for market direction in the coming weeks.

The most striking development on April 21, 2025, was the synchronised rally in gold and Bitcoin, which underscored a growing narrative of distrust in the US dollar. Gold hit its 55th all-time high in the past 12 months, reaching US$3,382.43 per ounce at 8:00 PM EST, as reported by Bloomberg. This milestone, part of a relentless 15.3 per cent year-to-date gain, was fuelled by safe-haven demand, central bank purchases, and a weakening dollar.

Simultaneously, Bitcoin surged past US$87,000 at 8:15 PM EST, according to CoinMarketCap, driven by a combination of whale accumulation, dollar weakness, and speculation around US monetary policy shifts. The correlation between these assets, traditionally viewed as divergent, signals a profound shift in investor psychology.

Also Read: Gold jumps 3.3 per cent, Nasdaq soars 12.1 per cent, Bitcoin increases 7 per cent: Inside Trump’s tariff rollback effects

Both gold and Bitcoin are increasingly seen as hedges against currency devaluation and economic instability, particularly in light of reports that President Donald Trump is seeking to remove Federal Reserve Chairman Jerome Powell. This political manoeuvre, amplified by Trump’s Truth Social posts declaring that “Powell’s termination cannot come fast enough,” has sparked fears of undermined Fed independence, a sentiment echoed by Chicago Fed President Austan Goolsbee, who warned of potential damage to the central_above bank’s credibility.

The trading implications of this event are multifaceted. The spike in gold and Bitcoin prices drove significant market activity, with XAU/USD trading volumes surging 20 per cent compared to the previous day at 8:30 PM EST, per Forex Factory data. Similarly, Bitcoin’s trading volume on exchanges like Binance rose 15 per cent by 8:45 PM EST, according to CoinGecko, reflecting robust investor interest.

For traders, this heightened volatility presents both opportunities and risks. Pairs trading strategies, which exploit price divergences between gold and Bitcoin, could gain traction as their correlation strengthens. Portfolio diversification into these assets may also appeal to investors seeking to hedge against a depreciating dollar, particularly as the US Dollar Index (DXY) fell 0.2 per cent to 99.23 on Friday.

However, the risk of overbought conditions looms. Gold’s Relative Strength Index (RSI) reached 72 at 9:00 PM EST, signalling strong momentum but nearing overbought territory, while Bitcoin’s RSI of 68 suggested continued upside potential, per TradingView. Bullish MACD crossovers for both assets further reinforced their upward trends, but traders must remain vigilant for potential pullbacks, especially if trade negotiations falter or central bank policies shift unexpectedly.

The Bitcoin market, in particular, is showing signs of structural strength. Blockchain analytics firm Santiment reported that Bitcoin whales, holding between 10 and 10,000 BTC, accumulated 53,600 BTC since March 22, 2025, increasing their control to 67.77 per cent of the circulating supply. This accumulation, occurring amid price volatility and market uncertainty, reflects deep confidence among large holders.

On-chain metrics from Glassnode further support this bullish outlook, with a 10 per cent increase in active Bitcoin addresses by 9:45 PM EST, indicating growing network activity. These developments suggest that Bitcoin’s rally is not merely speculative but underpinned by fundamental demand, potentially paving the way for further price appreciation if macroeconomic conditions remain favourable.

Also Read: Global markets reel as Trump tariffs slam stocks and Bitcoin prices

The weakening US dollar, a key driver of the gold and Bitcoin rallies, was exacerbated by reports of Trump’s push to oust Powell. National Economic Council Director Kevin Hassett’s comments on Friday, coupled with Trump’s social media rhetoric, triggered a sell-off in the dollar against major G-10 currencies.

Markus Thielen of 10x Research noted that Bitcoin’s surge to US$87,000 was directly tied to this dollar weakness and gold’s two per cent rally, with the perceived threat to Fed independence acting as a primary catalyst. Powell’s recent remarks, emphasising a data-dependent approach and warning of stagflation risks, have clashed with Trump’s calls for immediate rate cuts, creating a tense backdrop for monetary policy.

A potential trade deal with Japan, hinted at by market observers, could temper some of this uncertainty, but the specter of Fed interference remains a significant concern. A bond market crash, loss of confidence in the dollar as a reserve currency, and heightened stock market volatility could ensue if Powell’s removal is pursued through questionable means, as cautioned by X posts from several analysts.

In Europe, the European Central Bank’s (ECB) decision to cut interest rates by 25 basis points on Thursday, the seventh reduction since June 2024, reflected softening inflation and a deteriorating growth outlook amid trade uncertainties. The 10-year European yield fell 3.7 basis points to 2.469 per cent on Friday, signalling investor caution. This dovish stance contrasts with the US Federal Reserve’s current pause, highlighting divergent monetary policies that could further pressure the dollar.

In commodities, oil prices rose nearly five per cent last week, with Brent settling at US$68 per barrel on Thursday, driven by trade optimism and supply concerns. However, the closure of major markets in Canada, the UK, Europe, and Hong Kong for Easter Monday limited trading activity, with Asian equities opening mixed and US equity futures pointing to a lower open.

Looking ahead, the interplay of trade negotiations, central bank actions, and corporate earnings will shape market trajectories. The potential for a US-Japan trade deal could bolster equities, but unresolved tensions with China, which recently imposed 34 per cent tariffs on US goods, pose risks.

Gold and Bitcoin’s synchronised rally suggests a broader shift toward alternative stores of value, a trend that may intensify if dollar confidence erodes further. Investors should monitor macroeconomic indicators, such as US retail sales and inflation data, alongside Fed commentary for clues on policy direction.

Technically, both gold and Bitcoin remain bullish, but overbought signals warrant caution. For now, the financial markets stand at a crossroads, with the gold-Bitcoin surge and dollar dynamics signaling a pivotal moment for global economic stability. I see this as a call for prudent diversification, rigorous risk management, and a keen eye on the evolving geopolitical and monetary landscape.

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QBO Innovation, a public-private initiative dedicated to fostering the growth of the Philippine startup ecosystem, has unveiled its latest endeavour, “Step Juan: Young Technopreneurs in Training”.

Launched in collaboration with the US Embassy in the Philippines and American Spaces Philippines, this programme aims to empower local youth with skills in science, technology, engineering, and mathematics (STEM) and innovation.

The Step Juan programme is specifically designed to provide high school and university students with limited exposure to startup initiatives with accessible, beginner-friendly learning opportunities in entrepreneurship, technology, and innovation.

Also Read: “Don’t ‘out-bro’ your male colleagues”: Kickstart’s women leaders on gender diversity in VC

The Philippine Institute for Development Studies (PIDS) has previously reported a lack of interest in STEM among young Filipinos. Recognising this critical gap, Step Juan seeks to ignite enthusiasm for STEM fields and equip students with essential skills applicable to real-world scenarios.

The Step Juan programme’s curriculum is structured to inspire the next generation of innovators. Key components include Innovation and Technopreneurship Fundamentals, which utilises QBO’s BASIQS programme and features interactive talks by QBO faculty for aspiring entrepreneurs.

The programme also incorporates Technopreneurship Training for Teachers and Collaborative Learning and Co-Facilitation.

These activities are designed to spark curiosity and enhance critical thinking among young individuals, thereby future-proofing them as technopreneurs. They also equip professors and educators to effectively champion STEM within their respective educational institutions.

The Cycle 1 phase has forged partnerships with the University of Makati (UMak) and Maximo Estrella Senior High School. This collaboration aims to provide educators with insights and training in startup methodologies, problem-solving, and business innovation, preparing them to champion technopreneurship within their classrooms.

Plans are already underway for Cycles 2 and 3, which will extend throughout the year to other cities within the National Capital Region (NCR).

Also Read: IdeaSpace names Alwyn Rosel as new Executive Director, succeeding Jay Fajardo

QBO Executive Director Alwyn Rosel said: “Step Juan envisions a future where Filipino youth are empowered to pursue STEM and technopreneurship, with educators playing a crucial role in shaping innovative thinkers. The programme inspires and equips youth with STEM skills, creates a network of educator mentors, and cultivates stakeholders in the innovation landscape. Long-term, we envision Step Juan encouraging students to pursue STEM careers and providing teachers with new tools and frameworks for innovation-driven education.”

QBO Innovation, established in 2016 through a partnership with IdeaSpace, JP Morgan, the Department of Science and Technology (DOST), and the Department of Trade and Industry (DTI), operates incubation and acceleration programmes for startups across various stages and industries. It also conducts a range of ecosystem and community activities to improve access to markets, knowledge, networks, capital, and talent, with a vision of Filipino startups making a global impact.

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In a world where almost anything can be faked online, how do we know what to believe anymore? AI can now clone voices, fake certificates, and generate entire identities in seconds—and trust is eroding fast. But Turing Space is here to restore it. 

This Taiwan-founded, globally operating startup has built a platform that allows users to verify everything from diplomas and health records to ESG reports and energy certificates securely and instantly across borders. Each credential is anchored on the public blockchain, protected by strict privacy controls, and built to meet global compliance standards such as ISO and GDPR.

With Turing Space’s digital identity tools, individuals can store verified credentials in one place. Verification is instant, secure, and paperless, helping organisations cut costs while dramatically increasing trust. Institutions can issue and manage them with speed and confidence. It is a smarter way to prove what matters and make trust portable. Turing Space has been described as the “post office of trust,” delivering secure, shareable, and globally accepted digital proofs.

Curious if it is working?

It is.

Turing Space already works with governments, universities, healthcare institutions, and international organisations such as WHO, UNESCO, APEC, and 500+ source of authorities, including 40 government agencies in Taiwan and Japan. They have helped digitise millions of green energy and healthcare certificates in Taiwan. They have also supported the secure issuance of volunteer records, ESG reports, real estate contracts, and more.

Also Read: Good Bards: Building the AI marketing team mid-sized companies have been waiting for

Backed by real traction and trusted by institutions across more than 10 countries, Turing Space is not just a software platform. It is an infrastructure layer for global trust.

What is next, you asked? Turing Space is now expanding its reach and deepening its product capabilities. The plan includes:

• Scaling digital identity products with biometric support
• Rolling out new certificate types across more sectors, including education, ESG, banking, and healthcare
• Deepening integration with government institutions and international organisations
• Expanding partnerships across Japan, Europe, and Southeast Asia
• Advancing R&D to stay ahead of AI-generated fraud and digital identity risks

Turing Space is not just fighting fraud. It is helping to rebuild the foundation of trust in a world where information is easy to fake and hard to prove. Because when anything can be faked, proof becomes everything.

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Meet the team at the TOP100 Exhibition zone during Echelon Singapore, happening 10–11 June 2025. Get your passes here.

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“I’m exhausted.”

Not from the work — but from the silence. From guessing. From being the fallback. From having to micromanage when all I wanted was mutual ownership.

That one sentence echoed in my head after a project partnership spiralled out of alignment. Six days from launch, key deliverables hadn’t been delegated. I stepped in again. The weight of it wasn’t just in what needed to be done but in what hadn’t been said.

The truth is, I never minded doing the work. What drained me was the absence of communication.

I realised that this happens far too often, not just in creative projects but in startups and SMEs everywhere. Miscommunication isn’t loud, it’s quiet. It doesn’t explode, it erodes.

So let’s talk about it.

I’ve seen how communication can either unlock momentum or quietly drain morale at both People’s Inc. 360 and Royal Visionary Society.

Why communication is a startup’s greatest asset (or risk)

In fast-paced, resource-strapped environments, communication isn’t a “soft skill” — it’s infrastructure. It defines how fast you move, how well you collaborate, and whether trust scales or crumbles.

Without it, your best systems stall, your most capable team members burn out, your investor relationships strain, and your clients just move on.

What feels like a “delivery issue” is often a communication breakdown in disguise.

The four communication styles in business and their trade-offs

• The over-communicator
  • Pros: Nothing slips. Everyone’s in the loop.
  • Cons: It can feel like micromanagement, which causes fatigue.
• The under-communicator
  • Pros: Trusts the team. Less noise.
  • Cons: Leads to gaps, guessing, unmet expectations.
• The reactive communicator
  • Pros: Quick to solve under pressure.
  • Cons: Lacks structure and foresight.
• The proactive communicator (ideal)
  • Pros: Builds trust, clarity, and rhythm.
  • Cons: Requires intentional effort and consistency.

If you’ve ever felt like you’re constantly cleaning up messes despite having a talented team – this might be why.

What good communication looks like for startups (and why It’s non-negotiable)

Communication isn’t just about staying connected — it’s about building trust, reducing ambiguity, and setting your team up to move fast without breaking everything. Here’s what that looks like in action:

Set expectations early

From day one, clarify roles, responsibilities, and timelines. Who owns what? When is it due? What does “done” look like? Assumptions are the enemy of execution. When everyone knows what’s expected, you eliminate ambiguity — and prevent last-minute scrambles.

Tip: In your task list or tracker, use a simple “owner + deliverable + deadline” format.

Choose your rhythm

Communication isn’t a one-time announcement — it’s a rhythm. Create a cadence that works for your team: Weekly syncs, daily standups, or bi-weekly sprint reviews. Combine synchronous (real-time) with asynchronous (messages, dashboards) to respect everyone’s time and energy.

A startup that communicates once a week is faster than one that reacts every day without context.

Build psychological safety

Teams will not speak up if they fear judgment or punishment. That means they will avoid surfacing delays, confusion, or even better ideas. Good communication requires psychological safety, where people can say “I’m stuck” or “I need help” without fear.

Also Read: Reflections on my journey: 2 years in corporate communications and digital marketing

The healthiest teams don’t avoid conflict — they know how to talk through it.

Use the right tools

Don’t rely on memory or scattered threads. Tools like Telegram for quick check-ins, Asana, Notion or ClickUp for project visibility, and AI assistants like Seraphina, which we’ve integrated at People’s Inc. 360 to streamline communication and follow-ups to dramatically improve flow. Use tech to make information transparent and accessible.

If a task isn’t visible, it’s invisible. Visibility prevents assumptions.

Communicate delays early

Things go wrong — that’s startup life. But silence makes it worse. A quick heads-up (“this is delayed, here’s why, here’s the new ETA”) allows the team to adapt. Silence leaves people in the dark and erodes trust.

Your credibility isn’t defined by whether you miss a deadline — it’s defined by how early and clearly you communicate when you do.

Across the board: Tailoring communication by stakeholder

Different audiences need different approaches — and neglecting even one group can create ripple effects across your entire operation.

With your team: Clarity breeds confidence

Teams thrive when they know the direction and their role in it. Give autonomy, but pair it with structured accountability. Encourage bottom-up feedback — and ensure it’s heard, not just collected.

Clarity in roles empowers performance. Confusion breeds burnout.

With your clients: Don’t just deliver — update

Clients don’t want to chase you. They want to feel informed and reassured. Proactively share timelines, blockers, and wins. Even a short “we’re on track” message builds confidence.

What is the best client retention strategy? Communicate before they ask.

With your partners: Define roles and revisit them regularly

Whether it’s a co-founder, agency, or collaborator, revisit responsibilities often. As the business evolves, so do the demands. Don’t let yesterday’s assumptions stall today’s momentum.

Partnerships don’t fail from misalignment — they fail from unspoken misalignment.

With your investors: Transparency > perfection

You don’t have to be perfect — just clear. Investors would rather know about roadblocks early than be surprised later. Share both your metrics and your mindset. Be concise, consistent, and candid.

Investor updates aren’t just reporting — they’re relationship-building.

Also Read: Charting a clear course: Building effective communication in SEA’s hybrid work era

If you’re feeling stuck, start here (with help)

Sometimes, it’s hard to pinpoint the problem — you just feel off. In those moments, I recommend reaching out to a communication coach.

Nicholas Wong, a founding member of Speakers Society and a communication strategist, shared his insight with me. Five questions with Wong, on communication, culture, and clarity:

• What’s the biggest communication blind spot founders have?
  Many founders think they’re delegating when they’re just telling. They give instructions without context — no why, no vision, no connection to the bigger picture. Without that, teams feel confused or even disconnected.
• How can leaders empower without micromanaging?
  Start with trust. Ask your team for feedback — it gives them ownership. Then listen deeply, not to assign blame, but to build better systems together.
• A practice every team should implement?
  Hold regular 1-on-1s – even once a month. Make it non-obligatory and personal. Talk about work, yes, but also life, interests, and passions. Culture starts when leaders show up and listen.
• What to do when communication breaks down?
  Set the stage for a safe conversation. Try: ‘I’ve been sensing something — can we talk?’ If emotions are running high, reschedule. Say: ‘Let’s not say things we’ll regret when we’re emotional.’ That pause helps.
• What if something feels off, but you’re unsure what?
  Speak to your team. Be real. Say: ‘I’m feeling some tension — is everything okay? Can I help?’ Vulnerability invites honesty.

Communication is a culture, not a checkbox

You can have the best tech stack, the sharpest team, or the most visionary idea. But if communication falters, everything stalls.

So, if something doesn’t feel right, don’t wait. Reset the rhythm, realign the roles, or respectfully part ways.

Because at the heart of every thriving startup is a team that knows how to talk — and how to listen.

And do you need help finding your rhythm again? You can always ping Wong. Sometimes, all it takes is one honest conversation to get back on track.

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The concept of decentralised artificial intelligence (DeAI) has recently gained significant traction, with experts and institutions debating its feasibility, challenges, and potential impact. Unlike traditional centralised AI models, which are controlled by a few powerful organisations, DeAI aims to distribute AI capabilities across a broad network, ensuring greater accessibility, transparency, and efficiency.

Leading voices in AI research and development, such as the MIT Media Lab, the Linux Foundation, and major media outlets like Forbes, have all weighed in on DeAI. MIT Media Lab emphasises the need for personalised AI agents and the democratisation of AI, countering the current monopolisation of the industry.

It highlights the challenges of centralised AI, such as limited data access due to data silos, lack of transparency, and concerns about trust and accountability. Their call for businesses to adopt decentralised models is echoed by the Linux Foundation, which published a detailed 54-page report in November 2024 outlining how autonomous AI agents can function independently within decentralised networks while maintaining privacy, exemplified by zero-knowledge proofs.

Meanwhile, Forbes published an article in February 2025 underscoring the benefits of open-source AI, advocating against AI models being locked behind paywalls and proprietary systems. Their article stated, “Success in AI relies on collective input, demands vast, diverse datasets, and continuous collaboration.”

The question remains: How can the vision of DeAI be turned into reality? What technical challenges must be overcome to achieve decentralised AI, and what role can AI frameworks play in this transformation?

Challenges and solutions in AI frameworks for DeAI

The foundation of DeAI lies in robust AI frameworks that enable AI agents to operate in a decentralised environment. However, existing frameworks are not yet optimised for this shift. Here’s a list of the key challenges that AI frameworks face along with their solutions.

High technical barrier-to-entry for non-developers and democratising AI agent development

Most AI development frameworks require a deep understanding of programming, machine learning models, and infrastructure deployment. The complexity of developing AI models and deploying them in real-world applications limits participation to a small group of highly skilled engineers and data scientists. This restricts the widespread adoption of DeAI by non-technical users and organisations that could otherwise benefit from AI-driven solutions.

Solution: The democratisation of AI agent development should be a top priority for companies. Democratisation can be achieved by fostering collaboration between AI companies or open-source frameworks that remove high technical barriers-to-entry for non-developers.

An example is aevatar.ai, an open-source no-code framework for AI agents, which allows anyone to create, deploy, and utilise AI agents using an intuitive prompt system. Its first use case is a multi-LLM-driven mining ecosystem called MineAI. Mine AI is the first AI agent PVP mining system, allowing users to utilise natural languages as prompts to mine, defend, and attack with dynamic strategies. By eliminating technical barriers, these platforms expand AI adoption and innovation.

Isolated AI agent ecosystems and multi-LLM and multi-agent AI frameworks

Today’s AI frameworks are restricted by proprietary systems, preventing seamless communication between AI agents across different platforms. These isolated ecosystems hinder collaboration, limit interoperability, and prevent AI agents from leveraging complementary capabilities.

This results in inefficiencies where AI models cannot share insights, making them less effective in tackling complex tasks that require diverse knowledge sources. While the Model Context Protocol (MCP) is emerging as a promising solution to address this challenge, several unresolved pain points persist, requiring further development and refinement to ensure seamless agent-to-agent communication.

Solution: A true DeAI ecosystem requires seamless interaction between multiple AI agents, even if they operate on different language models and platforms. Since different LLMs serve different purposes, creating a multi-LLM AI framework that enables siloed AI agents to communicate with one another seamlessly would allow AI agents to produce more holistic results.

Also Read: Navigating market trends and risks: Leveraging GenAI in banking treasury functions in APAC

Developing a universal translator that supports agent-to-agent communications across different languages, platforms, and industries is crucial to ensuring each agent can adapt to diverse scenarios and optimise performance. A decentralised communication protocol for AI agents would further eliminate reliance on centralised intermediaries, enabling AI to function autonomously across various domains.

Lack of scalability in AI frameworks and enhancing scalability through multi-model AI frameworks

Current AI frameworks often depend on a single language model (LLM), restricting their flexibility. A single LLM limits the adaptability of AI agents, especially in decentralised networks where multiple AI agents must interact across diverse environments and applications.

Additionally, computational constraints limit the scale at which AI models can operate efficiently. As AI systems grow in complexity, bottlenecks in processing power, data throughput, and response time become increasingly apparent, making it difficult to deploy large-scale AI networks efficiently.

Solution: Instead of relying on a single LLM, decentralised AI networks must support multiple models that work together to optimise decision-making. This approach enables AI agents to process data with much higher relevance and adapt to changing contexts.

Scaling AI frameworks through decentralised computing infrastructures, such as distributed AI model hosting, will further enhance scalability and reduce reliance on centralised cloud providers. Additionally, leveraging modular AI architectures—where individual AI components can be dynamically loaded and updated—would enable more efficient scalability and adaptability to evolving tasks and requirements.

Lack of decentralised access to off-chain data and AI oracles as a bridge between AI and blockchain networks

AI agents operating within decentralised frameworks often lack access to off-chain data, which limits their functionality and decision-making capabilities. Without reliable access to external datasets, AI agents risk becoming isolated and ineffective in real-world applications.

Solution: AI oracles act as intermediaries, allowing smart contracts to access and process off-chain data securely and verifiably. AI oracles are crucial in enabling decentralised AI networks to interact with real-world data while maintaining decentralisation. By integrating AI oracles, decentralised AI agents can operate in a dynamic environment without relying on central authority to validate data.

Also Read: AI disruption unveiled: Hidden opportunities for startup survival and success

This ensures AI-driven decision-making remains decentralised while benefiting from external real-time data feeds. Additionally, AI oracles leveraging cryptographic techniques such as zero-knowledge proofs can ensure data authenticity without compromising user privacy, further strengthening trust in decentralised AI ecosystems.

The future of DeAI

By addressing these key challenges and implementing advanced AI frameworks, we can realise the vision of a decentralised AI ecosystem. The future of DeAI would have features such as an open-source marketplace for AI agents. A decentralised AI marketplace would allow individuals and enterprises to discover, develop, manage, and deploy AI agents at scale automatically. This ecosystem would function similarly to open-source software repositories, fostering collaboration and innovation among AI developers and users.

In addition, customisable AI agents for business and personal use should be a fundamental feature. Enterprises and individuals will be able to generate AI agents tailored to their specific needs, integrating them seamlessly into existing workflows. These AI agents could range from customer support bots to highly creative AI-driven content generators.

By enabling a user-friendly, scalable, and transparent DeAI system, we can ensure that AI development and deployment remain accessible to all, rather than being monopolised by a few large corporations.

Conclusion

The shift towards decentralised AI requires overcoming significant technological and structural challenges. Current AI frameworks must evolve to reduce technical barriers, foster interoperability, and enhance scalability. By leveraging AI oracles, multi-LLM frameworks, and no-code AI development platforms, we can move closer to a truly decentralised AI ecosystem.

The future of AI should not be locked behind proprietary walls—it must be open, collaborative, and accessible to all. DeAI is not just a vision; it is an achievable reality if we optimise AI frameworks for a decentralised future.

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In the fast-paced world of startups, attracting and retaining top talent is a challenge that requires a combination of creativity and financial prudence. One of the most effective tools for addressing these challenges is the Employee Stock Ownership Plan (ESOP), which not only gives employees a stake in the company but also aligns their success with the business’s long-term goals.

However, for all their benefits, ESOPs are not without complexity. This article aims to break down the key elements of ESOPs, offering actionable advice for startups on structuring them effectively and guiding employees on maximising their personal financial outcomes.

What is an ESOP?

At its core, an ESOP is a program that allows employees to acquire shares in the company, usually at a discounted or predetermined price. Unlike traditional compensation models that rely purely on salary and bonuses, ESOPs offer employees ownership in the business, typically through stock options or restricted stock units (RSUs).

The phrase “skin in the game” often gets tossed around when discussing ESOPs, but what does that really mean? For companies, it signals a shift toward a partnership model, where employees are not just workers but shareholders who benefit directly from the company’s growth. For employees, it can mean substantial upside if the company performs well — but it also comes with risks, particularly for startups where success is far from guaranteed.

In essence, an ESOP is about creating alignment. When employees have a financial stake in the company’s success, they are more likely to go above and beyond to ensure its future. This has been proven by companies like Google, Facebook, and Microsoft, where early employees reaped significant rewards from their ESOPs.

Objectives of ESOPs: Why companies use them

Startups typically operate in a cash-constrained environment. High salaries can drain vital resources, especially in the early stages when a company is pre-revenue or barely breaking even. ESOPs offer a solution by allowing companies to conserve cash while still providing meaningful compensation. This can be particularly attractive in industries where top talent is fiercely competitive, such as technology and biotechnology.

However, ESOPs are not just a cash-saving mechanism. They are a strategic tool for rewarding performance and creating a sense of ownership among employees. A well-structured ESOP can have the following key benefits:

• Boosting retention: One of the main reasons companies introduce ESOPs is to retain employees. Stock options typically vest over a period (commonly four years), meaning employees only fully “own” their shares if they stay with the company for the long haul. This ensures that key employees are less likely to jump ship for another offer, knowing that leaving too soon could mean forfeiting valuable stock options.
• Attracting top talent: Especially in highly competitive markets like Silicon Valley, high-growth startups need to be able to attract top-tier talent without breaking the bank. Offering stock options as part of the compensation package can bridge that gap by offering potential for future wealth, even if the starting salary isn’t as high as what might be offered by a more established company.
• Incentivising performance: When employees are also shareholders, their goals tend to align more closely with those of the company. This translates to a workforce that is motivated to work toward the company’s success, knowing that their stock options will increase in value as the company grows.
• Wealth creation: Perhaps the most compelling reason for employees to participate in ESOPs is the potential for substantial financial gain. For example, early employees of Airbnb and Uber saw their stock options turn into millions of dollars once these companies went public. This kind of wealth creation is one of the most appealing aspects of an ESOP, especially for employees at high-growth startups.

Also Read: The best new year resolutions for startup founders: Offering ESOPs that actually work

How does an ESOP work?

While the basic mechanics of an ESOP are straightforward, it’s important to dive deeper into the process of vesting, exercising options, and employee rights. Here’s a step-by-step breakdown:

• Creation: The company establishes a stock option program, reserving a portion of the equity for the ESOP. This percentage is known as the ESOP pool and typically ranges from 10 to 15 per cent of the company’s total shares. This pool size is critical — it determines how many options the company can grant and affects equity distribution, which may impact future funding rounds.
• Granting: Once the pool is created, the company grants options to eligible employees. The number of options an employee receives is often based on their role, seniority, and potential impact on the company’s success.
• Vesting period: Stock options do not become the employee’s property immediately. Instead, they vest over time, often through a four-year schedule with a one-year cliff. This means employees must work for at least one year to receive any shares at all, and after that, shares vest monthly or annually. This ensures that the employee remains committed to the company for a longer period.
• Exercise: After options have vested, employees have the right to buy shares at the exercise price (also known as the strike price), which is usually set at the company’s valuation at the time of the grant. If the company has grown significantly, the market price may be much higher than the exercise price, offering employees the opportunity to purchase shares at a discount.
• Sale: Eventually, employees may decide to sell their shares, either on a secondary market (if the company allows it), through a buyback program, or during a liquidity event like an IPO or acquisition.

It’s essential for employees to understand the implications of each of these steps, particularly when it comes to taxation and the financial commitment involved in exercising options.

Also Read: 3 things first-time founders should know about ESOP implementation

Types of stock grants: RSUs, options, and phantom shares

Understanding the different types of stock options available is key to making informed decisions as an employee. The most common types include:

• Restricted stock units (RSUs): With RSUs, employees are granted company shares after meeting specific vesting conditions. RSUs differ from traditional stock options in that there is typically no exercise price. Once the shares vest, they belong to the employee outright. However, they may still be subject to restrictions, such as being unable to sell until a liquidity event occurs.
• Stock options: This is the most common type of grant in an ESOP. Employees are given the option to purchase shares at a set price after the vesting period. The key advantage here is that if the company’s valuation increases, employees can exercise their options and buy shares at a lower price, potentially resulting in a significant financial gain. The downside is that stock options can expire if not exercised within a set timeframe.
• Phantom shares: These are not real shares but are designed to mimic the value of company stock. Employees receive cash bonuses equivalent to the value of a certain number of shares. Phantom shares can be advantageous for companies that want to offer the financial benefits of stock ownership without diluting equity.

Taxation of ESOPs

Tax implications are one of the most important factors for employees to consider. Generally, taxation occurs at two points:

• At the time of exercise: When an employee exercises their stock options, the difference between the exercise price and the fair market value of the shares is considered income and is taxed accordingly. This can be a significant tax burden, especially if the company’s valuation has skyrocketed.
• At the time of sale: Once an employee sells their shares, any profit made is subject to capital gains tax. If the shares are held for over a year, they are taxed at the lower long-term capital gains rate, which can be a key tax advantage.

Tax laws around ESOPs vary greatly from country to country, so employees need to consult with financial and tax professionals to fully understand their obligations. For instance, in the US, Incentive Stock Options (ISOs) are taxed differently than Non-Qualified Stock Options (NSOs), with the former potentially offering more favourable tax treatment.

Best practices for setting up ESOPs

Startups need to approach the design and implementation of an ESOP with careful planning. Here are some best practices:

• Appropriate ESOP Pool: Startups should aim to reserve 10–15 per cent of total equity for the ESOP pool. However, this percentage should be reassessed as the company grows, particularly after major funding rounds. Founders must strike a balance between offering enough equity to attract top talent without excessively diluting their ownership stake.
• Timing: Setting up the ESOP before significant fundraising rounds is crucial. Once external investors come on board, renegotiating the ESOP pool becomes more complicated, as additional stock options dilute the investors’ equity stakes.
• Custom vesting schedules: While a four-year vesting schedule is common, companies should consider tailoring vesting schedules to specific roles. For example, senior leadership might have a longer vesting period to ensure they remain committed through critical growth phases, while shorter vesting periods can be offered to key hires in high-demand roles.
• Regular valuation updates: As startups scale, the company’s valuation will fluctuate. Regularly updating the company’s valuation ensures that stock grants reflect the company’s current value, helping employees better understand the potential worth of their equity.

Also Read: How can you make your ESOPs work for you?

Liquidity opportunities for employees

The biggest question employees often have about ESOPs is when they can cash in their shares. While ESOPs can offer significant upside, the road to liquidity is often unclear. Here are some common liquidity opportunities:

• Secondary markets: Some startups allow employees to sell their shares on private secondary markets before the company goes public. This can be an excellent option for employees seeking liquidity without waiting for an IPO or acquisition.
• Buyback programs: Many companies offer buyback programs, where employees can sell shares back to the company at a predetermined price. This can be especially beneficial for employees who want liquidity but don’t want to wait for a public exit.
• Company exit: In the event of an IPO or acquisition, employees often have the opportunity to sell their shares. While this is the most lucrative option for many, it also comes with its risks, as the timing of such events is often unpredictable.

Conclusion

ESOPs are a powerful tool for startups and employees alike, offering the potential for financial gain while aligning the interests of the workforce with the company’s success. For companies, they are a critical means of attracting, retaining, and incentivising talent without straining cash flow. For employees, ESOPs represent an opportunity for wealth creation and a direct stake in the company’s future.

However, ESOPs are not without their challenges. Both companies and employees need to be aware of the complexities around vesting, exercising, and taxation to make the most of this arrangement. With careful planning and execution, ESOPs can be a win-win strategy that drives long-term success for all stakeholders involved.

Thanks to Gagan Singh, CEO of WOWS Global for the insights that allowed to put this article together.

This article was originally published on “The Startup Booster”, our Substack on startups and tech in Southeast Asia.

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A new report from Velocity Ventures highlights a significant lack of innovation within Southeast Asia’s food & beverage (F&B) sector, which presents a fertile ground for tech startups.

The Innovation & Deal Flow Report 1Q2025 [F&B] reveals that while the global F&B market offers attractive yields driven by technology adoption, advancements in Southeast Asia have been largely confined to point-of-sale (POS), food delivery, and revenue management systems.

The report underscores the urgent challenges of food security and labour shortages as key drivers for a growing need for automation technologies across the region’s industry. Velocity Ventures observes a significant opportunity for solutions to enhance efficiency and safety and reduce reliance on manual labour.

Also Read: How virtual restaurant brands are helping traditional restaurants to digitise

This insight suggests that startups focusing on smart kitchen appliances, which are experiencing a forecasted 17.9 per cent compound annual growth rate (CAGR) globally, could find strong traction in Southeast Asia.

Interestingly, the report notes the continued popularity of grocery e-commerce platforms, indicating a sustained preference among consumers and restaurants for convenient and straightforward systems.

This trend, coupled with the global top 3 highest CAGR of grocery e-commerce at 28.09 per cent, with a corresponding top 3 increase in CAGR of +16.39 per cent, signals a robust market for startups in this vertical within Southeast Asia.

Conversely, the global demand for craft spirits appears to be declining significantly, with a top 3 decrease in CAGR of -17.79 per cent. This global trend might have implications for craft spirit producers and related businesses in Southeast Asia.

Similarly, loyalty and rewards and restaurant management software are also experiencing decreases in CAGR globally, at -8.4 per cent and -6.9 per cent, respectively.

While the report provides a global overview, Velocity Ventures, which identifies itself as Southeast Asia’s leading travel and hospitality tech investor, has reviewed over 250 startups annually. Its proprietary deal pipeline includes a Nigerian online food delivery platform operating virtual restaurants that raised US$2 million in seed funding at a US$10 million pre-money valuation in January 2025.

It also features an Indonesian food technology company focused on ready-to-eat meals using innovative preservation methods, seeking US$2 million in seed funding at a US$11 million pre-money valuation as of March 2025 (referred to as Project F10).

Also Read: Digital transformation and AI revolution: Shaping Singapore’s F&B industry with Korean restaurant tech

Project F10 highlights a strategic rationale focused on solving global food access challenges, diversified revenue streams (B2C, B2B, B2G), and scalability through automated systems. Its technology includes patented drying and heat-based preservation processes, offering OEM white-label solutions and branded meals.

Furthermore, the report spotlights GrubMarket, a US-based AI-powered B2B e-commerce business in the food supply chain, which recently secured US$50 million in Series G funding at a US$3.5 billion pre-money valuation. This highlights the significant investor interest in technology-driven solutions for optimising the food supply chain, a trend that Southeast Asian startups could capitalise on.

Other notable global deals in the F&B tech space include:

SKUsafe (USA): A product lifecycle management tool for high-growth CPG brands, raised US$4.3 million in seed funding in January 2025.

Mealawe (India): An online platform connecting home kitchens for homemade meals, raised US$1 million in seed funding in February 2025. This example from India may be particularly relevant for similar models emerging in Southeast Asia.

Choice (Czech Republic): A B2B SaaS platform for restaurants offering online ordering, marketplace management, reservations, and guest engagement, raised US$1.08 million via a convertible note in March 2025.

GerOrder (Ukraine): Restaurant software integrating food delivery platforms with POS, received a US$22,000 grant in March 2025.

Regulate (USA): An AI-driven SaaS company for market prediction and regulatory compliance, raised US$250,000 in a venture round in March 2025.

Also Read: How digital technology can transform the food and beverage industry

Velocity Ventures’s analysis suggests that the current landscape in Southeast Asia presents a compelling opportunity for startups that can introduce innovative automation and supply chain solutions to address the pressing issues of food security and labour shortages. The sustained growth in grocery e-commerce further indicates a receptive market for digital solutions within the region’s F&B sector.

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This week, the interplay of US-Japan trade talks, US-China tariff escalations, and new restrictions on chip exports has kept markets on edge. Meanwhile, Federal Reserve Chair Jerome Powell’s measured response to the turmoil has dashed hopes for immediate intervention, leaving investors to grapple with volatile asset prices and shifting risk sentiment.

The current market landscape is a complex tapestry of competing forces, from Bitcoin’s resilience to Ethereum’s technical signals, US equities’ performance, and gold’s safe-haven allure. Below, I offer my perspective on these developments, weaving together the broader macroeconomic context, asset-specific dynamics, and the implications for investors navigating this fraught environment.

The tentative global risk sentiment reflects the high stakes of ongoing tariff negotiations, particularly between the US and its major trading partners. The advancement of US-Japan trade talks, marked by President Trump’s optimistic claim of “big progress,” provided a modest lift to Japanese equities, with the Nikkei 225 gaining slightly. However, the yen weakened as investors priced in the likelihood of a deal that could avert higher US levies on Japanese goods, particularly in the auto sector. This development underscores Japan’s delicate balancing act: while a trade agreement could stabilise its export-driven economy, a stronger US dollar against the yen could pressure Japanese manufacturers’ competitiveness. The Bank of Japan, already grappling with a low-yield environment, may face further constraints if US tariffs dampen economic growth, as Governor Kazuo Ueda recently hinted.

For investors, the yen’s trajectory and Japan’s market performance hinge on the specifics of any deal—whether it prioritises market access or imposes new non-tariff barriers.

The US-China trade war, however, remains the epicentre of market anxiety. The White House’s confirmation of a staggering 245 per cent cumulative tariff rate on Chinese imports, following China’s retaliatory 125 per cent levies on US goods, signals a deepening economic standoff. This tit-for-tat escalation, coupled with new US restrictions on chip exports by Nvidia and AMD, has battered technology stocks and fueled fears of disrupted global supply chains. The chip export curbs, targeting Nvidia’s H20 and AMD’s MI308 AI chips, are a strategic move to limit China’s access to advanced technology, but they come at a cost: Nvidia estimates a US$5.5 billion hit to its revenue, and its shares slumped nearly seven per cent.

Also Read: Automation, not Apps: The next frontier in Southeast Asia’s F&B tech innovation

The broader tech-heavy Nasdaq Composite fell 3.1 per cent, contributing to the MSCI US index’s 2.2 per cent decline. These developments highlight the fragility of the tech sector, which has been a cornerstone of US market performance but is now vulnerable to geopolitical shocks.

China’s response has been multifaceted, blending defiance with pragmatism. Beijing’s vow to “fight to the end” against US tariffs is tempered by signals of openness to negotiations, suggesting a desire to avoid a complete collapse of trade relations. However, China’s reported sale of confiscated cryptocurrency holdings, including Bitcoin, amid an economic slowdown, adds another layer of complexity.

This move, likely driven by the need to bolster fiscal reserves, has sparked speculation about its impact on crypto markets. Remarkably, Bitcoin has shown resilience, holding above US$84,000 despite the sales. This strength can be attributed to Bitcoin’s growing perception as a hedge against macroeconomic uncertainty, particularly as central banks and investors seek alternatives to traditional assets amid trade war volatility. Posts on X reflect this sentiment, with some users noting Bitcoin’s 64 per cent market dominance—a level not seen since early 2021—as evidence of its safe-haven appeal.

Ethereum, by contrast, has struggled, slipping below US$1,600 and entering a technically bearish phase. An analysis by CryptoQuant’s abramchart offers a nuanced perspective, suggesting that Ethereum’s current price near its realised price of US$1,585 could signal a deep-value accumulation zone. Historically, such levels have preceded major bull runs as long-term holders re-enter the market. However, technical indicators paint a mixed picture: Ethereum’s breach of its 20-day moving average and its position well below the 200-day average confirm a strong downtrend, while the relative strength index near 40 indicates weak momentum.

The compressed Bollinger Bands suggest a potential breakout, but the direction remains uncertain. For investors, Ethereum’s current dynamics present both opportunity and risk. While the realised price level hints at undervaluation, the broader market’s risk-off mood and trade war headwinds could delay a rebound.

The Federal Reserve’s role in this turbulent environment cannot be overstated. Chair Jerome Powell’s remarks this week, emphasising a wait-and-see approach to tariffs, have quashed expectations of a “Fed put”—a swift policy response to stabilise markets. Powell’s caution is rooted in the dual risks of higher inflation and slower growth, which tariffs are “highly likely” to exacerbate. His acknowledgement that the Fed faces a “highly uncertain outlook” underscores the central bank’s dilemma: cutting rates could fuel inflation while holding or raising rates risks stifling growth and employment. The Fed’s benchmark rate, currently between 4.25 per cent and 4.5 per cent, reflects this holding pattern, with traders still betting on cuts by June despite Powell’s reticence. The Fed’s data-dependent stance, coupled with solid economic indicators like March’s 228,000 job additions, suggests that any policy shift will hinge on clearer evidence of tariff-related economic fallout.

Also Read: Trade War tensions escalate: How China’s jet ban and Bitcoin slips as supply outpaces demand

Fixed-income markets have also felt the strain, with US Treasury yields edging lower as investors reassess growth prospects. The 10-year yield fell 5.6 basis points to 4.28 per cent, and the two-year yield dropped 7.5 basis points to 3.77 per cent, reflecting concerns about a potential recession. The US dollar index’s 0.8 per cent decline, reaching its lowest level since April 2022, signals waning confidence in US assets as investors pivot to safe-haven currencies such as the Japanese yen and Swiss franc. Gold, meanwhile, has surged 3.5 per cent to a record US$3,339 per ounce, with ANZ Bank forecasting a rise to US$3,600 by year-end.

This rally, driven by central bank purchases and haven demand, underscores gold’s role as a bulwark against geopolitical and economic uncertainty. Brent crude’s 1.8 per cent rise to around US$65 per barrel, spurred by US sanctions on Chinese importers of Iranian oil, highlights the ripple effects of trade policies on commodity markets.

US equities, particularly the energy sector, have shown pockets of resilience, with energy stocks gaining 0.8 per cent amid higher oil prices. However, the broader MSCI US index’s 2.2 per cent tumble reflects the tech sector’s drag and broader tariff fears. Asian equities, trading in a tight range, have been buoyed by hopes of Chinese stimulus, but volatility persists as negotiation headlines dominate. US equity futures, pointing to a 0.4 per cent higher open, suggest a tentative recovery, but the market’s direction remains contingent on trade developments.

From my perspective, the current market environment demands a disciplined, long-term approach. The escalation of US-China tariffs and chip export restrictions poses significant risks to global growth, particularly for the tech and manufacturing sectors. However, opportunities exist in assets such as Bitcoin and gold, which are benefiting from their safe-haven status. Ethereum’s technical setup, while bearish, suggests potential for accumulation by patient investors.

Powell’s cautious stance, while frustrating for those seeking immediate relief, is a prudent response to an unprecedented policy shock. Investors should focus on diversification, prioritising assets with strong fundamentals and resilience to geopolitical volatility. The road ahead is fraught with uncertainty, but those who navigate it with clarity and conviction may find opportunities amid the storm.

In conclusion, the global markets are at a crossroads, shaped by the interplay of trade tensions, monetary policy, and shifting investor sentiment. The US-China tariff war, US-Japan trade talks, and the Fed’s watchful stance are driving volatility across equities, currencies, and commodities. Bitcoin’s resilience, Ethereum’s accumulation potential, and gold’s surge highlight the divergent paths assets are taking in this environment. As negotiations unfold and economic data clarifies the tariff impact, investors must remain agile, balancing risk and opportunity in a rapidly evolving landscape.

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