By 2050, the world’s population is expected to reach over 9 billion. This begs the question: how do we feed the world sustainably without overwhelming the planet’s resources?

The race towards net-zero emissions has accelerated breakthroughs in green technologies introducing the world to alternative proteins, bio-based ingredients, and sustainable urban farming innovations, all of which reduce reliance on livestock and fossil resources.

Among recent agrifood innovations, alternative plant proteins, microbial fermentation, and culture may be the secret sauce to achieving a more sustainable future. 

The use of fermentation has its etymological roots dating back as far as 6000 BC, yet, its applications in alternative protein products, biofertilizers and bio-based nutrients are at their early stages in modern history.

While there is a hunger for more research in agrifood and increased fermentation manufacturing capacity, investment in this nascent sector has only gained momentum recently, especially in China and Southeast Asia (SEA).

In this article, we look at China and SEA’s role in agrifood evolution.

China is the world’s melting pot for the future of agrifood

Several factors such as pollution, inefficient agricultural practices, climate change, geopolitical risk and the impact of COVID-19, have accelerated China’s efforts to enhance food security.

In China’s five-year plan published in 2021, the agenda to strengthen the nation’s self-reliance in science and technology is clear, with new policies to reform agricultural practices and machinery, animal feed production, and food manufacturing through innovation and research.

The priority for innovations in agriculture and food production was similarly echoed in a speech by President Xi at the Chinese People’s Political Consultative Conference held on 7 March 2022, signalling a strong welcome for alternative proteins and a booster for the country’s bio-economy to reach an estimated scale of US$3.28 trillion (22 trillion yuan) by 2025.

“China’s agricultural developments were traditionally focused on tackling food security by using more input, more labour, higher density,” said Mr Ye Xiao Feng, Vice President for Agriculture and Industrial Bio Solutions of Novozymes, a global leader in biological solutions.

Also Read: Can agritech solve the world’s growing food security problem?

“The recent wave of policies demonstrates a commitment to change, through investment in technology for more efficient use of resources and higher conversion of input.”

Taking a slice of the untapped fermentation manufacturing market

While there is strong interest in fermentation as an enabling technology for the widespread proliferation of alternative proteins worldwide, fermentation capacity remains a major bottleneck. In a report by Boston Consulting Group, the analysis showed that substantial capital is still lacking to scale fermentation production to even meet current demand globally.

As a major producer of a wide spectrum of fermentation-derived end products such as organic acids, amino acids, vitamins, and industrial enzymes, China looks poised to take the lead in filling the gap for precision fermentation capacity.

In 2019, China alone produced four million tons of amino acids, which equates to almost 66 per cent of the world’s production capacity. China also accounts for 77 per cent (or 349,000 tons in capacity) of global vitamin production. 

Known as “the world’s factory”, China has the advantage and capability to manufacture fermentation equipment, which will benefit companies who base their fermentation facilities within the country with direct access and cost savings.

“At its core, fermentation involves a tank with pH and temperature control, as well as mixing capability. Chinese fermentation equipment manufacturers extremely price competitive, and a lot of it is exported overseas, to Thailand and other regions,” said Mr Ye Xiao Feng.

Mr Hao Jian Ming of the China Fermentation Industry Association added, “Generally, equipment produced in China costs just a third of those made abroad. There is a large concentration of high-quality fermentation equipment manufacturers and operators that are based locally, which can help fermentation companies to advance quickly in building a cost advantage and scaling capacity in the bio-economy.”

Rising consumer demand and a paradigm shift in China’s chemical industry

In addition to the new policies, two other forces of change have spurred this large potential for growth for China’s bio-economy:

• Increased consumer demand for alternative proteins
• The dynamic change in China’s chemical industry towards adopting sustainable practices

China’s market for alternative proteins was estimated at US$910 million in 2018, compared to US$684 million in the US, as reported in an article by Time magazine.

A major contributor to this phenomenal potential is that alternative protein is more acceptable culturally to the Chinese and other Asian counterparts who have deep roots in ‘mock meats’ and plant-based substitutes as part of their diet. 

The tightened environmental measures have also impacted China’s colossal petrochemical synthesis industry, which constituted about US$1.5 trillion of sales in 2017, or nearly 40 per cent of the world’s revenue from the chemical industry.

The new policies opened a window of opportunity for bio innovators offering green technologies as an alternative production approach to large petrochemical companies. The adoption of new innovations and bio-based practices was accelerated for a wide range of products from packaging and antibiotics to agricultural additives when traditional manufacturing methods were disrupted.

Singapore’s aspiration as Southeast Asia’s agrifood tech hub

The agrifood sector contributed US$717 billion to the 2019 GDP across four SEA countries: Indonesia, Thailand, Philippines and Vietnam, playing a pivotal role in SEA’s economic development and delivering a critical impact on its labour market.

Also Read: How technology is addressing the manpower crunch in Singapore’s security sector

While SEA’s agrifood sector performed well and demonstrated resilience even at the height of the COVID-19 pandemic outbreak, the race is now on to increase productivity levels and strengthen environmental sustainability measures across the value chain. To do that, an increase in investment in new technologies and skills development is pertinent for sectoral growth.

Aligned to Singapore’s 30 by 30 vision, to build its agrifood capability by producing 30 per cent of the city-state’s food needs locally and sustainably by 2030, the government allocated about US$106M for research and development into agrifood and US$45 million to urban farming technologies in 2019.

While global regulators had not yet established a framework for the regulation of cell-based foods, Singapore became the first country in the world to grant regulatory approval for the sale of cell-based meat in 2021. 

In the same year, Singapore Food Agency (SFA) granted a food processing license for cell-based manufacturing to the global contract development and manufacturing organisation (CDMO), Esco Aster.

Foodtech companies can now leverage Esco Aster’s approved platform to get to market more quickly without having to invest in their own pilot plants. These developmental milestones led by Singapore not only accelerated the pace of innovation agrifood landscape but also helped attract specialised talent in this field and investment capital in this region.

EDBI, a Singapore-based global investor, has also been actively investing in disruptive innovations, including agrifood technologies, in the last decade.

Dr Basil Lui, Managing Partner of EDBI said, “Alternative proteins have been gaining traction in recent years as consumers become more discerning and opt to consume food that is environmentally friendly and made more sustainably. There is much potential in this space as Singapore moves towards its 30-by-30 goal, and we are keen to support and create value for high potential agrifood companies such as Next Gen Foods and Nature’s Fynd, who are intending to expand in the region.”

Mr Thomas Jonas, Founder of Nature’s Fynd, a US-based biomass fermentation company, commented, “As we expand into Asia, we’re finding Singapore to be an ideal base from both operational and business development standpoints, with its forward-looking regulatory environment and food security goals. There is a strong interest in Singapore to take the lead in food tech, and that is why we’re also planning to build our first Asian manufacturing facility here in 2023.” 

With dedicated support for agrifood research, A*STAR established the Singapore Institute of Food and Biotechnology Innovation (SIFBI) in 2020 to strengthen public sector research capabilities in food science, enlivening the local agrifood ecosystem. 

“SIFBI is a research institute under A*STAR that spearheads agrifood innovation in Asia by leveraging its expertise in food science and biotechnology. Focus areas are wide and include discovery, strain engineering, bioprocess and fermentation optimisation, food process engineering, nutrition studies and analytics, to support the development of healthy and sustainable foods for Asia,” says Dr Wong Min Hao, Strategy & Business Development Group Leader of SIFBI. 

Subsequently, global investor Temasek launched the Asia Sustainable Foods Platform in 2021, which enabled the growth of food innovators in scaling sustainable food tech solutions. With the support of the Singapore Economic Development Board (EDB), Asia Sustainable Foods Platform partnered with ADM, a global leader in food processing and nutrition, to enable small food tech companies to efficiently scale their fermentation innovations through a pilot launch, thus accelerating their commercial scale-up.

Why SEA’s agrifood sector is poised for growth

On the bio-economy front, Mr TC Tan, Senior Advisor of Bits x Bites, observed that the growth rate for the fermentation sector would vary across different countries in SEA.  

“Singapore, Indonesia and Thailand are likely to see increased demand for protein-based food and beverages, as well as fermented agricultural biomass for animal feed in the next ten years,” said Mr TC Tan.

Also Read: Thai Wah Group sets up VC arm to invest in food and agritech startups in SEA

“We see Singapore taking the lead in R&D and industrial production of enzymes and bioactive ingredients as compared to other countries in SEA. Building large-scale fermentation facilities for high-value ingredients require intensive capital commitment, and we hope to see more support from the government bodies from other Southeast Asian countries in the coming years.” 

Mr John Eng, Director, Food at A*STAR Biomedical Research Council, said: “SEA’s agrifood sector has seen more new-generation leaders taking steps to participate in the bio-economy and bringing their traditional food businesses to the future. Thai Wah, one of the leaders in tapioca starch in Thailand, is valorising its starches for bioplastics. Mitr Phol Group, Asia’s largest sugar producer, has set their eyes on bioplastics and refining biofuel.”  

“At the same time, agrifood MNCs have a new look at their SEA supply chain for value-creation opportunities. For example, Dole uses its fruit side-streams to develop enzymes and other speciality ingredients for the pharma, nutraceuticals, and F&B markets. We expect similar activities to grow in SEA as the global demand for bio-based ingredients soars.” 

While infrastructure and fermentation capacity may pose bottlenecks, China and SEA will be well-positioned to help these novel ingredient production plants cross the cost parity line to reach the mass markets in the next decade. If China is the melting pot for agrifood, SEA is the catalyst for growth, a symbiotic relationship between these two regions that will advance agrifood evolution to its next phase.

Investment in agrifood sector is a marathon and not a sprint

Strong public market performance has always had a domino effect on increased capital investments. In 2021, over 50 investors in China crossed sector lines to back 40 biotech agrifood investments.

More sector-targeted funds are being formed, for example, China’s first synbio fund Xingbo Shenghui, which was established to invest in companies that advance agricultural technologies and agrifood applications. 

“China’s technology is entering its prime with more successful IPOs, leading to more funding for companies across various stages of growth. When key players – government, research, business owners, manufacturers and investors in the ecosystem are aligned to propel an objective, we see strong developments. This is a force to be reckoned with,” said Mr Ye Xiao Feng. 

Biotech companies in China should continue to flourish and create a more vibrant ecosystem in the coming years. However, funding, developing and growing a new sector is a marathon and not a sprint. 

COVID-19 has swept the world and disrupted many lives and livelihoods, but it is also an age of unprecedented innovation. The pandemic has made the world reassess what the future holds and triggered a pressing need for resilience and diversification. Yet deep technologies like agri-food tech often require longer gestation periods and larger investments.

From supply chain aspects to risk capital to regulatory policies, elements in the agrifood ecosystem are coming together. There has never been a timelier moment to invent and invest than now, with both Singapore and China playing an increasingly important role in advancing agrifood innovation.

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Vietnam’s e-commerce market reached US$16.3 billion in gross merchandise value (GMV) in 2025 across its four largest platforms (Shopee, TikTok Shop, Lazada, and Tiki) up 34.8 per cent year-over-year, according to Metric.vn. That’s US$44.5 million transacted daily, with 3.9 million items sold, a 15.2 per cent increase.

The numbers paint a brutal picture of Southeast Asia’s e-commerce consolidation. Vietnam’s total eclipses Singapore’s estimated US$9.4 billion market by 73 per cent, while trailing Indonesia’s US$62 billion juggernaut by a factor of nearly four.

Also Read: As Vietnam’s e-commerce market surpasses US$25B, shoppers are no longer satisfied with low prices alone

Yet per capita, Vietnam’s spending punches above its weight: roughly US$162 per person versus Singapore’s US$1,550 and Indonesia’s US$220.

TikTok’s rampage, Lazada’s fade

Shopee retained dominance at 56 per cent market share, down from 64 per cent in 2024, while TikTok Shop exploded from 29 per cent to 41.3 per cent. Lazada and Tiki combined scraped by with just 3 per cent, halved from the prior year. This shift underscores TikTok’s live-streaming blitzkrieg, which has eroded Shopee’s lead and marginalised legacy players.

Vietnam’s seller base tells a Darwinian story: 601,800 active shops on these platforms, down 7.4 per cent from 2024’s end, despite revenue growth. A mid-year low of 537,900 sellers rebounded by 63,900 by December, but the net cull reflects ruthless platform algorithms weeding out underperformers. “Weaker sellers were filtered out,” Metric noted.

Compare that to Indonesia, where Shopee and TikTok Shop also lead (roughly 50 per cent and 25 per cent shares), but with a vastly larger seller ecosystem supporting 270 million consumers. Singapore, by contrast, hosts a more mature but stagnant market dominated by Shopee (45-50 per cent) and Lazada (20-25 per cent), with fewer high-velocity disruptions due to its smaller scale.

Category wars: Beauty reigns, health surges

Beauty led Vietnam’s categories at 29.5 per cent of sales (US$4.8 billion), followed by home and living (US$2.3 billion) and women’s fashion (US$2.2 billion). Mid-price items (US$4-8) captured 25 per cent of value, aligning with affordability trends across the region.

Fastest growers — health (up to 80 per cent), children’s fashion, and stationery — mirror Singapore and Indonesia, where post-pandemic wellness and family spending booms persist. Singapore’s beauty category similarly dominates (25-30 per cent), while Indonesia’s fashion and electronics lead, but Vietnam’s growth velocity outpaces both.

Also Read: Then vs now: A look back at Vietnam’s changing e-commerce battleground

Urban concentration is stark: 83 per cent of revenue from Ho Chi Minh City and Hanoi, akin to Jakarta’s 60-70 per cent grip on Indonesia’s market and Singapore’s near-total urban focus.

Southeast Asia’s e-commerce reckoning

Vietnam’s 34.8 per cent growth crushes Singapore’s projected 8-10 per cent and Indonesia’s 15-20 per cent, driven by a young, mobile-first population of 100 million and aggressive social commerce. Yet scale gaps persist: Indonesia’s sheer volume (US$62 billion) makes it the undisputed king, while Singapore’s high-income consumers yield superior average order values (US$50-60 vs. Vietnam’s US$12-15).

The seller shakeout signals maturation. Platforms are prioritising quality over quantity, squeezing margins for small operators, a trend accelerating region-wide amid fee hikes and algorithm tweaks. TikTok’s ascent, now challenging Shopee everywhere from Hanoi to Jakarta, forces incumbents to double down on logistics and live commerce.

Also Read: Vietnam leads SEA in e-commerce optimism despite regulatory frictions

For startups eyeing Southeast Asia, Vietnam emerges as the high-growth wildcard: explosive upside, but cutthroat competition where only the algorithm-favoured survive. Singapore offers stability; Indonesia, scale. Vietnam? Raw velocity.

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In Southeast Asia’s digital frontier, where 400 million internet users fuel a booming economy projected to hit US$1 trillion in digital value by 2025, cybersecurity is no longer a back-office function; it’s the battleground for survival.

Cyberattacks surged 85 per cent year-over-year in 2024, according to Check Point Research, with ransomware claims increasing 300 per cent in Indonesia alone. Yet, amid this storm, the region’s cybersecurity market is exploding, valued at US$2.8 billion in 2024 and forecast to grow at a blistering 28.5 per cent CAGR through 2030, according to MarketsandMarkets. This isn’t hype; it’s a data-backed arms race.

Also Read: Singapore businesses face ‘laser-focused’ cyberattacks as AI lowers entry barriers

The top three titans leading the charge

Singapore, the undisputed hub, hosts the heavyweights. Darktrace, a UK-born AI pioneer with deep roots in SEA, dominates with its autonomous response platform. In 2024, it thwarted 1.2 million threats across APAC clients, boasting 99.8 per cent accuracy in anomaly detection — numbers that make legacy firewalls look prehistoric.

Claiming second is homegrown Senzing, a Singaporean entity resolution specialist. Its knowledge graph technology processed 500 petabytes of SEA data last year, slashing identity fraud by 40 per cent for banks like DBS—enabling real-time entity matching that outpaces competitors by five times in speed.

Rounding out the podium is CyberArk, the Israeli vault kingpin with a Singapore fortress. It secured 70 per cent of the Lion City’s financial sector in 2024, preventing US$500 million in potential privilege-escalation breaches. These three command 45 per cent market share, per IDC, blending AI muscle with regional nous.

Evolution over the past two to three years: From reactive to resilient

Rewind to 2023: SEA’s cyber scene was a patchwork of underfunded security operations centres (SOCs) reeling from the 2022 Medusa ransomware wave, which crippled over 200 Malaysian firms and cost US$100 million. Attacks totalled 12 billion in 2023, up 60 per cent from 2021 (CrowdStrike). Regulations lagged — Singapore’s Cybersecurity Act was toothless, Indonesia’s PDP law embryonic.

Also Read: Singapore hit by 6.4M cyberattacks in 2024 as AI supercharges threats

Fast-forward to 2026: Maturity has skyrocketed. Governments poured US$1.2 billion into national CERTs; Singapore’s matured to Tier 1 status, handling 50,000 incidents yearly. Private investment hit US$450 million in 2025 (Tracxn), birthing 150 startups. Evolution metrics? Average detection time plummeted from 21 days in 2023 to 47 minutes in 2025 (Mandiant). Cloud-native tools replaced VPNs, and zero-trust adoption soared 400 per cent region-wide.

Key trends: AI, Quantum, and supply chain mayhem

1. AI weaponisation. Generative AI fuelled 35 per cent of phishing in 2025 (Proofpoint), with deepfake scams netting US$200 million in Vietnam. Defenders counter with AI-driven tools; SEA firms deployed behavioural analytics, cutting false positives by 70 per cent.
2. Quantum threats Loom. With NIS2-like regs incoming, 60 per cent of Thai enterprises are quantum-proofing (Deloitte). Post-quantum crypto pilots in the Philippines aim to shield US$300 billion in blockchain assets.
3. Supply chain Carnage. The 2024 SolarWinds echo hit SEA hard—45 per cent of breaches stemmed from third parties (Palo Alto Networks). OT/IoT attacks in manufacturing spiked 250 per cent, demanding XDR platforms.

AI’s transformative grip on cybersecurity

AI isn’t a buzzword; it’s reshaping the battlefield. In SEA, machine learning models now predict 92 per cent of breaches 72 hours ahead (Darktrace data), versus 60 per cent globally. Singapore’s AI.gov.sg initiative integrated LLMs into 80 per cent of SOCs, automating 65 per cent of triage tasks. GenAI tools like custom threat hunters reduced analyst burnout by 50 per cent, per Gartner. But risks abound: AI red-teaming exposed 20 per cent of SEA models to prompt injection exploits in 2025. The verdict? AI amplifies defences 10x, but demands ethical guardrails—Indonesia’s new AI ethics board enforces this.

The future: A US$10B fortress by 2030

Also Read: Are cyber attacks more life-threatening than we think?

By 2030, SEA’s market is expected to reach US$10 billion, driven by the rollout of 5G/6G networks (resulting in 1 billion connections) and digital economy mandates. Singapore eyes “Cyber Bay” status, luring US$5 billion FDI. Challenges persist: talent shortages (300,000 gap, per World Bank) and nation-state actors from the neighbourhood. Yet, with ASEAN’s Cyber Cadets training 50,000 pros annually and blockchain-AI hybrids emerging, the region is fortifying.

The post Southeast Asia’s cyber boom is fuelled by fear—and AI appeared first on e27.

In Indonesia and many other developing nations, the conversation around technology is often focused on progress: smart cities, digital banking, and AI-powered industries. But beneath the excitement lies a quieter, more alarming shift—one that’s deepening inequality in ways we’re not ready for. This is the new digital divide: not just about access to the internet, but access to opportunity itself.

Technology, while a powerful enabler, is also a great disruptor. Automation, artificial intelligence, and digitisation are transforming industries at unprecedented speeds. And while white-collar workers adapt to new tools and platforms, low-skilled labourers, who form the backbone of Indonesia’s workforce, are being left behind.

A nation on the edge of displacement

Indonesia’s workforce heavily relies on low-skilled jobs, particularly in the informal sector. In many industrial and service-based jobs, machines and algorithms are now performing tasks once done by humans. In manufacturing, retail, agriculture, and even fisheries, I’ve noticed how digital tools are rapidly replacing human labour. What was once a stable job that put food on the table for millions has become increasingly uncertain.

This isn’t a distant future. It’s already happening. We see factory lines where humans are replaced by robots. Supermarkets where self-checkout counters reduce the need for cashiers. Farms and fisheries where apps manage feeding and irrigation more efficiently than seasonal labourers ever could. For people with limited education and digital access, this means fewer job openings and more competition for whatever is left.

Also Read: Unlocking business potential: Overcoming decision paralysis with technology transformation

The human cost

What troubles me the most is not the technology itself—it’s the pace and the imbalance of change. Those who have the means to adapt are doing fine. They find new opportunities, take online courses, and move up. But what about those who don’t? What about the father in rural Sulawesi who spent his life in logistics, now replaced by a conveyor belt? Or the mother in Lombok who sold fresh produce, now bypassed by digital grocery platforms?

When technology leaves people behind, poverty doesn’t just persist—it deepens. With limited access to digital infrastructure, education, or financial support, these individuals face an uphill battle. They end up in informal gig jobs with no protection or benefits. Many simply fall out of the workforce altogether. I worry that without thoughtful intervention, we’re not just losing jobs—we’re losing dignity, community, and purpose.

An overlooked generation

There’s another group we often ignore in this conversation: the elderly. They’re asked to adapt to apps and systems they never needed before. From accessing healthcare to banking, everything is now digital-first. And yet, many seniors struggle to use smartphones, let alone navigate government portals or e-wallets.

In my opinion, this is not only unfair—it’s inhumane. We shouldn’t expect our parents and grandparents to keep up with tech that wasn’t designed with them in mind.

Polarisation in the making

What concerns me deeply is the path this leads us to. We’re creating a society where two Indonesias exist: one, tech-savvy and upwardly mobile; the other, struggling and invisible. If we let this divide grow, it won’t just be an economic issue—it will become a social crisis.

Also Read: How immersive tech can boost your health and happiness

Rising unemployment, especially among the low-skilled and older populations, could lead to increased crime rates, mental health issues, and even unrest. When people feel abandoned, they turn to whatever means they can to survive. And in a system that values efficiency over empathy, the cost of that abandonment could be staggering.

My opinion

As I reflect on the rapid digital transformation happening in Indonesia, I can’t help but feel a deep concern for the many people who stand to be left behind. Technology is undoubtedly powerful—it can bring us into a new era of efficiency, innovation, and global connectivity. However, the speed with which it’s advancing is leaving behind the most vulnerable.

What truly troubles me is how silent this shift is. The people most affected—those with low education levels, informal jobs, and little digital exposure—don’t have the platform to voice their fears or seek help. They simply disappear from the workforce, replaced by machines or apps.

We often hear about the opportunities technology brings, but rarely do we hear about the human cost when those opportunities are out of reach. As someone who’s seen firsthand the challenges faced by underserved communities in Indonesia, it’s hard not to worry that we’re creating a society where only those with the right education, the right tools, and the right connections will succeed.

This isn’t just a technological issue—it’s a moral one. If we allow automation and digitalization to proceed unchecked without protecting the most vulnerable, we’re setting ourselves up for a future with deeper poverty, rising crime, and social fragmentation.

The question we must ask ourselves is this: can we truly call ourselves a modern society if we are not lifting everyone up with us as we advance? If we don’t take action now, I fear we’ll be looking back in a decade, facing a more divided, unstable, and impoverished nation. It’s time we made the future not just digital, but inclusive, humane, and equitable for all.

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The post The digital sivide 2.0: How technology is leaving the poor further behind appeared first on e27.

For SMEs looking to grow across borders, volatility is a quiet tax. A single FX swing can erase margins. Unpredictable fees can complicate cash flow. Slow settlement can stall operations and strain supplier relationships.

While SMEs are most affected by the unpredictability due to hidden costs, many fintech innovations remain focused on consumers or larger enterprises. These challenges have long been accepted as the cost of participating in the global economy. However, new payment technologies are beginning to shift that balance.

Tranglo, a leading cross-border payment hub, has built its business around addressing these friction points. Its network spans 120 countries and comprises more than 2,500 payout partners. This includes over 80 digital wallets and 60 cash‑pickup providers, offering access to hundreds of thousands of touchpoints worldwide.

Tranglo processes payments for businesses ranging from academic institutions to e-commerce platforms. The company’s approach reflects a broader industry shift toward payment infrastructure that prioritizes speed, predictability, and value stability for SMEs competing in global markets. With its global payment infrastructure, Tranglo – originally built to simplify top-ups for migrant workers – have evolved to a full-scale payments hub that offers a backbone that can support stablecoin-enabled, predictable cross-border money flows.

Leverage Tranglo’s global payment network for broad reach and optimised cashflow

SMEs operate with tighter working capital than large enterprises. According to the World Bank, the average global remittance cost is 6.2% per transaction. Meanwhile, bank-to-bank transfers can cost twice as much as alternative solutions. When SMEs pay a supplier overseas or receive funds from a client in another market, they often pass through several intermediaries. Each conversion and each delay introduces uncertainty.

Traditional interbank networks typically take 1 to 5 business days to settle payments. This delay locks up much-needed liquidity at a critical time. Nearly two-thirds of SMEs cite late payments as a major obstacle to growth. Meanwhile the majority of large organizations admit to delaying supplier payments beyond agreed terms. For importers and exporters, this instability affects everything from order planning to negotiation power. For freelancers and service-based SMEs, it creates additional friction when trying to manage predictable income.

To really focus on nurturing relationships for growth, SMEs need a network that can ensure payout flexibility. This broad infrastructure must provide a foundation for a stable, layered and trusted payout system that can support compliance, liquidity and local fiat settlements. This is what modern payment rails are gearing towards as SMEs continue to drive global growth.

Stablecoins—digital currencies pegged to major fiat currencies like the US dollar—are gaining attention as a tool for cross-border payments. Unlike volatile cryptocurrencies like Bitcoin, stablecoins maintain a consistent value, making them potentially useful for business transactions. 

Also read: Bridging global payment borders and remittances with Tranglo

Tranglo’s proprietary single-interface platform integrates payment instructions and automatically selects optimal local payment partners/methods for payout, reducing reliance on multiple intermediaries. By combining stablecoins (for value stability) and a single interface that hides backend complexity, SMEs can benefit from simpler, more predictable cross-border payments, thereby making cash-flow planning easier.

Recently, Tranglo rolled out an “enhanced payment solution” aimed to help SMEs overcome cash-flow challenges by offering fixed transaction rates, near real-time processing and a self-onboarding experience. With stablecoins pegged to major currencies and a fixed-fee payout, SMEs avoid hidden deductions or unpredictable currency conversion losses. In combination, this model allows more accurate budgeting, cost forecasting, and supplier/seller negotiations.

The reality: Adoption is still emerging through the benefits of modern payment rails 

Stablecoins show promise for cross-border payments, but adoption among SMEs is still uneven. Regulations differ across Southeast Asia; many suppliers still expect payouts in local currency; and managing digital wallets can be complex for lean teams.

For now, most SMEs experience the benefits of “stable-value” payments through modern fiat-based rails that offer faster settlement, clearer pricing, and more predictable costs. Small improvements here matter as many SMEs operate with tight margins and limited room for FX volatility.

Stablecoins can still serve as a value anchor, helping businesses protect against currency swings. Combined with Tranglo’s regulated payout infrastructure, its global network, compliance processes, and near real-time settlement, SMEs can access value stability while paying suppliers in the currencies they already use.

Modern rails already provide these advantages in familiar ways:

• Instant settlement: Tranglo processes cross-border transactions instantly and is able to process 24/7 reducing multi-day delays without changing how suppliers receive funds.
• Fixed fees: Solutions like Tranglo Business use fixed rates, helping SMEs more accurately forecast costs and avoid unexpected deductions.
• Transparent pricing with modern APIs: Upfront visibility into fees and FX rates removes the guesswork that often accompanies international payments. Volume discounts can reduce expenses with consistent payment schedules.
• Multi-currency support: SMEs can hold and convert between currencies in real time—delivering flexibility similar to stablecoins, but within regulated fiat systems.

Also read: How fiat and crypto are redefining cross-border payments

The evolution toward hybrid fiat-stablecoin systems

Tranglo’s current infrastructure delivers the benefits SMEs need today while building toward a hybrid future. Through Tranglo Business, the company provides instant incoming settlement to 60+ countries with transactions processed in real-time, 24/7. 

As stablecoin adoption matures and regulatory clarity improves, the company is positioned to incorporate these settlement mechanisms into its hybrid rails. The goal is to give SMEs optionality: the reliability of fiat when needed, and the agility of digital assets when appropriate.

Practical examples for SMEs can look like:

Importers and exporters can secure prices more confidently when payment settlement is predictable. A garment exporter in Bangladesh receiving payment from a European buyer can access funds within hours rather than days. This improves cash flow and enabling faster reorders of raw materials. Transparent fees mean they can quote prices accurately without padding for unknown transaction costs.

Freelancers and service providers working with international clients benefit from immediate access to earnings. A graphic designer in the Philippines completing work for a Singapore-based agency can receive payment the same day, without waiting for traditional bank transfers or paying high intermediary fees.

E-commerce businesses processing high volumes of small transactions need cost-efficient solutions. An online marketplace paying out to hundreds of sellers across Southeast Asia can use API integration to automate payments while maintaining low, predictable costs per transaction.

SMEs expanding into new markets need payment certainty during early operations. A Malaysian software company establishing clients in Indonesia can manage receivables and payables across borders without exposure to FX volatility during critical cash flow periods.

The road ahead for cross-border payments

Cross-border certainty is becoming a strategic advantage for SMEs. Stablecoins represent one promising tool in a broader evolution of payment infrastructure. While regulatory clarity and supplier acceptance are still developing, the core benefits—speed, transparency, and predictable costs—are already available through Tranglo.

For SMEs, the immediate opportunity is clear: moving from slow, expensive correspondent banking to optimized payment networks that settle instantly and charge fixed fees. As the industry evolves toward hybrid systems that incorporate both fiat and stablecoin settlements, businesses that have already adopted modern payment infrastructure will be positioned to take advantage of new options as they become viable.

Payment providers like Tranglo are building this future incrementally. They are delivering practical solutions today while preparing for the flexibility and choice that hybrid rails will offer tomorrow. For SMEs ready to move beyond traditional banking limitations, the time to act is now.

Want to see how modern payment rails can transform your cross-border operations? Explore Tranglo Business solutions at tranglo.com/tranglo-business or contact hello@tranglo.com to discuss your specific needs.

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The search for practical, outcome driven technology is rising across Southeast Asia. Cities are dealing with familiar pressures: buildings that need constant upkeep, rising energy use and the daily work of keeping people safe. Many teams on the ground look for solutions that make their jobs easier and deliver tangible benefits, whether that means fewer maintenance cycles, lower electricity bills, or safer inspection work. Especially in demand are tools that fit into existing routines without creating extra complexity.

Hong Kong teams are stepping into this space with technologies now being piloted and deployed in Singapore, including airDefender, Aurabeat and C3 Construction Robotics. Their entry was supported by HKSTP that helps Hong Kong innovators meet the right regional partners and test their ideas where they matter most: in live working environments. It is a practical model for cross border collaboration, giving companies the context and access they need to prove their solutions while offering Southeast Asian markets a steady stream of technology built to solve everyday challenges.

airDefender’s approach to long lasting surface protection

airDefender enters the Singapore market with a focus on one of the country’s most persistent building challenges: fast returning algae and mould. In a warm and humid climate, façades, glass and solar panels often need repeated cleaning, which creates higher labour costs and lost efficiency. Its nanostructure coating aims to slow this regrowth and keep surfaces cleaner for longer, offering a practical way to reduce maintenance cycles without changing existing workflows.

The company discovered its current formula through years of experimentation, eventually developing a water based coating designed to break down organic matter on contact. In early trials, it has shown the ability to increase solar panel output by six to seven per cent compared with untreated panels. According to founder Albert Wong, small improvements at this scale can translate into meaningful savings. “That number is big when you’re talking about a solar farm,” he said, noting that performance gains compound significantly when applied across large arrays.

Also read: How a 60-second pitch is turning Hong Kong into a global startup gateway

In Singapore, their structured pilot with The GEAR by Kajima is testing how the coating performs on façades, glass and solar panels. The GEAR were interested in trialling a solution that could reduce frequent cleaning and offer clear commercial returns in a climate where algae grows quickly. As Beth Henderson, Lead for Startup Programmes, explained, “We see potential for the technology’s ability to improve solar panel energy generation and reduce cleaning and maintenance costs.”

Cutting energy use through acoustic air filtration with Aurabeat

Aurabeat tackles a challenge faced by large buildings across Southeast Asia: as traditional air filters become clogged, ventilation systems consume more power to maintain airflow. Using acoustic vibration technology, Aurabeat’s filters allow air to pass more easily, reducing energy use without requiring changes to existing infrastructure. Each site undergoes a six-hour test installation to measure potential savings before commitment, with results showing an average thirty percent reduction in energy consumption.

The technology has been deployed at flagship commercial buildings sites including Marina Bay Financial Centre, One Raffles Quay, CDL Headquarters (Republic Plaza Tower 1 & 2), and City Square Mall, contributing to more than SGD 10 million in orders within a year. “Most clients come to us for sustainability and energy reduction, but we also provide equal or better indoor air quality,” says CEO Phil Yuen.

Its growth in Singapore is supported by First Choice, its local engineering and distribution partner. The partnership, facilitated by HKSTP, was driven by clear economics. “We see the facts of a ROI that is less than 2 years and no change in OPEX costs,” First Choice explains. “We believe and are confident that this is the product to meet the ESG requirements in Singapore.”

The partnership has found particularly strong traction among clients pursuing Singapore’s Green Mark Certification requirements, with demand concentrated in commercial offices, educational institutions, and hospitality sectors. First Choice notes that building operators using traditional filtration systems were experiencing higher energy consumption costs compared to Aurabeat’s technology. “By offering a lower OPEX cost and achieving a lower electricity bill, clients will be keen to explore,” they observe, adding that required indoor air quality standards are maintained or improved.

Also read: Hong Kong startups set their sights on SEA and beyond at GITEX Asia

Improving façade inspection safety with C3 Construction Robotics

Through partnerships with the Building and Construction Authority (BCA), Operva AI and Fong Consult Pte Ltd, C3 Construction Robotics trialed its autonomous RoBosun-Tapper on building façades in Singapore to make close-range inspections safer, eliminating the need to put workers at dangerous heights. The initiative represents part of Singapore’s broader drive for greater technology adoption in the construction sector, with robotic solutions offering the additional advantage of consistent performance without the human errors that can affect inspection accuracy and reliability.

Façade inspections are a routine but high-risk part of building maintenance in Singapore, often requiring workers to be suspended at height to physically tap external façades using tapping rods to identify hollowness in the concrete. This technology was tested under a trial run in Singapore, if it is proved to match the needs of the Singapore construction market, it could potentially benefit approximately 70% of concrete or plaster buildings in Singapore through significant cost savings and productivity improvements. C3 Construction Robotics, the robot technology company originated from the Chinese University of Hong Kong, developed and designed the RoBosun-Tapper to make close contact with the façade and replicate the hammer tapping needed to detect hollow or damaged areas. As founder Professor Darwin Lau explained, “During the pilot, the robot was operating on the façade of the building without any human intervention. That alone demonstrates the benefits for worker safety.”

BCA assessed that RoBosun-Tapper has the potential to enhance both safety and productivity for the 10% close-up inspections as required under BCA’s Periodic Façade Inspection (PFI) regime. Singapore’s Commissioner of Building Control and Group Director for Building Resilience of BCA, Er. Thanabal Kaliannan noted, “Close-up inspection of building façades does come with some safety considerations as workers have to work from height. Once we knew C3 Construction Robotics had a potential solution, BCA was keen to bring relevant stakeholders together to test it.” 

Concurrently, Operva AI was also keen to partner with C3 Construction Robotics to trial the RoBosun-Tapper, and they collaborated with Competent Persons (CPs) from Fong Consult Pte Ltd in the local trial. Additionally, Fong Consult Pte Ltd assessed how the robot could fit into existing inspection frameworks. Their involvement included verifying the data captured and understanding how robotic tapping could support long-term adoption. Collectively, the parties trialed C3’s hammer tapping technology for building façade inspection, setting the foundation for further discussions on sandboxing and broader industry use. 

Chief Technology Officer of BCA, Mr. Jonathan Cheng said, “In Singapore, we are open to testing and validating new construction technologies (ConTech). We welcome collaborations and partnerships with HKSTP and like-minded industry partners to drive the deployment of innovative technologies within the Built Environment.” 

Also read: How Hong Kong drives foreign startup success, student engagement, and international collaboration

Supporting cross border collaboration in the built environment

Behind these three projects is a wider shift in how technology moves across the region. Many companies in Southeast Asia want to adopt new tools, but finding solutions that are both practical and ready for deployment can be difficult. Likewise, innovators often need access to real sites to understand local conditions and prove what their products can do. Bringing the two sides together requires a mix of timing, market knowledge and trusted industry networks.

HKSTP helped create this bridge by introducing Hong Kong companies to counterparts in Singapore and supporting the early steps needed to line up pilots. For the companies involved, this meant being able to meet the right teams, understand specific market requirements and demonstrate their solutions in live environments. For the industry, it shows how structured collaboration can shorten the path from idea to implementation, helping cities adopt technology that addresses everyday challenges in maintenance, energy use and safety.

HKSTP Catalysing Tomorrow’s Innovation

Taken together, these examples reflect a broader momentum building across Southeast Asia. The region’s cities are facing similar pressures, and they are increasingly open to technology that can deliver measurable improvements where it matters most: in daily operations. The progress made by airDefender, Aurabeat, and C3 Construction Robotics in Singapore suggests that practical, well tested solutions can find a clear path into the market when the right partners are involved. 

HKSTP is home to 2,600 tech companies from more than 25 countries and regions, employing over 25,000 professionals. They are not only lining up partnership, but also building a thriving innovation and technology ecosystem, an engine that turn good ideas to market-ready solutions that benefit the community.

HKSTP provides comprehensive support from funding, infrastructure, partnerships opportunities and mentorship to park companies to support them from startup to IPO.

“Go global” is another initiative of HKSTP to support startups to expand overseas. Since April 2024, over 200 park companies joined world-class international exhibitions in over 10 countries, including IBEW and GITEX Asia in Singapore, CES in Las Vegas, VIVATECH in Paris. This enablers is connecting startups with resources, markets and opportunities, helping innovators to scale internationally.

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Cybersecurity is a critical concern for startups and growing businesses, especially as digital transformation accelerates. With more companies relying on cloud services, remote work and AI-driven tools, cyberthreats evolve at an alarming pace. One often-overlooked way to strengthen cybersecurity is by building diverse IT teams.

Teams with different experiences and problem-solving approaches bring fresh perspectives that help identify risks, improve threat detection and develop stronger defence strategies. Prioritising diversity in IT teams can build a more resilient framework, which reduces risks and ensures long-term success.

Broader perspective on cyberthreats

Diverse teams bring a wealth of perspectives that strengthen cybersecurity defences, helping enterprises anticipate and respond to a wide range of threats. Cybercriminals don’t operate with a one-size-fits-all approach. They adapt their tactics based on regions, industries and cultural behaviours, but many teams lack the diversity needed to recognise these evolving risks.

In Southeast Asia, for example, women make up only 34 per cent to 40 per cent of the tech workforce, which leaves a significant gap in representation. A more balanced team brings different ways of think, allowing brands to identify blind spots a homogenous group might miss.

Employees from different backgrounds and sectors can spot vulnerabilities others might overlook, providing a well-rounded approach to threat detection. Someone with experience in financial services may recognise banking-specific phishing scams, while a team member from the health care sector may be more aware of medical data breaches. This diversity in thought and experience leads to stronger problem-solving, more innovative security strategies, and a cybersecurity framework that evolves alongside emerging threats.

Improved problem-solving

Diversity fuels creative problem-solving and enables teams to think beyond traditional defense strategies. Cyberthreats constantly evolve, so a one-dimensional approach often falls short against sophisticated attacks. When the staff comes from different backgrounds, industries and cultures, they bring unique insights that help uncover unconventional solutions.

Cyberattacks require quick thinking and adaptability, and a team with varied experiences is more likely to approach problems from multiple angles. This diversity in thought reduces blind spots, strengthens risk assessment and improves overall resilience.

Also Read: What if cybersecurity included everyone it protects?

Increased innovation in cybersecurity tools and strategies

A cybersecurity team with diverse technical skills and perspectives is far better equipped to develop cutting-edge security solutions, especially as cyberthreats become more sophisticated. AI-powered attacks are dynamic, making traditional defence strategies less effective. However, many organisations face a major obstacle — “insufficient personnel to manage tools and alerts” is one of the biggest challenges in defending against AI-driven threats.

Without enough skilled professionals, security teams struggle to analyse threats in real time, leaving their employers vulnerable to breaches. A diverse IT team helps bridge this gap by bringing in expertise from varying fields, which ensures a well-rounded approach to cybersecurity. Exposure to various security frameworks and technologies also fosters innovation to help businesses stay ahead of emerging threats.

For example, a professional with cloud security expertise might identify risks a network security specialist could miss. Meanwhile, those with AI and machine learning backgrounds can enhance automation in threat detection and response. When cybersecurity professionals from multiple disciplines collaborate, they create a more adaptive and proactive defence strategy.

Enhanced understanding of social engineering attacks

Cybercriminals constantly refine their tactics, often using cultural and psychological manipulation to exploit human behaviour in phishing scams and fraud. Scammers tailor their messages to different regions with language, social norms and local events, tricking victims into clicking malicious links or revealing sensitive data.

In 2023, the US sent eight billion spam emails in a single day, highlighting the sheer scale of phishing threats. With cybercriminals deploying region-specific scams, brands must take a proactive approach to security hat accounts for cultural nuances and evolving attack patterns.

A diverse IT team is better equipped to recognise and mitigate these targeted threats. Employees with different linguistic skills and cultural insights can identify red flags in tone, structure or context that align with specific regional fraud tactics. Whether spotting financial scams in Southeast Asia or fake tech support calls in India, a well-rounded team ensures stronger protection across multiple markets.

Also Read: How an AI cybersecurity company harnesses the power of AI for optimal business performance

Stronger compliance with international cybersecurity regulations

Companies operating across borders face the challenge of navigating multiple data protection laws, each with its own set of regulations and penalties. Compliance is not optional — failing to meet legal requirements can lead to hefty fines and reputational damage. In Singapore, for instance, people can incur penalties of up to SG$1 million (US$747,097.87 approx.) for noncompliance with the Personal Data Protection Act. This underscores the severe consequences of data breaches and mishandling of personal information.

A diverse IT team can manage these compliance challenges. Professionals with experience in different regions bring valuable insights into global data protection laws, ensuring the enterprise adheres to multiple regulatory standards. Fostering diversity can reduce legal risks, strengthen data governance and build trust with customers across global markets.

Stronger cybersecurity leads to innovation and trust

Building a diverse IT team goes beyond meeting compliance requirements. It fosters innovation, strengthens cybersecurity strategies, and builds trust with customers and stakeholders. Embracing diversity can develop more adaptive security solutions, enhance threat detection, and create a resilient digital infrastructure that protects data and reputation.

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The US$1.5 billion hack of a major crypto exchange last month — possibly the largest digital theft ever — has once again revealed the weak spots in exchange security. And the timing couldn’t be worse. Bitcoin was hitting record highs, institutional investors are diving in, and mainstream adoption is accelerating. Yet, for all its progress, crypto remains dangerously vulnerable.

As digital assets shift from speculative investments to core components of the financial system, the industry has reached a turning point. The question now isn’t whether crypto will change finance, but whether exchanges can earn the trust needed to make that shift a reality.

Moving beyond quick fixes

Following the US$1.5 billion hack, Bitcoin dropped below US$80,000, and investor sentiment indices swung dramatically from “extreme greed” to “extreme fear” — erasing billions in market value virtually overnight.

This volatility exposes an uncomfortable truth: many exchanges continue operating with security frameworks designed for crypto’s early days, when stakes and attack sophistication were considerably lower. These approaches typically prioritise technological solutions while neglecting the equally important human element.

The Financial Action Task Force (FATF) recently highlighted how regulatory gaps create exploitable loopholes within the crypto ecosystem. These vulnerabilities demand urgent attention from both regulators and industry participants who genuinely care about the sector’s long-term viability.

Also Read: Why AI security demands a different playbook in Asia

Three pillars of next-generation security

Tomorrow’s exchanges must build security frameworks on three fundamental pillars:

• Multi-Layered Technical Infrastructure

Security must extend beyond basic key management to include comprehensive threat detection, real-time monitoring, and automated circuit breakers capable of halting suspicious transactions before they complete. Prevention, not just detection, needs to become the industry standard.

• Human-Centric Security Protocols

Most significant breaches begin with social engineering rather than technical vulnerabilities. Exchanges must implement rigorous staff training, rules-based access controls, and zero-trust frameworks that limit potential damage from compromised accounts or insider threats.

• Transparent Asset Management

Users deserve verifiable proof that their assets are secure. This involves conducting regular third-party audits, offering real-time proof of reserves, and providing 1:1 asset backing guarantees that can be independently verified at any time.

At progressive exchanges, this comprehensive strategy integrates technologies such as multi-party computation (MPC), cold storage custody, and enterprise-level encryption to enhance security and transparency. Equally important is maintaining platform independence by ensuring no customer funds are stored on external exchanges, significantly reducing potential attack vectors.

Regulatory engagement as competitive advantage

As regulatory frameworks evolve unevenly across different regions, forward-thinking exchanges should see compliance not as a challenge, but as a competitive advantage.

Asia is leading the way in thoughtful crypto regulation, with Singapore and Hong Kong offering balanced models that protect consumers while fostering innovation. Their approaches show that regulations can support, rather than hinder, the growth of the industry.

Also Read: Your job is not your safety net: Build your own security

Proactive compliance isn’t about mere box-ticking but building systems aligned with traditional financial protections while accommodating digital assets’ unique characteristics. This means going beyond minimum requirements to establish robust anti-money laundering (AML) / know-your-customer (KYC) processes, maintaining clear separation between client and operational funds, and creating transparent governance structures.

Rebuilding trust through education

Beyond technical and regulatory concerns, the most important factor is rebuilding user trust through education and empowerment.

Even the most robust security measures are useless if users don’t understand how to use them or aren’t aware of their importance. Exchanges must focus on creating user-friendly designs that make security straightforward, not a burden. They should also provide clear instructions and tools that help users manage their own security effectively.

As crypto adoption grows beyond experienced traders to the general public, exchanges need to strike a balance. They must offer strong security without making it complicated or frustrating for everyday users.

The path forward

The recent US$1.5 billion hack represents both a crisis and an opportunity. Those who don’t learn from it risk being left behind, while those who rise to the challenge have the chance to set new industry standards.

As the industry matures, security can no longer be seen as just a technical hurdle; it must become the bedrock of the entire crypto ecosystem. Security goes beyond protecting assets to safeguarding the vision of a more accessible and efficient financial system.

Technological solutions will keep evolving, but the real change will come from a shift in culture—putting user protection at the heart of every decision and creating systems where security is built in from the start, not tacked on later.

By adopting this approach, crypto exchanges can not only survive current challenges but also help drive the future of finance toward greater security and transparency. The industry’s long-term success won’t come from speculative booms but from earning and keeping the trust of users everywhere.

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The advent of emerging technologies such as automation, artificial intelligence (AI) and machine learning (ML) has drastically disrupted what it takes to remain relevant. Globally, enterprises are seeking strategies that can provide them with a competitive edge in a rapidly evolving digital landscape.  According to a recent report, the global hybrid cloud market is expected to reach US$262 billion in 2027, with the APAC region expected to grow at the highest rate.

Hybrid cloud strategies have gained popularity as they provide the flexibility, scalability, and redundancy businesses need for improved modern operations. By integrating the benefits of both public and private clouds, businesses can utilise the scalability of public cloud services while keeping sensitive data and applications securely within their private cloud infrastructure.

Notwithstanding the numerous financial and efficiency benefits of hybrid cloud solutions, a lack of proper data management practices can quickly manifest into significant cybersecurity hurdles. With widespread cloud adoption, organisations are exposed to increased cyber risks and are also introducing complexity into their operations.

Notably, cloud-related threats are among the top three cyber concerns for 51 per cent of APAC organsations. Hence, finding the right balance between leveraging hybrid cloud benefits and maintaining a secure network for cyber resilience is crucial. So how can businesses best pursue their hybrid cloud set up, while ensuring that their network remains secure?

New multi-cloud cyber challenges raining on businesses

Managing a multi-cloud ecosystem without effective data practices can hinder an organisation’s ability to implement sound security frameworks.

Clear data visibility is critical in enabling an organisation’s capacity to integrate frameworks, such as zero trust. In particular, zero trust frameworks operate on the principle that no entity, whether inside or outside the network, should be trusted by default, necessitating continuous monitoring and verification of every request. The ability to identify whether a user is verified or not can become complicated if an organisation does not have adequate oversight of their data.

Ensuring data is protected whilst it moves between public and private clouds is another significant challenge. The movement of data across different environments can often increase the risk of exposure to malicious actors. Robust encryption and secure communication channels are essential to protect data during transit and storage.

Also Read: How cybersecurity teams can involve HR to optimise incident response

For many, taking the first step in implementing security solutions across various cloud environments can be daunting, but it is increasingly necessary. Australia, in particular, faces heightened risks, with the new statistics from the Office of the Australian Information Commissioner (OAIC) showing the number of data breaches notified to the regulator in the first half of 2024 was at its highest in three and a half years.

Recent data breaches from high-profile organisations across the region proves just how critical strong data coordination is for security purposes. Business leaders must ensure that their security measures are uniformly applied across both public and private clouds to prevent such vulnerabilities and risks.

Strategies for enhanced security in hybrid cloud environments

To navigate the cybersecurity challenges posed by hybrid cloud strategies, businesses of any size should look to implement several key measures:

• Perform cyber risk assessments

Conducting thorough cyber risk assessments can help organisations understand how their data is stored and identify potential vulnerabilities. Regular reviews can enable businesses to stay ahead of potential threats and implement necessary security measures proactively.

• Implement Zero Trust Frameworks

Adopting zero trust frameworks ensures that malicious activities are detected promptly. By continuously monitoring and verifying every access request, organisations can prevent unauthorised access and reduce the risk of data breaches.

• Utilise robust encryption

Robust encryption protects data both in transit and at rest. By encrypting data, businesses can secure sensitive information and prevent unauthorised access, even if data is intercepted during transmission between public and private clouds.

Also Read: Embracing AI evolution: The crucial role of data management and cybersecurity in AI success

• Employ multi-factor authentication (MFA)

MFA adds an extra layer of security by requiring multiple forms of verification before granting access to critical or sensitive data. This significantly reduces the risk of unauthorised access, as attackers would need to bypass multiple authentication factors.

• Adhere to the principle of least privilege

The principle of least privilege ensures that users are granted the minimum level of access necessary to perform their tasks. By limiting access rights, businesses can minimise the potential damage caused by compromised accounts and prevent unauthorised access to sensitive data.

• Enhance security posture with AI capabilities

The integration of AI capabilities into cloud data protection and security solutions will significantly enhance efficiency. These tools not only alleviate tedious tasks but also swiftly identify patterns, trends and anomalies that might otherwise be undetected and autonomously adjust security parameters—such as multifactor authentication and multi-person authentication—to lock down access to data and protect it against attacks.

Hybrid cloud strategies are opening new doors for businesses looking to keep their competitive edge in a rapidly evolving market. Done right, businesses can optimise their operations by combining the flexibility of public clouds with the security and control of private clouds.

Embracing these new pathways necessitate proactive data monitoring and management. Effective data management, with expanded AI-driven capabilities to strengthen cyber resilience, is essential to fully harness the benefits of a hybrid cloud environment while mitigating potential risks.

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AI adoption across Asia is exploding. The region is now second only to North America in generative AI implementation, with spending projected to reach US$110 billion by 2028.

From tech giants in South Korea to manufacturers in Japan and finance firms in Singapore, AI is being rapidly integrated across key sectors.

Yet with this growth comes risk. Organisations aren’t just facing cyber threats anymore. They’re confronting something new and sneaky: adversarial threats specific to AI systems. These threats bypass traditional (cyber)security tools and expose fundamental weaknesses in how AI models are designed, used, and governed.

That’s where AI security comes in. And it’s not the same as cybersecurity.

Traditional cybersecurity tools can’t stop AI threats

AI security focuses on defending AI systems from manipulation. This includes input tampering, training data poisoning, and jailbreak prompts that exploit model behaviour, all without needing to breach a firewall or exploit a software bug.

Take prompt injection, for instance. An attacker can craft a seemingly harmless message that causes a chatbot to reveal sensitive data or bypass its guardrails. Unlike malware or phishing, these attacks work by exploiting the model’s helpfulness, not its vulnerabilities.

Hence, a starkly different attack approach in both scenarios:

Traditional cybersecurity simply isn’t designed to handle AI manipulation attacks. Legacy systems rely on rule-based detections, static infrastructure monitoring, and code-centric threat models.

AI threats move faster, scale wider, and morph with every prompt. The unfortunate outcome of this is that even the best-defended networks can become vulnerable when AI models are exposed.

Asia’s AI threat landscape

Nowhere is this gap more urgent than in Asia. The region’s proximity to China, home to some of the world’s most advanced and affordable AI models such as DeepSeek R1, Baidu ERNIE Series, and Alibaba QWEN Models, creates both opportunity and exposure.

Also Read: How my entrepreneurial failures led me to rethink learning and upskilling

China’s AI tools are increasingly used across borders, yet data stored or processed under Chinese law carries heightened regulatory and espionage risks.

Meanwhile, countries like Singapore, India, Japan, and South Korea are racing to implement AI in every corner of the enterprise. But fast adoption has outpaced governance. Shadow AI—the use of unauthorised AI tools by employees—has surged.

Consider these real-world examples:

• Samsung chip data leak: In May 2023, Samsung engineers leaked sensitive chip data by pasting code into ChatGPT to troubleshoot. Unaware (or ignoring, who knows?) that inputs could be retained and used to train the model, they exposed proprietary information outside company oversight—a clear case of Shadow AI. Samsung responded by banning external AI tools and began developing internal alternatives.
• GitHub copilot leak: A caching flaw in GitHub Copilot exposed private code snippets to unintended users. Over 16,000 organisations, including major firms in Asia, were affected. Leaked content included proprietary logic, API keys, and unreleased features. No breach happened, just AI mishandling sensitive data. It’s a sobering example of how AI systems can create security risks without traditional hacking.

These threats aren’t hypothetical. They’re already impacting some of Asia’s most advanced companies.

Shadow AI: The silent breach happening inside Asian enterprises

Shadow AI is the unauthorised use of AI tools outside the purview of IT or security teams. It’s exploding in Asia’s fast-moving economies, where employees turn to tools like ChatGPT, Gemini, or Copilot to move faster and meet tight deadlines.

Here’s the problem:

• 38 per cent of employees of 7,000 employees surveyed admit to sharing confidential data with AI tools without IT approval.
• From March 2023 to March 2024, there was a 485 per cent spike in sensitive data input into unauthorised AI applications.
• In fact, 27.4 per cent of data inputted into AI tools is considered sensitive.
• And according to IBM, breaches involving shadow AI took an average of 291 days to identify and contain, significantly longer than traditional breaches, resulting in higher costs averaging US$5.27 million per incident.

In places like Singapore, where 66 per cent of businesses say they’re not moving fast enough with AI, the temptation to bypass governance is even higher. Combine that with light-touch regulation in Japan, regulatory gaps in India, and regional competitive pressure, and you get a region-wide surge in invisible risk.

Actionable steps to mitigate AI security risks

Here’s how to assume a better AI security posture in the midst of these risks:

Real-time AI monitoring

You can’t protect what you can’t see. Deploy tools that continuously monitor how AI models are used, what inputs they receive, and what outputs they generate. This is especially critical for detecting prompt injection and data drift that legacy logging won’t catch.

Examples include model observability platforms that track prediction anomalies, latency shifts, and suspicious prompt behaviour in real-time.

Also Read: Levelling the playing field: How AI can transform SME hiring

Shadow AI governance

Catalog all AI tools in use—approved or not. Create an “AI Bill of Materials” to track model versions, data access points, and usage patterns. Block unsanctioned tools at the firewall or via endpoint controls.

Train employees on what’s allowed and why it matters. 90 per cent of shadow AI use comes from non-corporate accounts. That’s a policy failure, not just a technical one.

Token and API hygiene

Manage API tokens like you would encryption keys. Use expiration windows, rotating credentials, and revocation capabilities. Apply least-privilege principles and prevent token reuse across multiple AI environments.

APIs are the connective tissue of AI systems. If compromised, they become the fastest path to your most sensitive models and data.

AI-specific security frameworks

Don’t retrofit existing policies. Adopt AI-native frameworks that account for:

• Adversarial prompt testing
• Output validation pipelines
• Role-based model access
• Immutable audit trails for training data

Zero Trust principles apply here: Never trust an input, always verify an output.

The patchwork of AI regulations in Asia you can’t ignore

Asia’s data protection landscape is maturing fast, but remains fragmented. Some highlights:

• Singapore’s PDPA mandates consent and breach reporting, but excludes anonymised data.
• India’s DPDP Act (2023) imposes consent, localisation, and penalties up to US$6 million.
• Japan’s APPI applies globally to anyone processing Japanese citizens’ data.
• China’s PIPL is one of the strictest globally, with limits on cross-border transfers and heavy audit requirements.

More laws are coming. South Korea now regulates high-risk AI. Japan is drafting a Basic Law for Responsible AI. And China is moving toward regulating critical AI systems under national security concerns.

If you operate across Asia, this means:

• Higher compliance costs
• More explainability and audit requirements
• Tighter controls on sensitive data and cross-border transfers

Also Read: Breaking barriers: Empowering women in entrepreneurship with AI and automation

Final thoughts

Cybersecurity protects your perimeter. AI security protects your future. These are not the same job.

If you’re investing in generative AI, you’re already in the risk zone. And if you’re in Asia, that risk is magnified by regulatory ambiguity, workforce behaviour, and geopolitical complexity.

Now is the time to:

• Benchmark your AI risk surface
• Monitor models continuously
• Govern usage at every layer
• Build policies specifically for AI

AI is transforming Asia’s economy. But without AI security, it may just as easily transform into its biggest liability.

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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.

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