Beyond Horizons
Trailblazing Tales from Asia
Your exclusive gateway to the latest developments across transportation and space, and most importantly, how to finance it all - debt, equity, and defi! We follow and forecast where the money’s at.
Join us as we navigate through the latest roundup to uncover key developments across the region.
**Nothing in this article is intended to be or should be construed as legal or financial advice.**
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Taufik Rachmat Nugraha, a Research Associate at the Centre for International Law–National University of Singapore, has released a report highlighting the risks of using Low Earth Orbit Satellite Mega Constellations (LEO-Sat MC) in maritime applications. The report also addresses legal challenges and offers recommendations for regulating LEO-Sat MC.
Access the report HERE.
Events
Indonesia
The inaugural Indonesia Aero Summit 2024 (IAS 2024) will take place in Jakarta on July 2-3, 2024. Hosted by the Indonesia National Air Carriers Association, IAS 2024 will address key issues, challenges, and opportunities in the Indonesian and ASEAN aviation sectors. The event will feature insightful speeches, panel discussions, and exhibition showcases.
As the largest and fastest-growing aviation market in ASEAN, Indonesia is projected to become the world's sixth-largest air transport market by 2034, with 390 million passengers.
Register your interest HERE.
Indonesia
The 8th Indo Aerospace 2024 Expo & Forum will be held on November 6-9, 2024, at Jakarta International Expo Kemayoran, Jakarta, Indonesia. Concurrently, the 10th Indo Defence 2024 Expo & Forum and the 7th Indo Marine 2024 Expo & Forum will take place, making this one of the largest events for aerospace, airport technology, commercial aviation, and aviation security in the region.
The expo facilitates professional connections with key government agencies, state-owned companies, airlines, MROs, associations, and partners, including the Directorate General of Civil Aviation, AIRNAV Indonesia, Indonesian National Police, PT Angkasa Pura I, PT Angkasa Pura II, and PT Dirgantara Indonesia. It offers a comprehensive platform featuring international forums, technical product presentations, live demonstrations, and business matchmaking.
Learn more HERE.
Malaysia
The Selangor Aviation Show 2024 (SAS 2024), dedicated to business and general aviation and helicopters, will take place from September 12-14, 2024, from 10 AM to 6 PM at SkyPark RAC Subang.
The event will serve as a regional networking platform for industry professionals, showcasing the future of the aviation and aerospace industry. Attendees can look forward to a variety of activities, including a static aircraft showcase, EDU Open Day, airshow and demo flights, forum and panel sessions, exhibitions, and networking and B2B meetings.
Learn more HERE.
Summary
Finance & Investments: Qantas and Perth Airport Reach Agreement, Paves Way for Multi-Billion Dollar Investment; Bengaluru Airport City Unveils Investment Plan for Business Park and Hotel; and Airport Authority Hong Kong Successfully Prices Debut Offshore Renminbi Bond Offering
Fintech: Aspire Secures Money Service Operator License in Hong Kong for Financial Expansion; XTransfer and TerraPay Partner to Streamline SME Cross-Border Payments; and B2C2 Expands Asia-Pacific Presence with Singapore Offering
Environmental Sustainability: MSCI Report Highlights APAC Utilities' Dual Path in Energy Transition; Singapore and Ghana Sign Carbon Credits Agreement; Collaboration Between Neste, Marubeni, and Resonac to Produce Renewable Olefins; China Takes Stride Towards Sustainability Disclosure with New Guidelines; and GPS Renewables and SAF One to Establish SAF Plant in India
Aviation: CALC Delivers Third ARJ21 Jet to TransNusa in RMB Settlement Transaction; Bonza Given Two-Month Extension to Find Buyer; Singapore Airlines Adapts Safety Protocols Following Turbulence Incident; and ACI Asia-Pacific & Middle East Unveils Air Connectivity Ranking 2023
Advanced Air Mobility: ACI APAC & MID Advocates for Enhanced Air Connectivity and AAM Integration; and Archer Aviation and KakaoMobility Forge Partnership to Introduce eVTOLs in Korea
Marine: Singapore Port Authority Addresses Vessel Waiting Times; Cyan Renewables Partners with DRS KWP to Support South Korea's Offshore Wind Industry; and Ocean Infinity and Cyan Renewables Collaborate for Offshore Wind Projects in Asia-Pacific
Space: Kyoto University and Sumitomo Forestry Develop World's First Wooden Satellite; China, Pakistan Launch PakSat MM1 Satellite; and KOTRA Expands K-Tech Camp Network Globally
Finance & Investments
Australia
Qantas and Perth Airport have reached a significant agreement, bringing an end to a prolonged commercial dispute. The 12-year deal will trigger a surge of investment, with Perth Airport committing approximately A$3 billion to construct new terminal facilities and a parallel runway, representing a transformative milestone in Perth's infrastructure development.
As part of the agreement, Qantas and Jetstar will transition all services to a new terminal in the Airport Central precinct. Qantas also plans to erect a new engineering hangar in the Airport Central precinct.
Terminal upgrades at Terminals 3 and 4 will generate additional capacity, enabling Qantas to extend its service offerings and destinations from Perth, including routes to Auckland and Johannesburg commencing mid-2025. Furthermore, enhancements to gates will accommodate ultra-long-haul aircraft, including Project Sunrise Airbus A350s.
💡The agreement also outlines the construction of a new parallel runway, slated to become operational by 2028, bolstering growth prospects for the resources sector and safeguarding the future of aviation in Western Australia.
Hong Kong
Airport Authority Hong Kong (AAHK) has announced the successful pricing of a CNY1.5 billion senior notes offering (the Notes) under its U.S.$8,000,000,000 Medium Term Note Programme in Regulation S format. The transaction marks AAHK's inaugural entry into the offshore Renminbi bond market, representing the first 10-year offshore Renminbi bond in the public bond market from a Hong Kong corporate issuer.
The Notes garnered strong interest from investors, including banks, asset managers, private banks, and securities firms, with a peak order book exceeding CNY12.3 billion at final price guidance, indicating a peak subscription rate of over 8 times.
AAHK achieved its targeted financing amount and intends to utilize the net proceeds for general corporate purposes, including capital injections in its investment projects, reaffirming its commitment to delivering a world-class airport experience and contributing to the growth of the regional and global aviation industry.
AAHK views this issuance as a means to diversify its funding channels and investor base, with the potential to stimulate the development of the offshore Renminbi bond market. The Notes are expected to be issued on 5 June 2024, subject to certain conditions precedent, and are anticipated to be listed on The Stock Exchange of Hong Kong Limited.
💡S&P is expected to rate the Notes as "AA+." The Joint Global Coordinators, Joint Bookrunners, and Joint Lead Managers include Bank of China, HSBC, and Standard Chartered Bank, with Bank of Communications, Crédit Agricole CIB, DBS Bank Ltd., ICBC, and UBS serving as Joint Bookrunners and Joint Lead Manager.
India
Bengaluru Airport City Limited (BACL), a subsidiary of Bangalore International Airport Limited (BIAL), has revealed plans for a two million square feet business park and a 775-room hotel near Kempegowda International Airport (KIA).
The biophilic-inspired business park will offer smart workspaces within a vibrant public realm, featuring an Urban Forest as its focal point. The upcoming metro station in Airport City will ensure convenient accessibility to the business park.
The hotel, expected to be one of the largest in India, is slated for the end of 2026.
💡The undisclosed investment plan also includes a concert arena, set to be the first-of-its-kind in an airport ecosystem in India, with a capacity to host 10,000 attendees.
Fintech
Hong Kong
Aspire, a finance platform based in Singapore, announced on Wednesday that it has obtained a money service operator (MSO) license from the Hong Kong Customs and Excise Department.
According to the company's statement, acquiring this operating license enables Aspire to expand strategically across Asia while ensuring strict compliance with regulatory requirements in each country of operation.
Aspire offers a comprehensive suite of financial solutions tailored to small and medium-sized enterprises (SMEs) in Hong Kong, including local business account management for payables and receivables, international payments, and payment gateway solutions. The integrated solution provided by Aspire aims to assist Hong Kong's rapidly growing SME sector by facilitating multi-currency cash management and domestic as well as cross-border money transfers.
💡Despite macroeconomic challenges, Hong Kong is witnessing a renewed focus on business digitalization, with 93 percent of local SMEs recognizing its importance for company growth.
Hong Kong
Hong Kong-based fintech company XTransfer has teamed up with UK's TerraPay to simplify payment solutions for small and medium-sized enterprises (SMEs) involved in global trade. The partnership aims to offer SMEs secure, compliant, fast, and cost-effective cross-border payment and fund collection options.
💡Through the collaboration, XTransfer will utilize TerraPay's global payments infrastructure to improve its services. This will enable XTransfer's clients to make local payments worldwide and settle transactions in local currencies across 136 countries and regions, including emerging markets such as Africa, Latin America, and Southeast Asia.
Singapore
London-based B2C2, a provider of institutional liquidity and credit for digital assets, is bolstering its footprint in the Asia-Pacific region with a new offering in Singapore. The expansion supplements the company's existing operations in Japan and other key financial hubs.
As part of its growth strategy, B2C2 intends to seek a Major Payment Institution license from the Monetary Authority of Singapore.
💡With the backing of the Japanese financial services group SBI, B2C2 delivers credit, deep liquidity, competitive pricing, and industry-leading settlement services to institutional clients.
Environmental Sustainability
Asia-Pacific
MSCI, the American finance company, released the APAC Climate Action Progress Report on May 28, shedding light on the energy landscape in the Asia-Pacific (APAC) region. The report reveals that APAC utilities have been expanding both renewable and coal-fired electricity generation capacity in recent years. However, there's a growing recognition that early retirement of coal-powered plants is essential for utilities to align with net-zero pathways.
Moreover, APAC corporations are playing a significant role in clean-tech innovation, with increasing disclosure of corporate value-chain emissions and climate targets. This uptrend in transparency and accountability signifies progress in climate action. However, the report notes disparities, with smaller companies trailing larger counterparts in emissions disclosure.
💡As investor pressures and regulatory mandates intensify, smaller firms are expected to face growing demand for emissions disclosures in the future.
Singapore
On May 27, 2024, Singapore and Ghana signed an Implementation Agreement to collaborate on carbon credits under Article 6 of the Paris Agreement. The agreement establishes a legally binding framework for generating and transferring carbon credits between the two nations, promoting sustainable development, job creation, and environmental benefits. It includes a provision requiring project developers to contribute 5% of proceeds to Ghana's climate adaptation efforts and cancel 2% of credits to aid global emission mitigation.
💡Under Singapore’s International Carbon Credit framework, eligible credits from this agreement can offset up to 5% of emissions for Singapore-based companies.
Japan
Neste has partnered with Marubeni Corporation and Resonac Corporation to facilitate the production of renewable olefins and derivatives. The collaboration will utilize Neste's renewable raw material, Neste RE™, at Resonac's Oita Complex in Japan, with Marubeni overseeing the logistical operations between Neste and Resonac.
💡Neste RE™ is a sustainable feedstock used in steam crackers, made entirely from renewable resources like waste and residue oils and fats. It serves as an alternative to conventional fossil naphtha, aiding in the reduction of greenhouse gas emissions within the chemical industry.
China
On May 27, the Ministry of Finance released the "Guidelines on Corporate Sustainability Disclosure - General Requirements (Exposure Draft)", marking a significant step towards establishing a comprehensive sustainability disclosure system in China. This document outlines the key elements of the General Requirements, comparing them with existing standards and guidelines, and discusses the potential implications.
💡An overview of the disclosure guidelines written by Peiyuan Guo, Chairman of SynTao Green Finance, can be accessed HERE.
India
Indian biofuels technology firm GPS Renewables has joined forces with SAF One, a Dubai-based sustainable aviation fuel producer, to create a new sustainable aviation fuel (SAF) plant in India. The plant aims to produce 20-30 million liters of low-carbon fuel annually using lignocellulosic waste and low-value agricultural by-products, under the ARYA project platform.
GPS Renewables, headquartered in Bengaluru, is known for producing compressed biogas from non-basmati paddy straw, a practice that mitigates air pollution from straw burning. The new venture supports India's goal of achieving net zero carbon emissions by 2070 and aligns with the government's plan to mandate SAF usage starting in 2027. A prominent player in India's biofuels industry,
GPS Renewables operates over 100 biogas plants, including the largest RNG plant in Asia, located in Indore. SAF One, founded in May 2023 by Novus Aviation Capital and Sencirc Holding, specializes in circular economy investments and renewable fuels.
💡The collaboration comes as India's leading airlines, IndiGo and Air India Group, are expanding their fleets, reflecting the country's efforts to establish major international transit hubs and solidify its position in the global aviation market.
Aviation
Indonesia
On the evening of May 31, China Aircraft Leasing Group (CALC) delivered the third domestically produced ARJ21 jet to TransNusa, an Indonesian airline, in Jakarta. This delivery marks the first cross-border RMB settlement transaction for a Chinese-made aircraft.
The aircraft was delivered through a leasing export arrangement, with CALC using RMB settlements for both purchase and leasing, coordinated by Chinese financial institutions domestically and abroad.
💡TransNusa, the first overseas user of the ARJ21, began commercial operations with the aircraft in April 2023. The ARJ21 has been operating stably in Indonesia for a year.
Australia
Administrators for the grounded budget airline Bonza have received a two-month extension to secure a buyer, according to news.com.au. This follows the sudden administration of the airline in April, which left over 300 employees stood down and disrupted travel plans for many passengers.
💡The Federal Court has extended the deadline for the sale to July 29, with a second creditors' meeting planned. James Hutton SC, representing the administrators from Hall Chadwick, remains hopeful that Bonza can be saved from liquidation.
Singapore
In response to the turbulence incident on May 20 involving a Boeing B-777/300ER aircraft (registration number 9V-SWM) on flight SQ321, Singapore Airlines has implemented new safety measures. These changes include modifying the rules concerning the use of seat belts on board and adjusting the route for the London-Singapore flight.
💡The airline has also issued a ban on serving hot drinks or meals when the seat belt sign is illuminated.
Asia-Pacific & Middle East
ACI Asia-Pacific & Middle East has introduced the Air Connectivity Ranking 2023, showcasing a varied recovery trajectory marked by notable enhancements despite geopolitical challenges.
Developed in collaboration with PwC, the index adopts a consumer-centric approach, taking into account consumer preferences and connection quality alongside flight frequency, seat capacity, and destination count. It has received endorsement from the ICAO DGCA Conferences of the Asia-Pacific and Middle East regions in October 2023 and May 2024, respectively.
The Middle East region, experiencing close to 4% growth in passenger traffic in 2023 compared to 2019, is making strides toward recovery, trailing just 5% below 2019 levels in air connectivity.
In the Asia-Pacific region, the latest ranking figures reveal significant progress in recovery connectivity, although still 13% below 2019 levels. This represents a notable improvement from the 36% decline observed in 2022, indicating a gradual but steady path toward recovery.
💡Covering a sample of 300 airports, representing nearly 93% of combined passenger traffic in the Asia-Pacific and Middle East regions, the ranking offers a comprehensive view of air connectivity trends
Advanced Air Mobility
Asia-Pacific & Middle East
At the ICAO Conference of Directors General of Civil Aviation, the Airports Council International Asia-Pacific & Middle East (ACI APAC & MID) presented two papers advocating for enhanced air connectivity and the seamless integration of Advanced Air Mobility (AAM) into existing aviation frameworks.
Highlighting the imminent commercialization of AAM, ACI APAC & MID stressed the critical importance of harmonized standards, certifications, and policy frameworks to govern this burgeoning sector. Emphasizing safety, security, and fair market access, they urged states to incorporate AAM considerations into airport master planning and engage in ongoing stakeholder dialogue.
In addition, ACI Asia-Pacific & Middle East called for the implementation of One-Stop Security to streamline airport security procedures and enable seamless transfers. They also recommended the adoption of innovative technologies to address security checkpoint challenges.
💡The conference was encouraged to leverage ACI Asia-Pacific & Middle East guidance documents to assist airports in mitigating climate change, including the Tendering Guideline for Climate Resilience Planning and Airport Solar Photovoltaic Implementation Guidance.
South Korea
Archer Aviation has forged a partnership with KakaoMobility, Korea’s leading Mobility as a Service (MaaS) platform, to jointly participate in the K-UAM Grand Challenge. The agreement entails KakaoMobility's planned acquisition of up to 50 of Archer’s Midnight eVTOL aircraft, valued at approximately $250 million, for use in Korea.
KakaoMobility intends to offer electric air taxi flights to its 30 million registered users through its Kakao T mobile app, starting as early as 2026, initially focusing on Seoul, one of the world's most congested cities. To support early commercialization efforts in Korea, KakaoMobility will provide Archer with $7 million in 2024, with an additional installment in Q1 2025. T
💡The consortium aims to demonstrate how eVTOL aircraft can revolutionize daily commutes in Korea, starting with the K-UAM Grand Challenge, and intends to build comprehensive infrastructure, including vertiports and air traffic management systems, to ensure safe and efficient operations. By focusing on electric air taxis, the consortium seeks to contribute to South Korea’s goals of reducing carbon emissions and promoting green technology, aiming for a more sustainable future.
Maritime
Singapore
The Maritime & Port Authority of Singapore (MPA) addressed concerns regarding vessels' extended waiting times for berths in the Port of Singapore on May 30. The increase in vessel arrivals, compounded by disruptions in global shipping routes due to the diversion of vessels around the Cape of Good Hope, has led to off-schedule arrivals and a "vessels bunching" effect.
Container volumes in Singapore surged by 8.8% in the first four months of 2024, resulting in longer wait times for container berths.
While most container vessels are berthed on arrival, port operator PSA has collaborated with liners to adjust arrival schedules. Additionally, PSA has increased manpower and container handling capacity, including reactivating older berths and yards at Keppel Terminal. Plans to commission three new berths later this year in Tuas Port will further augment port handling capacity.
💡MPA and PSA are closely coordinating with container lines to update them on berth availability and minimize delays. Despite these challenges, other vessels calling at Singapore experience no delayed berthing, with no crowding observed in the anchorages. MPA and PSA remain committed to optimizing port capabilities and capacity to minimize wait times for berths.
South Korea
Singapore-based Cyan Renewables has signed a Memorandum of Understanding (MOU) with DRS KWP, a subsidiary of Dae-Ryuk Shipping (DRS) Group, to bolster the offshore wind industry in South Korea.
The collaboration aims to target operations and maintenance (O&M) tenders within South Korea's offshore wind market. DRS KWP will focus on providing Crew Transfer Vessels (CTVs), while Cyan Renewables will supply Service Operations Vessels (SOVs).
💡The partnership is poised to address supply chain challenges, enhance local content, and foster the development of maritime talent in South Korea. It aligns with South Korea's ambition to increase offshore wind capacity to 14.3 GW by 2030.
Singapore
Ocean Infinity, a marine robotics company, and Cyan Renewables have signed a MOU to jointly offer offshore geophysical and geotechnical surveys, as well as remotely operated vehicle (ROV) inspections and consultancy services for offshore wind projects in the Asia-Pacific region.
Leveraging Cyan Renewables' extensive local networks across Asia, Ocean Infinity's technology-enabled lean-crewed marine data services will be deployed to support the growth of the offshore wind industry in the region.
💡The collaboration aims to deliver comprehensive marine information services tailored for offshore renewable projects.
Space
China
China's Chang'e-6 spacecraft has made a historic landing in the South Pole-Aitken Basin on the Moon, according to state news agency Xinhua, citing the China National Space Administration. This marks the first mission to collect samples from this scarcely explored region. The 53-day mission commenced on May 3rd.
💡Equipped with advanced drilling and robotic arm technologies, the spacecraft will gather soil and rock samples before embarking on an unprecedented launch from the Moon's far side.
China-Pakistan
China has successfully launched the PakSat MM1 communication satellite from the Xichang Satellite Launch Center in Southwest China's Sichuan Province, Global Times reports. The launch of PakSat MM1, executed via a Long March 3B carrier rocket, is anticipated to bolster communication security in Pakistan while also enhancing its aerospace technology and industrial capabilities.
The achievement aligns with China's broader foreign strategies, including the Belt and Road Initiative (BRI) and the China-Pakistan Economic Corridor (CPEC).
💡The MM1 project represents the third collaborative satellite endeavor between China Great Wall Industry Corporation (CGWIC) and Pakistan, following the successful launches of Paksat-1R and PRSS-1.
Japan
Kyoto University and Sumitomo Forestry announced last Tuesday the completion of LignoSat, the world's first wooden artificial satellite, Japan Times reports. According to ground tests, the magnolia wood used in LignoSat is deemed safe for astronauts and equipment.
The 10-cubic-centimeter probe, crafted using traditional Japanese techniques, will launch from the Kennedy Space Center in Florida to the International Space Station in September. Its deployment from the Japanese Experiment Module Kibo is scheduled for approximately one month later.
Development of LignoSat began in April 2020, with magnolia wood selected for its strength and workability following space exposure tests on cherry, birch, and magnolia wood chips. The wood was sourced from Sumitomo Forestry’s company forest.
💡Equipped with external solar panels, LignoSat aims to combat space clutter and promote environmentally friendly space activity. By burning up upon reentry, wooden satellites like LignoSat are expected to mitigate air pollution risks posed by conventional metal satellites.
South Korea-France
The Korea Trade-Investment Promotion Agency (KOTRA) has extended its K-Tech Camp initiative to Paris, France, with the establishment of the Paris K-Tech Camp on May 23. Originally launched in Silicon Valley, California, last December, the K-Tech Camp aims to support export-oriented tech companies from South Korea in their global expansion efforts. Services provided include startup space, consulting, partner discovery, and talent recruitment.
Following the Paris launch, KOTRA plans to inaugurate additional K-Tech Camps in Singapore (October) and Helsinki, Finland (November), with further expansions slated for Tokyo, Japan, and Dubai, the UAE, next year. By 2030, KOTRA envisions operating over 30 camps across major regions worldwide.
💡The K-Tech Camp offers flexible office arrangements, accommodating between 2 to 15 companies regularly and utilizing external shared offices during periods of heightened demand such as large-scale exhibitions and events.
**Nothing in this article is intended to be or should be construed as legal or financial advice.**