Innovation Asia | TechWire Asia https://techwireasia.com/tag/innovation/ Where technology and business intersect Mon, 14 Apr 2025 13:39:32 +0000 en-GB hourly 1 https://techwireasia.com/wp-content/uploads/2025/02/cropped-TECHWIREASIA_LOGO_CMYK_GREY-scaled1-32x32.png Innovation Asia | TechWire Asia https://techwireasia.com/tag/innovation/ 32 32 Could Pakistan SAF technology transform its agricultural waste crisis? https://techwireasia.com/2025/04/could-pakistan-saf-technology-transform-its-agricultural-waste-crisis/ Mon, 14 Apr 2025 13:39:32 +0000 https://techwireasia.com/?p=241726 Pakistan SAF technology initiative to convert agricultural waste into sustainable aviation fuel. $121 million Sheikhupura facility Asia-Pacific’s first private-sector SAF project. Promises 300 jobs and 20,000 indirect opportunities. Pakistan SAF technology developments are positioning the agricultural-rich nation as a potential dark horse in Asia’s race toward aviation decarbonisation. As Asian airlines face mounting pressure to […]

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  • Pakistan SAF technology initiative to convert agricultural waste into sustainable aviation fuel.
  • $121 million Sheikhupura facility Asia-Pacific’s first private-sector SAF project.
  • Promises 300 jobs and 20,000 indirect opportunities.
  • Pakistan SAF technology developments are positioning the agricultural-rich nation as a potential dark horse in Asia’s race toward aviation decarbonisation. As Asian airlines face mounting pressure to reduce emissions amid global climate imperatives, Pakistan’s unique approach of converting agricultural waste into sustainable aviation fuel (SAF) could offer a regional model worth examining.

    Converting an environmental problem into economic opportunity

    The smog that blankets major Pakistani and neighbouring Indian cities each harvest season has become an annual crisis, driven largely by the burning of agricultural residue. The practice, particularly prevalent in Punjab province, releases particulate matter that compromises air quality across borders.

    However, this challenge presents a technological opportunity that Pakistan’s emerging SAF sector aims to capitalise on. “Crop residues burned during both winter and summer in Pakistan represent an underutilised resource with immense potential for SAF production,” noted experts in an April 2025 report by The Express Tribune, highlighting a practical technological solution to an entrenched environmental issue.

    The technology equation

    Pakistan SAF technology implementation focuses on two principal conversion methods, each suited to different agricultural inputs:

    1. Hydroprocessing Esters and Fatty Acids (HEFA): For lipid-based feedstocks including used cooking oil and non-edible oils
    2. Alcohol-to-Jet (ATJ): Optimised for converting sugar-based inputs like wheat straw and rice husks

    The technologies produce aviation fuels chemically identical to conventional jet fuel, requiring no aircraft modifications, and deliver substantially improved carbon profiles. A third technology using carbon dioxide capture remains in development but holds promise for further emissions reductions. Dr Adeel Ghayur, described by The Express Tribune as an “eminent energy scientist and expert in circular economy,” indicated that commercial SAF technologies can scale from 100,000 to one million tonnes of annual production capacity, with corresponding economic impacts.

    Asia’s first private SAF project

    The December 2024 announcement of a $121 million SAF facility in Sheikhupura represented a milestone not just for Pakistan but for all of Asia. According to Pakistan Today, the Asian Development Bank (ADB) has committed $86.2 million to the project, with the International Finance Corporation (IFC) providing $35 million. What makes this development particularly noteworthy in the Asian context is its designation by the ADB as “the first private sector-led SAF project in Asia and the Pacific,” excluding China.

    For a region where state involvement typically dominates energy infrastructure, this private-sector approach merits attention from investors and policymakers across Asia. The facility is operated by SAFCO Venture Holdings Limited and owned by Taimur Shaikh and Ali Shaikh, and presents compelling environmental and economic metrics: projected annual production of 200,000 tonnes of SAF, reduction of 500,000 tonnes of carbon dioxide yearly, creation of 300 direct jobs, and facilitation of approximately 20,000 indirect employment opportunities in the supply chain and tertiary industries.

    The regional competitiveness question

    While Pakistan’s SAF ambitions are technologically sound, important questions remain about its competitiveness in an Asian market where Singapore, Japan, and South Korea have already established advanced biofuel capabilities.

    The price difference remains substantial, with SAF currently commanding approximately $2,500 per metric tonne versus $700 for conventional jet fuel. For price-sensitive Asian carriers navigating post-pandemic recovery, this cost gap presents significant challenges to adoption.

    Dr. Ghayur said in The Express Tribune that “strengthening R&D is essential for Pakistan to remain competitive in the global SAF market, secure its position as a hub for innovation, and maintain leadership as SAF adoption rises across Asia.” The acknowledgement reflects awareness of the technological race underway in the region.

    For Asian nations with similar agricultural profiles – Bangladesh, Vietnam, Thailand, and Indonesia – Pakistan’s SAF initiative offers a potential template for converting agricultural waste into aviation biofuels and addresses seasonal air pollution events. The multiplicative benefits – enhanced energy security, emissions reductions, rural economic opportunities, and foreign direct investment – align with development priorities across South and Southeast Asia.

    Four-dimensional solution

    Pakistan SAF technology implementation addresses four interconnected challenges that resonate in developing Asian economies:

    1. Energy security: Reducing petroleum import dependence via domestic production
    2. Economic development: Creating value-added manufacturing with substantial job creation potential
    3. Foreign direct investment: Attracting capital for industrial-scale bioprocessing operations
    4. Environmental mitigation: Addressing agricultural burning emissions and aviation carbon footprints

    Critical path forward

    For Pakistan’s SAF sector to achieve its potential, several hurdles will need to be surmounted. First, continued investment beyond the initial Sheikhupura facility will be necessary to achieve meaningful scale. Second, as SAF technologies evolve, Pakistan will need to maintain technological competitiveness through sustained R&D investment. Finally, efficiency improvements in agricultural waste collection and transportation will be essential to maintain favourable economics.

    The byproduct potential enhances the business case further, with SAFCO’s facility projected to produce 18,000 tonnes of bionaphtha annually for sustainable plastics production, according to Pakistan Today.

    As Dr Ghayur concluded in The Express Tribune, “The comprehensive policy roadmap will serve as both a blueprint and a catalyst to propel Pakistan to the forefront of the global SAF revolution.”

    While significant challenges remain in scaling production, optimising costs, and matching competitive alternatives, Pakistan’s SAF technology trajectory represents a distinctive approach to circular economy implementation with potential regional application across all of Asia’s agricultural economies.

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    DeepSeek’s new technology makes AI actually understand what you’re asking for https://techwireasia.com/2025/04/deepseeks-new-technology-makes-ai-actually-understand-what-youre-asking-for/ Wed, 09 Apr 2025 08:26:44 +0000 https://techwireasia.com/?p=241688 DeepSeek’s AI feedback systems help make AI understand what humans want. Method allows smaller AI models to perform as well as larger cousins. Potential to reduce cost of training. Chinese AI company DeepSeek has developed a new approach to AI feedback systems that could transform how artificial intelligence learns from human preferences. Working with Tsinghua […]

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  • DeepSeek’s AI feedback systems help make AI understand what humans want.
  • Method allows smaller AI models to perform as well as larger cousins.
  • Potential to reduce cost of training.
  • Chinese AI company DeepSeek has developed a new approach to AI feedback systems that could transform how artificial intelligence learns from human preferences.

    Working with Tsinghua University researchers, DeepSeek’s innovation tackles one of the most persistent challenges in AI development: teaching machines to understand what humans genuinely want from them. The breakthrough is detailed in a research paper “Inference-Time Scaling for Generalist Reward Modeling,” and introduces a technique making AI responses more accurate and efficient – a win-win in the AI world where better performance typically demands more computing power.

    Teaching AI to understand human preferences

    At the heart of DeepSeek’s innovation is a new approach to what experts call “reward models” – essentially the feedback mechanisms that guide how AI systems learn. Think of reward models as digital teachers. When an AI responds, models provide feedback on how good that response was, helping the AI improve over time. The problem has always been how to create reward models that accurately reflect human preferences across many different types of questions. DeepSeek’s solution combines two techniques:

    1. Generative Reward Modeling (GRM): Uses language to represent rewards, providing richer feedback than previous methods that relied on simple numerical scores.
    2. Self-Principled Critique Tuning (SPCT): Allows the AI to adaptively generate its guiding principles and critiques through online reinforcement learning.

    Zijun Liu, a researcher from Tsinghua University and DeepSeek-AI who co-authored the paper, explains that this combination allows “principles to be generated based on the input query and responses, adaptively aligning reward generation process.”

    Doing more with less

    What makes DeepSeek’s approach particularly valuable is “inference-time scaling.” Rather than requiring more computing power during the training phase, the method allows for performance improvements when the AI is used – the ‘point of inference’.

    The researchers demonstrated that their method achieves better results with increased sampling during inference, potentially allowing smaller models to match the performance of much larger ones. The efficiency breakthrough comes at a important moment in AI development when the relentless push for larger models raises concerns about sustainability, supply chain viability, and accessibility.

    What this means for the future of AI

    DeepSeek’s innovation in AI feedback systems could have far-reaching implications:

    • More accurate AI responses: Better reward models mean AI systems receive more precise feedback, improving outputs over time.
    • Adaptable performance: The ability to scale performance during inference allows AI systems to adjust to different computational constraints.
    • Broader capabilities: AI systems can perform better across many tasks by improving reward modelling for general domains.
    • Democratising AI development: If smaller models can achieve similar results to larger models via better inference methods, AI research could become more accessible to those with limited resources.

    DeepSeek’s rising influence

    The latest advance adds to DeepSeek’s growing reputation in the AI field. Although founded only in 2023 by entrepreneur Liang Wenfeng, the Hangzhou-based company has made an impact with the V3 foundation model and R1 reasoning model. The company recently upgraded its V3 model (DeepSeek-V3-0324), which it said offered “enhanced reasoning capabilities, optimised front-end web development and upgraded Chinese writing proficiency.”

    DeepSeek has also committed to open-source its AI technology, by opening five public code repositories in February which allow developers to review and contribute to software development.

    According to the research paper, DeepSeek intends to make its GRM models open-source, although no specific timeline has been provided. Its decision could accelerate progress in the field by allowing broader experimentation with this type of advanced AI feedback system.

    Beyond bigger is better

    As AI continues to evolve rapidly, DeepSeek’s work demonstrates that innovations in how models learn can be just as important as increasing their size. By focusing on the quality and scalability of feedback, DeepSeek addresses one of the challenges to create AI that better understands and aligns with human preferences.

    This possible breakthrough in AI feedback systems suggests the future of artificial intelligence may depend not just on raw computing power but on more intelligent and efficient methods that better capture the nuances of human preferences.

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    AI race intensifies: China narrows the gap https://techwireasia.com/2025/03/ai-race-intensifies-china-narrows-the-gap/ Thu, 27 Mar 2025 13:54:25 +0000 https://techwireasia.com/?p=241606 China is closing the gap with the US in AI technology advancements. DeepSeek’s open-source models demonstrate improvements through algorithmic efficiency. The artificial intelligence race between China and the United States has entered a new phase as Chinese companies narrow the technology gap despite Western sanctions. According to Lee Kai-fu, CEO of Chinese startup 01.AI and […]

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  • China is closing the gap with the US in AI technology advancements.
  • DeepSeek’s open-source models demonstrate improvements through algorithmic efficiency.
  • The artificial intelligence race between China and the United States has entered a new phase as Chinese companies narrow the technology gap despite Western sanctions.

    According to Lee Kai-fu, CEO of Chinese startup 01.AI and former head of Google China, the gap in core technologies has shrunk from “six to nine months” to “probably three months,” with China actually pulling ahead in specific areas like infrastructure software engineering. The Chinese AI startup DeepSeek has become the epicentre of the intensifying technological rivalry.

    On January 20, 2025, while the world’s attention was fixed on Donald Trump’s inauguration, DeepSeek quietly launched its R1 model – a low-cost, open-source, high-performance large language model with capabilities reportedly rivalling or surpassing OpenAI’s ChatGPT-4, but at a fraction of the cost.

    “The fact that DeepSeek can figure out the chain of thought with a new way to do reinforcement learning is either catching up with the US, learning quickly, or maybe even more innovative now,” Lee told Reuters, referring to how DeepSeek models show users their reasoning process before delivering answers.

    Innovative efficiency: China’s response to chip sanctions

    DeepSeek’s achievement is particularly notable because it emerged despite US restrictions on advanced processor chip exports to China. Instead of being hampered by international limitations, Chinese companies have responded by optimising efficiency and compensating for lower-quality hardware with quantity.

    The adaptive approach was demonstrated further on March 25, 2025, when DeepSeek upgraded its V3 large language model. The new version, DeepSeek-V3-0324, features enhanced reasoning capabilities, optimised front-end web development, and upgraded Chinese writing proficiency. DeepSeek-V3-0324 significantly improved in several benchmark tests, especially in mathematics and coding. Häme University lecturer Kuittinen Petri highlighted the significance of these advancements, stating on social media:

    “DeepSeek is doing all this with just [roughly] 2% [of the] money resources of OpenAI.” He added that when he asked the new model to “create a great-looking responsive front page for an AI company,” it produced a mobile-friendly, properly functioning website after coding 958 lines.

    Global market implications

    The impact of China’s AI advances extends beyond technological achievement to financial markets. When DeepSeek launched its R1 model in January, America’s Nasdaq plunged 3.1%, while the S&P 500 fell 1.5%, demonstrating the wider economic significance of technological competition.

    The AI race presents opportunities and challenges for Asia and other regions. China’s low-cost, open-source model could help emerging economies develop AI innovation and entrepreneurship. It also pressures closed-source firms like OpenAI to reconsider their stance.

    Meanwhile, both superpowers are making massive investments in AI infrastructure. The Trump administration has unveiled the $500 billion Stargate Project, and China is projected to invest more than 10 trillion yuan (US$1.4 trillion) into technology by 2030.

    A double-edged sword for global technology

    The US-China tech rivalry risks deepening global divides, forcing nations to navigate growing complexities. Countries face difficult questions: How can they manage research partnerships with China without jeopardising collaboration with US institutions?

    How can nations reliant on Chinese materials and exports avoid Chinese technologies? South Korea, the world’s second-largest producer of semiconductors, labours with this dilemma. In 2023, it became more dependent on China for five of the six important raw materials needed for chip-making. Major firms like Toyota, SK Hynix, Samsung, and LG Chem remain vulnerable due to Chinese supply chain dominance. And, the climate implications of this AI race are significant.

    According to the Institute for Progress, maintaining AI leadership will require the United States to build five-gigawatt clusters in the next five years. By 2030, data centres could consume 10% of US electricity, more than double the 4% recorded in 2023.

    The path forward

    As the AI landscape evolves, DeepSeek’s arrival has challenged the assumption that US sanctions were constraining China’s AI sector. Washington’s semiconductor sanctions have proven to be what Lee Kai-fu calls a “double-edged sword” that created short-term challenges and forced Chinese firms to innovate under constraints.

    The rapid development of Chinese AI has reignited debates over US chip export controls. Critics argue that the present restrictions have accelerated China’s domestic innovation, as evidenced by DeepSeek’s development and improving capabilities.

    China is demonstrating remarkable resilience and innovation in the face of restrictions. As DeepSeek prepares to launch its R2 model potentially early, the technology gap continues to narrow.

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    BYD dominates Tesla: How Chinese EV giant is winning the global EV race https://techwireasia.com/2025/03/byd-dominates-tesla-how-chinese-ev-giant-is-winning-the-global-ev-race/ Tue, 25 Mar 2025 10:59:27 +0000 https://techwireasia.com/?p=241591 BYD beats Tesla with $107 billion revenue and aggressive price on-priced Model 3 competitor. Chinese EV maker overtakes as political backlash and price competition drive Tesla’s sales down. Tesla’s once unassailable position in the electric vehicle (EV) market continues to erode in 2025 as Chinese automaker BYD dominates the global EV landscape with its recipe […]

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  • BYD beats Tesla with $107 billion revenue and aggressive price on-priced Model 3 competitor.
  • Chinese EV maker overtakes as political backlash and price competition drive Tesla’s sales down.
  • Tesla’s once unassailable position in the electric vehicle (EV) market continues to erode in 2025 as Chinese automaker BYD dominates the global EV landscape with its recipe of innovation and aggressive pricing.

    The US electric vehicle pioneer, led by Elon Musk, now struggles against BYD’s global expansion and technological advances that are reshaping consumer expectations worldwide. The power shift has fundamentally altered the competitive dynamics of the global EV industry, with profound implications for automakers across all markets.

    Revenue milestone

    According to a stock filing published Monday at the Shenzhen stock exchange, BYD’s 2024 revenue reached 777.1 billion yuan ($107.2 billion), ahead of Tesla’s $97.7 billion. The crossover in leadership position marks the first time the Chinese automaker has surpassed its American rival in revenue.

    “BYD’s revenue results represent a 29% increase from the previous year and outperformed a Bloomberg forecast of 766 billion yuan,” reported AFP. BYD’s net profit reached 40.3 billion yuan, up 34% from 2023, and it recorded a record quarterly profit of 15 billion yuan in Q4 2024. The timing is significant, coinciding with Tesla’s declining sales trajectory in most major markets and BYD’s aggressive expansion into international territories previously dominated by Western manufacturers.

    The “Model 3 killer” strategy

    Perhaps most threatening to Tesla’s position is BYD’s direct assault on its bestselling Model 3. On Sunday, BYD launched the Qin L, priced at just 119,800 yuan ($16,517), positioning it as what the South China Morning Post describes as a “Model 3 killer.”

    For comparison, the basic edition of Tesla’s Model 3 in China is priced at 235,500 yuan – more than double. Despite the price difference, the Qin L offers competitive specifications with a driving range of 545km to Model 3’s 634km. Both cars feature preliminary self-driving software and digital cockpits, demonstrating BYD’s ability to at least match Tesla’s technology at a significantly lower price point.

    “BYD has already impressed most Chinese drivers as a maker of reliable electric cars, and its new products that are affordable to middle- and low-income consumers will lure some Tesla fans away from its Model 3 and Model Y,” said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. “As it enjoys a pricing advantage, Qin L will easily generate thousands of deliveries a month.”

    Meanwhile, Guangzhou-based Xpeng is challenging Tesla and BYD with its Mona M03, priced the same as the Qin L at 119,800 yuan. The company shipped more than 15,000 units of the Mona M03 in February.

    Global sales disparity: How BYD dominates Tesla

    The contrast in sales performance is stark. BYD reported selling 322,846 cars in February 2025, up 164% on last year. According to AFP, its monthly sales jumped 161% in February to 318,000 units. Meanwhile, Tesla’s shipments from China dropped 49% in February, with the automaker shipping 30,688 vehicles – the lowest monthly figure since July 2022.

    On a broader level, Tesla’s market share in China has dropped from more than 16% of the market in 2022 to 4.3% in February 2025.

    Tesla’s global decline

    Tesla’s challenges extend beyond China. According to TIME, the company’s stock dropped 15% on Monday, its steepest decline in five years. European sales have been particularly hard hit, with Tesla selling just 7,517 vehicles in Europe in January, half of what it sold in January the previous year, despite overall rising EV sales in the region.

    In Germany, Tesla sales were down more than 70% compared to last year, with less than 1,500 new Teslas registered in February. Similar patterns emerged across Europe, with sales falling 50% in Portugal, 45% in France, 42% in Sweden, and 48% in Norway between January and February 2025. The UK is the only country where the brand remains in increased demand.

    Australia has also seen Tesla sales drop over 70% compared to last year, with just 1,592 sales in February compared to 5,665 in February 2024, according to The Guardian. Even in California, Tesla’s home market and the largest domestic market for EVs in the US, sales have slumped for five consecutive quarters.

    Technology race

    BYD isn’t winning on price alone. The company is pushing technological innovation, recently unveiling its “Super e-Platform” battery and charging system. The system boasts peak speeds of 1,000 kilowatts – double the 500 kilowatts currently offered by Tesla’s Superchargers. The system allows cars to travel up to 470 kilometres after just a five-minute charge.

    Last month BYD announced that at least 21 of its models, including the Seagull hatchback that starts at just 69,800 yuan, would be fitted with its advanced driver assistance system at no additional cost. The system allows cars to navigate and drive semi-autonomously on roads and park itself.

    Tesla’s response

    To counter its sales decline in China, Tesla is currently designing a cheaper version of its bestselling Model Y. According to the South China Morning Post, the new edition will be 20% cheaper than the existing variants available in China, which range in price from 263,500 yuan to 303,500 yuan. The US firm plans to start making the car at its Shanghai factory next year.

    As reported by Reuters, Tesla has also sent engineers to work with Baidu to integrate Chinese map data with Tesla’s driver-assistance systems, helping vehicles better recognise mainland China’s lane markings and traffic signals. When asked about managing his various businesses amid these challenges, Musk told Fox Business’s Larry Kudlow that he was doing so “with great difficulty.”

    Market valuation gap

    Despite BYD’s revenue gains, Tesla maintains a significant lead in market valuation. Fortune reports that, “Tesla is worth about $800 billion despite a share-price rout that’s seen the stock plunge 38% this year. BYD has a market capitalisation closer to $157 billion.”

    Tesla also continues to lead in profitability ratio, with a 2024 net income of $7.6 billion compared to BYD’s approximately $5.6 billion (40.3 billion yuan). This suggests that while BYD dominates sales volume and revenue, Tesla maintains higher profit margins per vehicle.

    Outlook

    Wang Chuanfu, BYD’s chairman and founder, stated that Chinese auto brands in the era of intelligence-led vehicles were no longer merely followers but at the forefront of the trend. “They’re ‘daring’ to be first in the world and are collaborating with other domestic brands to go global and move up the value chain,” he said, according to Fortune.

    The company that once dominated the EV landscape faces questions about its positioning and strategy. With production shortages affecting its upgraded Model Y deliveries in Shanghai and competitors offering comparable technology at half the price, Tesla’s first-mover advantage has largely evaporated. The global EV race has entered a new phase, and BYD dominates Tesla in ways few would have predicted just a few years ago.

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    Chinese AI agent Manus is breakthrough in autonomous AI technology https://techwireasia.com/2025/03/chinese-ai-agent-manus-is-breakthrough-in-autonomous-ai-technology/ Fri, 14 Mar 2025 09:35:52 +0000 https://techwireasia.com/?p=241492 Chinese AI agent Manus gains attention executing complex tasks autonomously. Manus is partnership with Alibaba’s Qwen. Designed to expand capabilities for the Chinese market. Chinese AI agent Manus has emerged as the latest breakthrough in artificial intelligence technology, generating a significant buzz in the global tech community for its advanced autonomous capabilities. Developed by Tencent […]

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  • Chinese AI agent Manus gains attention executing complex tasks autonomously.
  • Manus is partnership with Alibaba’s Qwen.
  • Designed to expand capabilities for the Chinese market.
  • Chinese AI agent Manus has emerged as the latest breakthrough in artificial intelligence technology, generating a significant buzz in the global tech community for its advanced autonomous capabilities.

    Developed by Tencent Holdings-backed startup Butterfly Effect, Manus claims to be the world’s first general AI agent, distinguishing itself from conventional chatbots by focusing on task completion rather than just conversation. Unlike traditional AI assistants that primarily handle dialogue, the Chinese AI agent Manus utilises multiple AI models to perform complex, multi-step tasks autonomously.

    During its invitation-only online preview last week, Manus demonstrated impressive capabilities, including creating customised websites, screening résumés, and producing property recommendation reports based on specific criteria. Manus executes complex tasks from start to finish, delivering complete solutions rather than just suggestions.

    “The video says the AI agent is more advanced than a chatbot because it doesn’t only generate ideas but delivers tangible results, like producing a report recommending properties to buy based on specific criteria,” reported CNN Business.

    How Manus works


    * Manus was evaluated in standard mode using the same configuration as its production version for reproducibility.
    * Comparative data from OpenAI Deep Research and other systems were sourced from OpenAI’s release blog.

    In a post on X, Peak Ji Yichao, co-founder and chief scientist at Butterfly Effect, stated the Chinese AI agent Manus was built using existing large language models, including Anthropic’s Claude and fine-tuned versions of Alibaba’s open-source Qwen. The multi-model approach enables more sophisticated reasoning and action capabilities.

    According to MIT Technology Review, which obtained access to the platform, using Manus “feels like collaborating with a highly intelligent and efficient intern.”

    The publication tested Manus on three tasks: compiling a list of journalists covering China tech, searching for property listings with specific criteria, and nominating candidates for MIT Technology Review’s Innovators Under 35 list.

    “While it occasionally lacks understanding of what it’s being asked to do, makes incorrect assumptions, or cuts corners to expedite tasks, it explains its reasoning clearly, is remarkably adaptable, and can improve substantially when provided with detailed instructions or feedback,” wrote Caiwei Chen in MIT Technology Review. What differentiates Manus is “Manus’s Computer” window, which allows users to observe what the agent is doing and intervene at any point. The transparency and collaborative machine-human approach gives users greater control over the AI’s actions.

    Limited access despite growing interest

    Despite generating significant buzz, access to Manus remains highly restricted. Fewer than 1% of users on the wait-list have received an invite code. The platform’s Discord channel has attracted more than 186,000 members, indicating substantial interest from potential users worldwide.

    According to Chinese media outlet 36Kr, Manus’s per-task cost is approximately $2, which is claimed to be one-tenth of the cost of OpenAI’s DeepResearch service. If its server infrastructure improves, this cost efficiency could position the Chinese AI agent Manus as a preferred choice for individual professionals and small teams.

    The system isn’t without limitations, however. MIT Technology Review reported that Manus encountered obstacles with pay-walled content and experienced occasional crashes due to high service loads. The message “Due to the current high service load, tasks cannot be created. Please try again in a few minutes” appeared multiple times during testing.

    Strategic partnership with Alibaba

    Recognising the potential for growth in the Chinese market, Manus recently announced a strategic partnership with Alibaba. According to the South China Morning Post, the March 11 announcement revealed “Manus will engage in strategic cooperation with Alibaba’s Qwen team to meet the needs of Chinese users. ”

    The two companies are working closely to ensure all Manus functions are available on “domestic models and computing platforms,” although no specific launch date was provided. A representative of Alibaba’s cloud computing unit confirmed the cooperation, saying both parties are collaborating on open-source models and looking forward to “working with more global AI innovators.”

    Alibaba’s QwQ-32B reasoning model advances in parallel

    The partnership comes when Alibaba is progressing AI development. On March 6, the company unveiled its latest reasoning model, QwQ-32B, claiming its capabilities surpass OpenAI’s o1-mini and rival DeepSeek’s R1 model. The news was impactful enough to boost Alibaba’s Hong Kong-listed shares by 8% on the announcement day.

    “Alibaba touted its new model, QwQ-32B, in an online statement as delivering exceptional performance, almost entirely surpassing OpenAI-o1-mini and rivalling the strongest open-source reasoning model, DeepSeek-R1,” reported CNN Business.

    What makes this development notable is the model’s efficiency – Alibaba claims QwQ-32B contains just 32 billion parameters compared to DeepSeek R1’s 671 billion, suggesting significantly lower computational requirements. The tech giant intends to invest at least 380 billion yuan ($52.4 billion) in AI and cloud computing infrastructure over the next three years, underscoring its commitment to establishing leadership in AI.

    China’s AI ecosystem gains momentum

    As the Chinese AI agent Manus continues to develop through its partnership with Alibaba, it symbolises a broader phenomenon. The Chinese government’s policies include promoting technological self-reliance, generous funding initiatives, and a robust pipeline of AI graduates from top Chinese universities, which together have created a fertile ecosystem for progression.

    Chinese firms are now creating increasingly advanced large language models that compete directly with Western counterparts. The Chinese government’s pledge to support “emerging industries and industries of the future” with increased funding for artificial intelligence, combined with Alibaba’s massive $52.4 billion investment commitment, demonstrates the nation’s strategic prioritisation of AI development.

    The centrally-coordinated approach is yielding results. The emergence of tools like Manus suggests that the global AI landscape is evolving into a genuinely multi-polar space, with Chinese innovations increasingly setting trends rather than following them.

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    YMTC memory chip innovation defies US sanctions with 294-gate breakthrough https://techwireasia.com/2025/02/ymtc-memory-chip-innovation-defies-us-sanctions-with-294-gate-breakthrough/ Fri, 07 Feb 2025 10:15:21 +0000 https://techwireasia.com/?p=239801 China’s YTMC showcases a 294-gate chip design with Xtacking4.0 technology. Marks advancement US trade restrictions. Positions YMTC as a pioneer in hybrid bonding technology, challenging Samsung and SK Hynix. For the second time in two years, YMTC, China’s leading memory chip maker, has proven that US trade restrictions have done little to slow its technological […]

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  • China’s YTMC showcases a 294-gate chip design with Xtacking4.0 technology.
  • Marks advancement US trade restrictions.
  • Positions YMTC as a pioneer in hybrid bonding technology, challenging Samsung and SK Hynix.
  • For the second time in two years, YMTC, China’s leading memory chip maker, has proven that US trade restrictions have done little to slow its technological advancement. Fresh on the heels of its 2022 breakthrough with 232-layer NAND technology, the company has pushed boundaries again in memory chip innovation. The breakthrough came to light through research firm TechInsights’ analysis. It demonstrates YMTC’s mastery of the Xtacking4.0 design in high-density 3D NAND chips, and marks another instance of Chinese semiconductor technology advancing despite Washington’s attempts to contain it.

    According to TechInsights’ recent report, quoted by the South China Morning Post, YMTC’s achievement was discovered in the commercial ZhiTai TiPro9000 solid-state storage device. The device features an advanced dual-deck structure with 150 gates on the lower deck and 144 gates on the upper deck, totalling an impressive 294 gates.

    The design employs sophisticated hybrid-bonding techniques to join two wafers, achieving an unprecedented storage density exceeding 20 gigabits per square millimetre.

    YMTC’s journey from latecomer to industry pioneer

    Since its inception in 2016, YMTC has transformed from newcomer to formidable competitor in the global flash memory industry. The company’s rapid technological advancement was first highlighted in 2022 when it produced a groundbreaking 232-layer NAND flash, surpassing the abilities of industry giants like Micron Technology, Samsung Electronics, and SK Hynix.

    A 64-layer 3D NAND flash memory wafer from YMTC. Photo: ymtc.com
    A 64-layer 3D NAND flash memory wafer from YMTC. Photo: ymtc.com

    The achievement was particularly notable as it came just before the company was added to Washington’s export blacklist that was assembled over national security concerns. TechInsights senior analyst Jeongdong Choe emphasises the significance of this latest development, stating, “The important takeaway is that China’s YMTC has beaten the competition in the market. With the new Xtacking4.0 technology, YMTC appears to have found a way to overcome the current ban with this new chip.”

    Challenging global leaders despite trade restrictions

    After being blacklisted two years ago, YMTC lost access to important semiconductor equipment makers like Lam Research. However, the company adapted, strengthening its partnerships with domestic chip tool manufacturers like Naura Technology Group. YMTC’s achievements have caught the attention of global competitors, particularly in hybrid bonding technology. “YMTC is the leader in hybrid bonding technology, which is essential for higher-layered 3D NAND,” Choe explains. “That’s why Samsung and other NAND companies follow and prepare the hybrid bonding structure for the next generations.”

    While YMTC maintains a modest public stance about its breakthrough, simply stating it is “committed to driving global innovation to propel the industry further forward and meet the evolving needs of our customers and partners,” the implications of its achievement are far-reaching. The company’s success demonstrates China’s growing capability to develop advanced semiconductor technology independently despite international trade restrictions.

    The global memory chip landscape is competitive, with SK Hynix announcing plans to mass-produce 321-layer 4D NAND chips in the first half of this year. However, according to TrendForce, the market faces challenges from weak demand and oversupply, exacerbated by aggressive production expansion from Chinese suppliers driven by domestic substitution policies. The latest memory chip breakthrough by YMTC showcases China’s technological resilience and signals a shifting dynamic in the global semiconductor industry. As the company continues to push boundaries in memory chip innovation, it demonstrates how trade restrictions may be driving rather than hampering Chinese technological self-sufficiency.

    The achievement also validates YMTC’s potential as a serious contender in the global market, supporting earlier speculation that the company was considered a potential supplier for major international technology companies, including Apple, before US trade restrictions were imposed. As global competition in NAND flash memory intensifies, YMTC’s success suggests that the landscape of semiconductor manufacturing may be evolving more rapidly than anticipated, with implications for both market dynamics and international trade policies.

    The post YMTC memory chip innovation defies US sanctions with 294-gate breakthrough appeared first on TechWire Asia.

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    AI-powered frontline ops: Zebra Technologies’ vision for APAC https://techwireasia.com/2025/02/ai-powered-frontline-ops-zebra-technologies-vision-for-apac/ Tue, 04 Feb 2025 16:48:40 +0000 https://techwireasia.com/?p=239786 Zebra Technologies’ three-pillar strategy for AI-powered frontline operations revealed. Combines asset visibility, connected worker solutions, and intelligent automation in APAC. Gartner predicts 97% of organisations will deploy AI by 2027. Zebra Technologies wants to change how AI-powered frontline operations to reshape Asia Pacific’s business landscape in 2025, as Asian organisations face pressure to maximise efficiency. […]

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  • Zebra Technologies’ three-pillar strategy for AI-powered frontline operations revealed.
  • Combines asset visibility, connected worker solutions, and intelligent automation in APAC.
  • Gartner predicts 97% of organisations will deploy AI by 2027.
  • Zebra Technologies wants to change how AI-powered frontline operations to reshape Asia Pacific’s business landscape in 2025, as Asian organisations face pressure to maximise efficiency. The transformation comes at a important time – CISQ estimates that poor software quality cost US businesses alone $2.41 trillion in 2022, underscoring the urgent need for practical, purpose-driven technology solutions that deliver accurate results.

    “Elements of our three-pillar strategy have been around for quite some time, but what’s changing the frontline today is intelligent automation,” said Tom Bianculli, chief technology officer at Zebra Technologies, speaking to reporters at a briefing during Zebra’s 2025 Kickoff in Perth, Australia. “We’re not just digitising workflows – we’re connecting wearable technology with robotic workflows, enabling frontline workers to interact with automation in ways that were impossible just five years ago.”

    Changing retail with AI-powered frontline operation

    The transformation is already yielding results in real-world applications, according to Zebra Technologies. Bianculli highlighted a recent co-innovation with a major North American retailer: “You snap a picture of a shelf in one second, the traditional AI identifies all the products on the shelf, identifies where there’s missing product, maybe misplaced product. Then it makes that information available to a genAI agent that then decides what should you do.” What traditionally required multiple manual steps now happens automatically. “If it sees what’s missing and there’s back stock, it automatically generates a task for someone else, the right person, to fill that back stock,” Bianculli explained. He said the automation enables retailers to accomplish with three people what previously required four.

    APAC’s strategic transformation

    The APAC region is proving to be particularly receptive to these types of innovations. According to IBM research presented at the briefing, 54% of APAC enterprises now expect AI to deliver long-term innovation and revenue generation opportunities. The region’s 2025 AI investments reflect that optimism:

    • 21% of investment is focused on enhancing customer experiences
    • 18% is directed at business process automation
    • 16% is invested in sales automation and customer lifecycle management

    Ryan Goh, senior vice president and general manager of Asia Pacific at Zebra Technologies, showcased practical applications already in use: “We have customers in e-commerce using ring scanners to scan packages, significantly improving their productivity compared to traditional scanning methods,” he said.

    Technology at the edge

    Zebra’s approach to frontline operations focuses on:

    1. AI devices: Built with native neural architecture to support on-device AI models
    2. Multimodal experiences: Models that can see, hear, interpret, and speak just like a cognitive human being
    3. GenAI agents: Models that distribute workload between device and cloud for specific workflows

    “We are also working [running] some of these large language models actually down on the device,” Bianculli revealed, presenting solutions for environments where there is no internet connectivity. “If we can run the model down on the mobile computer, we can still enable those use cases in those environments.”

    Market-specific solutions

    The company’s regional strategy addresses distinct markets in the APAC’s diverse economic landscape. Ryan expressed optimism for the region’s key markets, particularly as now follows a period of market adjustment during which customers had previously overbought. Technology adoption is surging in India, for example, where GDP is projected to grow by 6.6%, with manufacturing showing 7% year-over-year growth. 96% of Indian organisations surveyed by WEF are running AI programs, the press were told, and the company’s focus is on enhancing operational efficiency through foundational technologies.

    “Tech – from barcodes and RFID, will enable sectors like logistics to overcome challenges and grow,” Goh explained, stating how basic automation can drive digital transformation.

    Japan presents unique opportunities, with a projected 1.2% GDP growth and 70% GDP derived from services. Transport and logistics and rising domestic and tourist retail activity are the primary growth-drivers. The country’s distinct challenge with labour shortages and an ageing workforce is accelerating automation adoption. This has led to unexpected applications of some of Zebra’s solutions, particularly in the tablet sector.

    “We used to think that tablets are for retail, but the Bay Area proved us wrong,” Goh said. “A lot of [tablets] are in manufacturing. We have also recently launched our new tablet portfolio. KC50 is a kiosk that enables retailers to move the task of scanning payment right to customers rather than having staff do it.” The shift exemplifies how market-specific challenges are driving innovative application of existing technologies. For example, in regional implementations, Goh said customers can unexpectedly optimise workflows. “We have a customer optimising workflow in their warehouse with RFID. That helped improve [and] optimise workflow, drive efficiency and reduce mistakes.”

    Future-ready operations

    According to Gartner’s projections, by 2027, 25% of CIOs will use augmented connected workforce (ACWF) initiatives to reduce training times by 50% for certain roles. This aligns with Zebra’s recent announcement of its Z Companion that uses generative AI and large language models. It’s set for pilot deployment with select customers in Q2 of this year. With approximately $5B in global sales, 120+ offices in 55 countries, and 10,000+ channel partners across 185 countries, Zebra is positioning itself in the middle of the region’s transformation.

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    Why is Microsoft trading steel for wood in its latest data centres? https://techwireasia.com/2024/11/why-is-microsoft-trading-steel-for-wood-in-its-latest-data-centres/ Tue, 05 Nov 2024 23:29:07 +0000 https://techwireasia.com/?p=239309 The first wooden data centres by Microsoft aim to reduce carbon emissions by up to 65%. The company is overhauling supplier contracts to require carbon-free electricity use by 2030. In northern Virginia, Microsoft is undertaking an unconventional experiment: building data centres with wood. The company uses cross-laminated timber (CLT), a specialised engineered wood product, in […]

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  • The first wooden data centres by Microsoft aim to reduce carbon emissions by up to 65%.
  • The company is overhauling supplier contracts to require carbon-free electricity use by 2030.
  • In northern Virginia, Microsoft is undertaking an unconventional experiment: building data centres with wood. The company uses cross-laminated timber (CLT), a specialised engineered wood product, in a hybrid construction approach alongside steel and concrete. 

    The method is projected to reduce the facilities’ carbon footprint by 35% compared to standard steel construction and 65% to typical precast concrete structures. The initiative marks a step in Microsoft’s journey to become carbon-negative by 2030.

    CLT, typically made from spruce, pine, or Douglas fir, offers unique advantages over traditional materials. It’s created by glueing together three to nine layers of timber stacked in alternate directions and pressing them into solid panels. 

    Unlike steel, which can deform under high temperatures, CLT develops a protective char layer that maintains structural integrity longer. The sustainably harvested CLT will replace substantial portions of the thick concrete traditionally used for flooring and ceilings.

    Microsoft rewriting the rules of data centre construction

    Microsoft is fundamentally transforming its construction practices in the new requirements. The company is implementing strict low-carbon specifications for materials and equipment in data centre construction. With this shift, Microsoft will require selected high-volume suppliers to use 100% carbon-free electricity by 2030, creating a a positive impact in its supply chain.

    Jim Hanna, who leads sustainability for Microsoft’s data centre engineering team, acknowledges the complexity: “We have to be system thinkers across the entire value chain of these materials that go into our data centres and the equipment that supplies [them]. That’s what makes it hard but certainly not impossible.”

    Investing in tomorrow’s building materials

    Microsoft is backing companies developing sustainable construction technologies through its $1 billion Climate Innovation Fund, which has already committed $761 million. The fund targets innovations that can achieve mainstream adoption by 2030, including:

    • Stegra’s green steel plant in Sweden, designed to reduce carbon emissions by up to 95%,
    • Boston Metal’s oxygen-generating steel production process,
    • Electric Hydrogen’s renewable electricity-powered hydrogen production,
    • CarbonCure’s carbon-capturing concrete,
    • Prometheus Materials’ microalgae-based zero-carbon cement.

    The challenge is substantial—according to the World Economic Forum, steel manufacturing contributes approximately 7% of global carbon emissions, while cement production accounts for about 8%. 

    Brandon Middaugh, manager of the Climate Innovation Fund program, emphasises Microsoft’s unique approach: “What’s not so common [sic] is to see an investor like Microsoft come to the table and say I want to both provide you with capital and also sign a contract to buy the output.”

    The company’s scale positions it as a catalyst for market transformation. “Microsoft is in a unique position just because they’re so large,” Thomas Hooker from Thornton Tomasetti, the structural engineering firm working on Microsoft’s Virginia data centres, said. “They can almost be […] a market mover and to some extent push some of these technologies to more widespread use.”

    While Microsoft has achieved a 6.3% reduction in direct emissions over three years due to data centre growth, indirect emissions have increased by 30.9%. This challenge underscores the importance of innovative construction methods and materials. 

    Richard Hage, Microsoft’s global strategy lead for data centre engineering, points to industry-wide momentum: “A lot of our suppliers are on the same journey as we are… implementing key initiatives to lower the embodied carbon of their materials and their products.”

    While innovative, the shift to wooden data centres represents just one step in addressing the complex challenge of data centre sustainability. While Microsoft’s supply chain reforms and material investments show promise, the company’s 30.9% increase in indirect emissions highlights the tension between digital infrastructure growth and environmental goals. 

    The success of these initiatives will ultimately depend not just on the technical viability of new materials but on Microsoft’s ability to scale these solutions across its rapidly expanding data centre network. As the tech industry grapples with its environmental impact, Microsoft’s experiment with wooden data centres could provide valuable insights into sustainable infrastructure development’s practical challenges and opportunities.

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    Build or buy your next tech solution? https://techwireasia.com/2024/11/build-or-buy-your-next-tech-solution/ Fri, 01 Nov 2024 12:17:23 +0000 https://techwireasia.com/?p=239267 Great sales people know that when it comes to deploying an enterprise software solution, the value lies not just in what it does, but in how it can dramatically reduce an organisation’s total cost of ownership (TCO) compared to building an in-house solution? The loyalty, promotions, and personalisation world is rapidly changing, and many organisations […]

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    Great sales people know that when it comes to deploying an enterprise software solution, the value lies not just in what it does, but in how it can dramatically reduce an organisation’s total cost of ownership (TCO) compared to building an in-house solution?

    The loyalty, promotions, and personalisation world is rapidly changing, and many organisations are contemplating how to best leverage exciting new technologies and opportunities that are arising in the space.

    Deciding whether to build or buy a solution is a common conundrum. From time-to-market to hidden costs and lack of support, what follows are eight reasons technology buyers should deploy a ready-made, fit-for-purpose solution over trying to build it themselves.

    The hidden costs of development time and resources

    One of the biggest misconceptions people have when it comes to building a solution in-house is that it will be cheaper. The prospect of saving on licensing costs is attractive to businesses and this is often reflected by technology decision-makers.

    However, going down the in-house route often means months – sometimes even years – of development time. As teams undertake a solution build, it’s not uncommon for companies to need to invest heavily to shore up their resources: hiring additional developers, training existing staff, and paying for costly software tools and development environments.

    The initial build is just the beginning. What follows are the ongoing costs of refining and updating the solution as new technologies and cybersecurity threats emerge. Off-the-shelf solutions come ready to go with the latest features and updates. By choosing an existing product, organisations can leverage the provider’s team of experts who live and breathe the solution.

    Maintenance and security: The overlooked giants

    Maintaining a homegrown solution is like trying to hit a moving target. It’s not just about keeping things running smoothly, it’s about adapting to a constantly-changing landscape of security threats and technological advancements. Companies often underestimate the sheer volume of work involved in keeping their solution up-to-date and secure.

    And it’s not just the work; it’s the specialised knowledge needed to understand and implement the latest security measures. Established and trusted solution providers will have this understanding already.

    For example, digital marketing platform Eagle Eye AIR invests 5% of its revenues in improving its platform’s cybersecurity every year. The investment delivers a return on security up to five times higher than the same investment made by an enterprise retailer running a single programme on its own homegrown solution.

    Opportunity costs and time to market

    The concept of opportunity cost is another conversation that comes up regularly among teams contemplating building their own tools. Building a solution in-house doesn’t just tie up financial resources – it also ties up the time and energy of skilled staff.

    Every hour that a team spends on development is an hour not spent on strategic initiatives that could be driving a business forward.

    Extended development cycles can be a big trap that cause organisations to miss crucial market opportunities. Technology moves quickly, and the market could potentially move on before the build is complete, blunting an organisation’s competitive edge.

    With an out-of-the-box product, organisations get a ready-to-deploy solution that gets them to market faster. That speed translates into immediate benefits, whether it’s staying ahead of competitors or responding to customer needs quickly.

    Indirect costs: The intangibles that add up

    When organisations build in-house, they are not just paying for development and maintenance. They are also absorbing the costs of project management, internal meetings, testing, and troubleshooting.

    There’s also the morale and productivity impact on teams. Nothing drains energy faster than long debugging sessions or development roadmaps that never seem to get shorter. It’s easy for teams to get bogged down in the minutiae of development, losing sight of their core competencies and what truly drives value for their customers.

    All indirect costs are minimised when choosing a turnkey solution. Robust, supported platforms allow teams to focus on what they do best – serving customers and growing the business. This not only saves money on development and maintenance; it also preserves team energy and creativity for the tasks that matter most.

    The value of expert support and continuous innovation

    The value of having access to expert support and continuous innovation can’t be overstated. When building a solution in house, it falls on the development team to handle every challenge. If something breaks or if there’s a need for a new feature, developers are on the hook to figure it out. This often leads to burnout and frustration, especially when resources are stretched thin.

    With a professional, prebuilt solution, support teams are there to assist whenever help is needed. Regular updates and new features will also mean the best tools are always available.

    Predictable costs and budgeting confidence

    One of the most appealing aspects of deploying a market-ready product is the predictability of costs. With an in-house solution, costs can spiral out of control quickly. Unforeseen challenges, feature creep, and the need for additional resources can blow budgets wide open.

    Starting with a seemingly reasonable development budget, only to arrive in a financial quagmire months down the line as costs blow out, is a precarious position for solution buyers to be in.

    Commercial products offer clear and predictable pricing structure. That not only makes budgeting easier but allows organisations to plan finances with confidence, knowing that the investment will yield a strong return without the risk of unexpected costs.

    Focus on core business objectives

    The most compelling reason to choose an off-the-shelf solution over building an in-house solution is that the former allows teams to focus on core business objectives. Every business has a unique mission, and time and resources are best spent pursuing that mission, not getting mired in building and maintaining complex solutions.

    Freeing up teams to focus on what they do best, whether that’s providing exceptional customer service, innovating new products, or expanding into new markets is often far more preferable for organisations than having teams locked up in long development cycles.

    The last 10% takes 90% of the time

    According to Melanie Mitchell, computer scientist and Professor of Complexity at the Santa Fe Institute argues that “the first 90 percent of a complex technology project takes 10 percent of the time and the last 10 percent takes 90 percent of the time.”

    Teams may have exceptional product owners, product managers, engineers, all of whom capable of building a bespoke solution for loyalty, promotions and personalisation. But having them do so may not be the best use of their time.

    However, building that sort of technology is the core focus of a dedicated solution provider. Finding an expert in all the aspects of Melanie Mitchell’s “last 10 percent” is a gamechanger.

    The smart choice for reducing TCO

    The decision to deploy a ready-made solution versus building an in-house solution can often pose challenges for technology decision makers, but the benefits of doing the former are clear.

    Considering all the factors – development time, maintenance, security, opportunity cost, indirect costs, and the ability to focus on core business objectives, choosing a packaged loyalty, promotions and personalisation solution is simple. A pre-built solution reduces total cost of ownership for an organisation and positions it for long-term success.

    When it comes to loyalty and personalisation suites, many customers make this choice with solutions like Eagle Eye AIR. The peace of mind, reduced costs, and the ability to stay agile and competitive are all powerful advantages that offer benefits.

    It’s not just about saving money; it’s about making a strategic investment in a business’s future.

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    MDEC Founders Center of Excellence (FOX) Unlocks Growth in Fuelling Malaysia’s Tech Leaders https://techwireasia.com/2024/10/mdec-founders-center-of-excellence-fox-unlocks-growth-in-fuelling-malaysias-tech-leaders/ Wed, 23 Oct 2024 08:51:47 +0000 https://techwireasia.com/?p=239196 In today’s ever-evolving tech industry, the demand for funding has never been more critical. As innovation advances and businesses expand, tech companies are constantly seeking substantial funding to stay competitive, drive growth, and explore new market opportunities. In Malaysia, the digital economy is expected to contribute over 25% to the GDP by 2025, driven by […]

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    In today’s ever-evolving tech industry, the demand for funding has never been more critical. As innovation advances and businesses expand, tech companies are constantly seeking substantial funding to stay competitive, drive growth, and explore new market opportunities.

    In Malaysia, the digital economy is expected to contribute over 25% to the GDP by 2025, driven by significant growth in sectors like fintech, healthtech, and digital marketing. With a strong desire to establish itself as a prominent digital economy in the region, Malaysian businesses are actively pursuing this growth trajectory.

    This growth is driven by the increasing adoption of digital technologies across various industries as businesses seek to leverage technology for greater scale and efficiency. As these sectors expand, the competition for resources, particularly financial funding, intensifies, making it imperative for tech companies to secure adequate capital to sustain their operations and scale effectively.

    To support the industry, the Malaysian government has implemented a range of initiatives and policies aimed at fostering digital transformation and encouraging tech companies to secure the necessary funding. Agencies like the Malaysia Digital Economy Corporation (MDEC) play a role in this ecosystem by providing platforms, grants, and programmes that connect tech startups with investors and strategic partners.

    These initiatives aim to not only to facilitate access to capital but also to create an environment where innovation can thrive, helping Malaysian tech companies to compete globally.

    MDEC’s Funding Initiatives in Action

    The Malaysian government has put in place a number of programmes and regulations to assist the sector, with the goal of promoting digital transformation and motivating tech companies to obtain the necessary funding. In this ecosystem, organisations like MDEC contribute through offering platforms, grants and initiatives that connect tech companies with investors and key partners.

    VC Power Hour hosted by MDEC on the sidelines of DEX Connex Thailand 2024, connecting Malaysia tech companies with VCs in Thailand.

    Through the Malaysia Digital (MD) national strategic initiative, MDEC is transforming the country’s digital landscape by providing strategic interventions to over 262 Malaysia tech companies who raised a total of USD 402 million with the help of MDEC’s Funding Facilitation programmes between 2020 and 2023.

    These key programmes, including VC Investor Matching Programme, Founders Grindstone, Alternative & Debt Funding, and Technology Grants & Incentives, provided the tools and opportunities for companies to secure the funding required to propel their expansion and innovation.

    MDEC organised Connect Capital: Scaleup Showcase in collaboration with Amazon Web Services (AWS) with the participation of investors Nordstar & Gobi Partners

    Transforming Fintech Through Strategic Investments with CapBay

    With the support of MDEC, CapBay‘s journey is a testament to its strategic vision and strong execution in the fintech sector. Working together with MDEC, CapBay has participated in various MDEC events including Automechanika 2024, SEMICON SEA Kuala Lumpur and DEX CONNEX Thailand & Philippines. This has allowed CapBay to showcase their innovations globally and it has provided an avenue to engage with international clients and partners. The company has successfully secured multiple investment rounds, attracting significant capital from both local and international investors.

    Memorandum of Understanding exchange between CapBay and AccRevo at the recent DEX Connex Thailand 2024

    Furthermore, the funds have been pivotal in enabling CapBay to develop its proprietary fintech platform, which specializes in supply chain financing and peer-to-peer (P2P) lending. With this capital, CapBay has not only expanded its range of services but also entered new markets across Southeast Asia, positioning itself as a leader in providing alternative financing solutions. Ang Xing Xian, CEO of CapBay shared, “CNBC and Statista have recognised us as one of The World’s Top 250 Fintech Companies for both 2023 and 2024, we are honoured to be listed alongside global leaders like PayPal, Stripe, and Tencent”.

    CapBay’s success has set a new standard for fintech startups in Malaysia. CapBay has addressed a critical need among SMEs by offering innovative, flexible financing options that are more accessible than traditional banking services. This success has not only strengthened the fintech ecosystem in Malaysia but has also encouraged other startups to explore alternative financial models.

    SafeTruck Leading Innovation in Transportation and Logistics

    Through various funding rounds, SafeTruck secured substantial capital, which it has strategically invested in advancing its AI and IoT tech, enhancing its fleet management solutions, and expanding its market presence across Southeast Asia.

    Post-funding, SafeTruck has made notable advancements in logistics technology, including the development of AI-driven analytics that offer predictive insights for fleet operators. These innovations have enabled SafeTruck to improve operational efficiency, safety, and sustainability in fleet management.

    Safetruck receiving the TrackScore certification from the Malaysian Institute of Road Safety Research (MIROS) at Automechanika Kuala Lumpur 2024

    By setting a new benchmark for integrating technology into fleet management, Safetruck has not only demonstrated the potential for innovation in a traditionally conservative industry but has also inspired other companies and startups to explore innovative solutions. “Our collaboration with MDEC through its FOX programme has extended our influence beyond a success model, we actively engage partners to develop comprehensive solutions addressing customer pain points, contributing to the growth and innovation of the entire ecosystem and setting new standards in fleet management.” said SafeTruck’s CEO, Wilson Yew.

    Involve Asia Driving Affiliate Marketing Success

    Involve Asia has emerged as a key player in the affiliate marketing landscape, leveraging strategic partnerships and cutting-edge technology to connect brands with publishers, influencers, and content creators across Southeast Asia. “Since the founding in 2014, we have supported industries such as e-commerce, travel, and finance, facilitating over USD 3.1 billion in sales through its platform.” said Jimmy How, CEO of Involve Asia.

    Involve.Asia receiving the Most Value Creation award at the Top In Tech Innovation Awards

    One of its key developments has been the introduction of Remix, a new division that addresses the growing demand for comprehensive marketing solutions beyond just affiliate models. This innovation allows brands to manage broader marketing efforts more efficiently.

    Additionally, Involve Asia has made strides in supporting small and medium-sized enterprises (SMEs) by developing tools that empower smaller businesses to manage their marketing independently, reducing their reliance on larger marketplaces. Jimmy also shared that tools like Productlink enable partners to create and track affiliate links, enhancing transparency and performance analysis for affiliates.

    Involve Asia’s innovations have not only transformed the affiliate marketing space but have also set new industry standards, including the introduction of Express Withdrawal, a groundbreaking feature allowing partners to withdraw their commissions within seven days. This bold step helped Involve Asia lead the market and inspire similar initiatives across the industry, reinforcing their role as a pioneer in affiliate marketing.

    Tapping into Investment Potential in Malaysia’s Tech Industry

    Securing funding remains a significant challenge for tech companies in Malaysia, as they navigate intense market competition and increasingly stringent investor expectations. These companies must demonstrate not only innovative potential but also a clear path to profitability, which can be tough in a fast-paced industry.

    MDEC’s FOX programme remains dedicated to supporting tech companies in Malaysia’s tech industry by providing access to capital, mentorship, and strategic networks. Through such initiatives, MDEC is helping to ensure that promising startups have the resources they need to succeed, ultimately driving the country’s digital economy forward.

    MDEC offers various programmes for Malaysia Digital status companies. Apply for Malaysia Digital status here.

     

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