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.**
Events
U.K.
Join me at the Farnborough International Airshow 2024 (FIA24)!
Taking place from July 22-26, 2024, at the Farnborough International Exhibition & Conference Centre in Hampshire, UK, the biennial event is a global platform for the aerospace, aviation, and defense industries.
Drop me an email at HL@huilinglawoffice.com
Learn more about the event here.
Singapore
The 2nd ASEAN Battery & Electric Vehicle Technology Conference (ABTC) 2024, scheduled for August 21-23 in Singapore, is a collaborative effort by the Singapore Battery Consortium (SBC), National Center for Sustainable Transportation Technology (NCSTT), and Thailand Energy Storage Technology Association (TESTA). Aimed at fostering a dynamic ASEAN Battery & Electric Vehicle Technology Ecosystem, the conference targets mid-level professionals in manufacturing and production sectors.
Learn more about the event here.
Malaysia
Malaysia International Search and Rescue (MISAR) is organizing the 10th International Search & Rescue Conference & Exhibition under the theme "Global Resilience: Uniting Technology & Humanity for Safer Communities." The event is scheduled to take place from 9th to 11th September 2024.
Learn more about the event here.
Singapore
Science Centre Singapore, in collaboration with Kingsmen Exhibits, will host the Southeast Asian premiere of 'Space Explorers: The Infinite,' touted as the world's largest space exploration experience in extended reality (XR).
Produced by Felix & Paul Studios with Time Studios and NASA, the exhibit opens on October 12 and runs until March 24, 2025. It offers a multi-sensory journey 400 kilometers above Earth, allowing visitors to immerse themselves in life aboard the International Space Station (ISS).
Learn more about the exhibit here.
Summary
Financing & Investments: Construction Begins on Hobart Airport's International Upgrade Project; IMF Reaches $7 Billion Loan Deal with Pakistan to Stabilize Economy and Implement Reforms; Queenstown Airport Initiates $20 Million Safety Upgrade with EMAS Installation; SeaVantage Receives $2.3 Million Investment from HD Hyundai Marine Solution; and Goldman Sachs Plans $2 Billion Asia Pacific Private Equity Fund
Fintech: PEXX Raises $4.5M to Expand Stablecoin Payment Platform Across SEA; Haruko Secures $6M for Global Expansion; Partior Raises Over $60M in Series B for Global Blockchain Payment Solutions; and Paxos Secures MPI Licence for Stablecoin Issuance in Singapore
Aviation: CrowdStrike IT Outage Causes Over 1,000 Flight Cancellations Worldwide; SATS Signs MOU with SF Group for Global Supply Chain Collaboration; Panasonic Avionics Launches IFEC Software Development Hub in Pune, India; and ATSB Launches Interactive Wildlife Strike Database for Aviation Safety
Environmental Sustainability: Environmental Groups Warn 71 Airlines at Amsterdam's Schiphol Airport Against Greenwashing; Bionic Dolphin Skin Propeller Reduces Fuel Consumption on VLCC; China Airlines Partners with NCU and IAGOS for Cutting-Edge Climate Research; and German Freight Forwarder DB Schenker Joins Cathay Pacific's SAF Programme
Advanced Air Mobility: EHang Partners with KC Smart Mobility to Deploy EH216-S eVTOL in Hong Kong and Mainland China; and Google Wing Launches Drone Delivery Service in Melbourne's Eastern Suburbs
Marine: Asyad Group Eyes Ports in Southeast Asia, India, and Africa; IMO Launches Marine Plastic Litter Alliance; DP World and Zhejiang Seaport Group Forge Alliance to Enhance Port Logistics and Shipping Route; and Industry Facing Global Supply Chain Disruptions Amid Red Sea Crisis and Intra-Asia Shipping Challenges
Space: Sierra Space Expands Dream Chaser's Global Reach with Japan Partnership; and Hainan's New Commercial Space Launch Center Prepares for Inaugural Mission
Financing & Investments
Australia
Construction has commenced on an airfield upgrade at Hobart Airport, scheduled for completion by May 2025. The upgrade aims to enable the airport to handle long-distance freight and wide-body international flights, paving the way for direct flights to Asia and enhancing its role as Australia's Antarctic gateway.
💡The Australian Government has committed $60M towards the project, with Hobart Airport investing an additional $70M.
Pakistan
Pakistan has secured a staff-level agreement with the International Monetary Fund (IMF) for a new $7 billion loan deal aimed at stabilizing its economy and addressing debt challenges. The 37-month program focuses on fiscal and monetary policies, tax reforms, management of state-owned enterprises, competition enhancement, and social protection expansion.
💡The agreement, pending approval by the IMF's executive board, aims to build on recent macroeconomic stability achievements to reduce inflation, strengthen public finances, and promote private sector-led growth. Pakistan's government aims to increase tax collection and expand the taxpayer base as part of broader economic reforms.
Australia
Queenstown Airport is set to begin a significant safety improvement project with the installation of Engineered Materials Arresting System (EMAS) beds at each end of its main runway. The initiative, unique in Australasia, aims to enhance safety by providing a controlled stopping mechanism for aircraft that overrun the runway.
💡The project, costing more than $20 million, is part of the airport's approach to risk management and strategic investment outlined in its recent Master Plan. Scheduled for completion by the end of summer, the installation will not disrupt flight schedules or affect the types of aircraft that can land at the airport.
South Korea
SeaVantage, a fast-growing startup specializing in advanced maritime data analytics, has received a $2.3 million investment from HD Hyundai Marine Solution. The partnership aims to boost the development of AI-driven solutions for maritime logistics and promote sustainable shipping practices.
💡The investment marks a significant step for both companies in advancing maritime technology and enhancing service offerings for industry stakeholders.
Asia-Pacific
Goldman Sachs is reportedly aiming to raise $2 billion for its first Asia Pacific-focused private equity fund, according to Reuters. The initiative by Goldman Sachs Asset Management is part of a strategy to increase exposure to high-growth economies in the Asia Pacific region amid geopolitical tensions, rising interest rates, market volatility, and macroeconomic challenges.
💡The fundraising efforts have targeted sovereign wealth funds, pension funds, and private investors, with plans to achieve a first close by the fourth quarter of the year. Approximately half of the fund's capital is expected to be allocated to investment opportunities in Japan, with significant focuses also on India, South Korea, and Australia.
Fintech
Singapore
PEXX, a Singapore-based fintech startup, has secured $4.5 million in seed funding led by TNB Aura, with participation from Antler and strategic investment from EMO Capital. The funding will support PEXX in enhancing its stablecoin-to-fiat payment platform, expanding its engineering and product teams, boosting marketing efforts, and scaling business development across Southeast Asia.
💡PEXX enables users to transfer stablecoins like Tether (USDT) and Circle (USDC) directly to bank accounts globally, aiming to streamline international payments by eliminating intermediaries. EMO Capital’s support in Web3 marketing and strategic partnerships is expected to accelerate PEXX’s growth and user acquisition strategies.
Southeast Asia-Global
London-based Haruko, a digital asset investment management platform, has secured $6 million in a Series A funding round led by White Star Capital's Digital Asset Fund and MMC Ventures. The funding is aimed at expanding its operations into Southeast Asia and globally.
💡Established in 2021, Haruko has rapidly grown, serving over 50 investment management institutions with offices in London and Singapore. The platform targets hedge funds, family offices, market makers, and more. The investment will support further global expansion and team growth to enhance its digital asset management solutions.
Singapore
Partior, a Singapore-based fintech startup established in 2021 as a joint venture between JP Morgan, DBS Bank, and Temasek, has secured more than $60 million in its Series B funding round. The investment was led by Peak XV Partners, with participation from Valor Capital Group and Jump Trading Group, alongside existing backers JP Morgan, Standard Chartered, and Temasek.
💡Partior specializes in blockchain technology to facilitate real-time, cross-border, multi-currency clearing and settlement for financial institutions globally. The funding will support expanding currency support and enhancing platform capabilities.
Singapore
Paxos, a blockchain infrastructure platform based in New York, has secured a major payment institution (MPI) licence from the Monetary Authority of Singapore (MAS) to issue stablecoins and digital payment tokens in Singapore. This makes Singapore the third market where Paxos is licensed for stablecoin issuance, following the USA and the UAE.
The approval aligns with MAS's regulatory framework for stablecoins, ensuring compliance with capital requirements, redemption timelines, and user disclosures.
💡Paxos has chosen DBS Bank as its primary banking partner in Southeast Asia for cash management and custody of stablecoin reserves, aiming to enhance trust and security in stablecoin adoption globally.
Aviation
Global
On July 19th, over 1,000 flights worldwide were cancelled due to a widespread IT outage caused by cybersecurity software firm CrowdStrike. Several airlines including Akasa Air, IndiGo, SpiceJet, Cathay Pacific, Japan Airlines, Jetstar, and Virgin Australia experienced significant delays and flight cancellations
The issue, originating from an update that triggered a "bluescreen error" on Windows systems, affected airlines, banks, supermarkets, and media outlets globally. Despite the disruption, CrowdStrike clarified it was not a security incident or cyberattack, with Mac and Linux systems remaining unaffected.
💡The company promptly identified and resolved the issue, although lingering disruptions are expected as affected organizations work through passenger backlogs and system recovery.
Global
Singapore-based SATS has signed a memorandum of understanding (MOU) with SF Group to enhance their strategic collaboration and global supply chain optimization. The partnership, formalized at SF Group’s Shenzhen headquarters by Zhang Ji and SATS' Bob Chi, aims to leverage their expertise and affiliate companies like Worldwide Flight Services (WFS) and SF Airlines.
💡Initially focusing on expanding successful operations in Singapore and Liege, Belgium to hubs in Kuala Lumpur, Malaysia, and exploring eCommerce handling in Beijing and New York's JFK International Airport, the alliance aims to develop network solutions across SATS' extensive global presence of over 200 locations.
India
Panasonic Avionics has inaugurated a new software design and development facility in Pune, India, marking its first dedicated center in the country for in-flight engagement and connectivity (IFEC) solutions.
Initially employing over 200 engineers, the facility aims to expand its software engineering team to meet growing demand from airlines for personalized IFEC solutions. It supports Panasonic Avionics' strategy to enhance passenger digital engagement through innovative IFEC solutions, including the X Series entertainment system and various digital tools tailored for airlines.
💡The facility was established through a 'build-operate-transfer' model, with Panasonic Avionics making an undisclosed investment.
Australia
The Australian Transport Safety Bureau (ATSB) has launched the National Aviation Wildlife Strike Dashboard. The tool compiles detailed reports of wildlife strikes over the past decade, aiming to provide timely and comprehensive information to pilots, aerodrome operators, and regulators.
💡Wildlife strikes, including birdstrikes, account for a significant portion of aviation occurrences reported annually to the ATSB, posing safety risks and economic costs to the industry. Recent incidents underscore the ongoing hazards wildlife strikes present, despite most incidents being managed safely without injuries to passengers or crew.
Environmental Sustainability
Global
Environmental groups have sent a legal warning to 71 airlines operating at Amsterdam’s Schiphol airport, citing concerns over potential greenwashing practices following a significant court ruling against KLM earlier this year. The ruling found KLM guilty of making misleading claims about sustainability in its advertising campaigns, specifically regarding terms like ‘sustainable aviation fuels’, ‘offsetting’, and ‘net zero by 2050’. The groups, including ClientEarth, Fossielvrij, and Reclame Fossielvrij, argue that such claims are likely unlawful under the Unfair Commercial Practices Act.
The legal letter, dated July 18, highlights that airlines such as Lufthansa, Ryanair, Delta Air Lines, American Airlines, British Airways, EasyJet, Etihad Airways, Cathay Pacific, Qatar Airways, Singapore Airlines, and Turkish Airlines must avoid describing alternative fuels as ‘sustainable’ or suggesting that offsetting can fully compensate for the climate impact of flights. The environmental groups assert that these airlines, like KLM, should not exaggerate the environmental benefits of measures such as fleet renewal or operational improvements, which were found by the court to have only marginal effects on reducing CO2 emissions.
💡The warning also references ongoing European Union investigations into 20 airlines for potential greenwashing practices. The groups advocate for stricter regulations akin to bans on tobacco advertising to prevent deceptive climate claims in the aviation industry, which they argue undermines efforts to mitigate the sector’s substantial carbon footprint.
China
Researchers from the Ningbo Institute of Materials Technology and Engineering, in collaboration with COSCO SHIPPING Energy Transportation Co., Ltd., have developed a bionic dolphin skin propeller aimed at enhancing energy efficiency in marine transportation. Installed on a very large crude carrier (VLCC) docking at Quanzhou port, the bionic skin propeller saved 2% of fuel consumption during its three oil delivery trips.
Estimated to save over 300 tonnes of fuel annually, the technology provides economic benefits exceeding $140,000 and reduces carbon dioxide emissions by more than 900 tonnes per year.
💡Inspired by dolphins, the bionic skin minimizes water resistance through micro-structures and flexible materials, improving propeller efficiency, and supporting green transformations in global marine transport.
Taiwan
China Airlines, in collaboration with National Central University (NCU), the European Union's In-service Aircraft for a Global Observing System (IAGOS) team, and Japan Aerospace Exploration Agency (JAXA), is pioneering climate research through enhanced aircraft observation capabilities. Equipped with advanced optical and laser instruments for nitrogen oxides and carbon dioxide measurements, China Airlines' Pacific climate observation aircraft provide crucial data for international organizations like the World Meteorological Organization (WMO).
💡Since 2007, China Airlines has been involved in the NCU Pacific Greenhouse Gases Measurement (PGGM) project, expanding its scope to include atmospheric observations across the Pacific and Oceania regions. Recent additions to their fleet, including Boeing 777F freighters with turbulence detection algorithms, further support global aviation safety and climate resilience efforts.
Hong Kong-Germany
German freight forwarder DB Schenker has joined Cathay Pacific's sustainable aviation fuel (SAF) programme, committing to purchase 878 tonnes of SAF. The initiative, launched in 2022, aims to reduce carbon emissions from air cargo transport.
💡Cathay Pacific targets using SAF for 10% of its fuel by 2030 and has partnered with Singapore Airlines to promote SAF in the Asia Pacific region. Additionally, Cathay Pacific has ordered fuel-efficient Airbus A350F freighters to further enhance sustainability efforts.
Advanced Air Mobility
China
EHang announced on July 19 a partnership with KC Smart Mobility, a subsidiary of Kwoon Chung Bus Holdings Limited (KCBH), to deploy and operate EHang’s EH216-S pilotless electric vertical take-off and landing (eVTOL) in Hong Kong, Macau, and cities in Hubei Province, China. KC Smart Mobility plans to purchase 30 EH216-S units under the agreement.
KCBH, a major Hong Kong transportation company, operates passenger services between mainland China and Hong Kong and within Hong Kong, expanding into tourism sites like Lantau Island and Bipenggou Tourism Resort.
💡The partnership aims to support Hong Kong's low-altitude economy development, aligning with government strategies to leverage local research capabilities and international advantages for innovation.
Australia
Google Wing has expanded its drone delivery service to Melbourne, Australia, allowing residents in 26 suburbs to order goods from 20 shops at Eastland Shopping Centre via the DoorDash app. The service, originally launched in Australia in 2019, specializes in delivering packages weighing less than 1.5 kilograms, such as coffees and sandwiches.
💡Wing operates from rooftops of shopping malls and supermarket car parks, making over 100,000 deliveries annually in Queensland. The company aims to expand its network to facilitate deliveries between centers and standalone businesses in the future.
Marine
Global
Asyad Group, supported by Oman’s sovereign wealth fund, plans to expand its presence in the global shipping market by acquiring or managing ports in Southeast Asia, India, and Africa. According to Bloomberg, the company, with $4 billion in assets, is currently in talks to oversee a Malaysian port and expects to finalize deals in Africa and Asia next year. Asyad aims for majority stakes or full ownership in ports to align with its strategic goals.
💡Asyad’s shipping division, operating 91 vessels worldwide, intends to diversify revenue by reducing its contribution to overall earnings while boosting its logistics segment through growth initiatives.
Global
The International Maritime Organization (IMO) is initiating the Marine Plastic Litter Global Industry Alliance (GIA), inviting participation from shipping and fisheries sectors to collaborate on solutions for reducing ocean plastics. Managed under IMO's OceanLitter Programme, the alliance aims to overcome barriers to adopting technologies and alternative approaches.
💡Concurrently, Eyesea and Grundo have formed a partnership to utilize satellite image spectrometry for enhanced detection and tracking of marine plastic and hydrocarbon pollutants, furthering efforts in oceanic pollution mapping.
Dubai-China
DP World and China’s Zhejiang Seaport Group have entered a strategic cooperation aimed at boosting port logistics and shipping routes between Jebel Ali in Dubai and Ningbo-Zhoushan port in China. The partnership aims to enhance connectivity and operational efficiency by encouraging additional maritime services, slot exchanges, and vessel space purchases on the Dubai-Ningbo route. They will also collaborate on constructing low-carbon facilities, sharing information, and developing green terminals with initiatives like shore power and refueling options for LNG and green methanol.
💡Additionally, the agreement explores logistics investments in Jebel Ali Free Zone and Zhejiang Free Trade Zone, focusing on automobile logistics and promoting Dubai as a regional transit hub and China as a major automobile exporter.
Global
Maersk is contending with widespread disruptions caused by the Red Sea crisis, impacting its global network well beyond the Far East-Europe routes. Vessels are being rerouted around the Cape of Good Hope, creating unprecedented challenges across global supply chains. This crisis has led to port congestion in key Asia Pacific hubs like Singapore, Australia, and China, causing delays that affect trade routes spanning Far East Asia, West Central Asia, and Europe.
Looking ahead, Maersk anticipates these difficulties persisting into the third quarter, exacerbated by limited additional capacity and robust demand, particularly impacting Asia's export activities.
Simultaneously, a shortage of vessels for intra-Asia trades has driven a significant spike in freight rates, quadrupling compared to last year. The scarcity stems from smaller box ships being redeployed to more profitable long-haul routes, leaving intra-Asia routes underserved. South Korean feeder operators such as Sinokor and Namsung, traditionally focused on regional routes, are grappling with these challenges.
💡In response to high global freight rates, regional carriers are reallocating vessels to long-haul lanes to capitalize on lucrative opportunities. For instance, Taiwanese carrier TS Lines has redirected vessels to Asia-US West Coast services, reflecting broader industry adjustments to meet market demands.
Space
Japan
Sierra Space has announced a strategic partnership to explore Spaceport Oita in Kunisaki, Oita, Japan, as a potential landing site for its Dream Chaser spaceplane in Asia.
The initiative includes MUFG Bank, Ltd., and Tokio Marine & Nichido Fire Insurance Co., Ltd., joining Sierra Space, Oita Prefecture, Kanematsu Corporation, and Japan Airlines in conducting a comprehensive study on the utilization of the spaceport. The goal is to expand the global network of landing sites for Dream Chaser, a commercial spaceplane designed for efficient cargo transport with its unique ability to land on commercial runways.
💡Sierra Space aims to leverage these partnerships to explore new business opportunities across Japan and the broader Asia-Pacific region, advancing its vision of transforming space travel and fostering economic growth through accessible space infrastructure.
China
Yang Tianliang, chairman of the Hainan International Commercial Aerospace Launch Center in Wenchang, Hainan province, announced that China's first dedicated commercial space launch complex is set to conduct its inaugural mission around September or October. The launch marks a significant milestone for China's space ambitions, with preparations including the completion of two launch towers by June and December. Rehearsals with a Long March 12 rocket, capable of carrying up to 10 metric tons to low-Earth orbit or six tons to sun-synchronous orbit, will precede the debut flight.
💡 Yang emphasized plans for future operations, including accommodating privately developed rockets by 2025 and expanding mission readiness for subsequent years.
**Nothing in this article is intended to be or should be construed as legal or financial advice.**