Industry News

Artificial intelligence (AI) is anticipated to drive increased demand for high-quality logistics assets across Asia, according to a new report by Savills. The report highlights how AI adoption is transforming occupier requirements, supply chain strategies, and industrial real estate demand in the region. Established logistics hubs like China and Singapore are expected to benefit significantly due to their strong infrastructure and connectivity.

Savills’ research suggests that AI will not radically alter Asia’s logistics landscape overnight but will reinforce existing advantages in locations with robust infrastructure and integrated supply chains. As companies strive for improved productivity and operational resilience, the demand for modern logistics facilities is likely to grow. Louisa Luo, Managing Director and Head of Capital Markets & ILS in China, noted, “China is the absolute leader in both market scale and technology adoption.”

China, as a leading manufacturing and e-commerce hub, is well-positioned for growth, with significant investments in AI by companies like JD Logistics and SF Express. Meanwhile, Singapore’s role as a critical gateway in Asia’s logistics network is expected to become more valuable as supply chains become increasingly interconnected. Sally Tan, Senior Managing Director and Head of Client Solutions in Singapore, stated, “AI can make supply chains smarter, but it does not make them weightless.”

Savills concludes that the best-positioned locations for future industrial growth are those with the necessary infrastructure, connectivity, and operational depth. Understanding AI’s impact on occupier demand and location decisions will be crucial for investors, developers, and occupiers moving forward.

Southeast Asia’s recent uptick in coal usage is largely perceived as a temporary measure to address energy supply disruptions, according to a survey by the Sustainable Energy Association of Singapore (SEAS). The survey, which gathered insights from over 100 energy professionals, revealed that 68% consider the coal increase a short or mid-term response to energy security concerns, with only 6% viewing it as a significant regression.

Conducted amidst geopolitical tensions affecting energy supply, the survey highlighted that 90% of respondents experienced business impacts, with 59% describing these as moderate or significant. The most common response to these disruptions was a heightened interest in local or regional energy solutions, noted by 39% of participants, whilst 38% reported delays in clean energy investments.

The findings underscore the region’s infrastructure challenges, with over 70% identifying grid infrastructure and regional connectivity as critical hurdles in the energy transition. Additionally, the survey noted the growing role of artificial intelligence (AI) in the sector, with 60% of respondents either piloting or implementing AI solutions.

SEAS Chairman Edwin Khew remarked, “The return to coal is a temporary solution during a time of heightened supply shortage. The industry remains focused on medium to long-term renewable capacity goals.”

The survey, titled ‘The State of the Energy Transition Survey 2026’, was conducted online between July and August 2026. It coincides with the upcoming Asia Clean Energy Summit, which will focus on energy security and AI from 27 to 29 October in Singapore.

The Singapore Judiciary, led by Chief Justice Sundaresh Menon, participated in significant ASEAN legal meetings in Bangkok from 21 to 23 July 2026. These included the 15th ASEAN Law Association General Assembly, the 47th Governing Council Meeting, and the 13th Council of ASEAN Chief Justices Meeting. The gatherings aimed to strengthen judicial and legal cooperation across ASEAN nations.

Justice Lee Seiu Kin presented findings from the Crossroads 20 Working Group, highlighting priority areas such as commercial law harmonisation, cross-border insolvency, and the digital economy. Meanwhile, Justice S Mohan updated on the Virtual Training Marketplace, a portal connecting young lawyers with cross-border training opportunities, which has facilitated its first successful placement.

Key developments from the meetings included the publication of the Memorandum of Guidance on Money Judgments Enforcement and a Simplified Protocol for Court Order Authentication within ASEAN. Additionally, a Roadmap was adopted to promote Therapeutic Justice practices, and efforts to revise the AI Governance Framework for ASEAN Judiciaries continued.

The Singapore Judiciary’s involvement underscores its commitment to advancing ASEAN’s judicial cooperation and developing future-ready justice systems. The meetings also featured discussions on cross-border insolvency and intellectual property rights enforcement, with Singapore judges contributing significantly to these dialogues. The ASEAN Law Conference further explored judicial responses to generative AI in court submissions, reflecting the region’s focus on emerging legal challenges.

Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) have operationalised a new framework to settle bilateral trade transactions in local currencies. Announced on 31 August 2026, this Local Currency Transaction (LCT) Framework follows a Memorandum of Understanding signed in August 2022 and the agreement on operational guidelines in April 2026.

The LCT Framework is designed to support bilateral trade and enhance ASEAN financial integration by promoting the use of local currencies in intra-ASEAN transactions. Appointed Cross Currency Dealers (ACCDs) will facilitate the settlement of current account transactions, direct investments, and cross-border payments in Indonesian Rupiah and Singapore Dollar. This initiative is expected to provide businesses with greater flexibility and reduce exchange rate risks and costs.

Key features of the framework include direct quotations between the Indonesian Rupiah and Singapore Dollar and the implementation of rules to enhance local currency usage. The appointed ACCD banks in Indonesia include PT Bank Central Asia Tbk, PT Bank CIMB Niaga Tbk, and PT Bank DBS Indonesia, among others. In Singapore, the appointed banks are DBS Bank Ltd., Oversea-Chinese Banking Corporation Limited, and United Overseas Bank Limited.

The operationalisation of this framework marks a significant step towards strengthening economic ties between Indonesia and Singapore, potentially paving the way for similar initiatives within the ASEAN region.

Southeast Asia’s data centre sector has seen a dramatic surge in equity funding, with approximately $11.5b raised across 19 rounds since 2024, according to a report by Tracxn. This influx of capital, largely driven by the rising demand for AI infrastructure, has made 2026 the largest funding year on record, with $4.7b raised year-to-date.

The report highlights that the top five companies—DayOne, Princeton Digital Group, ST Telemedia GDC, Nxera, and Digital Edge—account for 98% of the total equity funding. All are headquartered in Singapore, which serves as the financial hub for the sector. DayOne leads with $6.4b, followed by Princeton Digital Group at $2.2b.

Singapore’s role as a financing domicile is significant, though the actual deployment of data centres spans the wider region. For instance, DayOne has committed over $7b to Malaysia and is developing a 72MW campus in Indonesia. Meanwhile, Princeton Digital Group operates across six markets, including Japan and India.

The sector has also witnessed notable acquisitions, such as the $5.2b transaction involving ST Telemedia GDC. Additionally, DayOne has filed for a US IPO, aiming for a valuation of approximately $20b.

The report underscores the institutional nature of the capital, with investments from sovereign wealth funds, pension capital, and infrastructure firms. This financial backing is crucial as data centres transition from construction to operational phases, offering predictable cash flows under long-term leases.

fileAI, an enterprise intelligence company, has received investment from SMBC Asia Rising Fund and Singtel Innov8 to support its expansion in Japan and the launch of fileScout, a proprietary unstructured data mapping solution. This investment marks a significant step as artificial intelligence (AI) becomes integral to major enterprises across Asia, addressing complex operational challenges.

The funding will enable fileAI to strengthen its presence in Japan, building a local team across sales, engineering, and customer success. It will also deepen fileAI’s capabilities in financial services, enhancing its AI-native platform for managing complex, high-volume data workflows. The investment aligns with fileAI’s mission to transform fragmented documents and unstructured data into governed, dependable workflows.

Christian Schneider, CEO of fileAI, stated, “AI will become an operating layer for every major enterprise, but that future cannot be built on fragmented data, unreliable outputs, or endlessly expanding computing costs.” The investment underscores fileAI’s ambition to become a global enterprise AI leader from Asia, helping regional businesses become AI-enabled.

Boon Ping Chua, Managing Director of Singtel Innov8, expressed excitement about the investment, highlighting the growing need for reliable data foundations to support AI adoption. Mayoran Rajendra, Managing Director of AI Transformation at SMBC, emphasised the importance of fileAI’s capabilities in improving data accessibility and operational efficiency.

With this investment, fileAI aims to further connect with Asia’s corporate ecosystems, driving innovation and practical AI use cases across industries. The company is poised to play a crucial role in the AI era, particularly in banking and financial services, where applications extend to statement extraction, KYC cheques, and regulatory reporting.

Asia Pacific’s financial services industry is projected to generate $4.8t in economic value by 2035, surpassing the United States, according to a new report by Deloitte. The report, titled “From growth to advantage: Competing for the future of financial services in Asia Pacific,” highlights the region’s potential to become the epicentre of global finance, driven by its expanding economy and innovative capabilities.

The report outlines four key battlegrounds that will shape the future of financial services in Asia Pacific. Firstly, the region’s growth is fuelling a multitrillion-dollar investment cycle, necessitating broader financing channels beyond traditional bank lending. Secondly, demographic shifts and digital adoption are rapidly transforming customer demand, with more than 750 million new customers entering the financial system in the past decade.

Artificial intelligence (AI) is identified as a crucial factor, with firms needing to redesign their business models around AI to gain a competitive edge. “The next advantage will come from redesigning business and operating models around AI,” said Stuart Johnston, Deloitte Asia Pacific’s Financial Services Leader. Lastly, engagement with regulators is essential as governments across the region rewrite financial rules.

David Wai Kit Wu, Deloitte Hong Kong’s Financial Services Leader, emphasised the importance of early engagement with policymakers, stating, “The firms that engage early with policymakers and bring practical solutions will shape the rules they operate under.”

The report concludes that Asia Pacific’s financial institutions must focus on connecting capital with investment opportunities and treating AI as a strategic priority to capture future growth.

UOB and HSBC have successfully executed live cross-border transactions in Hong Kong dollars using Swift’s blockchain-based ledger. This achievement marks UOB as the first Singapore-headquartered bank to complete such transactions on the platform. The initiative highlights the potential of shared-ledger infrastructure to enhance cross-border payments and liquidity management.

The transactions follow Swift’s announcement in July 2026 that its blockchain-based ledger was ready for initial use, with 17 banks across six continents preparing to pilot live transactions using tokenised deposits. UOB plans to extend this initiative to include Singapore dollar and US dollar transactions in September 2026, involving additional banking partners.

So Lay Hua, Head of Group Transaction Banking at UOB, stated, “As the first Singapore-headquartered bank to execute live transactions on Swift’s ledger, UOB has taken another important step from industry collaboration to real-world execution.”

Winnie Yap, Head of Global Payments Solutions at HSBC Singapore, added, “This live transaction with UOB on Swift’s Ledger demonstrates how tokenised deposits can work across institutions in a way that is secure, interoperable and designed for real-world payment flows.”

The collaboration between UOB and HSBC underscores their commitment to advancing next-generation payment infrastructure through secure and interoperable shared-ledger solutions. This development is expected to provide valuable insights into the potential for shared-ledger infrastructure to support round-the-clock domestic and cross-border interbank payments, paving the way for more efficient and responsive financial transactions in a 24/7 economy.

Tracxn, a global market intelligence platform, has unveiled a list of the top 16 electric vehicle (EV) startups in Southeast Asia, which have collectively secured $622m in equity funding. The companies, all founded in 2016 or later, are at the forefront of the region’s burgeoning clean mobility landscape, spanning sectors such as electric two-wheelers, commercial and marine EVs, battery-as-a-service, and EV charging infrastructure.

Singapore leads the cohort with eight companies, followed by Indonesia with four, and Thailand and Vietnam with two each. This distribution underscores Singapore’s position as a central hub for EV innovation in the region. The startups range from Seed to Series B stages, with most at Series A or B, indicating a maturing ecosystem moving towards commercial scale.

Prominent investors such as Peak XV Partners, Jungle Ventures, and GSR Ventures have backed these companies, reflecting strong regional and global interest in Southeast Asia’s EV market. “The list provides a snapshot of EV companies that have attracted significant investor backing,” Tracxn stated.

The report highlights the diverse technologies being developed to accelerate the transition to cleaner transport solutions in Southeast Asia. As the region continues to urbanise rapidly, these startups are poised to play a crucial role in shaping the future of mobility.

With the EV sector gaining momentum, the continued support from investors and the focus on innovation are expected to drive further growth and development in the region’s clean mobility initiatives.

DBS and Stripe have announced a strategic partnership to accelerate the growth of agentic commerce and cross-border payments across Asia. By integrating DBS’ banking capabilities with Stripe’s global financial services, the collaboration seeks to streamline how businesses manage funds across markets. This initiative will also explore the development of AI capabilities to enable more efficient and secure transactions for DBS customers.

The partnership comes as AI agents are increasingly facilitating consumer and business transactions, with projections indicating that AI agents could manage up to $5t in global consumer commerce by 2030. As agentic commerce becomes more widespread, the demand for reliable platforms that support AI-powered transactions is expected to rise.

Stripe will utilise DBS’ digital banking capabilities to enhance cross-border payment services for merchants on its platform. This includes leveraging DBS’ solutions for money movement and cash management to optimise liquidity and cash positions. These efforts are part of Stripe’s transformation into a comprehensive financial infrastructure provider and its expansion across Asia.

DBS plans to use Stripe’s global platform to broaden its cross-border network, allowing institutional clients to connect with more customers worldwide. The partnership addresses the increasing need for trusted partners in Asia to access multiple payment and currency corridors, with outbound cross-border payments projected to reach $24t by 2033.

Tan Su Shan, CEO of DBS, stated, “This partnership enables us to continue delivering differentiated solutions for customers and reflects our shared commitment towards helping businesses in Asia build, scale and compete globally.” Fran Ryan, Chief Business Officer of Stripe, added, “We look forward to helping even more businesses in Asia transform into global champions.”