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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The State of the Climate in Asia 2023
According to the World Meteorological Organization (WMO), Asia experienced the highest number of weather, climate, and water-related disasters in 2023, with floods and storms causing the greatest number of deaths and financial losses. The effects of heatwaves were also increasingly severe, contributing to the region's vulnerability to natural hazards.
The State of the Climate in Asia 2023 report highlighted accelerating climate change indicators such as surface temperature rise, glacier retreat, and sea level rise. Asia's warming trend is outpacing the global average, with the annual mean near-surface temperature reaching record highs in various regions.
The report also emphasized the significant impact of hydro-meteorological hazards in Asia, with over 80% of recorded catastrophes attributed to storms and floods in 2023. Additionally, heatwaves resulted in fatalities due to heatstroke, with South-East Asia experiencing record-breaking temperatures. The intensification of tropical weather systems and erratic monsoon patterns further exacerbated the region's vulnerability to extreme weather events, including tropical cyclones and heavy rainfall-induced flooding.
To address the escalating disaster risks in Asia, there is a pressing need to enhance disaster risk reduction efforts and provide tailored support and services. While a significant percentage of Member countries in the region offer data services for disaster risk reduction, there is room for improvement in providing tailored products to support mitigation strategies effectively.
The "State of the Ocean Report 2024
he "State of the Ocean Report 2024," published by UNESCO and supported by Iceland, reveals concerning trends in oceanic health. Compiled by over 100 scientists from nearly 30 countries, the report outlines challenges such as accelerated ocean warming, rising sea levels, pollution, acidification, de-oxygenation, blue carbon loss, and biodiversity loss.
According to the report, the ocean is warming at twice the rate compared to 20 years ago, with 2023 being one of the hottest years since the 1950s. Despite efforts to limit global warming under the Paris Agreement, ocean temperatures have already risen by an average of 1.45°C, surpassing the 2°C target.
Additionally, global sea levels have risen by 9cm over the past 30 years, with the rate of increase doubling in this period. The ocean's absorption of 90% of excess atmospheric heat contributes to thermal expansion, which accounts for 40% of global sea level rise.
Finally, the report highlights the alarming decline in oxygen levels in coastal waters since the 1960s, resulting in over 500 "dead zones" devoid of marine life. Coastal species are also facing challenges due to dramatic acidity fluctuations, leading to mass die-offs of young marine organisms unable to adapt.
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
Aviation: China Set to Implement Export Controls for Aviation and Space Components; Riyadh Air and Singapore Airlines Forge Partnership Agreement; Air India-Vistara Merger Expected to Conclude by Year-End; Korean Air Anticipates US Approval for Asiana Airlines Merger; and Etihad Airways and China Eastern Airlines to Establish Joint Venture
Environmental Sustainability: Cathay and SIA Collaborate to Promote SAF Practices; Indonesia’s Pertamina Patra Niaga Issues Tender for SAF Fuel; China Issues Implementation Plan for Carbon Footprint Management System; ARJ21 and C919 Conduct Inaugural SAF Flights; IATA Projects Tripling of SAF Production Singapore; and CAAS Partners with IATA to Establish Global SAF Registry
Semi-Conductor Industry: Vanguard and NXP to Build Wafer Plant in Singapore
Fintech: Soft Space and Inflight Dublin Partner for Inflight Payment Solutions
Cryptocurrency: Bybit Withdraws VASP License Application in Hong Kong
Litigation: Singapore Judge Rejects BCP's Claims Against China Aviation Oil
Advanced Air Mobility: Indonesia to Test Flying Taxis for New Capital; CASA Releases Guide for Vertiport Design
Space: Japanese Consortium Invests $100 Million in AALTO HAPS; Nara Space Technology Completes Series B Funding Round Australia; and Australian Astronomers Discover Unusually Slow-Spinning Neutron Star
Aviation
China
China's Commerce Ministry announced export controls on specific aviation and space components starting July 1 to safeguard national security and interests. Items like aerospace structural components, engine manufacturing equipment, gas turbine engines, and materials for spacesuit parts will require an export license.
💡The Ministry of Commerce will assess whether the items have dual-use military applications before granting export licenses.
Singapore-Middle East
Riyadh Air and Singapore Airlines (SIA) have signed a Memorandum of Understanding (MOU) to explore opportunities for collaboration, including interline connectivity, codeshare arrangements, and reciprocal benefits for frequent flyer program members. The partnership aims to enhance customer experience and expand network access, with Riyadh Air providing routes to and from the Middle East and SIA offering connections to Southeast Asia and the Southwest Pacific region.
💡The agreement marks a step towards establishing a deeper, long-term strategic partnership between the two airlines.
India
Air India anticipates finalizing its merger with Vistara by year-end, pending legal clearance from India's National Company Law Tribunal. Campbell Wilson, CEO of Air India, expects imminent approval after securing green lights from competition regulators in India and abroad, as reported by FlightGlobal.
💡The merger, approved by Singaporean competition regulators in March, will see Singapore Airlines holding a 25.1% stake in Air India, with Tata Group owning the majority balance.
South Korea
Korean Air anticipates full approval from the US government by October's end for its merger with Asiana Airlines, nearly four years after the initial announcement, as reported by Bloomberg. Chairman Cho Won-tae stated that he doesn't foresee additional concessions beyond divesting Asiana's cargo unit and certain long-haul routes.
To address monopoly concerns, Korean Air is selling Asiana's cargo unit and select international routes to secure definitive approval from the European Commission (EC). The US is the final jurisdiction out of 14 to respond to the proposed merger.
💡Korean Air is also considering merging its subsidiary Jin Air with Asiana's Air Busan Co. and Air Seoul, potentially forming an entity with a combined fleet of 64 aircraft.
China-UAE
Etihad Airways and China Eastern Airlines have announced plans to establish a joint venture to develop routes between the UAE and China. The partnership aims to enhance travel options for passengers between major Chinese cities like Shanghai and Beijing, as well as destinations across the Middle East and Africa. Expected to launch in early 2025 pending regulatory approval, this venture marks the first collaboration of its kind between carriers from these regions, aiming to boost connectivity between two significant aviation markets.
💡The agreement follows initial discussions held last year and aims to coordinate schedule and network development.
Environmental Sustainability
Singapore
Cathay and Singapore Airlines have signed an MoU to collaborate on sustainability initiatives aimed at promoting the use of sustainable aviation fuel (SAF) in the Asia-Pacific region and enhancing overall sustainability practices in the airline industry. The agreement, signed during the IATA Annual General Meeting, focuses on advocating for SAF adoption, raising public awareness, and supporting policy development for SAF. Additionally, the airlines will exchange best practices to reduce single-use plastics, minimize waste, and improve energy efficiency in ground and cargo operations.
💡The partnership reflects both carriers' commitment to achieving net zero carbon emissions by 2050 and driving sustainability changes within the industry.
Indonesia
According to Reuters, Pertamina Patra Niaga, Indonesia's state-owned energy firm, has issued its first spot purchase tender for SAF. The tender is for either 150 kilolitres of neat SAF or 3,500 kilolitres of blended SAF, with delivery planned for the first week of August in Bali, Indonesia.
💡The tender closes on June 12, with validity up to June 17
China
China has introduced the "Implementation Plan for Establishing a Carbon Footprint Management System," a collaborative effort involving 15 governmental departments aimed at establishing a comprehensive carbon footprint management system by 2027.
Spearheaded by the Ministry of Ecology and Environment and the National Development and Reform Commission and led by the Climate Change Department, the plan prioritizes formulating robust standards and guidelines for calculating carbon footprints of Chinese products, alongside policy harmonization and stakeholder engagement.
💡By 2027, key milestones include developing national standards, formulating rules for product carbon footprint calculation, and establishing a foundational database for product carbon footprint factors. Looking towards 2030, efforts will escalate to broaden the system, encompassing around 200 key products and creating a comprehensive global database.
China
On June 5th, an ARJ21 regional jet and a C919 narrowbody airliner successfully completed their inaugural demonstration flights using SAF. The flights occurred in Shanghai and Dongying, said the Commercial Aircraft Corporation of China (COMAC) in a press release.
The fuel, derived from waste cooking oil processed at China's first bio-aviation fuel plant by Sinopec, received airworthiness approval from Chinese regulators in February.
💡Several Chinese airlines have already conducted commercial test flights with domestically produced SAF, per Chinese media.
Global
The International Air Transport Association (IATA) projects a tripling of SAF production in 2024 to 1.9 billion liters, accounting for 0.53% of aviation fuel needs. Around 140 renewable fuel projects could produce 51 million tonnes by 2030. However, diversifying feedstocks, co-processing, and incentivizing output mix and investments are crucial for accelerating SAF access, IATA said.
💡Policymakers need to facilitate consistent life-cycle assessments, shift production towards air transport needs, and provide stable, long-term tax credits to maximize SAF production, according to IATA.
Singapore
The Civil Aviation Authority of Singapore (CAAS) plans to collaborate with IATA to establish a globally recognized SAF registry. Expected to launch in the first quarter of 2025, the platform will track emission reductions from the use of SAF and align with international sustainability standards.
💡The initiative supports CAAS's Singapore Sustainable Air Hub Blueprint, which mandates the use of sustainable aviation fuel for flights departing Singapore starting in 2026.
Semi-Conductor Industry
Singapore
Taiwan Semiconductor Manufacturing Co.-backed Vanguard International Semiconductor Corporation and Dutch chip designer and manufacturer NXP Semiconductors have announced plans to jointly build a $7.8 billion wafer manufacturing plant in Singapore.
The joint venture, named VisionPower Semiconductor Manufacturing Company (VSMC), will be majority-owned by Vanguard with a 60% stake, while NXP will hold 40%. The plant aims to produce wafers for automotive, industrial, consumer, and mobile device markets, utilizing manufacturing technologies licensed from TSMC.
Construction is set to begin in the second half of 2024, with wafers expected to be shipped by 2027, creating around 1,500 jobs in Singapore. NXP plans to invest $1.6 billion, while Vanguard plans to invest $2.4 billion, with additional funding provided by both firms and third parties to support long-term capacity.
💡The move allows Vanguard to diversify its manufacturing operations following its acquisition of a less advanced wafer facility in Singapore in 2019.
Fintech
Malaysia- Republic of Ireland
Soft Space, a Malaysian fintech-as-a-service (FaaS) provider, and Inflight Dublin, a leading provider of inflight entertainment (IFE) solutions, have partnered to enhance the airline inflight experience. Under the agreement, Inflight Dublin will integrate Soft Space's inflight Point-of-Sale (POS) system, Fasspos, with its Everhub platform. The integration enables passengers to access a wide range of entertainment options and make inflight purchases directly from their own devices via in-seat ordering.
💡The collaboration aims to streamlines airline operations by consolidating payments into a single platform, facilitating connections to various acquiring banks and payment processors. This results in faster checkout rates and a smoother payment process, enhancing the overall passenger experience.
Cryptocurrency
Hong Kong
Bybit, a leading crypto exchange, has decided to withdraw its application for a Virtual Asset Services Providers (VASP) license with the Hong Kong Securities and Futures Commission (SFC). This decision will result in the temporary suspension of all products and services on Bybit's Hong Kong platform, effective June 1, 2024, except for customer withdrawals.
💡Customers are advised to withdraw their remaining funds following instructions provided by Bybit.
Litigation
Singapore
According to Global Trade Review, a Singapore judge has rejected Banque de Commerce et de Placements' (BCP) attempt to recover US$19 million from China Aviation Oil after a circular trading deal involving ZenRock collapsed. BCP, like many trade finance banks, sought to recoup losses from the collapse of commodity traders in Singapore in early 2020.
BCP issued a letter of credit (LC) to China Aviation Oil, expecting repayment when the cargo was sold to PetroChina. However, ZenRock did not inform BCP that the sale was cancelled, leading to the trader's collapse before repayment. BCP sued China Aviation Oil, alleging fraud, but the judge ruled in China Aviation Oil's favor, stating that ZenRock's fraud caused the loss. The judge found no liability on China Aviation Oil's part and rejected BCP's claims of deceit, misrepresentation, breach of contract, unjust enrichment, or unlawful conspiracy. The judge also dismissed BCP's argument for a fraud exemption.
Despite BCP's specialization in commodity trade finance, the judge determined that the transaction was genuine based on evidence of normal risk management procedures.
💡ZenRock's collapse has led to litigation from banks seeking to recover losses, with varying degrees of success. BCP joins other banks like Banque Cantonale de Genève and UniCredit in unsuccessful attempts to recover losses through litigation in Singapore.
Advanced Air Mobility
Indonesia
Indonesia is set to test its first flying taxis for the new capital, Nusantara, in July, with a potential showcase during Independence Day celebrations on August 17, as per media reports. The Nusantara Capital City (IKN) Authority said it had received vehicle parts in Balikpapan and batteries in Jakarta, soon to be shipped to Samarinda in East Kalimantan.
Trials will take place at Samarinda airport for a month following assembly and inspection of the parts. The flying taxis, known as Optionally Piloted Personal/Passenger Air Vehicles (OPPAVs), are manufactured by the Korea Aerospace Research Institute and Hyundai Motors Company. In 2022, a memorandum of understanding was signed between the IKN Authority and Hyundai to develop an advanced air mobility ecosystem in Indonesia.
💡Following the trial, Hyundai aims to create a business model for the flying taxis through its subsidiary, Supernal, specializing in urban air mobility. Additionally, Hyundai will focus on developing autonomous flight technology for the vehicles.
Australia
The Australian Civil Aviation Safety Authority (CASA) has released the "Guide to Vertiport Design" to aid in the planning and design of vertiports for vertical take-off and landing (VTOL) capable aircraft. This guide, developed to complement CASA's advisory circular AC 139.V-01, offers easy-to-understand explanations and examples. It targets individuals and organizations involved in vertiport design, construction, and operation, as well as planning authorities, aerodrome operators, and VTOL-capable aircraft operators and manufacturers.
💡CASA is encouraging feedback on the guide's clarity, logical structure, and usefulness.
Space
Japan
A consortium of Japanese companies, led by NTT DOCOMO and Space Compass, alongside Mizuho Bank and the Development Bank of Japan, plans to invest $100 million in AALTO HAPS Limited. Through their investment vehicle, HAPS JAPAN Corporation, they aim to commercialize connectivity and earth observation services using the Zephyr High Altitude Platform Station (HAPS) in Japan and Asia.
💡AALTO and Space Compass will also sign commercial agreements to deepen their engagement in Japan and Asia. Airbus Defence and Space will retain its majority shareholding in AALTO, with the investment subject to closing conditions and regulatory approvals.
South Korea
Nara Space Technology, a startup based in South Korea, recently closed a Series B funding round, securing $14.5 million. This brings their total funding to approximately $24.3 million, including previous rounds like pre-Series A and Series A. With the financial boost, Nara Space aims to further develop its 'Observer' Earth Observation satellite constellation and accelerate the progress of its methane-monitoring satellite project, known as the NarSha Project.
The funding saw participation from new investors like Samsung Securities, Shinhan Venture Investment, and JB Woori Capital, as well as increased investments from existing backers such as the Korea Development Bank and T-Investment.
Last November, Nara Space successfully launched Observer-1A, marking a significant milestone as the first South Korean startup to deploy a commercial 16U small Earth Observation satellite. Since its launch, Observer-1A has been actively engaged in capturing images of major cities worldwide and conducting regular observation missions in Low Earth Orbit (LEO).
💡The latest round of funding is expected to strengthen Nara Space's position in satellite technology and enhance its capabilities in satellite-based data analytics and monitoring services.
Australia
Astronomers in Australia have discovered a highly unusual neutron star, named ASKAP J1935+2148, spinning more slowly than any previously observed neutron star. The discovery, detailed in Nature Astronomy, challenges astrophysicists' predictions about neutron star behavior, as these stars typically spin rapidly due to extreme physics resulting from their high density.
ASKAP J1935+2148 was detected using the Australian Square Kilometre Array Pathfinder radio telescope and stands out due to its slow rotation, unlike the rapid spins typically associated with neutron stars. Discovered accidentally while astronomers were observing a gamma-ray burst in October 2022, ASKAP J1935+2148 exhibits three distinct emission states, including strong and weak pulses as well as a resting mode with no pulses.
The unique behavior challenges existing understanding of neutron stars and could prompt a re-evaluation of their characteristics and populations in the Milky Way galaxy. Further research into ASKAP J1935+2148 and similar objects will provide valuable insights into the extreme physics of neutron stars and white dwarfs, potentially reshaping our understanding of these cosmic phenomena.
💡Neutron stars form from the remnants of large stars that have undergone supernova explosions, with their cores collapsing to form incredibly dense objects about 20 kilometers across.
**Nothing in this article is intended to be or should be construed as legal or financial advice.**