At Nas Summit Singapore, during a panel moderated by Nuseir Yassin (Nas Daily), two debates emerged that reflect the broader tension founders everywhere are trying to navigate: Do people prefer talking to AI or to humans? And should founders openly reveal that they use AI at all?

Both questions sound philosophical on the surface, but they carry real implications for how businesses scale, build trust, and communicate in a world where AI is no longer a novelty — it’s infrastructure.

What I shared on that stage, and what I’ll expand on here, comes from operating two AI-driven companies, training more than a thousand founders, and integrating a personalised AI assistant into nearly every part of my daily workflow.

These debates aren’t separate. They’re deeply connected. And together, they point toward a new model of communication that prioritises outcomes, transparency, and empathy, even when delivered by AI.

People don’t prefer humans, they prefer problems solved

The first debate was framed as a choice: Do consumers want to talk to humans or AI?

On the surface, most people instinctively say “human”. But this response has less to do with emotional loyalty and more with the current state of AI systems.

When AI interactions fail, they fail because:

• The model wasn’t trained deeply.
• The system doesn’t retain context.
• Responses feel robotic.
• The intent is misunderstood.
• The conversation lacks nuance.

In contrast, a human can pick up emotional cues, adjust tone, and interpret complexity, even on a bad day.

But let’s zoom out.

We didn’t prefer ATMs over bank tellers — they were simply faster. We didn’t prefer chat to voice calls — it was simply more convenient. We didn’t prefer telemedicine to clinics — it was simply more accessible.

People didn’t switch from phone calls to WhatsApp because they wanted less human contact. They wanted speed, clarity, and convenience.

Across every wave of technological transition, human preference follows the same logic: Utility first. Emotion second.

So the real question isn’t “Will AI replace human communication?” It’s: “When AI becomes fast, context-aware, and natural — will people care if it’s human at all?”

Most people won’t, because they care far more about the outcome than the origin.

Also Read: Generative AI and inclusive branding: Are we there yet?

Empathy is not emotional, it’s functional

A common argument against AI communication is that “AI has no empathy.”

Correct. AI cannot feel empathy. But most empathy expressed in customer service, coaching, support, and instruction isn’t emotional. It’s cognitive empathy: Understanding a situation and responding in a supportive, solution-oriented way.

Humans bring warmth and emotional resonance, but they also bring:

• Fatigue.
• Frustration.
• Inconsistency.
• Ego.
• Miscommunication.
• Impatience.
• Emotional bias.

AI brings none of this.

When trained well, an AI agent:

• Remains consistent.
• Applies feedback instantly.
• Follows protocol reliably.
• Keeps full conversational history.
• Never misfires due to mood.

This doesn’t make AI “more human”. But it does make AI more stable.

And stability is a form of empathy — one that users increasingly appreciate in high-volume, high-stress communication contexts.

AI isn’t here to outperform human emotional intelligence. It’s here to perform cognitive empathy at a level of consistency humans cannot match.

Voice AI isn’t there yet, and that’s why humans still feel better

The one domain where humans still consistently outperform AI is voice.

Today’s voice models are improving fast, but still lag in:

• Emotional modulation.
• Breath patterns.
• Warmth.
• Pacing.
• Micro-pauses.
• Stress detection.
• Tonal nuance.

We underestimate how much of communication depends on sound, not words.

This is why talking to AI still feels unfamiliar. It’s not the intelligence. It’s the lack of emotional believability in the delivery.

But the gap is closing quickly, and when voice AI begins to feel natural — human enough, conversational enough, warm enough — people will prioritise the same thing they always have: “Did this solve my problem?”

And if the answer is yes, the interface won’t matter anymore.

The second debate: Should founders reveal they use AI?

The next question at the panel was far more personal: Should founders disclose that they use AI to reply to messages, create content, or manage their operations?

Some leaders still hesitate, fearing that disclosure implies:

• Lack of authenticity.
• Lack of authority.
• Lack of personal involvement.

But here’s the reality founders don’t say out loud: Nobody running a scalable organisation is manually writing every message, replying to every email, or producing every piece of content.

Also Read: Report: Asia Pacific, Japan drive the next wave of global AI innovation

Whether the delegation goes to:

• A marketing assistant.
• A content team.
• A virtual assistant.
• Or an AI agent.

It’s a delegation. And delegation is not deception. It’s an operational necessity. The only difference today is that AI makes the delegation visible. That visibility makes some people uncomfortable.

But choosing not to disclose doesn’t make a founder more authentic.
It makes them performative.

Authenticity isn’t manual labour; it’s ownership of ideas

I openly tell people I use Seraphina, my AI assistant, because she doesn’t write for me. She writes with me.

And she writes based on:

• 20 years of documented work.
• Thousands of pages of content.
• Speeches and workshops.
• Strategy decks.
• Training materials.
• Personal philosophy.
• Creative concepts.
• Lived experiences.

Seraphina isn’t producing ideas I’ve never had. She’s expressing the ones I already formed — more efficiently, more consistently, and with more clarity than I could during peak workload periods.

That’s not a loss of authenticity. That’s an amplification of it.

Transparency doesn’t reduce trust. It enhances it.

Especially in an era where consumers and teams can instantly tell when a founder is pretending to be everywhere at once.

The future isn’t AI or humans, it’s the balance between speed and humanity

When you combine both debates from the Nas Summit panel, a larger conclusion emerges:

• People care about speed, clarity, and outcomes.
• They care about trust, transparency, and leadership.
• And AI, when used well, supports all of these.

Also Read: Are Southeast Asia’s emerging economies resilient enough to resist trade uncertainty?

AI will not replace human connection. But it will increasingly handle the layers of communication that humans shouldn’t have to bear:

• Repetitive queries.
• Administrative responses.
• Predictable workflows.
• High-volume customer engagement.
• Operational messaging.

This frees humans to focus on:

• High-level thinking.
• Creativity.
• Strategy.
• Relationship-building.
• Empathy.
• Connection.
• Vision.

AI doesn’t diminish humanity. It creates space for it.

The founders who thrive in the next decade won’t be the ones who avoid AI, nor the ones who blindly automate everything.

It will be the leaders who strike the right balance: Human where it matters. AI where it scales. And transparency woven throughout.

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The retreat in equities and corresponding climb in yields underscore a market bracing for a pivotal Federal Reserve decision, yet the true story unfolding beneath the surface lies not just in macroeconomic indicators but in the interwoven dynamics of institutional behaviour, leveraged positioning, and emerging technological risk.

As investors parse through weaker-than-expected manufacturing data and recalibrate their expectations for monetary policy, crypto markets have become a barometer of broader risk sentiment, a sentiment now defined by extreme caution, forced deleveraging, and a growing unease about the integrity of the very infrastructure underpinning digital finance.

US equities pulled back modestly, with the Dow shedding 0.9 per cent and the Nasdaq down 0.4 per cent, but the real pressure emerged from the cryptocurrency sector, which extended its weekly losses with another 0.5 per cent decline over the last 24 hours. This pullback occurred against the backdrop of US$3.48 billion in net outflows from US spot Bitcoin ETFs in November, the largest monthly redemption since February. BlackRock’s IBIT alone accounted for US$2.34 billion of that total, a stark signal of institutional risk aversion.

These outflows are not merely passive portfolio adjustments. They translate directly into selling pressure on Bitcoin’s spot market, as ETF issuers must liquidate BTC holdings to meet redemptions. In a market already sensitive to macro headwinds, this institutional exodus has acted as a powerful accelerant to downside momentum, reinforcing the correlation between traditional risk assets and crypto that has solidified over the past year.

Compounding this institutional pullback is a wave of forced deleveraging in the derivatives market. In just 24 hours, US$235 million in Bitcoin positions were liquidated, with an overwhelming 82 per cent of those coming from long positions. This long squeeze, which saw open interest decline by 2.5 per cent, reflects a classic feedback loop. Price declines trigger margin calls, which force leveraged traders to sell, which drives prices lower still. The result is a cascade that not only pushes Bitcoin below key technical levels, such as the critical 85,000 dollar psychological support, but drags the broader altcoin market down with it.

The volatility generated by this dynamic has deepened investor anxiety, pushing the Fear and Greed Index to a mere 16 out of 100, a reading firmly in extreme fear territory. Historically, such levels have often coincided with market bottoms, but the current environment presents a more complex picture due to structural shifts in market composition and new vectors of systemic risk.

Also Read: What new compliance rules mean for crypto growth today

Among those emerging risks is the spectre of AI-driven exploits in decentralised finance. Recent research from Anthropic demonstrated that AI agents, operating in simulated environments, could identify and exploit vulnerabilities in smart contracts to extract US$4.6 million in value. While these experiments occurred in sandboxed conditions and did not affect live protocols, the implications sent ripples through the crypto community. The fear is not that AI has already breached live systems, but that the automation of exploit discovery could drastically lower the barrier to entry for malicious actors.

Projects with unaudited or poorly vetted code, still distressingly common in the DeFi space, could become low-hanging fruit for increasingly sophisticated AI tools. This concern, though speculative in its immediate impact, contributes to a broader reassessment of risk in the sector, particularly among institutional participants who prioritise regulatory and security compliance. It adds another layer to the current bearish sentiment, not as a primary driver of price action but as a background anxiety that discourages fresh capital deployment.

Meanwhile, macro conditions continue to shape the investment landscape. The ISM Manufacturing PMI’s drop to a four-month low reinforces concerns that tariffs and global trade friction remain a drag on industrial activity. While this would typically bolster the case for Fed rate cuts, the simultaneous rise in US Treasury yields, with 10-year yields climbing to 4.096 per cent and two-year yields to 3.537 per cent, suggests markets are also pricing in a more resilient economic outlook for 2026. This duality creates tension.

Weaker near-term data support easing, but stronger forward expectations could limit the pace of cuts. In this context, the Fed’s anticipated 25 basis point cut in December appears increasingly certain, yet investors remain wary of overextending into risk assets ahead of the actual announcement.

Global currency markets reflect similar recalibration. The Japanese yen strengthened against the dollar as expectations for a December Bank of Japan rate hike returned to the fore, pushing 10-year JGB yields up by six basis points to 1.86 per cent.

This narrowing of the yield differential between US and Japanese debt supports further yen appreciation, which could influence capital flows into and out of Asian markets. In China, equities rose despite poor November PMI data, as investors bet on imminent fiscal or monetary stimulus, a classic bad news is good news reaction in a market starved for policy support. This divergence between fundamentals and sentiment underscores the fragile nature of the current rally in Chinese assets, which remains contingent on government intervention rather than organic growth.

Also Read: Green dots and red alarms: How a US$3M hack and strategy’s cryptic tweet sent crypto into a tailspin

In the commodities space, Brent crude rose one per cent to US$63.30 per barrel, remaining sensitive to geopolitical developments in the Middle East and to OPEC+ supply discipline. Gold, trading flat at US$2,340 per ounce, continues to serve as a defensive hedge, though its lack of momentum suggests investors are not yet rushing into traditional safe havens. Instead, capital appears to be moving toward quality fixed income, as UST spreads widen and bonds become more attractive ahead of expected Fed easing.

All these threads converge on a central question. Is the current pessimism in crypto markets a contrarian signal or the beginning of a deeper correction? The trifecta of ETF outflows, leveraged long unwinds, and AI-related security fears has created a perfect storm of negative sentiment. History suggests that extreme fear often marks exhaustion points.

The key variables to watch are whether Bitcoin can stabilise above US$85,000 and whether ETF flows reverse in December, particularly in light of Vanguard’s recent move to grant its clients access to crypto ETFs. This development could reignite institutional interest. If outflows slow or turn positive, and if macro conditions align with a dovish Fed pivot, the stage could be set for a relief rally.

Until then, the market remains caught between technical support, macro uncertainty, and the lingering shadow of new technological risks that challenge the foundational trust assumptions of decentralised systems.

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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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Asia Pacific and Japan (APJ) are rapidly consolidating their position as global hubs for AI, shifting from enthusiastic adopters of imported technologies to global developers and exporters of advanced AI solutions. A special report, Spotlight on Asia-Pacific Japan, outlines how structural, economic and workforce shifts are powering the region’s accelerating leadership in agentic automation and AI-driven transformation.

The report describes APJ as the “AI launchpad of the world”, a status built on the complementary strengths of its diverse markets. India is emerging as the world’s R&D engine, backed by its vast population of developers and the rising influence of Global Capability Centers, which are evolving into strategic innovation hubs. These centres now design, test and export enterprise-grade AI solutions, strengthening India’s role in global digital transformation.

Japan provides the region with deep research expertise and a track record of rigorous governance, ensuring that AI innovation progresses with strong safeguards.

Greater China contributes significant infrastructure capacity, from China’s global lead in AI patents to Taiwan’s dominance in semiconductor manufacturing, which underpins the hardware backbone of the global AI economy.

Meanwhile, Southeast Asian markets such as Singapore, Vietnam and Indonesia offer agile startup ecosystems, serving as real-world laboratories for AI-first applications.

Australia has similarly become a proving ground for sector-wide testing and scaling of AI use cases.

Also Read: Institutional flight, AI fears, and leverage unwind: Why crypto is crashing now

Investment fueled by ROI expectations

APJ organisations are significantly stepping up investments in AI technologies. Enterprise spending is projected to nearly double from US$90 billion in 2025 to US$176 billion by 2028. More than half of the region’s businesses are reallocating budgets from other areas to prioritise AI, signalling confidence in its transformative potential.

However, this spending comes with strict performance expectations. C-suite leaders are demanding two- to four-times returns on investment within 12 to 18 months, an aggressive benchmark that underscores rising scrutiny.

Already, 40 per cent of APJ enterprises are deploying AI agents, and more than half expect to implement them by 2026. With boardrooms increasingly demanding measurable outcomes, AI and automation professionals are under pressure to adopt systems that offer robust monitoring and transparent reporting of results.

A notable shift in the region’s AI strategy is its migration from cost optimisation to top-line growth. The rise of agentic AI, or AI that is capable of reasoning, planning and executing complex tasks autonomously, is enabling enterprises to unlock new revenue streams.

Financial services institutions are using AI agents to accelerate loan processing and claims validation, freeing staff to focus on cross-selling, up-selling and personalised customer engagement.

Manufacturers across Japan, South Korea and China are employing agentic AI for dynamic production scheduling and inventory optimisation, positioning themselves to support more flexible, on-demand manufacturing models.

In healthcare, institutions such as Gold Coast Health are deploying AI to streamline administrative and clinical workflows, improving outcomes by giving clinicians more time with patients.

Also Read: From energy to ergonomics: 20 AI startups to watch in Southeast Asia

Orchestration and trust as strategic priorities

As APJ organisations expand their AI programmes, they are increasingly focused on orchestration: the need for a unified system that coordinates AI agents, robotic process automation and human workers across complex workflows.

The report highlights examples such as Omega Healthcare, which uses orchestration to manage accounts receivable, denial management and payment posting with a mix of AI agents, RPA bots and human oversight. This approach strengthens financial performance by reducing cycle times and improving accuracy.

Trust is also emerging as a foundational requirement. Businesses want enterprise-grade AI agents that operate within clear guardrails to ensure predictable, compliant outcomes. Without strong governance, scaling AI beyond pilot projects becomes significantly harder.

Governments across the region are attempting to balance innovation with responsible oversight. Japan’s AI Promotion Act adopts an innovation-first philosophy, while Australia’s Voluntary AI Safety Standard aims to protect high-risk environments without stifling experimentation.

ASEAN has introduced a Guide on AI Governance and Ethics, and Singapore’s National AI Strategy 2.0 places heavy emphasis on talent development, industry growth and resilient research infrastructure.

The workforce implications are profound. The report characterises the emerging era as one where “AI agents think, robots do and people lead”. Human roles are shifting from hands-on validation to oversight and strategic decision-making—a transition described as moving from “human-in-the-loop” to “human-on-the-loop”.

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Image Credit: Aideal Hwa on Unsplash

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Filipino founders are building momentum in an ecosystem defined by grit, diversity, and community-driven capital, and the latest Gobi-Core report shows why these traits matter now more than ever.

At the heart of the Philippine startup journey is resilience. Founders rate persistence as their most important trait, a reflection of the country’s tough funding cycles and constantly shifting market realities. This tenacity is not just admirable; it is a survival skill in a landscape where deal volume has sharply declined.

Equally encouraging is the growing gender diversity shaping the ecosystem. With women now comprising nearly half of surveyed founders, the Philippines is inching closer to true parity. This shift signals a healthier and more representative pipeline, though sustained attention to mentorship and equitable funding access remains crucial.

Another defining feature is the Philippines’s grassroots funding ladder. Most founders rely on angels, bootstrapping, and personal networks rather than institutional venture capital. While this underscores the difficulty of accessing formal funding, it also highlights a uniquely community-driven approach to early-stage growth.

Despite challenges, startups continue to create jobs, particularly in edutech, e-commerce, HRtech, and entertainment. These signals point to a dynamic, resilient ecosystem: one where creativity and determination continue to fuel long-term economic impact.

REGIONAL

Singapore crypto platform’s founder sued for US$60.5M over alleged fraud: Over 270 former users of Tokenize Xchange accessed founder Hong Qi Yu and COO Erin Koo of fraudulent misappropriation of US$263.7M. MAS and police investigate its parent AmazingTech for fraudulent trading.

Danantara open to Grab-GoTo deal, awaits further details: Danantara CEO Rosan Roeslani said the agency is open to joining the deal but will wait until details become clearer, including on pricing and structure. He emphasised that the welfare of ride-hailing drivers should be a key priority.

Shopping scams cost Indonesia US$666.6M in 2025: The most common scams involve fraudulent shopping transactions and fake calls using AI and social engineering. OJK data shows 62,999 reports of shopping scams, with average losses of US$1,020 per case.

Roojai bags US$60M as investors bet on digital insurance boom: Investors include Apis Partners, Asia Partners, HDI International, and IFC. The Thai firm will expand its ASEAN operations, strengthen embedded insurance, and drive tech-led transformation in the region’s insurance market.

Meet the 6 graduating startups of the 13th IdeaSpace Accelerator Programme: After graduation, IdeaSpace’s support will continue. Startups will receive mentorship, access to network, and guidance across different aspects of business.

REPORTS, FEATURES & INTERVIEWS

What drives Filipino founders? A deep dive into the 2025 startup report: Filipino founders are propelled by resilience, growing gender diversity, and grassroots funding pathways, shaping a dynamic startup ecosystem.

From caution to discipline: Inside SEA’s year of startup reset: Did the downturn make Southeast Asia more disciplined, or simply more cautious? The answer, founders say, lies somewhere in the middle, but with an apparent tilt toward long-term maturity.

From energy to ergonomics: 20 AI startups to watch in Southeast Asia: Taken together, they offer a snapshot of where Southeast Asia’s AI ecosystem is heading next: less hype, more context, and products built for the region’s unique constraints.

The age of infinite workers: Why AI changes the rules of economics and global power: AI-driven productivity shifts suggest debt matters less as nations that invest in energy and compute infrastructure gain exponential economic power.

Through the fog: Why 2025 holds ‘fragile optimism’ for global logistics: Global logistics faces uncertainty in 2025, with Southeast Asia poised for growth through AI, resilience, and strategic trade shifts.

INTERNATIONAL

Temasek joins US$300M Series B in German’s Black Forest Labs: Salesforce Ventures, Bain Capital Ventures, and Air Street Capital also joined. Black Forest Labs develops generative AI models for images. It will use the funding to advance the R&D of its visual AI models.

UAE now lets users buy gold, silver at ATM: The machine lets users buy gold and silver bars using e-wallets or credit cards, and withdraw physical bullion from digital accounts. The companies plan to deploy 35 to 40 ATMs across the country in 2026.

Sam Altman declares ‘code red’ to focus on ChatGPT upgrades: The Information report says OpenAI is prioritising improvements to ChatGPT and postponing other projects. OpenAI is also testing various ad formats, such as those related to online shopping.

Didi starts 24/7 driverless robotaxi trial in Chinese major city: The trial covers the Huangpu core area, including metro stations, schools, malls, offices, and residential buildings. The system matches vehicles based on pickup and drop-off points, road conditions, dispatch distance, and local demand.

Trump administration said to take equity stake in ex-Intel CEO’s chip startup: The administration has agreed to inject up to US$150M in XLight, a startup led by former Intel CEO Pat Gelsinger. This marks the office’s first investment after the Trump administration took over a US$7.4B Biden-era semiconductor research institute.

SEMICONDUCTOR

Intel to make Malaysia assembly hub with US$208.1M investment: The US chipmaker is also nearing completion of a US$2.9B advanced packaging facility in Penang. Intel said it has committed US$680K to support R&D and education initiatives in Malaysia over the past two years.

SoftBank sells Nvidia stake to raise funds for AI projects: CEO: SoftBank Group founder Masayoshi Son explained that SoftBank needed capital for initiatives such as data centre construction and acquiring US chip designer Ampere Computing. He dismissed concerns about an AI investment bubble.

Nvidia launches new AI models for speech, safety, self-driving: The launch includes Nvidia Drive Alpamayo-R1, an open reasoning vision language action model for autonomous vehicle research. The model integrates AI reasoning with path planning and will be available on GitHub and Hugging Face.

AI

Indonesia has 25 AI startups, compared with 300 in Singapore: minister: Minister for Economic Affairs Airlangga Hartarto said that the gap creates “room for growth” for tech players to to accelerate innovation, supported by Indonesia’s advantage in large-scale datasets.

The hidden advantage: How AI insights will power Asia’s next growth cycle: Asia’s startups face tighter funding and fast-shifting markets, but AI is becoming their edge—turning data into early signals, sharper predictions and faster decisions, enabling founders to act with clarity before the next growth cycle.

Inclusive AI isn’t optional – it’s Asia’s tech advantage: Asia doesn’t need to copy Silicon Valley’s mistakes. We have the opportunity to lead differently, to build AI that reflects our diversity and cultures. Our superpower is the ability to blend innovation with values rooted in community, family, and balance.

Why founders should stop hustling and start automating: If you’re a founder building something important, don’t burn yourself out trying to “do it all.” Step back and ask: What can I systemise? What can I automate? That shift in mindset is what takes you from fire-fighting to future-building.

Why AI won’t replace developers — but CEOs must lead the transformation: Generative AI is reshaping teams, pushing CEOs to align developers, processes, and leadership to stay ahead in faster dev cycles.

How ChatGPT and automation are revolutionising so-called ‘traditional’ industries: ChatGPT and a business strategy grounded in automation won’t replace the provision of food, drink and connection, but it can improve businesses’ ability to provide those exceptional experiences.

THOUGHT LEADERSHIP

Ad astra per aspera: Finding hope and truth in an age of misinformation: A year of uncertainty reveals how misinformation fuels fear and division, yet hope endures through empathy, critical thinking, and inclusive leadership—reminding us that through struggle, we can still reach for the stars.

First large-scale AI Workflow Competition opens regional call for builders and SMEs: The competition brings builders and SMEs together to design and deploy real world agentic AI workflows that solve practical business challenges and drive everyday automation adoption.

Why continuity plans for F&B businesses is a must: When a company is conscious of the changing climate, it can be of favour and be confident in implementing long-term sustainable strategies, instead of pursuing short-term gains to stay innovative and stay relevant.

Gen Zs, Millennials, and Baby Boomers: When are they most productive at work?: Understanding the needs of a modern, intergenerational work environment is essential for attracting and retaining talented employees.

The SEA headcount trap: Why more people ≠ more progress: The best SEA founders are rethinking scale—not by adding more people, but by multiplying their effectiveness. It’s not about working harder. It’s about building an AI-first team that scales smarter.

People-first teams: How SEA startups embrace remote-first culture in the AI era: Southeast Asian startups are embracing remote-first models and AI tools to scale efficiently while prioritising flexibility and wellbeing.

What 2025 taught me about discipline, real customers and building a business that lasts: Founders in 2025 learned that sustainable growth comes from hard decisions, real customer traction, and scaling people over hype.

The global skill shift: Why smart companies are building borderless tech teams: Borderless hiring is reshaping global work as companies integrate offshore talent to drive innovation, agility, and diverse problem-solving.

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Southeast Asia’s digital economy is continuing its robust expansion, firmly on track to exceed US$300 billion in Gross Merchandise Value (GMV) by year-end. This remarkable trajectory not only showcases the region’s resilience but also represents a 1.5X increase compared to the inaugural forecast made ten years ago.

According to the e-Conomy SEA 2025 report prepared by Google, Temasek, and Bain & Company, the achievement of this monumental milestone marks the conclusion of a decade of transformative growth, during which the digital economy expanded from approximately US$40 billion GMV to over US$300 billion in 2025.

The decade of digital breakthroughs

The past decade has witnessed monumental transformations driven by over 200 million new internet users coming online, propelling the region beyond passive digital consumption into a fully adopted digital lifestyle.

Also Read: Digital adoption in Asia: An unstoppable juggernaut transforming economies

Crucially, the region has undergone fundamental shifts in commerce: now, three in five users have made an online purchase, and over 60 per cent of all transactions are digital, a stark contrast to the pre-2019 landscape, where more than 60 per cent of transactions were cash-based. The digital economy’s revenue has seen an even more aggressive expansion, growing 11.2X over the decade to a forecast US$135 billion in 2025.

Sustained double-digit growth amid headwinds

Despite ongoing macroeconomic pressures, the region continues to deliver sustained double-digit growth in both GMV and revenue. The overall digital economy (covering e-commerce, food delivery, transport, online travel, and online media) is projected to reach US$299 billion in GMV for the SEA-6 markets in 2025, rising to US$305 billion when the new ASEAN-10 markets are included.

This sustained growth is powered by deepening digital participation and successful monetisation strategies, including diversified revenue streams, tiered offerings, and higher pricing across major sectors.

Revenue growth is mirroring and often outpacing GMV expansion across all sectors, demonstrating the successful monetisation discipline adopted consistently over the past two years. For the ASEAN-10 region, GMV is forecast to grow 14 per cent year-on-year (YoY) to reach US$305 billion in 2025, while revenue is projected to increase by 15 per cent YoY to reach US$100 billion.

Closing the gap with mature markets

Although the Southeast Asian digital economy has significantly outpaced GDP growth, the region still holds substantial potential to catch up with mature markets like the US and China. Key levers for future growth include increasing internet penetration and rising transaction values.
Internet penetration in SEA is projected to reach 71 per cent in 2025, notably lower than China’s 77 per cent and the US’s 92 per cent, indicating ample headroom for further online adoption.

Also Read: AI adoption in SEA e-commerce: The clock is ticking for sellers

Furthermore, consumer expenditure per capita is projected to be around US$3,400 in SEA by 2025, compared to US$59,000 in the US and US$5,300 in China. This gap suggests that rising disposable incomes will drive convergence in spending patterns, offering a powerful growth lever for the digital economy in the next decade.

Looking ahead, the focus remains on leveraging AI acceleration and greater regional cooperation, while carefully navigating global uncertainty and regulatory developments.

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Most founders know when something isn’t working. Sales plateau. Costs creep up. Competitors move faster. But when it comes to pivoting — making the bold changes that could save or even transform the business — fear sets in.

• “What if I alienate my existing customers?”
• “What if the new direction fails?”
• “What if I lose what I’ve already built?”

The irony? By waiting too long, the market often forces the pivot on you — usually at a far higher cost.

The macroeconomic reality

The business environment today leaves little room for hesitation:

• Rising costs of capital: Interest rates and investor caution mean chasing low-margin growth is unsustainable.
• AI disruption: Entire job functions are being automated, shrinking traditional career pathways and reshaping what value looks like.
• Regional shifts: ASEAN economies are growing rapidly, but competition for talent and attention is fiercer than ever.

In this climate, agility isn’t optional — it’s survival.

Pivoting beyond products: Rethinking revenue

When people think “pivot,” they imagine changing products or services. But sometimes the smarter pivot is in your revenue model.

• A small, niche business with 40 per cent margins can generate the same profit as a large-volume business with five per cent margins — but with far less overhead and complexity.
• Service providers can shift from one-off projects to retainers or subscriptions, smoothing cash flow.
• Agencies can combine volume services (low margin) with strategic consulting (high margin) to balance stability and profitability.
• Product companies can explore distribution partnerships or franchising rather than chasing expensive direct sales.

The goal isn’t just revenue growth — it’s sustainable profit. Pivoting the revenue model can often buy you more runway than pivoting the product.

Also Read: Borderless builders and frontier founders: Laying the foundations of the future economy

How to pivot smart

• Validate fast: Use micro-tests, pilots, and strike teams to check new directions before committing.
• Cut the drag: If a product line, client segment, or cost centre doesn’t pull its weight, trim it.
• Think regionally, not just locally: The next big customers may not be in Singapore; they may be in Ho Chi Minh, Jakarta, or Manila.
• Restructure the model: Revenue isn’t just “sales.” It’s margin, repeatability, and cost alignment.
• Communicate the why: Bring your team and customers into the story. People back bold moves when they understand the logic.

Conclusion

Survival in today’s market isn’t about waiting for perfect conditions — it’s about moving before you’re forced to.

Pivoting isn’t failure. It’s evolution. And the businesses that pivot early — whether it’s product, market, or revenue model — are the ones that not only survive, but come out stronger.

The real question is: Are you waiting for the market to push you — or are you ready to take the first step yourself?

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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.

Enjoyed this read? Don’t miss out on the next insight. Join our WhatsApp channel for real-time drops.

Image courtesy: Canva

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The global logistics sector, having experienced a year of stabilisation in 2024, is now navigating through a “fog” of persistent economic, geopolitical, and environmental pressures, with 2025 poised for “fragile optimism”.

The State of Logistics Report, released by the Council of Supply Chain Management Professionals (CSCMP) and authored by Kearney, highlights that while technological integration and a continued focus on resilience and sustainability drive cautious advancement, uncertainties, particularly those stemming from new tariff trade tensions, remain front and centre.

Also Read: Southeast Asia steps up: Complexity, opportunity, and the post-China trade shift

For Southeast Asia’s burgeoning tech and logistics landscape, these global shifts present both challenges and significant opportunities.

Macroeconomic Crossroads and Tariff Tornadoes

The global macroeconomic situation is marked by diverging growth trajectories and inflationary pressures. While the United States anticipates moderating real GDP growth of around 1.7 to 1.8 per cent in 2025 and Europe expects a slight acceleration to 1.3 to 1.5 per cent, emerging and developing Asia is forecast to grow robustly at 3.6 per cent. This strong regional growth, supported by stable domestic conditions and robust external demand, positions Southeast Asia as a key player in the evolving global trade narrative.

However, the spectre of “tit-for-tat tariff actions” is set to become an integral component of international trade policy, disrupting global supply chains. The report warns that these tariffs could increase the landed cost of goods, force shifts in sourcing decisions, and create entirely new global trade flows.

Ocean and ports are identified as the most vulnerable transport modes to tariff impacts. The elimination of the “de minimis” tariff exemption, notably affecting US imports, is already forcing major shifts, with Chinese e-commerce giants like Temu suspending direct shipments from China to the US and Shein moving to a “local fulfilment model”. This could lead to a redirection of trade volumes and a re-evaluation of supply chain partners across Asia.

The tech imperative: AI, automation, and data as growth drivers

Technology, particularly artificial intelligence (AI) and automation, is identified as a critical enabler for the logistics industry to boost margins and value. AI implementation is expected to penetrate deeper into logistics operations, acting as an inflexion point to counter declining productivity gains and boosting global GDP.

Logistics firms increasingly adopt AI for real-time inventory visibility, decision-making, and optimising demand planning, inventory management, and delivery routes.

Examples abound: Flexport is leveraging generative AI for document parsing, processing 15,000 shipping documents monthly and slashing costs from US$5 to US$10 per document to mere cents.

Also Read: US tariffs disrupt global trade, forcing a rethink in Southeast Asia

CEVA Logistics is partnering with Google to optimise vessel routing and container handling using AI. In warehousing, greater automation, including robots and autonomous systems, is mitigating labour shortages and enhancing productivity. This technological push opens significant avenues for Southeast Asian tech startups to develop and deploy tailored AI and automation solutions for regional logistics players.

E-commerce’s Relentless Rise and the “Barbell Effect”

E-commerce continues its relentless rise, with global online retail sales nearing US$6.3 trillion in 2024, intensifying competition across parcel and last-mile delivery. Consumer preferences reveal a “barbell effect,” splitting demand between ultra-fast delivery for essentials and ultra-low-cost, slower shipping for non-essentials.

Chinese platforms like TEMU and Shein aggressively grew their US e-commerce gross merchandise value by over 75 per cent and 60 per cent, respectively, in 2024, focusing on budget-friendly, slower delivery models. As these dynamics ripple globally, Southeast Asia’s vibrant e-commerce market will likely see similar pressures for diversified delivery options and cost-efficient solutions.

Resilience, relocation, and opportunities for Southeast Asia

The post-pandemic era, coupled with heightened geopolitical tensions and new trade policies, has shifted companies’ focus from short-term cost savings to long-term strategic priorities: resilience, flexibility, and growth. Supplier diversification and production relocation are becoming key strategies.

The report explicitly notes that semiconductor-adjacent tech firms are considering shifting both assembly and full production from China to Southeast Asia, driven by tariff pressures and customer demand for supply base diversification. A prime example is Apple, which has already moved production to Vietnam and India in response to the US-China trade tensions and tariffs.

Furthermore, while nearshoring to Mexico struggled in 2024, Asian low-cost countries and regions (LCCRs) successfully filled the gap between demand and supply, with trade increasing by US$90 billion (ten per cent) in 2024. This underscores Southeast Asia’s growing strategic importance as an alternative manufacturing and sourcing hub, demanding agile logistics partners and robust infrastructure.

Sustainability: Balancing compliance with business case

The sustainability landscape in logistics is becoming increasingly complex, marked by divergent regulatory approaches. While the European Union enforces stricter mandates, the United States adopts a more voluntary, market-driven approach.

However, companies exporting to Europe and Asia, including many in Southeast Asia, will still be required to comply with stringent sustainability reporting standards, such as those under the EU Carbon Border Adjustment Mechanism (CBAM).

Also Read: Southeast Asia’s supply chain strategy in a tariff-driven world

This growing focus on tangible return on investment (ROI) means companies are revising sustainability targets to align with cost savings. Technology, including IoT, blockchain, and AI, is proving essential in achieving these dual goals by optimising resource use and tracking emissions, offering transparency and efficiency. This pragmatic approach to “green logistics” creates opportunities for tech startups developing solutions for emissions tracking, route optimisation, and sustainable supply chain management in Southeast Asia.

Sectoral dynamics: A glimpse across the board

Air freight: After a “banner year” in 2024 with 8.6 per cent growth, volumes are projected to slow to 5.8 per cent in 2025. Policy changes like the de minimis exemption removal will prompt shifts to bulk freight, impacting express air cargo.

Ocean/ports: Global ocean freight demand increased by 4.5 per cent in 2024, driven by frontloading, but demand growth is expected to slow to 3 per cent in 2025, with supply outpacing it, leading to reduced rates. Alliance restructuring and tariffs continue to reshape trade flows.

Third-party logistics (3PLs): Increasingly critical, 3PLs are expanding services to provide end-to-end support, adopting AI and automation for greater flexibility and resilience.

Warehousing: The US market stabilised in 2024, with higher vacancy rates and slowing construction. Labour stability and technology use are boosting productivity, while the threat of new tariffs is prompting some stockpiling of inventory.

Charting the course for Southeast Asia

As the global logistics sector navigates this complex and uncertain environment, agility, strategic planning, and aggressive technology adoption will be paramount. For Southeast Asia, the emphasis on supply chain resilience, the shift in manufacturing away from China, and the region’s strong economic growth projections represent a significant window of opportunity.

Tech startups in Singapore and across the region are uniquely positioned to innovate and provide digital tools, automation solutions, and supply chain visibility platforms that will enable businesses to adapt faster and grow smarter in this new era of global trade.

The future of logistics will undoubtedly be shaped by those who can convert uncertainty into strategic advantage.

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Southeast Asia’s emerging economies have demonstrated impressive resilience in 2024, but could the geopolitical challenges of 2025 amid widespread tariff uncertainty undo much of the region’s hard work? 

The impact of Trump’s tariffs, which were far stronger than many nations within the region had anticipated, was particularly severe for Asia’s emerging economies and threatens to undermine the growth of many poorer nations following years of risk aversion. 

Despite growing global uncertainty in Q4 2024, Southeast Asian economies remained resilient, with almost all reaching at least five per cent growth in the quarter. 

Leading the charge was Vietnam, posting 7.55 per cent growth. Meanwhile, Thailand overcame -5 per cent growth one year ago to rally by 3.2 per cent, representing its third-highest year-on-year quarterly growth rate in the past five years. 

Driving this growth were strong investments in the region alongside stable exports, output, and consumption figures. However, regional currencies experienced weakness against the US dollar due to expectations of high-for-longer interest rates in the United States. 

The return of Donald Trump to the US presidency has been a confounding factor in the first half of 2025 for Southeast Asia’s emerging economies at a time when stability has been much sought after for the region’s nations. 

According to a report by Systematix Research, the announcement of ‘Liberation Day’ tariffs by Donald Trump handed Southeast Asian nations the steepest rise in trade costs, followed by economies in Eastern and Continental Europe as well as the Middle East. 

The report concluded that the maximum increase in tariffs has been on emerging economies, “particularly in Asia and Eastern Europe.”

Given that 2024 saw a 40 per cent decline in venture capital investments in Emerging Venture Markets (EVMs) involving Southeast Asia as well as the Middle East and Africa, the timing of Trump’s tariffs has been particularly challenging for the region’s emerging economies. 

In what were termed ‘reciprocal tariffs,’ Southeast Asian nations such as Cambodia and Vietnam were hit with 49 per cent and 46 per cent tariffs overnight, before President Trump announced a 90-day delay to the imposition of the levies. 

Both nations are key production hubs for apparel and sports goods manufacturers due to their competitive labor costs, and US firms like Nike and Gap have sought to expand their production in these emerging markets in recent years. 

Measuring the impact of tariffs

Some of Southeast Asia’s more ambitious economies, like Thailand and Malaysia, have sought to join BRICS as a means of securing greater trade and investment opportunities on a global scale in recent months. Now, as the United States enters a period of extreme protectionism, affected trading partners are rapidly looking for solutions. 

In terms of the direct impact of tariffs on Thailand’s economy, the uncertainty of the 90-day postponement has left exporters in a state of flux, and the full impact is likely to become more noticeable in the second half of the year. 

Also Read: Market insights: Ethereum challenges Bitcoin’s dominance, US dollar strengthens, gold dips as trade tariff fears ease

Thailand’s export exposure to the United States accounts for 18 per cent of the nation’s total exports and 2.2 per cent of its gross domestic product (GDP). This comprises sectors like electronics, machinery, automotive, electrical appliances, and processed foods. 

Additionally, Thai exports will experience further impacts through global supply chain producing for US demand for rubber, automotive parts, metal and steel, and chemical products, which account for around 4.3 per cent of the country’s exports. 

The tariff time bomb facing Thailand comes at a time when the emerging economy announced that its March 2025 exports reached a historic high of US$29.5 billion at a year-on-year growth rate of 17.8 per cent, the highest monthly export value ever recorded for the country. 

These impressive growth rates have been supplemented by growing international trade and company registration growth in Thailand throughout 2024, but the outcome of Trump’s tariffs will have a deciding role in the nation’s long-term growth. 

Growth forecasts from INVX Research have slashed Thailand’s rate for 2025 to 1.4 per cent, down significantly from earlier projections of 2.5 per cent. An estimated three per cent contraction in exports, with the fourth quarter forecasted to see a double-digit decline, is a key factor in the revision. 

Signs of resilience in productivity

Last year, World Economic Forum forecasts suggested that trade among the Association of Southeast Asian Nations (ASEAN) will grow by US$1.2 trillion over the next decade. By 2031, the report claims that ASEAN exports have the potential to surge by nearly 90 per cent versus overall global trade growth of less than 30 per cent. 

Also Read: US tariffs disrupt global trade, forcing a rethink in Southeast Asia

Although Trump’s tariffs will impact growth rates, it’s clear that emerging Asian economies are becoming a strong hub for supply chain diversification for global manufacturers seeking to explore new markets, build resilience, and manage operating costs. 

As a rapidly emerging manufacturing hub, Southeast Asia could yet discover a more self-sufficient model without the same level of reliance on exports to the United States. 

With artificial intelligence forming the next frontier of innovation, Southeast Asia’s emerging economies also have a key advantage thanks to the 672 million-strong population throughout the 10 emerging economies in the region. Of these demographics, more than 200 million residents are aged between 15 and 35, and their collective tech fluency could aid Southeast Asia’s strong economic outlook for life in the age of tariffs. 

Thriving in uncertainty

Learning to live with higher tariffs is likely to be the key to the short-term future of Southeast Asia’s emerging economies. But indications show that there’s plenty of resilience and momentum generated among the region’s growing nations. 

The future may hold a level of self-sufficiency without reliance on exporting to the United States. The potential of building an AI infrastructure can also be a major help in out-innovating trade issues regionally. 

Southeast Asia’s emerging economies entered 2025 with impressive momentum, and there’s no reason why the region’s strong growth rate can’t be recaptured following the hit of trade uncertainty with the US.

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There aren’t many memorable speeches that can energise and fire up a crowd. Michelle Obama’s speech at the DNC 2024 did that. I found myself enthralled, mesmerised, and in awe of her skill and ability as an orator—so much so that I watched her speech FIVE times yesterday.

As with most speeches, hers would’ve been drafted, edited, redrafted and refined numerous times by her speech writer and herself. However, it’s the combination of her charisma, delivery, timing, enunciation, tone, voice, eyes, hand gestures and posture that brought her words and message across so authentically, emotionally and powerfully.

As co-owner and CEO of an award-winning communications agency group, I get to work with our clients on a range of strategies to empower them to get their key messages to their audiences in the most effective and engaging way. So, as I watched Obama’s captivating speech, I started noting why hers, above everyone else’s, was so extraordinary and on point.

I broke it down into eight key ways that made her speech so effective.

• Personal connection: She shared her own experiences, making her relatable and genuine. By sharing her grief over her mother’s passing and shared values, she connected her own experiences with nearly everyone in the crowd who has at one point in their lives felt the same. This made her message resonate on a personal level.
• Emotional depth: She spoke from the heart, addressing universal emotions like grief, hope, and resilience. Her speech was not just about facts or policy; she skillfully combined facts with emotional storytelling, making her speech resonate not just intellectually, but emotionally.

Also Read: Storytelling: Startup’s secret sauce for turning founder narratives into golden assets

• Clear messaging: She communicated complex ideas simply and directly, all the while, using her facial and body language to reinforce her points. This was punctuated with deliberate pauses, allowing her words to sink in and giving the audience time to reflect on her messages.
• Rhetorical mastery: Her use of repetition, parallelism, and rhetorical questions effectively reinforced key messages, making them truly memorable.
• Storytelling: She uses stories from her life and the lives of others to illustrate her points. She told them in vivid and descriptive ways, almost like she was having a personal conversation with the audience. Her language was straightforward and easy to understand. Instead, she made her points clear, purposeful and relatable.
• Call to action: Adopting Kamala Harris’ mother’s words, “Don’t sit around and complain about things. Do something!”, she directly challenged the audience to take action rather than remain passive. She also instilled a sense of urgency. Her expansive gestures and a raised chin further punctuated the need for everyone to take action – to “do something”. These words were repeated numerous time and she got the audience to say them with her, further reinforcing the key.
• Inclusivity: She frequently used inclusive language like “we”, “our” and “us,” to engage the audience, emphasising that they’re all part of the solution for the future and foster unity. She also referenced the sacrifices of previous generations, appealing to a broad audience’s sense of responsibility and legacy.
• Confident delivery: Her strong and steady voice commanded attention and strong reaction from the audience. Throughout the speech, her body language — from her firm posture to her expressive hand and finger movements — draws in and engages the audience as well as reinforces her powerful words, making her message compelling yet so relatable.

Her ability to balance critique with hope, coupled with a clear moral vision, made her message compelling. By invoking shared struggles and responsibilities, she was able to rouse and fire up the audience. Her ability to connect with diverse audiences and her eloquent communication skills are unmatched.

I believe all these combined elements made her speech a real standout moment at the Convention. It was truly a perfect blend of personal authenticity, deep emotional resonance, masterful storytelling and strategic use of rhetoric, making it so incredibly unforgettable.

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A decade ago, most companies still hired within commuting distance of their headquarters. Local job markets determined who got a seat at the table—and often, innovation was confined to where offices happened to be located.

That era is ending. From Singapore to Stockholm, startups and enterprises are realising that the world’s best ideas don’t belong to one geography. What matters more now is agility, digital fluency, and creativity—skills that can emerge from anywhere, not just from major tech hubs.

The post-pandemic rise of remote collaboration tools, cloud-based infrastructure, and AI-assisted communication has made cross-border teamwork seamless. A 2024 McKinsey report found that over 58 per cent of high-growth companies now rely on distributed teams across at least three regions. What started as a necessity during global lockdowns has evolved into a deliberate strategy to access the world’s best talent, not just the nearest.

From outsourcing to offshoring to borderless collaboration

Offshore hiring is not the same as the outsourcing methods from the early 2000s. At that time, the focus was only on transactions; corporations sent out the same jobs over and over again to save money.

Now, outsourcing is based on a partnership approach that focuses on speed, competency, and innovation.

• To fill the deficiencies in technological skills in areas like AI, data science, cybersecurity, and cloud development, companies deploy offshore teams.
• Teams in different time zones can work together around the clock to speed up product discovery.
• Make your firm more stable by hiring people from other markets.

In Deloitte’s Global Outsourcing Survey 2024, 82 per cent of executives said they now view offshore collaboration as a source of innovation—not just cost efficiency. For many, the question isn’t whether to hire offshore, but how to integrate global talent into their core operations.

Understanding how borderless teams really work

As companies expand across borders, they’re also redefining what “team” means. The old idea of employees sharing one office has given way to a fluid model of digital collaboration.

Also Read: People-first teams: How SEA startups embrace remote-first culture in the AI era

Recent insights on offshorePH.com explore how global organisations are adapting their structures to this new normal. These discussions highlight that successful offshore hiring isn’t simply about recruitment—it’s about building systems that support cross-border trust, shared workflows, and cultural understanding.

This shift requires intentionality. Teams must invest in communication frameworks, digital tools, and leadership styles that empower collaboration despite distance. In doing so, they transform offshoring from a staffing tactic into a strategic ecosystem of innovation.

The rise of offshore talent in emerging tech roles

Technology is changing faster than schools can teach kids how to use it. This has caused a global skills gap, especially in new fields like artificial intelligence, machine learning, and data engineering.

To fill this gap, businesses are hiring offshore tech experts who have both knowledge and the ability to grow. For instance:

• AI and data analysts from Southeast Asia and Eastern Europe increasingly run analytics for global fintech companies.
• Experts in blockchain and cybersecurity in India and the Philippines help new businesses protect their digital infrastructure.
• Product designers and creative developers in Latin America work with agencies in Australia and North America on campaigns that reach people in more than one market.

Gartner’s Global Tech Hiring Trends 2025 report found that 74 per cent of technology leaders plan to expand international hiring to access niche skills that are scarce in domestic markets. This approach not only resolves staffing bottlenecks but also diversifies problem-solving perspectives, which is critical for innovation.

Building trust in borderless teams

Working across borders is not without challenges. Cultural differences, communication gaps, and time zone coordination can affect project flow if not managed intentionally.

However, companies that thrive in this environment treat trust as a process, not a given. They know that proximity doesn’t guarantee collaboration—clarity does.

Here are a few practices that successful global teams apply:

• Document everything. Shared platforms like Notion or Confluence ensure decisions and tasks remain visible.
• Create asynchronous routines. Recorded updates or text-based stand-ups allow progress even when teams are offline.
• Encourage cultural curiosity. Leaders who understand how their offshore colleagues communicate and celebrate wins foster stronger relationships.
• Measure outcomes, not presence. Productivity is defined by deliverables and impact, not by how many hours someone is online.

These principles help teams build a rhythm of accountability that transcends time zones.

Also Read: The hidden growth engine: How offshore creative teams are powering global marketing innovation

The human side of global collaboration

There is a tremendous personal tale behind the corporate numbers. Many offshore workers say they are happier working with global teams because they get to learn about new technologies, leadership styles, and ways of generating fresh ideas that they couldn’t find in their own country.

This situation is a win-win for businesses. Offshore workers get job security and career growth, while companies get more flexibility, scalability, and different ways of thinking. The end result is a new sort of workplace that is spread out, welcoming, and based on shared goals instead of shared geography.

World Economic Forum’s Future of Jobs Report 2024 points out that this flexibility will define the next decade of work, where adaptability and cross-cultural competence will matter more than job titles or office locations.

What this means for the future of hiring

The next frontier of global business growth won’t be defined by geography—it will be defined by how seamlessly companies can integrate talent from anywhere.

Those who continue to rely solely on local hiring will find themselves constrained by market limitations, while those who embrace borderless strategies will have access to global innovation pipelines.

In this new era, offshore hiring isn’t just about finding people to fill roles—it’s about rethinking what’s possible when diverse perspectives collaborate toward shared outcomes. The future of work is already global. The smartest companies are simply building the systems to keep up with it.

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