Tag: Digital

  • Citi Hires Ex-EY Partner for Asia Digital Payments

    Citi Hires Ex-EY Partner for Asia Digital Payments

    Citi has hired a former partner from Ernst & Young to lead the upcoming launch of a new digital payment solution in the region.

    James Lloyd joins the treasury and trade solutions (TTS) unit as its Asia Pacific head of Spring by Citi – upcoming digital payments offering – according to an internal memo.

    In his Hong Kong-based role, Lloyd reports to Sanjeev Jain, APAC head of payments and receivables, TTS, and Anupam Sinha, global head of domestic payments and Receivables, TTS.

    Lloyd joins from EY where he was a partner within the strategy and transactions practice, leading the firm’s dedicated regional fintech capabilities and serving as APAC leader for its global payments practice.

    Spring by Citi

    The Spring by Citi offering aims to help corporate and institutional clients reach end-customers by enabling digital payments across preferred methods, be it credit cards, instant payments or digital wallets.

    The offering is scheduled for launch in the fourth quarter this year starting with Singapore, Australia and Hong Kong before adding more markets in 2022.

    A spokesperson for the bank confirmed the new appointment.

  • Alibaba Cloud invests US$1 billion to nurture Asia-Pacific digital talent pool

    Alibaba Cloud invests US$1 billion to nurture Asia-Pacific digital talent pool

    Alibaba Cloud, the digital technology and intellectual backbone of Alibaba Group, launched Project AsiaForward with an initial USD1 billion funding and resources to cultivate a million-strong digital talent pool, empower 100,000 developers and the growth of 100,000 technology startups in Asia Pacific (APAC) over the next three years. Unveiled during the Alibaba Cloud Summit 2021, the project forms part of the cloud provider’s strategy to invest in infrastructure, technological innovation and talent development to contribute to local economic growth through digital transformation as the trusted cloud leader in APAC.

    “Innovative technology is critical to the recovery from COVID-19 while a strong pipeline of talent well versed in digital applications is needed to support the sustainable development of today’s digital economy. We are seeing a strong demand for cloud-native technologies in emerging verticals across the region, from e-commerce and logistics platforms to FinTech and online entertainment,” said Jeff Zhang, President of Alibaba Cloud Intelligence. “As the leading cloud service provider and trusted partner in APAC, we are committed to bettering the region’s cloud ecosystem and enhancing its digital infrastructure. Our focus on innovation and data center investments, as well as talent development is in anticipation of a digital-first future.”

    In the Philippines, the company is to launch its first data center by the end of this year, signaling its continued support for the digitalization of local businesses through a variety of products and services including Elastic Compute Service (ECS), database, global network solution, Content Delivery Network (CDN) and storage services. This investment is the latest in Alibaba Cloud’s growing commitment in the country, focusing on the banking, FinTech, retail, logistics and education sectors, among others.

    In Malaysia, Alibaba Cloud is to build its first international innovation center. In collaboration with local partner Handsprofit, the company is offering a one-stop innovation enablement platform for Malaysian small- and medium-sized enterprises (SMEs), startups and developers looking to push the technological frontier. Various cloud technology and business leadership trainings will be offered through the platform, as well as the nurturing of an ecosystem for venture capital networking.

    In Indonesia, Alibaba Cloud has officially launched the third data center, starting to serve customers with offerings across database, security, network, machine learning and data analytics services. The additional center allows Alibaba Cloud to better support local businesses interested in adopting cloud technology and advance Indonesia’s push for a digital society. Alibaba Cloud currently operates 75 availability zones in 24 regions around the world.

    Alibaba Cloud’s talent development ambitions are embedded in Project AsiaForward’s three core programs – DigiTalents Forward, focused on digital upskilling, AI Forward, targeting developers and DigiEntrepreneurs Forward, aimed at connecting promising business ideas with venture capital and real-life opportunities. The company has also kicked off the DigiTalents Forward programme in Singapore with the School of Computer Science and Engineering (SCSE), and NTU-Alibaba Singapore Joint Research Institute (JRI) at Nanyang Technological University. The parties are planning to launch a variety of AI courses under NTU’s MiniMasters programme.

    “Our strategic roadmap for APAC includes targeted investments to facilitate the digital transformation of local businesses. We see these investments as all the more timely given the impact of the pandemic and the sharp rise in demand for digital business tools. Equally important is our focus on talent development and nurturing a digitally-competent workforce, which we see as a key challenge for many businesses to overcome going forward,” said Selina Yuan, General Manager of International Business Unit, Alibaba Cloud Intelligence.

    During the summit, Alibaba Cloud also launched a range of products and solutions as part of its continued effort to support the digital transformation of industries. Among those launched were new livestreaming solutions, IT infrastructure products and cloud native data management services.

  • Huawei Eyes Digital Finance Expansion

    Huawei Eyes Digital Finance Expansion

    Huawei is eyeing opportunities in digital finance to diversify its revenue mix amid ongoing U.S. sanction pressure against its smartphone and telecom equipment business.

    Huawei is the latest major Chinese player to make an entry into the global digital finance market, eyeing growth opportunities from Southeast Asia, the Middle East, Latin America, and Africa where financial inclusiveness is underdeveloped.

    Intelligent finance itself has a market valued at several hundreds of billions of dollars, but the potential is bigger because there will be cross-sector opportunities,» said Huawei’s global financial services business unit president Jason Cao in a report.

    Digitalized financial services have already penetrated into various commercial fields, and a cross-industry, full-scenario eco-system can be built by us to serve the clients.

    Huawei will look to leverage various capabilities, including facial recognition and big data technology, to develop innovative solutions.

    It recently formed an alliance with 25 partners including software developers, fintech companies, and risk managers to create an ecosystem of digital financial solutions.

    You do not just offer what financial firms demand in the new era, Cao said. The key to staying ahead is developing innovative scenario-based solutions.

    Huawei will look to be less reliant on its smartphone and telecom equipment business amid ongoing pressure from U.S. sanctions such as export controls to cut access to high-end chip suppliers.

    In addition, Meng Wanzhou, Huawei’s chief financial officer and daughter of founder Ren Zheng Fei, is currently in a legal battle to fight extradition to the U.S. over accusations that she deceived HSBC to bypass sanctions against Iran.

    Meng’s lawyers are scheduled this month to convince a Canada-based judge to allow them to rely on newly discovered evidence that supposedly proves that HSBC was aware of the sanctions risks. The evidence is believed to be sourced from documents in a recent agreement between Meng, Huawei and HSBC which resulted from a court ruling in Hong Kong.

  • Bank Jago Partners Mambu and Google Cloud for Digital Bank

    Bank Jago Partners Mambu and Google Cloud for Digital Bank

    The strategic partnership allows the bank to operate in the cloud in Indonesia, where banking data must remain in-country, according to an announcement this week.

    The digital bank will use Mambu’s SaaS banking platform and Google Cloud to offer new services to meet the needs and demands of Indonesian customers.

    Bank Jago launched its smartphone app in April 2021 in Indonesia, home to the fourth-largest unbanked population globally.

    Its service offerings include everyday transactions and payments, and the bank has plans to branch out into SME lending.

    Bank Jago believes that technology is not only providing new experiences to its customers, but it also enables the bank to operate efficiently, and to constantly create innovative breakthroughs, Kharim Siregar, Bank Jago president director, said in the announcement

    Formerly known as Bank Arto, Bank Jago is backed by the likes of super app Gojek, which recently increased its stake in the lender, as well as Singapore state investor GIC.

  • DBS Expands Digital Exchange Offering

    DBS Expands Digital Exchange Offering

    DBS expands the offering on its digital exchange with its first-ever bond issuance via security token offering.

    DBS has issued a S$15 million ($11.35 million) bond through a security token offering (STO) on its digital exchange, according to a statement.

    The bond has a six-month tenor with a coupon rate of 0.60 percent per annum.

    The issuance was executed via private placement and DBS was the sole bookrunner for the transaction.

    According to the bank, asset tokenization enabled the digital bond can be traded at a significantly smaller minimum of S$10,000 per board lot, further driving liquidity and lowering barriers for investor access.

    While most bond tokenization exercises announced in Asia to date tend to be repackaged forms of a conventional bond issue, the current transaction directly combines existing legal and tax infrastructure requirements with a direct issuance on the digital exchange in smaller lot sizes, said DBS’ global head of fixed income Clifford Lee.

    This bond token structure was only made possible because of the progressive development of Singapore’s legal and tax infrastructure, which can facilitate more STO issuances to broaden and deepen our capital markets.

    According to DBS’ group head of capital markets Eng-Kwok Seat Moey, the bank expects more issuers to leverage asset tokenization for fundraising.

    Our maiden STO listing on the DBS Digital Exchange is a significant milestone, as it highlights the strength of our digital asset ecosystem in facilitating new ways of unlocking value for issuers and investors, he said.

    We expect asset tokenization to increasingly become more mainstream as more of our clients start to embrace security token issuance as part of their capital fundraising exercise which we believe will boost Singapore’s ambitions to be a digital asset hub in Asia.

    DBS’ digital exchange – DDEx – launched in December 2020 with an initial offering that covered cryptocurrency trading.

    Daily trading volumes have increased 10-fold compared to the initial week of the launch, the bank said, with over 120 participants on the exchange and S$80 million of digital assets in custody.

    Earlier this month, the bank launched a crypto trust offering that combined wealth planning services with emerging digital currencies.

  • Bridging Asia-Pacific digital divide to attain sustainable development

    Bridging Asia-Pacific digital divide to attain sustainable development

    Expanding on his keynote speech at the 7th Asia-Pacific Spectrum Management Conference, held from 24 May to 27 May 2021, Tide Xu, Chief Strategy Officer, Wireless Product Line at Huawei addressed a prevalent digital divide in the Asia-Pacific region and offered details on policy recommendations as countries chart a sustainable digital development in the 5G era.

    APAC, made up of densely-populated countries and some of the fastest-growing economies in the world, has been experiencing a surge in mobile broadband demand in recent years. Against a backdrop of uneven network distribution between urban and rural areas, the pandemic has fuelled a greater divide, but has also helped governments recognize the role of mobile broadband as a catalyst for digital transformation moving forward.As nations embark on digitalization strategies to build economic resilience, Xu cited three policy recommendations to enhance mobile broadband development and close the digital divide.

    Firstly, with spectrum being critical to mobile network development, the ready provision of key spectrum bands such as C-band and 700 MHz is instrumental to unleashing a good mix of coverage and capacity benefits. As countries work towards a 5G-oriented evolution, Xu stressed the importance of adopting an all-encompassing spectrum strategy combining low-, mid- and high-bands to support all use cases.

    Secondly, countries yet to roll out 5G should continue investing in 4G infrastructure to ensure a seamless transition into the 5G era. Until 2030, 4G and 5G will coexist to power connectivity and offer nationwide network coverage. Apart from expanding 4G coverage to increase the penetration rate of network users, 4G VoLTE deployment should be accelerated to expedite the sunset of 2G/3G. With mobile broadband coverage being key to digital inclusion, policies can incentivize mobile broadband coverage in underserved areas.

    Thirdly, affordability and availability of entry-level mobile devices are essential for underprivileged families in rural areas to access mobile internet. Supportive demand-side policies as such respond to user needs to effectively bridge the usage gap.

    Bridging the experience gap

    While 4G changes lives, 5G changes societies. According to findings from consulting firm A.T. Kearney, the Industry 4.0 evolution is estimated to bring about a revenue potential of about $150 billion in ASEAN by 2025. In this evolution, 5G will be a key driver to unlock a broad range of opportunities to achieve significant socio-economic growth.

    These promises have motivated transitions from 4G to 5G, with 5G deployment gaining momentum in many countries. In fact, the 5G revolution is taking place at a faster pace compared to previous 3G or 4G revolution.  Frontrunners in global 5G adoption like China and South Korea are experiencing stellar progress. A leader in 5G adoption, China has accumulated more than 285 million 5G subscribers, with more than 819,000 base stations deployed. Meanwhile, South Korea has amassed 5G subscribers totaling about one-fourth of its total population. As regional countries chart their trajectories to harness the benefits of 5G, Xu noted three takeaways from China and South Korea’s 5G journey thus far.

    Firstly, both governments embrace national digitalization founded on 5G infrastructure, using stimulus policies to spur accelerated 5G adoption across various industries.

    Secondly, spectrum strategies have been mapped with future 5G evolution in mind; each MNO should be allocated a large bandwith of 80 MHz to 100 MHz continuous TDD, deemed ideal for 5G deployment to kickstart a country’s 5G journey. This strategy can attract early buy-in as advanced massive MIMO offers user experiences 25 times more superior than 4G.

    Thirdly, MNOs in both countries have been actively developing new applications, services and business models for both the consumer market and vertical industries. For the consumer market, MNOs have been delivering innovative content such as augmented reality and virtual reality experiences. Across vertical industries, high-connectivity, low-latency 5G has been deployed to power smart ports, smart manufacturing, smart agriculture and etc.. In 2020, China recorded more than 2,000 commercial and pilot projects across industry verticals.

    Besides China and South Korea, Thailand is also picking up speed in 5G deployment. A pioneer in 5G development in the region and the first country in ASEAN to launch a 5G commercial network utilizing a TDD band plan in 2.6 GHz, Thailand has garnered 1.5 million subscribers within the first year of launching 5G services, yielding user experiences 13 times more superior than that offered by 4G. Thailand has also begun exploring wide 5G applications in industrial use cases

    Additional mid-band spectrum to reap full 5G value

    5G marks a new era of connectivity that will lead this decade, similar to how 3G and 4G stayed dominant for about a decade before gradually phasing out. After 2025, the industry will enter 5G-Advanced (5.5G) – the second phase in the 5G evolution introduced by the 3GPP in conjunction with Release 18.

    Amid the transitions, industries will continually innovate to align with changing requirements of both the consumer and vertical markets. To keep abreast with the evolution, Huawei is committed to continually invest in research and innovation  to embrace 5G-Advanced and seek synergistic collaborations with global industry partners to develop new applications and expand existing capabilities.

    Moving forward, 5G success is dependent on access to a cost-effective mid-band spectrum, already deployed by about 90% of global MNOs to deliver an optimal balance of coverage and capacity for 5G services.

    Given that countries like China and South Korea are reporting an average handset data traffic per 5G user per month (DOU) of 30 GB to 40 GB – a threefold jump from 4G users – ITU predicts that DOU will reach 250 GB in the next 5 to 10 years. To support sustainable development in the coming years, APAC countries require at least 1 GHz of additional mid-band spectrum, according to research from Coleago Consulting. This will provide MNOs the capability to scale 5G or 5G-Advanced services accordingly, to reap the full potential of the prevailing service.

    Within the mid-band, countries are now exploring 6GHz as the ideal future mobile band after the WRC-19 earmarked it as a new agenda item for IMT identification for WRC-23. 6GHz is also perhaps the only optional intermediate frequency.

    Based on internal evaluations demonstrating 6GHz’s comparable performance to C-band in satisfying requirements for both capacity and coverage, Xu echoes GSMA’s recent call for governments to license the 6 GHz frequency band to facilitate sustainable digital development.

    Capturing the full value of 5G is an international effort that requires governments and regulators to work on supporting harmonised bands. For now, the success of 5G services and beyond weighs heavily on governments and regulators to evaluate and formulate spectrum strategies and policies. Xu concluded by urging policy-makers to take a comprehensive and balanced approach towards harnessing the potential of mid-band spectrum when pursuing national digitalization ambitions.

  • AirAsia’s digital businesses to become Asean’s leading super app

    AirAsia’s digital businesses to become Asean’s leading super app

    AIRASIA Group Bhd’s non-airline digital travel and lifestyle platform is now considered one of the region’s top three online travel agencies (OTAs), while AirAsia’s e-wallet BigPay is set to become the first virtual bank and its delivery service Teleport is strengthening.

    During the group’s first quarter of 2021 (1Q21) financial performance announcement on May 27, AirAsia’s super app posted a 45% year-on-year (YoY) increase in its revenue to RM10 million, supported by solid growth of products and services available on the platform.

    Teleport’s revenue tripled compared to its 1Q20 performance.

    AirAsia group CEO Tan Sri Dr Tony Fernandes stated that just as the carrier revolutionized air travel 20 years ago in the region with its low-cost model, AirAsia now aims to disrupt and democratize the lifestyle industry through the development of its super app, with over 17 travel and lifestyle products leveraging off one another.

    “In just over a year, we are now one of the top three leading OTAs in Asean based on website traffic, with over 100 million average page views monthly on airasia.com.

    “In the future, when travel resumes in our key markets, we can guarantee best value prices for our flight and hotel packages because we own our airline,” he explained in a press release last Friday.

    Expansion of its popular products and services in its Asean markets for its super app is in the pipeline.

    “We are working on expanding our health services in Thailand, Indonesia and the Philippines, while offering SNAP hotel and accommodation deals in Vietnam and Singapore in the near future,” Fernandes noted.

    He added that Teleport is now delivering vaccines across Malaysia and the Asean region, and has created more than 4,000 delivery driver jobs in 17 key markets.

    “We are also looking forward to converting passenger planes into freighters in the coming months to cater for unprecedented cargo demand,” he informed.

    Fernandes added that the group has plans to improve its BigPay e-wallet service to become the best virtual bank in Asean.

    “We are tapping into the full potential of our loyalty platform, BIG Rewards, to provide the best range for rewards and redemption in Asean and beyond.

    “Through our digital ecosystem, we have already created thousands of jobs and supported more than 3,500 small and medium enterprises (SMEs) in Malaysia.

    “Our training centre, AirAsia Academy (currently known as Redbeat Academy), offers affordable digital and tech training courses to equip not only our own employees, but also SMEs and members of the public, with skills to bridge the technology gap in Malaysia and beyond in this ever-changing digital world,” he explained. The group’s other non-airline businesses such as AirAsia Food, AirAsia Fresh, AirAsia Shop and its Santan franchise restaurants are also penetrating new markets.

    “We saw the crisis as an opportunity to use the downtime in flying caused by the Covid-19 pandemic to leverage the strength of our database of over 60 million customers and to focus on developing new non-airline revenue streams in the key areas of e-commerce, fintech and logistics,” Fernandes commented.

    In the pipeline are innovations such as ride-hailing “AirAsia Ride”, which will be launched in the coming months, as well as the potential of deliveries using drones.

    The group is also planning for electric or hydronic aeroplanes to meet consumer’s sustainability needs.

    In the airline business space, Asia Digital Engineering Sdn Bhd (ADE) aims to become one of the region’s best value aircraft maintenance and overhaul providers for both short-term line maintenance and longer-term base maintenance services, a space previously dominated by Singapore-based maintenance, repair and overhaul (MRO) companies.

    “I firmly believe ADE will become the leading aircraft MRO company in the region in the near future, with significant potential growth opportunities in Asean and beyond with service excellence and lowest cost base,” he added.

    AirAsia is also working to launch more contactless technologies to make flying a seamless and hygienic experience when it resumes.

    This includes a digital passport called Scan2Fly where passengers can upload required medical documentation and have it verified in real time online before heading to the airport.

    AirAsia will be introducing FACES, its biometric facial recognition technology, at the Kuala Lumpur International Airport 2 which will then be rolled out across all its key destinations.

    “There is a silver lining to every crisis and the best thing to come out of this pandemic is our recovery as a stronger, more resilient travel and lifestyle platform — not solely reliant on airfares alone anymore,” said Fernandes.

    The “new look” AirAsia, he noted, would be embarking on an exciting new phase of growth with the right focus and foundations to better meet the needs of the digital revolution.

    Fernandes stressed the group will remain true to its promise to deliver high quality service and make it affordable to fly, stay, shop, eat and upskill.

    AirAsia Group posted a net loss of RM767.42 million for 1Q21, as the group continued to suffer from the curbs on travel imposed by governments in many countries over the period.

    Revenue fell to RM298.22 million in the period as passenger load factor slumped 90% to 976,968 passengers compared to 9.8 million passengers recorded in the same period last year across its main markets of Malaysia, Indonesia and the Philippines.

  • HSBC Rolls Out Digital Wallet for SMEs in Singapore

    HSBC Rolls Out Digital Wallet for SMEs in Singapore

    The bank has launched a digital wallet for businesses in Singapore, which enables them to send, receive and hold cash in multiple currencies.

    HSBC’s Digital Wallet, which aims to significantly reduce the time it takes for SMEs to make business payments, is also being launched in the U.K. and the U.S., with a pipeline of further markets as well as new currencies and enhancements, the bank said in an announcement.

    The multi-currency wallet is integrated into its business banking platform HSBCnet, and removes the need for businesses to use third-party providers for international transactions, HSBC said. For example, businesses in Singapore can pay their Malaysia counterparts directly in ringgit.

    Li Lian Ng, HSBC’s head of business banking, Singapore, said the bank is committed to scaling up its SME banking capabilities in Singapore. The bank previously announced its strategy to scale-up its SME business and increase its share in the market to 15 percent by 2021.

    Since then, it has launched a number of products and initiatives for SMEs, including the online banking platform HSBCnet, Green Loans, the «Pioneer» programme for fast growing businesses, international business banking, and a not-for-profit proposition.

    HSBC said that Singapore’s SMEs are doubling down on their international connectivity and prioritizing resilience in their supply chains, with 87 percent planning to expand their international business, citing a survey conducted among local businesses with annual revenue between S$5 million and S$100 million.

    Drawing on HSBC’s deep digital expertise and wide global network, we are helping SMEs to build resilience and trust within their global supply chains whilst making everyday banking easier, Ng said.

  • Digital Dominates Wealth Sales for HSBC

    Digital Dominates Wealth Sales for HSBC

    Digital channels dominated HSBC’s retail wealth management business in Asia, making up a dominant majority of sales in the unit.

    Nearly 80 percent of HSBC’s retail wealth sales were conducted through its digital channels, according to a statement from the bank.

    The strong adoption is driven by a multi-billion dollar push to expand HSBC’s wealth management ambitions in the region.

    Our $3.5 billion investments are underway, enabling us to deliver a robust start in Asia this year across the full spectrum of our wealth clients, said Asia head of wealth and personal banking Greg Hingston.

    The bank also posted strong regional inflows with $6.6 billion of net new money for the private banking arm and $3.3 billion for the asset management arm – a whopping 89 percent and over 400 percent increase.

    In the quarter, the two units made up 50 percent and 29 percent of the global private banking and asset management businesses, respectively.

    The bank will also maintain its hiring plans to add more than 5,000 client-facing wealth roles over the next five years, including relationship managers.

    According to the statement, it is on track to hiring 1,000 of those roles in 2021.

  • Mastercard Eyes Digital Yuan Opportunities

    Mastercard Eyes Digital Yuan Opportunities

    Global payments giant Mastercard is in talks with various central banks with an eye on opportunities in central bank digital currencies.

    Amongst the central banks in discussion with Mastercard is the People’s Bank of China, according to a report citing APAC co-president Ling Hai.

    Circulation of central bank digital currencies (CBDC) outside of their home country could be converted into foreign currencies with a card clearing network acting as the conversion agent, Ling explained.

    While central banks can address their domestic issues associated with digital sovereign currencies, the role we can always play is on interoperability when the payment goes beyond a country’s borders, he said. For us, supporting a central bank digital currency is similar to adding another fiat currency onto our network.

    Mastercard is already increasingly establishing its digital currency capabilities with an existing partnership with the Bahamas where it provides prepaid card services to help travelers convert their CBDC – the Bahamas Sand dollar – into other fiat currencies.

    Centralized digital currencies aside, Mastercard also announced plans to increase support for select decentralized cryptocurrencies.

    Within China, it is also awaiting final approval for a license to conduct its card business onshore.

  • MAS Teases Multi-Currency Payment System for Digital Currencies

    MAS Teases Multi-Currency Payment System for Digital Currencies

    The Monetary Authority of Singapore (MAS) discussed the creation of a common platform for international payment settlements that will be more efficient than current arrangements.

    While there is growing global interest in the issuance of Central Bank Digital Currencies (CBDCs) for domestic payments, multiple CBDC (m-CBDC) arrangements could lead to a significant improvement in the speed, cost and transparency of cross-border payments, MAS said.

    In a blog post on Thursday by Toh Wee Kee, specialist leader (distributed ledger technology), MAS discussed unbundling the digital currency stack to improve governability of m-CBDC networks and create a viable path towards making m-CBDC arrangements a reality.

    MAS is partnering with the BIS Innovation Hub and the central banking community on Project Dunbar to design, develop and test new m-CBDC models for cross-border settlement, Toh said in the blog post.

    The central bank previously developed a prototype multi-currency wholesale settlement network, which enabled issuance or distribution of different digital currencies on a common network, as part of Project Ubin.

    You will soon hear about the commercial launch of a multi-currency payment system for digital currencies, Sopnendu Mohanty, MAS chief fintech officer, said in a LinkedIn post.

    We feel strongly about sharing our experience and contribute towards advancing central banks’ interest on m-CBDCs, he added.

  • AirAsia to invest heavily in digital business

    AirAsia to invest heavily in digital business

    AirAsia Group plans to raise USD300 million to expand its digital business arm, AirAsia Digital, as it intensifies the diversification of its business to offset the COVID-19 crippling effect on aviation.

    Bloomberg, quoting “people with knowledge on the matter”, reported the low-cost carrier was negotiating with prospective investors for a fundraising deal that would involve the issuance of new shares in the digital unit.

    In March 2021, founder and Chief Executive Officer, Tony Fernandes, said the airline’s so-called “super app”, launched in October 2020, would turn over USD250 million this year. The app can be used for shopping, booking flights, and ordering food. Services are predominantly in Malaysia at the moment with “airasia Shop” having expanded to the Philippines and Indonesia, while “airasia Food” has launched in Singapore. In 4Q2020, order amounts with “airasia Food” grew more than five times quarter-on-quarter, the company said in its Fourth Quarter and Full Year 2020 financial results.

    As part of the group’s diversification push, AirASia also aims to launch an air taxi service and drone delivery service, state news agency Bernama reported earlier this month.

    Facing a record net loss of MYR2.7 billion ringgit (USD653 million) in the October-December 4Q2020, Fernandes recently told the South China Morning Post the carrier would be returning 22 aircraft to lessors in 2021 and 2022.

    The airline’s revenue decreased by 92% year-on-year (YoY) due to partial lockdown in Malaysia in October and November 2020, while non-airline revenue declined by 46% in the same period. The company said the weaker YoY performance was due to the shortfall in revenue and several one-off costs, including a fuel hedging loss of MYR391 million (USD77.2 million), impairment of right-of-use assets, receivables, finance lease receivables of MYR1.5 billion (USD363 million), and bankruptcy costs for AirAsia Japan (DJ, Nagoya Chubu) of MYR20 million (USD4.8 million).

    Meanwhile, AirAsia Digital’s performance for the quarter grew by 13% YoY in terms of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation). Launched in October 2020, the AirAsia “super app” increased revenue by 15% YoY to MYR12 million (USD2.9 million), while the “BigPay” mobile payment app narrowed EBITDA loss by 41%. The company’s cargo and logistics arm, “Teleport”, reported a positive EBITDA of MYR17 million (USD4.1 million) despite a decline in revenue from impacted cargo capacity due to closed borders. Its loyalty programme, “BIG Rewards”, also reported positive EBITDA for the quarter.

  • Cisco unveils digitalization program for South Korea’s digital transformation

    Cisco unveils digitalization program for South Korea’s digital transformation

    South Korea, Asia’s fourth-largest economy, and Cisco, a worldwide leader in technology, announced the launch of a collaborative framework under Cisco’s Country Digital Acceleration (CDA) program to accelerate digitization across the country and power an inclusive recovery from the COVID-19 pandemic.

    The framework was introduced at a virtual event attended by Fran Katsoudas, Executive Vice President and Chief People, Policy & Purpose Officer at Cisco, Guy Diedrich, Vice President and Global Innovation Officer at Cisco, and Bum-Coo Cho, President at Cisco Korea, with opening remarks from South Korea’s Prime Minister, Sye-Kyun Chung, Chairman of the National Assembly’s Science, ICT, Broadcasting, and Communications Committee, Won-Wook Lee, and the People Power Party’s floor spokesperson Hyung-Du Choi. The event was also joined by ecosystem partners Naver Cloud, Samsung Electronics, and Kwangwoon University, who outlined the scope of their collaboration on major CDA projects in South Korea.

    The CDA program in Korea is strategically aligned with the government’s Digital New Deal strategy which is designed to propel recovery measures from the pandemic and help prepare for future growth through advanced digital capacity. The program also follows the government’s I-Korea 4.0, a policy brand that aims to prepare the Fourth Industrial Revolution with intelligent technologies.

    “Cisco has helped the digital transformation in education by offering free video conferencing solutions to education institutions during these difficult times. I would like to express my sincere appreciation to Cisco for its support and commitment to making the future bright through social investment in various areas such as IT talent cultivation. I expect IT companies like Cisco to closely work with public institutions and universities, creating synergy in fostering people-centered digital infrastructure. The government will spare no effort to provide support for it,” said Prime Minister Chung.

    “Our CDA programs help power an inclusive future for all through innovative technology initiatives like our 5G and cloud infrastructure solutions. We are very pleased to introduce the program in South Korea and support the government and businesses in achieving their economic and digitization goals as we recover from the global pandemic together,” said Fran Katsoudas, EVP and Chief People, Policy & Purpose Officer at Cisco.

    The CDA program in South Korea will drive various initiatives, with specific focus on the following areas:

    • 5G B2B:Cisco will drive 5G B2B technology innovation by working closely with Kwangwoon University. Cisco will help develop and test new 5G network solutions to bring more value to enterprises and enhanced network experiences to customers.
    • Cloud:Cisco will integrate its cloud solutions with the largest Korean cloud vendor ‘Naver Cloud’ to run on the cloud market. Cisco will provide convenient and reliable services to customers and will be able to promote cloud market activation. Cisco will strengthen the hybrid-cloud enablement in Korea.
    • Smart factory: Cisco will contribute to South Korea’s social-economic development with its industry-leading security and cloud technologies. Cisco will collaborate with POSCO ICT, a global IT & OT solutions provider, to develop advanced security solutions for smart factories by integrating Cisco Stealthwatch with POSCO ICT’s Poshield solution.
    • Education: Cisco will support digital transformation in education by offering free solutions and equipment to educational institutions across the country. Cisco will continue its commitment to digitization in education by expanding its support for building connected smart campuses and offering more Cisco Networking Academy programs. As part of these efforts, Cisco will integrate its collaboration solutions with Learning Management Systems (LMSs) of universities and support students and IT workforce with next generation IT skills and knowledge.

    “The launch of CDA in Korea will be a significant step towards turning the country’s digital agenda into a reality. Cisco Korea will do its best to accelerate the digital and economic growth of the country by leading development of technologies and infrastructure, adoption and use of technologies both in the public and privates, and cultivating the next generation IT talents,” said Bum-Coo Cho, President at Cisco Korea.

    Cisco’s CDA program aims to stimulate global digitization. Currently, Cisco is working with national, state, and local governments in 40 countries around the world to accelerate their national digitization agendas, co-develop cutting-edge solutions, and deliver beneficial services to their citizens more effectively. Cisco CDA programs have supported the creation of net-new jobs, GDP growth, and helped nurture innovation ecosystems.

  • Gojek-Grab Rivalry Extends to Digital Payments

    Gojek-Grab Rivalry Extends to Digital Payments

    Gojek has joined rival Grab in backing Indonesian state-backed e-wallet company in its Series B funding round.

    Gojek’s joining as a strategic shareholder will provide LinkAja access to the Gojek ecosystem to support LinkAja’s mission in accelerating financial inclusion in Indonesia, LinkAja CEO Haryati Lawidjaja said in a statement.

    As part of the deal, the ride-hailing giant will add LinkAja as a payment option on its app. The strategic investment builds on Gojek’s ongoing collaboration with the e-wallet, which includes payment for transportation and ticket reservation services.

    Formed from a consortium of state-owned enterprises, LinkAja operates an e-wallet and merchant services business focusing on the middle class, and micro, small, and medium-sized enterprise (MSME) segments in Indonesia.

    About 80 percent of its users are from tier 2 and 3 cities, according to LinkAja.

    According to GlobalData, rising Internet penetration, increasing digitalization and the proliferation of websites have been driving the growth of e-wallets in Indonesia, which further rose during the Covid-19 pandemic as customers have turned to alternative payment tools.

    Investments in state-backed entities can be a strategic move to maintain a healthy relationship with the government machinery. Though both Grab and Gojek managed to garner investment positions in LinkAja, Gojek seems to get some home advantage, Aurojyoti Bose, lead analyst at GlobalData, said about the deal.

    Grab, which competes with Gojek for dominance in the digital payments space in Southeast Asia, announced in November 2020 that it had invested $100 million in LinkAja, with participation from Telkomsel, BRI Ventura Investama and Mandiri Capital.

  • Optimizing Potential of Digital Advertising,  Indosat Ooredoo Launches iAds Service Based on Augmented Reality

    Optimizing Potential of Digital Advertising, Indosat Ooredoo Launches iAds Service Based on Augmented Reality

    The COVID-19 pandemic, which has been going on for over a year, has increased our reliance on digital in our daily lives. This has an impact on the business sector, where enterprises are “forced” to adapt to focus on digital marketing strategies as consumer behavior shifts to digital and online. Therefore, the strategy of running promotions through digital advertising is becoming attractive to enterprise in order to increase brand and product awareness, targeting the right consumers, and increase sales of product.

    As an experienced trusted digital partner, Indosat Ooredoo Business presents an innovative service “iAds” at the 4th Connex Webinar today to answer the promotional needs of these enterprise. iAds is a digital ad platform that is designed by utilizing Augmented Reality (AR), interactive messaging, and mobile video. iAds offers the excitement of advertising and the convenience of using innovative telecommunication media.

    Chief Business Officer of Indosat Ooredoo, Bayu Hanantasena said, “Indosat Ooredoo Business is committed to support the growth of Indonesia’s business sector by utilizing digital technology. Today we launched iAds to support the promotional needs of enterprise to be more innovative through social media and relevant to the current situation. We hope that through the 3 iAds services that we launched today, it will help enterprise not only survive, but also growing rapidly so that they can compete in both local and global markets, as well as supports Indonesia’s digital economy.”

    Through iAds, promotional activities can be more varied and attractive because Indosat Ooredoo Business offers several choices of digital promotion mediums, namely iAds, iAds Biz, and iAds MGram.

    • iAds

    Augmented Reality (AR) technology.

    • iAds Biz

    A broadcast and interactive SMS service solution that responds more precisely to promotional needs for target customers and is easily controlled through a dashboard by enterprise. Regular SMS, Premium SMS, and Interactive SMS are all promotional options provided by iAds Biz.

    • Ads MGram

    Consumers can engage with interactive promotion and digital transformation solutions through images and videos that can be viewed on a variety of mobile phones, feature phone or smartphone. The other benefit of iAds MGram is that it does not require a specific application and can be accessed without internet connection or data packages. Thus, it unlocks vast reach, customer engagement and business possibilities.

    iAds can target more than hundreds of thousands of large and medium-sized companies in Indonesia to inform their products to millions of mobile users as potential targeted consumers. This service is also in line with Indosat Ooredoo’s vision as the Indonesia’s leading digital telecommunication company that encourages a more rapid and effective growth of the digital economy.

    Indosat Ooredoo Connex: Maximizing the Potential of Digital Advertising and Innovation Augmented Reality

    This time, Indosat Ooredoo Company conducted a Connex Webinar with the theme “Maximizing the Potential of Digital Ads and Innovation in Augmented Reality,” continuing the previous series of Connex (Creating Innovation with Expert)

    In addition to presented Bayu Hanantasena (Chief Business Officer Indosat Ooredoo) and Linggajaya Budiman (SVP-Head of Marketing & Channel Management), this webinar also featured a Digital Marketing Specialist who has successfully elevated brand-it’s to the forefront of every industry field, including Levita Ginting (Chair of the Indonesian Chamber of Commerce’s Standing Committee on Franchising, Licensing, & Partnerships), R. Andi Kartiko Utomo (Digital Specialist, former Vice President of QNB Indonesia), and Irawan Soemardjo (Senior Partner of PINC Group).

    The speakers offered insight and addressed the effect of the pandemic on the business sector, shifts in consumer behavior, how Digital Advertising can optimize marketing strategies, the potential for Virtual Reality to improve consumer interaction, and iAds solutions to address consumer needs of promotion for enterprise and marketers during the panel discussion.

    “Hopefully today‘s Connex Webinar can provide a lot of positive information so that we all remain optimistic to survive and grow together in the future even in difficult situations,” Bayu concluded.