Industry News

ST Telemedia Global Data Centres (STT GDC) has unveiled a new study highlighting significant challenges faced by Asian organisations in advancing their artificial intelligence (AI) initiatives. Despite high adoption rates, with nearly 90% of firms embarking on AI projects, 71% remain stuck in the initial “Builder” stage, unable to scale their efforts into production environments that yield measurable returns on investment.

The study, conducted with research partner Ecosystm, surveyed over 600 enterprise and digital-native leaders across nine Asian markets, including Singapore, India, and Japan. It reveals that only 17% of organisations are “future-ready,” having invested in scalable infrastructure and operational expertise. Chris Street, Group Chief Revenue Officer of STT GDC, noted, “Without scalable infrastructure and operational readiness, it becomes difficult to convert early AI ambition into consistent business value.”

A significant barrier is the lack of infrastructure capable of supporting large-scale AI operations, compounded by a shortage of in-house expertise. This issue is particularly pronounced in Singapore, where 40% of organisations have moved beyond early-stage pilots, yet only 3% have achieved full “Leader” status in AI infrastructure maturity.

The report also highlights a disconnect between organisational priorities and needs. Whilst sustainability is increasingly critical, it remains a secondary consideration for many firms when evaluating infrastructure options. In Singapore, despite high awareness of sustainability issues, it ranks low in priority when choosing infrastructure providers.

The findings suggest that Asia’s next phase of AI development will hinge on execution capabilities rather than ambition alone. For Singapore, maintaining its regional leadership will require evolving infrastructure strategies to support scale, resilience, and speed.

Investment in Southeast Asia’s (SEA) tech sector reached $2.8b in the first quarter of 2026, marking a 110% increase from the same period last year, according to Tracxn’s latest report. This surge reflects a strategic shift towards mature enterprise assets, with late-stage funding dominating the landscape.

Late-stage investments accounted for $2.2b, highlighting a preference for established companies. Notably, DayOne secured a $2b Series C round, underscoring the trend of capital concentration in proven platforms. Meanwhile, seed-stage funding saw a 30% decline from the previous quarter, indicating a cautious approach towards early-stage ventures.

Enterprise Applications and Enterprise Infrastructure emerged as the top-performing sectors, attracting $2.4b and $2.2b, respectively. This shift signifies a focus on long-term, scalable assets. The report also noted a significant acquisition, with ST Telemedia Global Data Centres being acquired for $6.6b, validating the emphasis on enterprise infrastructure.

Singapore solidified its position as the regional capital hub, capturing 93% of the total funding. This dominance reflects investor confidence in its governance and regulatory environment. The quarter also witnessed three initial public offerings (IPOs) and 13 acquisitions, maintaining steady exit activity.

As the SEA tech ecosystem evolves, the focus on mature enterprise assets is expected to continue, potentially shaping future investment strategies in the region.

The latest HSBC survey highlights a significant gap between the anticipated growth of digital finance and the readiness of businesses to embrace it. Conducted among 3,000 international businesses and institutional investors, including 1,200 in Asia, the survey reveals that 91% of Asian corporates expect digital and tokenised assets to become standard in treasury operations within five years. However, more than half of these businesses, 53%, admit they lack the understanding needed to assess the impact on their operations.

The survey, released ahead of HSBC’s Global Investment Summit in Hong Kong, underscores the belief that digital assets will reshape capital markets over the next decade. Jo Miyake, Head of Banking, Asia & Middle East, Corporate and Institutional Banking at HSBC, remarked, “Whilst an overwhelming majority of decision-makers believe that the adoption of digital finance is poised to skyrocket, momentum isn’t matched by readiness.”

Despite the enthusiasm for digital finance, 25% of respondents do not currently prioritise it, awaiting clearer standards and regulations. In response to these findings, HSBC Hong Kong plans to launch a Hong Kong dollar-denominated stablecoin in the latter half of 2026, integrating it into popular digital platforms like PayMe and the HSBC HK Mobile Banking App.

The survey highlights the urgent need for education and preparation in the financial sector to ensure businesses can effectively innovate and scale using digital technologies. As the financial landscape evolves, the readiness of businesses to adapt will be crucial in leveraging the potential of digital finance.

Midea Building Technologies, a division of Midea Group, and Keppel Ltd.’s Infrastructure Division have announced a strategic partnership to develop AI-enabled, energy-efficient cooling solutions across Asia. The agreement, signed on 14 April 2026, was witnessed by Cindy Lim, CEO of Keppel’s Infrastructure Division, and Peter Guan, Vice President of Midea Group and President of Midea Building Technologies.

The collaboration aims to leverage Midea’s expertise in heating, ventilation, and air conditioning manufacturing alongside Keppel’s Cooling-as-a-Service (CaaS) and digital optimisation capabilities. Together, they plan to co-develop standardised, modular cooling systems that promise enhanced energy efficiency and adaptability across various projects in the region.

This partnership is significant as it addresses the growing demand for sustainable and efficient cooling solutions in Asia, a region experiencing rapid urbanisation and increasing energy consumption. By integrating AI technology, the systems are expected to optimise energy use, reduce operational costs, and contribute to environmental sustainability.

Peter Guan highlighted the potential impact of this collaboration, stating, “This partnership will enable us to deliver innovative cooling solutions that meet the evolving needs of our customers in Asia.” Cindy Lim added, “By combining our strengths, we aim to set new standards in energy-efficient cooling.”

As the partnership progresses, both companies anticipate expanding their reach and influence in the Asian market, potentially setting a precedent for future collaborations in the energy sector.

Deloitte’s latest report, “The future of commerce: Agentic shopping in Asia Pacific,” reveals that the region is poised to drive two-thirds of the world’s new retail sales over the next five years. With 4.3 billion shoppers and the fastest-growing middle class, Asia Pacific is uniquely positioned to lead the development of agentic commerce, where AI plays a pivotal role in reshaping the retail landscape.

Currently, 29% of consumer businesses in Asia Pacific are adopting agentic AI, a figure expected to surge to 76% within two years. Despite this growth, only 30% of AI initiatives reach production due to implementation challenges. Vivek Sharma, Consumer Industry Leader at Deloitte Southeast Asia, emphasised the importance of strategic vision and systemic transformation, stating, “Competitive advantage will not come from technology alone, but from strategic vision and systemic transformation with trust and governance at the core.”

The report outlines six key trends in agentic AI, including hyper-personal engagement and the evolution of physical stores into intelligence-driven environments. It also highlights six imperatives for retail leaders, such as building robust data foundations and reinventing core operations for speed and autonomy.

As AI continues to reshape the retail value chain, Deloitte’s findings suggest that businesses must adapt quickly to maintain a competitive edge.

Choco Up, a leading growth financing platform in Asia, has partnered with CHUAN, a tech-driven credit specialist, to introduce a $30 million private credit facility for small and medium-sized enterprises (SMEs) across the Asia Pacific. This initiative seeks to address the region’s significant financing gap, estimated at $2.5t annually, as reported by the Alternative Investment Management Association.

The facility is designed to provide SMEs with timely and transparent access to capital, aligning with their operational pace. This approach marks a shift in SME financing in the region, focusing on speed, transparency, and performance alignment. The first drawdown from the facility has already been completed, indicating a promising start.

By leveraging CHUAN’s institutional capital and Choco Up’s data-driven credit assessment, the partnership offers a more efficient funding process. SMEs can expect funding approvals within hours, compared to traditional timelines of up to six months. This enables businesses to manage cash flow gaps and stabilise operations during payment delays without disrupting daily activities.

Percy Hung, CEO and Founder of Choco Up, stated, “SMEs today don’t just need access to capital. They need financing that keeps pace with how their businesses operate.” The collaboration combines Choco Up’s expertise in flexible, equity-free financing with CHUAN’s capital markets knowledge and global investor network.

Lin Tun, Founding Partner and Chief Investment Officer of CHUAN, added, “By combining our tech-driven approach with Choco Up’s expertise in SME financing, we can deliver scalable, transparent, and responsible working capital solutions that create meaningful impact among SMEs regionally.”

ZTE Corporation has signed a Memorandum of Understanding (MoU) with CIMB Bank Berhad to establish a strategic cooperation framework aimed at advancing digital infrastructure across ASEAN. This partnership combines ZTE’s telecommunications expertise with CIMB’s financial solutions to support the deployment of next-generation digital infrastructure, particularly 5G networks.

The MoU, formalised in Kuala Lumpur, was signed by Kevin Xiao of ZTE and Freddy Ong of CIMB, with Steven Ge and Denise Wong witnessing the event. The collaboration will explore infrastructure financing, regional network expansion, and cross-border liquidity management. By integrating technical capabilities with strategic banking solutions, the partnership aims to create a holistic ecosystem involving operators, government agencies, regulators, and investors to drive digital transformation in the region.

This expanded partnership is expected to accelerate high-speed connectivity rollout in underserved and rural areas, helping bridge the urban-rural digital divide. It also aligns with regional frameworks like the ASEAN Digital Economy Framework Agreement, enhancing execution efficiency and scalability for infrastructure projects.

Steven Ge, Vice President of ZTE Corporation, stated, “This partnership reflects a shared commitment to advancing ASEAN’s digital infrastructure and accelerating the deployment of 5G networks.” Kevin Xiao added that integrated financial solutions are crucial for large-scale telecommunications projects. Chu Kok Wei of CIMB highlighted the collaboration’s role in supporting ZTE’s regional expansion through integrated financing and banking solutions.

The partnership builds on an established collaboration in Malaysia, extending its reach to Indonesia, Singapore, Thailand, and Cambodia, with broader regional ambitions.

Bengaluru, India, has been identified as the world’s fastest-growing city by 2035, according to a new analysis by Savills. The report, part of Savills’ Impacts thought leadership programme, highlights that cities in Asia Pacific will make up 75% of the top 50 and 85% of the top 20 fastest-growing cities globally over the next decade. Ho Chi Minh City in Vietnam follows Bengaluru, driven by infrastructure investment and a burgeoning middle class.

Savills’ study examined the economic prospects of 245 cities, focusing on factors such as GDP growth, personal wealth, and migration patterns. The findings suggest that cities in India, Vietnam, and China will be key growth hubs, with Manila and Kuala Lumpur also making the top 20 list. This anticipated growth is expected to spur rapid development in real estate markets, presenting opportunities for investors and developers.

Chris Marriott, CEO of Savills South East Asia, noted the demographic advantages of Southeast Asia, stating, “With a median age around 30 and a large portion of the population under 35, Southeast Asia’s growth hubs benefit from a powerful demographic tailwind.” This young workforce is expected to drive demand in sectors such as manufacturing, logistics, and housing.

Paul Tostevin, Head of Savills World Research, added that the diversification of Western supply chains is elevating Asian manufacturing and expanding the middle class, thus creating new markets for retail and leisure. The report underscores the transformative economic shifts benefiting Asian cities, positioning them as pivotal players in global growth.

In the first quarter of 2026, the global market witnessed 232 initial public offerings (IPOs) raising $41b, according to EY’s latest report. This marks a 23% decrease in the number of deals but a significant 36% increase in proceeds compared to Q1 2025, which saw 300 IPOs raising $30b.

The Asia-Pacific region led the charge with 107 IPOs, generating $20b, a 75% increase in value despite a 9% drop in volume year-over-year. EMEIA (Europe, the Middle East, India, and Africa) followed with 93 IPOs raising $11b, reflecting a 9% rise in proceeds despite a 23% decrease in volume. Meanwhile, the Americas recorded 32 IPOs, also raising $11 billion, with a 17% increase in value despite a 49% drop in volume.

Southeast Asia experienced a notable shift, with 14 IPOs raising $1.8b, a 174% increase in proceeds despite a 48% decline in volume compared to Q1 2025. This surge was driven by significant listings on the Singapore Exchange and Bursa Malaysia.

EY Asean IPO Leader Chan Yew Kiang commented on the market dynamics, stating, “Despite the initial optimism towards IPO performance seen at the start of 2026, global IPO volume has come down significantly. The conflict in the Middle East has created energy security risks across Southeast Asia, impacting the broader macroeconomic landscape.”

Looking ahead, the trajectory of the IPO market will depend on various factors, including geopolitical tensions and energy prices. However, early preparation remains crucial for companies aiming to capitalise on market opportunities.

The 2026 Global Outsourcing Talent Index by Ataraxis has placed three Southeast Asian countries in the global top 10, highlighting the region’s competitive edge in the outsourcing industry. The Philippines, Malaysia, and Indonesia have emerged as leaders, with the Philippines securing the top spot globally.

The Philippines stands out as the only country among the 193 UN-recognised nations to score 90 or above in labour cost, English proficiency, and talent availability. Malaysia follows closely at second place, whilst Indonesia ranks eighth, surpassing all 27 EU member states and the G7 economies, including the UK and the US. Indonesia’s high scores in labour cost competitiveness and talent availability make it more competitive than major Western economies.

The report underscores Southeast Asia’s growing appeal as companies seek alternatives to China for supply chain diversification. The Philippines, Malaysia, Indonesia, and Vietnam all rank higher than China, which is positioned at 37th. These countries offer attractive labour cost scores, ranging from 92 to 96 out of 100, making them favourable outsourcing destinations.

Conversely, Singapore ranks 177th, the lowest among Southeast Asian nations, due to its high labour costs despite perfect English proficiency and its status as a financial hub.

The findings from the Ataraxis index provide a data-backed perspective on the shifting dynamics of global outsourcing, with Southeast Asia positioned as a key player. As businesses continue to navigate the complexities of global supply chains, the region’s competitive advantages are likely to attract further investment and interest.