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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Building Trust in Digital Channels: A Study of Banking and Finance in Asia
A new report by GBG and Chartis Research reveals that 80% of Asian financial institutions face significant challenges in digital fraud detection due to increasing complexity and frequency of fraud.
Key issues include a rise in scams, phishing attacks, and synthetic ID fraud. Institutions are struggling to balance security with customer experience, especially as digital adoption increases. Legacy systems contribute to high false positive rates and poor data quality, although 88% of organizations have consolidated platforms to improve fraud detection.
To address these challenges, banks are shifting focus from manual staffing to investing heavily in machine learning (ML) and artificial intelligence (AI), with a planned increase in ML and AI use from 16% in 2023-24 to 68% by 2025-26. This move aims to enhance fraud detection efficiency and reduce costs. GBG emphasizes the importance of proactive security measures and technological investment to combat evolving fraud threats.
Access the report here.
Events
Symposium on Non-CO2 Aviation Emissions
The upcoming Symposium on Non-CO2 Aviation Emissions will take place from September 16-18, 2024, at ICAO Headquarters in Montréal, Canada.
The event will serve as a platform to share the latest scientific research, explore innovative technologies, and discuss operational strategies and cleaner energy solutions to mitigate the environmental impact of non-CO2 emissions. It aims to raise awareness and create synergies among stakeholders, despite uncertainties in quantifying aviation’s non-CO2 climate impacts. Discussions will focus on scientific knowledge, ICAO's work, and future activities to address these effects, with opportunities for stakeholders to showcase their products and services.
Learn more about the event here.
The Central Asia Aviation Summit Series
The Central Asia Aviation Summit is being held on September 12, 2024, in Tashkent, Uzbekistan.
The Summit will bring together leaders from airlines, airports, leasing companies, financiers, aircraft manufacturers, and market experts to discuss the development of air transport in Central Asia and South Eurasia. Key topics include the region's role in global air transport, opportunities and challenges for growth, and advancements in technology and aviation.
Learn more about the event here.
Summary
Financing & Investments: India Ranks 5th in APAC for Cross-Border Real Estate Investments; Shanghai Pudong New Area Launches Innovation Loans to Boost High-Tech Startups; Korea Investment & Securities Manages $50 Million Global Bond Issuance for Vista Land; Mitsubishi UFJ to Invest $393 Million in Globe Fintech Innovations; and Temasek to Invest Up to $30 Billion in U.S. Sectors
Environmental Sustainability: Deutsche Bank Launches BASF’s First Sustainability-Linked Payables Finance Programme in Asia; Air New Zealand Withdraws from Science Based Targets Initiative; Lion Air Plans to Use SAF on All Flights by 2030; Zhuoyue New Energy Expands Globally to Counter EU Anti-Dumping Duties; IFM Investors, GrainCorp, and Ampol Collaborate to Explore SAF Production in Australia; Queensland Government Invests A$1.5 Million in SAF Development; and SATS Airport Services, SIA Engineering, and Changi Airport Group to Pilot Autonomous Buses at Changi Airport
Aviation: AAHK Forms Strategic Aviation Partnerships with Vietnam and Cambodia; Asian Airlines Avoid Iranian Airspace Amid Escalating Middle East Tensions; Singapore Airlines Partners with IBS Software to Advance IATA ONE Record Standards; and Australian Government Ready to Assist Regional Express Holdings Amid Financial Trouble
Advanced Air Mobility: AutoFlight and CATL Announce Strategic Partnership; Thales and Garuda Aerospace Forge Partnership to Advance India’s Drone Ecosystem; and EHang Partners with CAAC on AOC Review Process, Delivers First EH216-S eVTOLs to Taiyuan
Marine: COSCO Shipping and Fortescue to Develop Green Fuel Supply Chain; Seadronix Unveils Advanced AI Model and Benchmark Dataset for Marine Object Recognition; and HD Hyundai Marine Solution Secures Record $60 Million Maintenance Deal
Space: Singapore Rocket Startup Equatorial Space Secures $1.5 Million in Pre-Series A Funding; Astroscale Japan Achieves Major Milestone in Space Debris Management; and China's Chang'e 5 Mission Reveals Water Molecules in Lunar Rocks
Financing & Investments
India
A recent Knight Frank report, Asia-Pacific Horizon: Look Beyond the Norm, highlights that India holds the 5th position in cross-border real estate investments within the Asia-Pacific (APAC) region, capturing 9% of the total investment volume in the first half of 2024. The total cross-border investment in APAC reached $11.5 billion, with India attracting $3 billion from global private equity investors.
💡Investment Breakdown in Indian Real Estate:
Office Sector: 36% of global capital
Industrial Sector: 30%
Residential Sector: 15%
Retail Sector: 10%
Top 5 APAC Destinations for Cross-Border Capital:
Australia – 36%
Japan – 23%
Singapore – 11%
Greater China – 10%
India – 9%
China
Shanghai's Pudong New Area has introduced a new financial service mechanism, known as Innovation Loans, aimed at fostering high-tech startups by linking venture capital, banks, and businesses. The initiative will provide over CNY40 billion (USD5.5 billion) in credit to support local science and technology companies across key innovative sectors such as integrated circuits, biomedicine, and artificial intelligence.
Pudong Venture Capital Group, in collaboration with 10 banks, will facilitate financial backing for startups at various stages of development. The scheme's launch event saw the signing of strategic cooperation agreements between banks, companies, and ecosystem partners. Notably, participating banks have already issued more than CNY3 billion in loans to local startups, with CNY1.8 billion allocated since the start of the year.
The Industrial and Commercial Bank of China’s Shanghai branch will provide CNY10 billion in financing at an interest rate 85 basis points below the benchmark loan prime rate. The Bank of Communication’s Shanghai branch has approved all seven loan applications it received this year.
💡The Innovation Loan program is being praised for its streamlined application process, allowing tech startups to focus on research and development.
Asia
Korea Investment & Securities Co. announced that its Hong Kong subsidiary, KIS Asia, successfully managed the issuance of $50 million in global bonds for Vista Land & Lifescapes, Inc., the Philippines' largest real estate developer. The issuance, completed on July 30, involved dollar-denominated bonds with a 9.375% interest rate and a maturity of approximately five years.
KIS Asia, alongside HSBC and DBS Bank of Singapore, served as joint lead managers for this bond issuance. This follows Korea Investment & Securities’ earlier management of a $300 million bond issuance for Vista Land on July 22.
💡This marks the first time a Korean securities firm has managed global bond issuance for a Filipino company. Korea Investment & Securities plans to expand its investment banking operations through collaborations with its local subsidiaries in Hong Kong, Indonesia, Vietnam, Singapore, and beyond.
Japan-Philippines
Mitsubishi UFJ Financial Group's banking unit plans to invest $393 million in Globe Fintech Innovations, a mobile financial services provider in the Philippines. The investment aims to tap into the growing online financing market in Asia-Pacific and explore opportunities with Globe Fintech’s strategic partners, including Ayala Group.
💡The move follows Mitsubishi UFJ's June announcement of a similar investment in Thai digital financial services provider Ascend Money to expand its presence in Southeast Asia.
Singapore-USA
Singapore's Temasek plans to invest up to $30 billion in the U.S. over the next five years, focusing on healthcare, financial services, and technology, with a strong emphasis on AI-related fields like data centers, semiconductors, and battery storage. The move reflects a shift in Temasek's investment strategy, as its exposure to the Americas has surpassed China for the first time in a decade.
💡Temasek's head of North America, Jane Atherton, noted that U.S. investments are helping offset underperformance in China. The firm is also exploring opportunities in both public and private markets amid ongoing trade tensions and a cautious outlook on China.
Environmental Sustainability
China
Deutsche Bank has introduced BASF’s inaugural sustainability-linked payables finance programme in Asia, focusing on operations in China. The new programme aligns with global standards but is tailored to meet local market needs. It aims to enhance BASF’s business activities in China by transforming its existing payables finance into a sustainability-linked arrangement.
💡Suppliers are incentivized to adopt sustainable practices, with high-performing suppliers receiving lower interest rates based on ratings from EcoVadis.
New Zealand
Air New Zealand has announced it will withdraw from the Science Based Targets initiative (SBTi) and remove its 2030 carbon intensity reduction target. The airline cited challenges beyond its control, such as delays in fleet renewal, the availability and cost of alternative jet fuels, and regulatory support as reasons for this decision.
💡Despite this, Air New Zealand remains committed to its 2050 net zero carbon emissions goal and will continue efforts to transition away from fossil fuels and advocate for supportive regulatory frameworks.
Indonesia
Lion Air, Indonesia's budget carrier, aims to use sustainable aviation fuel (SAF) for all its flights by 2030 to reduce carbon emissions. President Daniel Putut Kuncoro emphasized the need for competitive SAF pricing and investments in eco-friendly aircraft to lower the airline's carbon footprint.
The Indonesian government is working on a national SAF policy, while domestic firms are increasing SAF availability. Pertamina Patra Niaga has issued a tender for SAF procurement, seeking 150 kilolitres of neat SAF or 3,500 kilolitres of blended SAF.
💡Indonesia, a major biofeedstock producer, continues to support SAF production, with Shell's acquisition of EcoOil further securing feedstock supplies.
China-Singapore
Zhuoyue New Energy, a leading Chinese biofuel producer, is expanding its operations to Saudi Arabia and Singapore to counteract impending anti-dumping duties imposed by the European Union.
The company plans to build a biofuel refinery in Saudi Arabia through a joint venture, with local partners holding a 70% stake. In Singapore, Zhuoyue will invest $20 million to boost its wholly-owned subsidiary, Excellence New Energy (Singapore), for a biodiesel project. The expansion follows a preliminary EU ruling imposing a 25.4% anti-dumping duty on Zhuoyue’s biodiesel products, effective August 16, with a final ruling expected in February.
💡Europe, a major market for Zhuoyue, constitutes about 90% of its biofuel exports, making these strategic moves crucial for mitigating potential financial impacts.
Australia
IFM Investors, GrainCorp, and Ampol have signed a MoU to investigate SAF production in Australia. The initial phase involves assessing the feasibility of a renewable fuels facility at Ampol's Lytton Refinery in Brisbane, with a focus on using locally sourced feedstocks like canola oil.
IFM Investors will leverage its investment capabilities to support the development of this emerging industry, which aims to create jobs and economic opportunities. GrainCorp will supply high-quality feedstocks, including canola oil, tallow, and used cooking oil, while Ampol will utilize its infrastructure and distribution network to support the renewable fuels ecosystem.
💡The partners emphasize Australia's advantages in feedstock supply, infrastructure, and technical expertise for building a competitive renewable fuels industry.
Australia
The Queensland government is investing A$1.5 million to advance SAF projects in the state. The funding will support two SAF proposals and a multi-seed crushing facility. Energreen will receive support for its A$22 million plant near Emerald, while Wagner Sustainable Fuels and Liquid Power will each get A$760,000 for SAF feasibility studies. The investment follows Jet Zero Australia's successful feasibility study, which attracted major partners like Qantas and Airbus.
💡Other SAF initiatives include Northern Oils' plant in Yarwun, and Ampol and ENEOS's feasibility studies in Brisbane. BP is also set to start SAF production at its Kwinana facility in 2026.
Singapore
SATS Airport Services, SIA Engineering Company, and Changi Airport Group have signed an MoU to initiate a proof of concept (POC) for autonomous buses to transport airport staff at Changi Airport. Funded in part by the Civil Aviation Authority of Singapore (CAAS)’s Aviation Development Fund (ADF), the two-year collaboration aims to support Singapore's Smart Nation vision by automating routine tasks and enhancing airside productivity.
💡The POC, starting in Q3 2024, will test the autonomous buses’ safety and operational performance in two phases: first in a controlled environment, then in live operations. The trial aims to improve efficiency and opportunities for job redesign and upskilling, though potential job impacts were not disclosed.
Aviation
Hong Kong-Vietnam-Cambodia
The Airport Authority Hong Kong (AAHK) has signed four MoUs with major aviation entities in Vietnam and Cambodia to enhance air travel connections in Southeast Asia and support the Belt and Road Initiative.
💡In Vietnam, AAHK's agreements with the Airports Corporation of Vietnam, Vietnam Airlines, and Sovico Group will focus on improving management practices, operational efficiency, and sustainability. In Cambodia, a MoU with Société Concessionnaire de l’Aéroport aims to strengthen operational links and service standards between Hong Kong International Airport and Cambodia.
Asia-Middle East
Singapore Airlines, Eva Air, and China Airlines have temporarily suspended flights over Iranian airspace due to heightened tensions in the Middle East. The airlines are rerouting their flights over Central Asia, avoiding Iranian territory. Singapore Airlines and its low-cost carrier, Scoot, have also adjusted their flight paths without canceling any flights. Thai Airways and Air India have similarly ceased flights over Iran, with Air India halting flights to and from Tel Aviv until August 8.
💡The disruption follows increased regional tensions, including recent threats from Iran.
Singapore
Singapore Airlines is collaborating with IBS Software to develop a shipment record solution aimed at digitally transforming air cargo operations and aligning with IATA's ONE Record standards. The partnership, along with Cargo Community Network (CCN), has completed the first phase of creating and sharing shipment records across airlines, cargo community systems, and ground handling agents on the ONE Record platform.
💡Presented during the IATA ONE Record roadshow in Singapore on July 23, 2024, the initiative leverages CCN's CUBEforall platform to improve data exchange and transparency by integrating legacy systems with ONE Record standards.
Australia
The Australian government is prepared to support Regional Express Holdings (Rex), which has halted ticket sales and is reportedly preparing to appoint Ernst & Young as administrators. Transport Minister Catherine King stated that while there are contingency plans to maintain rural air services, no bailout package has been promised.
💡The airline, which serves several rural areas, has suspended its ticket sales and entered a trading halt. With around 2,000 jobs at risk, Rex's financial difficulties come after the collapse of budget airline Bonza. The airline recently reported a smaller loss compared to the previous year and has accused Qantas of anti-competitive practices, which Qantas denies.
Advanced Air Mobility
China
On August 3, AutoFlight and CATL announced a strategic investment and cooperation agreement valued in the hundreds of millions of dollars, with the exact amount undisclosed. CATL’s investment will support AutoFlight in advancing eVTOL aviation batteries, focusing on improving energy density, performance, safety, and stability.
The collaboration aims to enhance eVTOL technology and accelerate the development of AutoFlight’s Prosperity passenger aircraft. Additionally, the partnership seeks to drive further R&D, commercialization, and market expansion in the eVTOL sector.
💡In a separate development, AutoFlight’s 2-ton eVTOL aircraft successfully completed its inaugural cross-Yangtze River flight on August 1. The aircraft, departing from the Nanjing UAV base in Pukou District, covered 25 kilometers in 10 minutes, flying over and circling the Yangtze River before returning to base.
The landmark flight is the first of its kind for an eVTOL over one ton.
India
Thales and Garuda Aerospace have signed a Memorandum of Understanding (MoU) to advance India's drone ecosystem. The collaboration aims to foster innovation and develop technological solutions for safe and secure drone operations, enhancing drone-based applications in India.
Thales, with expertise in Uncrewed Traffic Management (UTM) solutions, UAV detection, and system integration, will collaborate with Garuda Aerospace, a leading Indian UAV manufacturer established in 2015. Garuda Aerospace focuses on advanced drone solutions and operates a vast fleet across 400 districts.
💡The MoU, effective August 2024, seeks to transform India's drone landscape by leveraging the strengths of both companies in aerospace and UAV solutions.
China
EHang announced that the Civil Aviation Administration of China (CAAC) has officially received the Air Operator Certificate (AOC) applications from its wholly-owned subsidiary, Guangdong EHang General Aviation, and its joint venture, Hefei Heyi Aviation. This marks the start of the review process for their business licenses and operational qualifications for pilotless passenger-carrying aerial vehicles. A specialized review team has been established by the CAAC to advance the review process.
💡In a seperate development, EHang announced the delivery of the first batch of 10 EH216-S eVTOL aircraft to Taiyuan Xishan Ecological Tourism Investment Construction Co., Ltd. in Q2 2024. The debut passenger-carrying flights of the EH216-S took place in Taiyuan, Shanxi, on July 28.
EHang also showcased its VT-30, EH216-F, and EH216-L eVTOL models, highlighting its diverse product portfolio for the low-altitude economy. Xishan Tourism, which previously ordered 50 EH216-S units with plans for an additional 450 over two years, will use the first batch for local sightseeing and tourism services, aiming to create innovative "low-altitude tourism" projects in Shanxi Province.
Marine
China-Australia
China’s COSCO Shipping Corporation has signed a preliminary agreement with Australia’s Fortescue to build a green fuel supply chain aimed at reducing pollution in the shipping industry. The MoU outlines plans to explore the construction and use of green ammonia-fueled vessels for transporting iron ore and minerals along the China-Australia route. The initiative is part of a broader effort to decarbonize shipping operations and achieve net zero Scope 3 emissions by 2040.
💡Fortescue, known for its green technology and iron ore production, recently trialed ammonia as a shipping fuel in Singapore.
South Korea
Seadronix has unveiled the VaDA (Vertical and Detail Attention) AI model for marine object recognition, designed to handle challenging conditions like light reflections and adverse weather. The model provides precise segmentation and recognition of ships, terrain, and sea surfaces.
Alongside this, Seadronix introduced the OASIs (Ocean AI Segmentation Initiatives) benchmark dataset, setting a new standard for evaluating marine AI technologies.
💡 The company will present these innovations at upcoming international conferences, aiming to advance autonomous navigation and maritime safety.
South Korea
HD Hyundai Marine Solution has signed a Long Term Service Agreement worth $60 million with a European vessel company. The deal involves supplying parts, equipment, and dedicated engineers for 38 vessels until 2029.
💡The global aftermarket services market for vessels is valued at $10 billion. HD Hyundai Marine Solution aims to leverage this growth and reinforce its global leadership in maritime services.
Space
Singapore
Equatorial Space, a Singaporean rocket startup, has raised $1.5 million in pre-Series A funding led by Farquhar Venture Capital, with participation from Paspalis. The funds will be used to develop Dorado-sounding rockets and build a new static firing test facility in Hidden Valley, Northern Territory.
Founded in 2017 and backed by Techstars, Equatorial Space aims to start orbital launch services by 2026.
💡The company was the first in Southeast Asia to test launch a commercially developed rocket prototype in 2020.
Japan
Astroscale Japan, a subsidiary of Astroscale Holdings, has reached a significant technical milestone with its Active Debris Removal by Astroscale-Japan (ADRAS-J) mission.
ADRAS-J has successfully conducted controlled fly-around operations of a piece of space debris, specifically a Japanese rocket upper stage. The satellite maintained a fixed position approximately 50 meters from the debris, capturing detailed images from various angles and lighting conditions.
The mission marks the world's first attempt to safely approach and survey large, unprepared debris using Rendezvous and Proximity Operations (RPO). The ADRAS-J satellite has been analyzing the 11-meter-long, 4-meter-wide rocket body, gathering crucial data on its movement and structural condition. Despite encountering an unexpected attitude anomaly during the initial fly-around, the satellite demonstrated effective collision avoidance and successfully completed two subsequent observations.
💡The insights gained from this mission are expected to support future efforts to capture and remove space debris, contributing to long-term orbital sustainability.
China
Chinese scientists have discovered water molecules trapped in lunar rocks collected by the Chang'e 5 mission, challenging previous beliefs that the moon's surface is completely dry. The research, published in Nature Astronomy, found "hydrated molecules" in the samples, offering new evidence of water on the moon. This discovery contrasts with earlier findings from the U.S. Apollo missions, which showed no water.
💡The new insights suggest water can persist even in sunlit areas of the moon as hydrated salts, opening possibilities for future resource extraction and lunar base development.
**Nothing in this article is intended to be or should be construed as legal or financial advice.**