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

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

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

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

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

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

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

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

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

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

The post Strengthening MSMEs: Indonesia’s new holding model inspired by Germany China appeared first on e27.

Key highlights:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

—

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

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

Image courtesy of the author.

The post Markets on edge as jobs data, currency shifts, and crypto milestones shape the week appeared first on e27.

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

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

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

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

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

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

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

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

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

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

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

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

The post Grab-Gojek merger talks resurface amid market optimism and regulatory challenges appeared first on e27.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The post High costs, space constraints make APAC markets ripe for automation: XSQUARE CEO appeared first on e27.

Key highlights:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

—

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

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

Image courtesy of the author. 

The post The new norm: Stabilising global risk sentiment in a volatile market appeared first on e27.

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

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

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

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

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

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

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

Barriers to AI adoption

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

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

Key concerns for IT leaders include:

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

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

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

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

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

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

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

The path forward

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

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

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

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

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

—

Image Credit: True Agency on Unsplash

The post Report: Indonesia exhibits ‘slower’ AI adoption with only 26 per cent of organisations implementing it appeared first on e27.

Kumpulan Modal Perdana (KMP), a VC firm owned by the Malaysian Ministry of Finance, has announced a strategic investment in Swift Bridge Technologies, a startup specialising in commercial test and measurement market connectivity solutions.

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

The startup will also use the capital to optimise its 110GHz cables and move its R&D production from the US to Malaysia.

Also Read: Singapore’s semiconductor stars: A look at key players and startups

Established in 2012, Swift Bridge offers solutions across diverse sectors, such as semiconductors, biomedical, electronics and electrical manufacturing, telecommunications, industrial automation, automotive, and research institutions. Its products, operating from low-frequency applications up to 110 GigaHertz (GHz), are essential for applications like spectrum analysers, network analysers, automation testers, and 5G systems.

With 40 per cent of its client base international and 60 per cent local, Swift Bridge has built long-term relationships with major companies, which accounted for a significant portion of its 2023 revenue.

This investment is expected to transform key industries, including semiconductors, telecommunications, automotive, biomedical, and industrial automation. It will also support research institutions.

KMP’s investment aligns with Swift Bridge’s vision to become a world leader in connectivity technology. The partnership will allow Swift Bridge to meet complex customer demands and broaden its market reach.

The post KMP invests in Swift Bridge to boost Malaysia’s semiconductor, RF industries appeared first on e27.

Just weeks ago, it seemed that TikTok’s days on American smartphones were coming to an abrupt end. President Joe Biden’s ban on the platform, ostensibly grounded in national security concerns, had attracted bipartisan support, and even the Supreme Court declined to intervene.

In a last-minute twist, however, incoming President Donald Trump stepped in to broker a temporary reprieve. TikTok’s Chinese parent company, ByteDance, must still relinquish part of its US operations to American entities—enough, presumably, to mitigate concerns over data privacy and foreign interference.

This episode highlights a thorny reality: even wildly popular social media platforms can be thrown into crisis when geopolitics and data security intersect. TikTok is no mere novelty app: it boasts 170 million active users in America as of early 2025, with the lion’s share—33.9 per cent—aged between 25 and 34, a prime demographic for advertisers.

An average of 58.4 minutes spent daily per user underscores its sheer engagement power. For businesses, the platform has become indispensable, helping generate US$15 billion in annual revenue for seven million small firms and contributing US$24.2 billion to America’s GDP.

A digital community powerhouse

TikTok’s potential for digital advertisers is difficult to overstate. By one measure, users collectively upload 272 videos every second—a testament to the app’s frenetic, viral engine. A US growth rate of nearly 788 per cent in 18 months has lured brands keen to court TikTok’s youthful audience. The knock-on effect is a surge in ad spending as marketers pivot toward short-form video.

Yet TikTok’s star power has also made it a political lightning rod. While it has secured a stay of execution, the platform’s future remains subject to shifting policies and judicial oversight—particularly regarding content moderation, data handling, and ownership structures.

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

With a presence in over 40 languages, TikTok’s global clout extends far beyond America. But it is the US market—170 million users and counting—that lands the platform squarely in Washington’s crosshairs. National-security hawks argue that ByteDance could funnel data back to Beijing. TikTok insists it is committed to transparency and American oversight. The ongoing saga exemplifies the hazards of cross-border tech giants operating in a climate of heightened suspicion and potential economic decoupling.

The corporate affairs playbook

Given TikTok’s temporary reprieve, here are four strategic responses the platform could pursue:

Immediate actions

• Reinforce economic impact: Emphasise the platform’s benefits to seven million small businesses and 170 million American users, thereby underlining its commercial and social value.
• Maintain operational transparency: Cooperate closely with Trump’s team on proposals for a 50 per cent US ownership structure. Sharing compliance measures and data protocols can help quell security anxieties.
• Strengthen local partnerships: Forge deeper relationships with American service providers and tech companies, ensuring the platform’s continued stability.

Strategic communications

• Frame as a free-expression win: TikTok’s messaging to date positions this reprieve as a triumph for the First Amendment, appealing to America’s tradition of open discourse.
• Focus on culture, not politics: Emphasise TikTok’s cultural contributions—be it creative content, music discovery, or community-building—while steering clear of overt partisanship.
• Engage with policymakers: Maintain constructive dialogue with both the incoming administration and Congress, signalling good faith and a willingness to address concerns.

Also Read: Exclusive event alert for SMBs: Be Ramadan ready with TikTok!

Business development

• Accelerate US investment talks: Demonstrate tangible progress toward ownership restructuring, reassuring regulators of the platform’s commitment to American legal norms.
• Pursue joint ventures: Explore collaboration aligned with Trump’s 50 per cent ownership model. This could foster shared oversight and defuse suspicion.
• Prepare technical contingencies: Draft plans for hosting and security infrastructure to placate national security worries.

Stakeholder management

• Uphold diplomatic ties: Build upon dialogues involving President Trump and President Xi Jinping, keeping lines of communication open at the highest levels.
• Stay transparent with creators and SMBs: Regular updates foster loyalty among the content creators and businesses whose livelihoods depend on TikTok’s reach.
• Cooperate with national security officials: Work in tandem with Mr Trump’s security team—offering ongoing risk assessments and solutions—to demonstrate earnest commitment to US standards.

The key is to seize this temporary win and transform it into a stable, lasting arrangement. By addressing America’s security concerns while preserving ByteDance’s commercial prerogatives, TikTok can lay the groundwork for enduring success in its most prized market.

Borderless digital flows in a multipolar world

In the near term, TikTok’s return to US app stores may feel like a reprieve for ByteDance, the platform’s creators, and millions of loyal users. Yet the fundamental tension — between a Chinese-linked enterprise and American lawmakers skeptical of foreign data harvesting — remains unresolved.

For corporate affairs observers everywhere, the takeaway is unambiguous: TikTok’s stay of execution may well be a sign of things to come, as geopolitical multipolarity increasingly collides with the borderless flow of the digital economy.

—

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

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

Image credit: Canva Pro

The post TikTok’s American reprieve: Byte-sized diplomacy appeared first on e27.

Rei Murakami Frenzel, the second daughter of Yoshiaki Murakami, founder of Japan’s Murakami Family Foundation, recently teamed up with Felix Frenzel (former Investment Manager at Antler) to launch Kadan Capital.

Based in Singapore, Kadan Capital looks to invest in fintech, SaaS, and Artificial Intelligence across Southeast Asia (mainly Singapore and Indonesia) and Japan with an average ticket size of US$500,000 to US$1 million.

e27 recently spoke with Rei Murakami to learn more about Kadan Capital and its goals in the region.

Edited excerpts:

Could you share your personal journey leading to the creation of Kadan Capital?

When I took over my family foundation and led it in a new direction, I experienced firsthand the challenges of building something from the ground up—the pressure of making the right decisions, hiring the right team, and the resilience required to push forward.

This journey gave me a deep appreciation for what founders go through and strengthened my passion for supporting those who dare to bring bold ideas to life.

At our family office, we have always believed in investing during times of uncertainty—when others pull back, we see opportunity. This principle has strongly shaped our approach at Kadan Capital.

“Kadan” (果断) is Japanese and translates to “decisive” and “determined.” Today, Southeast Asia is navigating a period of turbulence. Still, we believe this is precisely the time to step in, back exceptional founders, and lay the foundation for the next wave of innovation.

Several early-stage VCs in the region focus on AI, SaaS, and fintech. How does Kadan Capital differentiate itself from these VC firms?

While many VCs in SEA take a sector-agnostic approach, we believe that having a focused investment strategy provides unique advantages. Specialisation allows us to develop deeper, thesis-driven insights and build stronger networks within our core sectors, enabling us to support founders more effectively beyond just capital.

Also Read: Yoshiaki Murakami’s daughter launches early-stage VC firm Kadan Capital in Singapore

As the venture landscape evolves, more substantial funds have naturally shifted toward later-stage investments and broader industry coverage. In contrast, our relatively smaller fund size gives us agility—we are not constrained by rigid mandates that might drive valuations and round sizes up beyond realistic expectations. We can move quickly and adapt to market shifts while remaining disciplined in our investment decisions.

Our approach is shaped by an owner’s mindset, which differs from the typical GP model. We’re purely incentivised to find the most extraordinary founders and make our portfolio companies succeed—not on fundraising and marketing.

This aligns our goals with those of the founders. We’re taking a patient, conviction-driven approach, supporting the founders through different market conditions with a long-term perspective.

Why did you choose to target fintech, SaaS, and AI as your primary verticals?

Our decision to focus on these sectors is driven by both our experience and a strong conviction in their long-term potential in SEA.

• Fintech has consistently been the most robust sector in SEA, attracting steady funding and generating unicorns and successful exits. As financial infrastructure in the region continues to evolve, we see immense opportunities for companies driving financial inclusion and efficiency.
• B2B SaaS has seen strong talent in Singapore building globally competitive products, and we expect this trend to continue. While some argue that SaaS is still too early for emerging markets in SEA, we believe adoption will accelerate faster than expected as businesses increasingly seek to enhance productivity. Moreover, new technologies—particularly AI—will play a crucial role in reducing reliance on labour, making SaaS solutions even more compelling.
• AI is not a standalone sector but a transformative layer across fintech and SaaS. It has the potential to enhance and rapidly accelerate value creation in both industries, improving efficiency, scalability, and competitiveness.

Are there any specific trends within fintech, SaaS, or AI that excite you most and align with Kadan’s long-term goals?

Sectoral trends and themes are evolving fast, but there are a few that we are especially focused on:

• AI-powered vertical SaaS: Traditional vertical software often involves repetitive, time-consuming tasks susceptible to human error. We’re looking for AI-powered SaaS designed for specific industries—such as medical coding or compliance tasks in regulated sectors—with clear ROI and fast time-to-value.
• Cross-border payments for emerging markets: Payments in these geographies remain expensive, slow, and inefficient. For many individuals and SMEs, this creates significant limitations. We’re targeting startups that leverage innovative technology to enable seamless, low-cost, and efficient transfers built on trust and transparency.
• Asset-backed financing in emerging markets: Access to affordable financing for essential assets like homes and vehicles remains out of reach for a significant portion of the population in emerging markets. We’re looking for innovative financing models that leverage tech, alternative data, and proprietary underwriting methods to make capital-intensive necessities more accessible.

Southeast Asia and Japan are diverse markets. How do you adapt your investment strategies to the unique challenges and opportunities in each region?

Kadan Capital’s core focus remains on SEA, while Japan and other regions are more opportunistic markets for us. Even within SEA, we take a nuanced approach, tailoring our investment thesis to each country’s economic landscape, demographics, culture, and unique market dynamics.

However, we also recognise the value of cross-market learning and apply insights from other regions where relevant.

While software innovation has lagged in Japan in past decades, we see a structural shift on the horizon. With a declining population, increasing pressure exists to drive efficiency, creating opportunities for SaaS and AI-driven automation. As businesses look for ways to optimise operations and fill labour gaps, we expect strong adoption of productivity-enhancing technologies.

What are your thoughts on the startup ecosystem in Indonesia and the UAE? How do they compare to Singapore or Japan in terms of growth potential?

Each market has a distinct startup ecosystem shaped by its economic landscape, talent pool, and investor dynamics.

Indonesia’s rapidly maturing ecosystem is fuelled by talent emerging from tech giants. These experienced operators bring strong networks and execution capabilities, driving the next wave of startups.

Also Read: A decade of Japan’s mandatory stress checks: Why work-related mental health is still declining?

Singapore remains SEA’s regional hub, attracting top-tier tech talent while benefiting from trusted financial institutions and strong regulatory frameworks. Its role as a launchpad for scaling across SEA makes it a key market for both startups and investors.

Japan has traditionally had a more closed startup ecosystem with a smaller talent pool. However, we see a shift underway—an increasing risk appetite is driving top talent from corporates into the startup space, fuelled by growing interest from foreign investors. This momentum is expected to create more opportunities.

With AI’s growing importance, what role do you see it playing in shaping startups and their industries in the next 5-10 years?

AI will reshape industries by reducing headcount, capital intensity, and increasing efficiencies across sectors like healthcare and education. We expect AI-enabled vertical software and AI-native business services to lead value creation, with a new wave of billion-dollar companies emerging from these innovations.

Does Kadan Capital plan to be a bridge between Japan and Southeast Asia? How will this fund mutually benefit Japanese and SEA startups?

Yes, we see a strong opportunity to bridge the ecosystems of Japan and SEA. One of the biggest challenges for SEA’s venture ecosystem is the lack of exit opportunities. Japan’s capital market is significantly larger and deeper than any in SEA, providing potential IPO avenues for startups from the region.

Additionally, Japanese corporations, facing a stagnant domestic economy, are increasingly seeking strategic partnerships and acquisitions abroad. This presents opportunities for funding (both equity and debt) and exits for SEA startups, particularly in sectors like fintech. Our network and positioning allow us to facilitate these connections, benefiting both Japanese and SEA founders.

The post ‘Lack of exit opportunities is a big challenge for SEA’s venture ecosystem’: Kadan Capital’s Rei Murakami  appeared first on e27.

Key highlights:

• Easing geopolitical tensions and regulatory shifts boost market sentiment, with the MSCI US index rising 0.7 per cent
• Weak US job data leads to a drop in Treasury yields and a 0.9 per cent decline in the US Dollar Index
• Fed official signals economic stability, reducing the likelihood of policy changes
• Brent crude edges up 0.3 per cent, while gold hits all-time highs amid uncertainty
• Japan’s wage growth surges, boosting Asian markets
• U.S. scales back crypto enforcement, while China’s tech crackdown triggers a US$2.5B AI-driven crypto sell-off
• Trump’s Solana meme coin crashes 37 per cent, highlighting crypto volatility

On February 5, 2025, the landscape of global finance has been reshaped by a mix of easing geopolitical tensions and shifts in regulatory focus, leading to a nuanced risk sentiment among investors. This change in perception comes at a time when market participants are increasingly viewing China’s approach as more measured and cautious, particularly in contrast to previous years. This perception has contributed to a positive movement in stock indices, with the MSCI US index showing a commendable 0.7 per cent increase. Sectors like Energy, Consumer Discretionary, and Information Technology have been at the forefront of this rally, each gaining over 1.5 per cent in recent trading sessions.

However, not all economic indicators have been glowing. The US JOLTS job openings data, which came in below expectations, has led to a recalibration in market expectations. This has directly influenced the US Treasury yields, with both the 2-year and 10-year yields experiencing a decline. The 2-year yield dropped to 4.214 per cent, while the 10-year yield fell to 4.511 per cent. This movement in treasury yields often signals investor uncertainty about future economic growth or inflation rates, further reflected by a significant tumble in the US Dollar Index, which saw a 0.9 per cent decrease, ending a three-session rally.

Comments from San Francisco Fed President Daly have added to the narrative, suggesting that the US economy is in a stable position, which might not necessitate preemptive policy adjustments by the Federal Reserve in response to the current administration’s actions. This cautious optimism from a key Fed official underscores a belief in the resilience of the US economy amidst ongoing global negotiations and policy shifts.

Shifting focus to commodities, Brent crude oil prices edged up slightly by 0.3 per cent, as investors continue to weigh the implications of US-China trade relations and the reinforcement of sanctions on Iran. Meanwhile, gold has soared to new all-time highs, driven by safe-haven buying amid global uncertainties, illustrating the market’s jittery mood when it comes to geopolitical risks.

Also Read: Markets in flux: Navigating economic uncertainty

In Asia, the economic news was not all cautionary; Japanese nominal wages have seen an increase at the fastest pace in nearly thirty years, providing a solid backdrop for the Bank of Japan’s recent decision to hike rates. This wage growth could signal a strengthening consumer base in Japan, potentially impacting consumer spending and economic recovery. Asian equity indices responded positively to these developments, with many markets showing gains in early trading sessions.

On the other side of the globe, the cryptocurrency market has been experiencing its own set of challenges. The current administration’s move to scale back on crypto enforcement has seen the SEC reassigning lawyers from its crypto enforcement unit, marking one of the first concrete steps in a more relaxed regulatory approach towards cryptocurrencies. This could be interpreted as either a boon for innovation in the crypto space or a red flag for potential future volatility due to less oversight.

The crypto market, however, took a significant hit with the news of China investigating tech giants like NVIDIA and Google, amidst an escalating trade war. This led to a massive US$2.5 billion dump by Crypto AI traders, with the sector plunging by 8.5 per cent. The ripple effects of these investigations are not just confined to tech stocks but have a profound impact on AI-driven crypto trading algorithms, which are sensitive to regulatory news and trade policies.

Adding to the crypto market’s woes, President Trump’s Solana meme coin experienced a dramatic 37 per cent plunge, becoming the day’s biggest loser among the top 100 coins. This sharp decline underscores the volatile nature of meme coins and highlights how quickly market sentiment can shift in the cryptocurrency world, especially under the shadow of broader trade conflicts.

From my perspective, while the easing of global tensions has provided a brief respite and a boost to certain sectors, the underlying currents of geopolitical manoeuvres, regulatory shifts in cryptocurrency, and technological developments continue to create an unpredictable environment. Investors need to remain vigilant, balancing optimism with a keen eye on policy developments, especially in technology and trade sectors. The interplay between traditional markets and the burgeoning digital asset space is becoming increasingly complex, necessitating a nuanced approach to investment strategies in this new financial terrain.

As we navigate through these choppy waters, the key will be adaptability, informed decision-making, and perhaps, a cautious embrace of innovation in financial technologies, all while keeping an eye on the broader economic and political context that shapes our global markets.

—

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

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

Image courtesy of the author.

The post Navigating the new financial terrain: From geopolitical shifts to crypto volatility appeared first on e27.