Missionaries and mercenaries: Tech-for-good opportunities in Southeast Asia

In the face of unprecedented challenges, harnessing technology for social and environmental good has never been more important.

The question of how industry, government and talent could come together to build a sustainable, more inclusive world using technology was front and centre at London Tech Week 2021, the largest tech festival in Europe. This year, it saw more than 20,000 virtual and physical attendees over 300 events.

In a panel curated by the Singapore Economic Development Board (EDB), SGInnovate and the Singapore Global Network (SGN), representatives from tech companies at the forefront of driving change discussed the opportunities in Southeast Asia (SEA) for achieving both commercial success and doing good.

Moderated by Ms Jacqueline Poh, EDB’s new Managing Director and former founding Chief Executive of the Government Technology Agency of Singapore (GovTech), panellists delved into how companies can succeed in delivering the change they envision.

What defines a tech-for-good company?

According to the panel, a key defining factor of a tech-for-good company is its ability to solve real-world problems faced by communities.

Biotech firm Tropic Biosciences champions this ideal. The company’s CEO, Mr Gilad Gershon, shares that the company’s mission is to tackle the gap between food demand and supply − exacerbated by climate change and soaring food prices due to the effects of COVID-19 – through cutting-edge genetic breeding technologies. The UK-based scale-up develops crops such as disease-resistant bananas and higher-yielding rice to address food needs and support the livelihoods of those who depend on them for income.

Entrepreneur First (EF)’s Co-Founder Ms Alice Bentinck adds that being for-profit and desiring to do good can be synergistic.

She raises the example of Transcelestial, an EF-supported Singapore-founded startup which is working to deliver high-speed Internet through a laser network in space. Not only would Transcelestial help catalyse the adoption of 5G communications, which is gaining momentum in SEA, it will help connect remote communities to the rest of the world.
 

SEA: a region of opportunities to scale impact

Home to 667 million consumers and 39 unicorns, SEA is ripe for innovation opportunities for companies such as Wise (formerly TransferWise), whose faster growing market is Asia Pacific.

Mr Venkatesh Saha, Head, APAC Expansion & CEO, Wise Asia-Pacific Ltd, observes that  bringing remittance services to the region’s large, dispersed and emerging middle-class populations has not only contributed to the company’s growth, but has also uplifted the region’s mass of small-and-medium enterprises.

As Mr Saha notes, 70 per cent of businesses in Asia are global in nature, yet close to 45 per cent experience forex issues that impede their development.

“Wise plays a small part in improving a company's forex experience,” he says. “This helps them save money so they can reinvest in their businesses and hire more people.”

In addition to the allure of a large, ready market, Mr Gershon adds that the region also has “world-class” investors who are eager to partner innovative companies.

“We've been incredibly fortunate to work with fantastic investors like Singapore’s Temasek and Japan’s Sumitomo Corporation, and there's definitely an opportunity for European or UK startups to engage in great partnerships too,” he says. In 2020, Tropic Biosciences bagged US$28.5 million in a Series B round led by Singapore state investment firm, Temasek.

Key challenges to overcome

Of course, tapping opportunities in SEA is not a walk in the park. Mr Gershon cites market hyper-diversity and legal requirements as key challenges.

As Singapore houses 46 per cent of Regional Headquarters in Asia, naturally Tropic Biosciences works closely with clients based in Singapore, especially when it concerns research and legal matters. However, Tropic Biosciences also actively interacts with its clients’ operational teams in Vietnam or Philippines, and the company has learnt that it needed to adapt to and address vastly different business cultures in each country.

In addition, Mr Saha points out that adhering to legal and regulatory frameworks in each market is no mean feat given how SEA’s regulatory frameworks are far less integrated than that of Europe’s.

“A single license in Europe lets Wise passport our services across the entire continent and reach over 30 markets,” he says. “In contrast, SEA’s hyper-diversity means more time and effort is needed to understand each regulator and payment system before we can offer a compelling local solution.”

In a region full of opportunities but also significant challenges, how can startups continue to fulfil their commercial and social missions? Our panellists have three tips.

Tip 1: Proactively engage local governments

Whilst diversity in legal and regulatory frameworks do pose a challenge, startups can proactively engage governments to work around such obstacles.

When Wise had difficulties setting up its digital KYC system in Singapore, it reached out to the government for help. In response, GovTech partnered Wise to integrate MyInfo, the national database, to enable instant digital verification for new users, allowing for a seamless onboarding experience. Wise now uses this partnership as a best-practice example for other countries. In addition, Wise regularly participates in industry consultation sessions and panels to provide timely feedback to the Singapore government.

Tip 2: Kickstart your journey with a strong base in Singapore

A thriving startup scene and friendly business climate make Singapore a good base to kickstart a company’s expansion plans. As Ms Bentinck shares, these were two reasons why EF chose Singapore as its first overseas outpost.

“The fact that Singapore aggregates the best talent from across Southeast Asia made it an obvious choice for us,” she says. “The country has also worked very hard to make doing business there as simple as possible. We've been lucky to have amazing support from the government to ease our expansion and connect us to startup networks.”

Echoing Ms Bentinck’s views, Mr Gerson advises entrepreneurs to seriously consider Singapore as an entry point for expansion.

Tip 3: Be both missionary and mercenary

There’s a long-held assumption that companies are either missionaries or mercenaries.  However, a company needs to be both to remain sustainable. This starts with a robust business model for both profiting and doing good.

Ms Bentinck relates how EF started as a social enterprise and had no commercial business model for the first three years. Ultimately, becoming a venture capital firm and generating revenue enabled them to have a far-wider impact.

“For anyone looking to build a company that has tech-for-good at its heart, put your business model front and centre,” she advises. “That is how you scale and create a truly global impact.”

Found these insights useful? Watch the full panel recording here.