We bring together perspectives from a group of seasoned investors, each with their own deep connections and experiences in the region’s evolving landscape. Their insights offer either a holistic or deep insight into the trends, growth areas, and talent pools defining Southeast Asia’s economic scene, making this read particularly enlightening for entrepreneurs and business leaders seeking a deeper understanding of the region’s unique market dynamics.
Together, these insights from investors who know the region inside out offer a multifaceted view of Southeast Asia’s market landscape. For entrepreneurs, investors, or business leaders exploring opportunities in this region, this compilation serves as a friendly guide to understanding the complexities and opportunities of Southeast Asia’s vibrant economy.
Colin Kleine, co-founder and Chief Strategy Officer of Scalerr
First up, we have Colin Kleine, co-founder and Chief Strategy Officer of Scalerr. Colin gives us a closer look at how the technology scene is reshaping the startup ecosystem in Southeast Asia. His thoughts offer a window into the ongoing interplay between emerging tech trends and business growth, essential knowledge for anyone looking to navigate the startup world here.
In the coming years, we are expecting some breakthroughs in emerging technologies such as artificial intelligence, with more start-ups embedding “generative AI” into their technology stack. Big tech companies such as Adobe, Salesforce, and IBM are expected to acquire a large number of these rapidly growing AI-based startups to anticipate future potential competitors.
Due to the advances in AI, there will also be a rise in a sector known as Deep Tech. Investors, governments and organizations are increasingly interested in supporting deep-tech startups due to their potential to drive technological progress, address global challenges, and create substantial economic and societal impact. We are also expecting a sizeable shift in the power base of technology and the continued rise of APAC.
Gobi Partners Co-founder and Chairperson, Thomas Tsao
Then, there’s Gobi Partners Co-founder and Chairperson, Thomas Tsao, who shares his take on the growth potential in the healthtech industry. In a world still adapting to the changes brought by a global pandemic, Thomas’s insights into healthtech are not just timely but critical for understanding where this sector is headed in Southeast Asia.
Malaysia notably distinguishes itself through its firmly established advantages in the realm of medical tourism and its efficient and cost-effective healthcare system. In a similar vein, Thailand emerges as an intriguing opportunity, exemplified by our investment in HD, a platform that enhances connections between surgeons and patients to tackle inefficiencies in hospitals. These markets collectively demonstrate considerable growth potential within the broader Southeast Asian region.
Albert Wong, CEO of HKSTP
We also hear from Albert Wong, CEO of HKSTP, about the industries that are magnets for talent in Southeast Asia. Albert’s perspective sheds light on where skilled professionals are heading, offering clues on the booming sectors and the kind of talent they attract. This was part of their programme to attract talent from Southeast Asia to Hong Kong.
At HKSTP, we are proud to foster a dynamic I&T ecosystem. With over 1,400 park companies, we have a diverse range of industries represented, including AI, Robotics, Biomed, health tech, Smart Cities, IoT, FinTech, Green-tech, blockchain, web3.0, and more. Our commitment aligns with the Hong Kong government’s I&T blueprint, focusing on the growth of sectors such as life and health technology, AI and data science, advanced manufacturing, and new energy technology.
Currently, we have over 1,000 R&D job openings available, primarily in genomics and engineering. These positions encompass roles like coding data, data scientist, Digital IC Designer, and Software Engineer, as well as opportunities in computing, client management, marketing, business development, and various other fields. We believe that Malaysia presents an excellent opportunity to attract talented individuals, whether they are currently based in the country or in Hong Kong. This is one of the key factors that motivated our expansion into Malaysia.
Vince Yamat, Managing Director of 917Ventures
Vince Yamat, Managing Director of 917Ventures, chimes in with his observations on the promising industries in the Philippines. Vince’s understanding of the local market helps paint a picture of where the Philippines, an integral part of Southeast Asia’s economy, is heading in terms of industry growth.
At the moment, we are focused on supporting MSMEs, which make up 99.5% percent of all businesses in the country and are currently the backbone of the Philippine economy through services and business solutions such as RUSH, m360, and DeepSea. The pandemic has highlighted the need for businesses to digitize and establish their online presence and 917Ventures wants to help address this challenge by providing them with the right solutions that will help achieve that.
Education is also another sector we’re prioritizing, as we hope to add value and improve lives through our EdTech EdVenture and KodeGo. EdVenture has over 1,100 tutors providing high-quality, affordable, and personalized online tutorials to students from Preschool to Grade 10. Additionally, KodeGo has played a significant role in upskilling thousands of individuals with IT and web development skills, while also promoting STEM careers among the youth.
Lastly, we are also looking at promoting sustainability through climate technology. In fact, just a few weeks ago we announced our partnership with Taiwan’s Gogoro to bring their Smartscooters® and Battery-Swapping technology into the country.
Yan Lee, Founder and Managing Partner, Hive Ventures
Lastly, Yan Lee, Founder and Managing Partner, Hive Ventures, gives us his predictions on industry growth in the next year or two across Southeast Asia. Yan’s forecasts are grounded in his keen observation of market trends and economic indicators, providing a useful guide for aligning business strategies with the region’s future direction.
With many AI technologies realizing in just the first two months of 2023, the AI sector will see a rise in development, implementation and competition. With the industry already valued at US$328.34 billion, its potential for tremendous growth and ability to revolutionize existing industries proves AI will become one of the driving factors of economic growth. The AI industry is already realising its growth with various AI technologies announced globally that are slowly integrating their way into the daily lives of corporate functions and the general populace.
Specifically, applications into Digital Transformation to uplift efficiencies and growth opportunities for the manufacturing, finance, logistics and retail sectors should see continuous growth as ASEAN seeks to come back stronger after the pandemic. Technologies that increase operational efficiencies, better predict business trends and anomalies as well as automate processes will start seeing greater adoption across the region.
While blockchain had a rough 2022, with cryptocurrency plummeting some 60%, cryptocurrency is believed to be able to make a comeback with the maturing technology and the companies envisioning the benefits. We also anticipate a growth in Non-Fungible Tokens (NFTs) expanding beyond the primary function as a tool for acquiring ownership of a digital object on the blockchain. NFTs may become more personalized and nuanced where they would represent the tangible certificates and documents, intangible units or physical cash generating assets. It could also be used as an advanced form of digital identification through forms such as Soul Bound Tokens (SBTs).