Industry News

Tower Capital Asia has announced a strategic majority investment in V-Key, a leading provider of digital identity and mobile application protection and security solutions in the Asia-Pacific region. This investment underscores Tower Capital Asia’s confidence in V-Key’s technological leadership and product capabilities, particularly as secure digital experiences become increasingly vital in financial services and the broader digital economy.

V-Key’s platform, which supports over 300 applications across 15 countries, is designed to help banks, fintechs, and enterprises securely onboard users, authenticate access, and protect mobile applications and transactions. The platform’s software-based security architecture allows for efficient deployment and scalability, crucial for institutions expanding their digital services.

Danny Koh, founder and CEO of Tower Capital Asia, highlighted the importance of secure digital identity for financial institutions and digital platforms. “V-Key has built a robust platform that enables organisations to manage identity authentication and mobile app security at scale,” he said. Eddie Chau, co-founder and chairman of V-Key, expressed enthusiasm for the partnership, noting Tower Capital Asia’s long-term partnership mindset and regional network.

Joseph Gan, co-founder and CEO of V-Key, emphasised the focus on strengthening digital identity and mobile application security capabilities. The partnership aims to accelerate product innovation, strengthen V-Key’s regional presence, and deepen relationships with financial institutions and digital platforms.

Tower Capital Asia, established in 2016, manages over $900m in investments and commitments. The firm is committed to supporting V-Key’s growth and strategic initiatives, with a focus on long-term value creation in the digital security sector.

MSIG Asia has announced a strategic partnership with Peak3 to advance its digital insurance platform, reinforcing its leadership in the digital insurance sector across Southeast Asia. The collaboration, revealed on 12 February, aims to enhance MSIG’s platform-enabled model by leveraging Peak3’s intelligent core system, Graphene, to boost ecosystem connectivity and support multi-country growth.

As the largest non-life regional insurer in Southeast Asia, MSIG is already a key player in embedded insurance for major platforms, addressing the protection gap for millions. This partnership with Peak3 will extend MSIG’s reach across Asia’s digital economies, enabling the delivery of flexible, needs-based insurance at scale through both direct-to-consumer channels and strategic partnerships.

Graphene, Peak3’s core system, is designed for rapid product configuration and operational efficiency, supporting high-volume operations and diverse distribution models. This technology allows MSIG to create symbiotic partnerships with platforms, accelerating time-to-market and delivering value through pre-connected distribution.

Clemens Philippi, CEO of MSIG Asia, stated, “This investment supports our MSIG Asia 2029 Growth Ambition, strengthening our foundation and expanding our reach across the region’s commercial ecosystems.” Adrian Hill, Chief Digital and Consumer Officer at MSIG Asia, added, “Together with Peak3, we unlock new scale and speed, empowering us to serve more partners and bring intelligent nano insurance to life.”

Bill Song, Group CEO of Peak3, expressed pride in the partnership, highlighting the shared goal of accelerating multi-country growth and delivering consistent, high-quality insurance experiences at scale. This collaboration sets a benchmark for next-generation insurance infrastructure, enabling partners to grow faster and customers to receive more meaningful protection across Asia’s digital ecosystems.

Marriott International has reported exceptional growth in its Asia Pacific excluding China (APEC) region for 2025, marking the third consecutive year of record development. The company announced that it signed 187 organic deals, adding more than 28,000 rooms to its development pipeline, reflecting a 32% increase from the previous year. This surge is attributed to robust intra-region travel demand and strong confidence from hotel owners and developers.

Rajeev Menon, President of Asia Pacific excluding China at Marriott International, highlighted the significance of this growth, stating, “Our record performance in 2025 underscores the strength of Marriott’s growth engine across the region and the enduring confidence our hotel owners place in our brands and operating platform.”

The APEC region closed the year with over 400 hotels and more than 86,000 rooms in the development pipeline. Conversions played a crucial role, accounting for 35% of the total signed deals, showcasing Marriott’s appeal to owners seeking rapid market entry and access to a global distribution network. Multi-unit agreements also significantly contributed to the growth.

As Marriott continues to expand into emerging destinations and accelerate conversions, the company remains focused on delivering long-term value for owners and creating compelling experiences for travellers. This strategic expansion is expected to further strengthen Marriott’s position in the Asia Pacific region.

Insurers across the Asia-Pacific (APAC) region are bracing for a significant rise in mergers and acquisitions (M&A) over the next three years, driven by strategic imperatives rather than opportunistic expansion. According to a study by Clearwater Analytics, 96% of insurance asset management executives predict a surge in domestic M&A, with 15% expecting a dramatic increase.

The research, which surveyed senior executives from life and health insurers, general insurers, and third-party investment firms in Hong Kong, Singapore, and Australia, highlights a need for rapid growth as the primary driver of M&A activity. Firms are looking to expand quickly to achieve competitive scale, diversify risk, and reduce reliance on a single product or market.

Potential synergies from mergers or acquisitions were identified as the third most important reason for increased M&A activity, followed by the improved financial capacity of the combined firm. The findings suggest that operational efficiency and scale are becoming essential for survival in the market.

Shane Akeroyd, Chief Strategy Officer and President of Asia Pacific at Clearwater Analytics, stated, “The APAC insurance market is experiencing a fundamental shift where scale and operational capabilities are becoming competitive necessities.” He emphasised the importance for insurance executives to evaluate their operational capabilities, infrastructure, and scale to compete effectively in a complex market.

The study underscores the strategic positioning of M&A as firms aim to consolidate rather than eliminate competition, marking a pivotal shift in the APAC insurance landscape.

The Asia Pacific region, excluding China, has seen a surge in hotel construction projects, reaching a record high by the end of Q4 2025. According to Lodging Econometrics’ latest Construction Pipeline Trend Report, the region’s hotel pipeline grew by 11% year-over-year, totalling 2,323 projects and 433,241 rooms. This growth is largely attributed to the expansion of higher-end hotel chains.

Luxury and upper upscale hotels have been at the forefront of this expansion. Luxury projects increased by 14% year-over-year, closing the quarter with 398 projects and 75,190 rooms. Upper upscale projects also saw significant growth, with a 17% increase in projects and a 13% rise in rooms, totalling 422 projects and 88,958 rooms. Upscale projects reached 568 projects and 111,296 rooms, marking a 12% increase in projects.

India leads the region in hotel construction, with 906 projects and 118,334 rooms, representing 39% of the total pipeline. Vietnam follows with 248 projects, whilst Japan, Indonesia, and Thailand also contribute significantly to the pipeline. Notably, cities like Bangkok, Jakarta, and Bengaluru are experiencing substantial growth in hotel projects.

In 2025, 334 new hotels opened in the region, and forecasts suggest 338 new hotels will open in 2026, followed by 349 in 2027. This continued growth underscores the region’s robust demand for high-end hospitality options.

Private equity (PE) activity in Southeast Asia (SEA) experienced a significant downturn in 2025, with deal values plummeting by 43% to $9.1b across 59 deals, according to the EY Southeast Asia Private Equity Pulse 2025 report. This decline reflects a more cautious investment climate compared to 2024, which saw $16b across 67 deals. Despite this, the market began to regain momentum in the latter half of the year.

The report highlights that digital infrastructure dominated PE investments, accounting for 42% of the total, followed by telecommunications and real estate. Luke Pais, EY-Parthenon Asean Private Equity Leader, noted, “Whilst 2025 started with robust activity in Q1, geopolitical volatility and concerns over potential US tariffs led to more cautious investor sentiments seen in Q2. However, PE investment activity in SEA rebounded in Q3.”

Singapore maintained its status as a regional anchor, contributing over 74% of the total PE deal value. The region also saw an improvement in exit momentum, with 33 deals generating $4.4b, an 18% increase in volume year-on-year. Fundraising efforts in SEA also showed promise, with 10 PE fund closures raising $4.6b, a 97% increase from the previous year.

Looking ahead, the report suggests that digital infrastructure and renewable energy will continue to attract significant investments in 2026, as the market shifts towards value creation-led PE strategies. The private credit market in SEA is also poised for growth, driven by demand from mid-market corporates and financial sponsors.

Asia Pacific’s commercial real estate market concluded 2025 on a stable note, with investment volumes totalling $182.9b, according to MSCI’s latest Asia Pacific Capital Trends report. Despite early-year macroeconomic and geopolitical uncertainties, deal activity surged in the latter half, particularly in individual property sales, which hit nearly $40b in Q4—the highest since 2022.

The office sector saw a 2% decline in Q4 transactions to $16.4b, yet recorded an 11% increase over the year. Markets like Australia, South Korea, Hong Kong, and Singapore experienced strengthened sales activity, whilst China’s investment appetite remained cautious. The industrial sector grew by 2% year-over-year, with notable interest in South Korean logistics assets. A standout transaction was Brookfield’s $700 million sale of the Cheongna Logistics Centre to KKR.

Retail investment volumes surged 29% in Q4 to $10.2b, driven by strong activity in Australia and Singapore. Conversely, the data centre sector faced an 87% decline in Q4, though 2025’s total acquisitions reached $14.1b, the second-highest annual total on record.

Benjamin Chow, Head of Private Assets Research for Asia at MSCI, highlighted optimism for 2026, citing falling long-term interest rates and a return of core investors. “The office sector is coming back into view, with growing interest in value-add opportunities amidst improved leasing sentiment,” he noted.

Looking forward, the stabilisation of financing costs and renewed investor interest suggest a positive trajectory for Asia Pacific’s real estate market in 2026.

The Centre of Advanced Power and Autonomous Systems (APAS), under the Hong Kong Productivity Council (HKPC), made its inaugural appearance at the Asia Photonics Expo 2026 in Singapore from 4 to 6 February. APAS showcased its cutting-edge automotive photonics research and development (R&D) achievements, including an automotive-grade MEMS Drive OIS Actuator and an Augmented Reality Head-up Display for commercial vehicles.

APAS also organised the “Go Global to Southeast Asia” delegation, leading representatives from Hong Kong and Chinese Mainland enterprises to engage in the expo and related activities. This initiative aimed to demonstrate Hong Kong’s R&D strengths in photonics and emerging industries to the international community, facilitating cross-regional business networking and supporting enterprises in expanding into Southeast Asian and global markets.

Yonghai Du, Chief Innovation Officer of HKPC and General Manager of APAS, highlighted the importance of photonics in intelligent driving, stating, “Photonics plays an irreplaceable role in data acquisition, transmission, and processing.” APAS’s participation in the expo aims to strengthen the foundation for the long-term development of automotive photonics technologies.

During the event, APAS set up a dedicated exhibition zone to display its latest solutions supporting smart mobility and smart city development. The MEMS Drive OIS Actuator enhances image stability in dash cameras, whilst the Augmented Reality Head-up Display projects critical driving information onto the windscreen, improving driver focus and safety.

In addition to the expo, the delegation visited top universities and research institutions in Singapore, gaining insights into the latest R&D and technology commercialisation trends. These efforts underscore HKPC and APAS’s commitment to promoting international R&D exchange and exploring market opportunities in Southeast Asia.

Global fintech investment saw a significant resurgence in 2025, climbing to $116b from $95.5b in 2024, according to KPMG’s latest Pulse of Fintech H2’25 report. This rebound was largely fuelled by a surge in exit activity, which hit $104.4b, marking the third-highest year on record. Despite a decline in overall deal volume, the substantial increase in capital deployed indicates a focus on larger, strategic deals and scaled growth platforms.

The Americas led the charge with $66.5b in investment, primarily driven by the United States. However, the Asia-Pacific region experienced a decline, despite robust activity in India accounting for $3.5b of total fintech investment across 213 deals. Japan accounted for $645.6m of total investment, while Australia attracted $609.9m and China recorded $876.1m. Overall, deal sizes across the region remained relatively small, reflecting continued investor caution and a focus on early-stage and selective opportunities.

The digital assets sector emerged as a key driver, with investment nearly doubling to $19.1b, thanks to improved market conditions and regulatory clarity, particularly following the GENIUS Act in the US.

Anton Ruddenklau, Global Lead of Innovation and Fintech for Financial Services at KPMG International, noted, “After several years of contraction, fintech investment is clearly finding its footing again. Whilst deal volumes remain muted, the increase in capital deployed—and the resurgence of exits—signal growing investor confidence, particularly around scalable platforms in digital assets and AI.”

The payments sector remained stable at $19.2b, with investors concentrating capital in proven, scaling platforms. As liquidity improves, the renewed momentum is expected to translate into stronger deal activity in the coming year. The report highlights a shift towards more mature consolidation in payments-focused M&A activity, focusing on operational strength and long-term competitiveness.

Sumitomo Mitsui Banking Corporation (SMBC) has appointed Salim Zaman as the Global Head of Foreign Exchange (FX), a role he will undertake from Singapore. Zaman will spearhead the bank’s global FX business whilst maintaining his position as Co-Head of Global Markets and Treasury in Asia Pacific.

In his new capacity, Zaman is tasked with overseeing SMBC’s global FX strategy, aiming to bolster the bank’s comprehensive and integrated FX solutions for clients worldwide. His leadership is expected to enhance SMBC’s global trading capabilities and solidify its reputation as a reliable partner for corporate and institutional clients.

Zaman will collaborate with regional leadership teams to manage resources for the global FX business. This includes focusing on the sourcing, development, and retention of talent to support the long-term growth of SMBC’s FX platform.

This strategic appointment underscores SMBC’s commitment to expanding its global markets capabilities and offering a wider range of FX solutions to its international clientele.