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.**
Call for Proposals
From May 14 to September 30, 2024, the Civil Aviation Authority of Singapore (CAAS) is inviting proposals under the Aviation Sustainability Programme (ASP). Companies, solution providers, Institutes of Higher Learning, and Research Institutes are encouraged to submit proposals aimed at decarbonizing Singapore's aviation sector. The ASP offers up to 70% funding for sector-wide projects and up to 50% funding for company-level projects.
💡For more information, click here.
Event
Join me at Asia Tech x Singapore from May 30 to 31, 2024. Organized by the Infocomm Media Development Authority of Singapore, this event will be held at Capella Singapore and features an invitation-only pAlenary conference covering topics such as Artificial Intelligence, Governance and Safety, Quantum Computing, Sustainability, and Computing.
💡For more information, click here.
Summary
Financing & Investments: Vertex Holdings Launches $64M Fund for Japanese Startups; Propelld's NBFC Arm Edgro Secures $25M Debt Funding for Education Financing Expansion; Khazanah, EPF, and ADIA Back Global Infrastructure Partners in RM12.3bn Bid for Malaysia Airports; SIA Group Anticipates Strengthened Market Presence through Air India-Vistara Merge; India's IPGL Signs Long-Term Contract with Iran's PMO for Chabahar Port Development; and Convergence Report: Blended Finance Reaches $15 Billion in 2023
Environmental Sustainability: Hexagon and Oceania Marine Explore Low-Emissions Ammonia Bunkering in Dampier; Marubeni Corporation and InvestSarawak Partner for SAF Feasibility Study; CAAS Collaborates with Airport Stakeholders for Renewable Diesel Trials at Changi Airport; and Australia Introduces Hydrogen Production Tax Incentive for Green Hydrogen Developers
Maintenance, Overhaul & Repair: SIA Engineering Company to Partner with Air India for Bangalore Facility Expansion
Aerospace: COMAC Begins Drafting Plans for New Widebody Jet 'C939', Reports SCMP; AVIC's AG600 Completes High-Risk Flight Tests, Nearing Certification; and Artemis Aerospace Expands to Singapore, Enhancing Global Service Reach
Technical Assistance: Singapore Airlines Launches Foundation to Support Aviation and Youth Development; and Asian Development Bank Receives $5 Billion Replenishment for Development Funds
Automotive: Tesla Shifts Strategy in China for Self-Driving Development, Shanghai Whitelists Data; and Baidu Unveils Cost-Effective Robotaxi, Targets Mass Deployment in Wuhan
Marine: Hyundai Heavy Industries Plans Offshore Wind Power Base in the Philippines
Space: SpaceX Launches Starlink in Indonesia; and Singapore Releases Guidelines for Space Activities, Promoting Sustainability
Finance & Investments
Japan
Singapore-based Vertex Holdings, a subsidiary of Temasek Holdings, announced the launch of its 10-billion-yen ($64 million) debut fund, anchored by Singapore-based Vertex Holdings. The fund, part of the Vertex family operating globally, including in China, Israel, Southeast Asia, India, and the US, will focus on investing in early-stage, high-growth Japanese startups. Led by managing partner Takashi Tomita and general partner Tomohiro Miyasaka, the fund aims to leverage Vertex's venture capital network.
💡Vertex Holdings also announced a partnership with the University of Tokyo and UTokyo Innovation Platform Co to foster human resource development, research, and startup ecosystems in Japan and Singapore, with backing from Japan's Ministry of Economy, Trade, and Industry.
India
Propelld, an education-focused fintech startup, has secured $25 million in debt funding for its wholly-owned NBFC subsidiary, Edgro. Edgro received the funding from nine lenders, including Credit Saison India Private Limited, AU Small Finance Bank, InCred Financial Services Limited, and Northern Arc Capital Limited. The funds will be used to expand its reach and offerings. Founded in 2019, Propelld offers education loan financing solutions through Study Now and Pay Later products, as well as Income Sharing Agreements (ISA) via its NBFC arm. The company also provides collateral-free education financing, focusing on tier II and III cities where students often struggle to secure financing from traditional lenders.
💡Although Edgro commenced operations in July 2023, Propelld has already raised nearly $40 million from investors such as WestBridge Capital, Stellaris Venture Partners, and India Quotient. Its most recent funding round, totaling $35 million, occurred in February 2022.
Malaysia
Malaysia’s sovereign wealth funds Khazanah subsidiary UEM Group, and Employees Provident Fund (EPF), in addition to Abu Dhabi Investment Authority (ADIA), are backing Global Infrastructure Partners (GIP) in its endeavor to acquire Malaysia Airports Holdings Berhad (MAHB) for approximately RM12.3bn (€2.4bn). Announced on May 15, the consortium, named the Gateway Development Alliance, is offering RM11.00 per share to purchase all outstanding shares in MAHB not already under their ownership.
💡After the completion of the acquisition, Khazanah’s stake in MAHB will increase to 40% from 33.2%, while EPF's will climb from 7.9% to 30%. Malaysian investors as a whole will possess 70% of the company, with ADIA and GIP holding the remaining 30%.
Singapore
On May 15, the Singapore Airlines Group announced that the proposed merger between Air India and Vistara, pending foreign direct investment and other approvals, will strengthen its multi-hub strategy and sustain its involvement in India's rapidly expanding aviation market. Despite a 24% surge in net profit to 2,675 million Singapore dollars for FY 2023-24, driven by strong air travel demand and record passenger revenue and load factors, regulatory approvals are still pending for the Air India-Vistara merger.
💡Once approved, Singapore Airlines will acquire a 25.1% stake in an enlarged Air India Group, encompassing various segments of the Indian airline market.
India-Iran
On May 13, Indian Ports Global Limited (IPGL) and Iran's Port & Maritime Organization (PMO) signed a Long-Term Bilateral Contract for the operation of Shahid-Behesti port within the Chabahar Port Development Project. IPGL will invest USD 120 million in port equipment during the 10-year lease. Additionally, India has offered USD 250 million in credit for Chabahar-related infrastructure projects.
💡The Chabahar Port is expected to become a vital transit hub for trade with Afghanistan and Central Asian countries. However, the US has warned against business agreements with Iran that may lead to sanctions.
Global
On April 30, 2024, Convergence, the global blended finance network, released its 8th State of Blended Finance report,providing insights into blended finance activities in emerging markets and developing economies (EMDEs). The report covers various sectors such as agriculture, energy, financial services, health, education, and infrastructure.
After a 10-year low in 2022, blended finance volumes rebounded in 2023, reaching a 5-year high of $15 billion. Key observations include an increase in deals over $100 million, a rise in blended finance transactions over the last decade, and a notable surge in climate blended financing, totaling $11.6 billion in 2023.
Convergence CEO Joan Larrea emphasized the mainstreaming of blended finance as a tool to close the Sustainable Development Goals' financing gap. The report also addresses regulatory challenges faced by large-scale investors and examines data transparency in blended finance.
💡Drawing from Convergence's Historical Deals Database, which comprises 1,123 transactions totaling $213 billion, the report provides comprehensive insights into blended finance activities.
Environmental Sustainability
Australia
Hexagon Energy Materials and Oceania Marine Energy are collaborating to explore the feasibility of a low-emissions ammonia bunkering business in Dampier, Western Australia. Under an MoU announced May 13, the two sides aim to finalize market assessment, business modeling, and preliminary offtake agreements by Q4 2024.
💡The initiative is part of Hexagon's WAH2 project, targeting the supply of low-emissions ammonia to Asia Pacific's decarbonizing economies by late 2028.
Malaysia
On May 15, Marubeni Corporation, a trading and investment conglomerate, signed an MOU with InvestSarawak, a Malaysian state government agency, to conduct a feasibility study (PoC) on producing and selling sustainable aviation fuel (SAF) using biomass resources in Sarawak, Malaysia. Both parties aim to establish a commercial-scale SAF value chain for local consumption or export by 2030.
💡Under the terms of the MoU, both sides will focus on investigating biomass feedstock availability, technology pathways, market demand, expenditure requirements, suitable project sites, and opportunities for government subsidies and incentives in Malaysia and globally.
Singapore
The Civil Aviation Authority of Singapore (CAAS) is collaborating with airport stakeholders to trial renewable diesel in heavy and specialized airside vehicles at Changi Airport. The initiative is part of CAAS's broader effort to decarbonize Singapore's aviation sector. The one-year trials will assess the performance of renewable diesel compared to conventional fossil diesel, including maintenance requirements. Key participants include Changi Airport Group, dnata, SATS, and SIA Engineering Company.
💡The trials, supported by CAAS funding through the Aviation Sustainability Programme, aim to establish supply chains and procurement processes for renewable diesel, helping offset its higher cost and informing future adoption decisions.
Australia
The Australian government has announced a new Hydrogen Production Tax Incentive (HTPI) that will pay developers A$2 (US$1.32) per kilogram of green hydrogen over a ten-year period starting in 2027.
💡According to the Australian Taxation Office (ATO), the HTPI will be available for up to ten years per project between July 1, 2027, and June 30, 2040, for projects that reach a final investment decision by 2030.
Maintenance, Overhaul & Repair
India
Air India has appointed SIA Engineering Company (SIAEC) as its base maintenance strategic partner for the expansion of its facilities in Bangalore, India. Under the partnership, SIAEC will collaborate with Air India on the planning, construction, and operationalization of the Base Maintenance facilities, expected to be completed by 2026.
💡The facilities will include widebody and narrowbody hangars, along with repair shops, to cater to the increasing Maintenance, Repair, and Overhaul (MRO) demands of Air India Group's aircraft fleet.
Aerospace
China
Hong Kong media outlet, the South China Morning Post (SCMP), reports that the Commercial Aircraft Corporation of China (COMAC) has initiated the drafting of plans for a new widebody jet named "C939."
💡According to SCMP, the C939 is not a rebranding of the current C929 program, but rather a completely new airframe intended to meet the needs of the rapidly expanding Chinese aviation market.
China
AVIC's AG600 large amphibious aircraft recently completed multiple high-risk flight tests, paving the way for Type Inspection Authorization (TIA) and certification flight tests. On May 13, the AG600 concluded its final flight for compliance testing on in-flight airspeed calibration and standard stall speed at a civil aircraft test flight base in Pucheng, located in northwest China's Shaanxi Province. Previously, the AG600 conducted its inaugural night test flight to evaluate its lighting system for safe nighttime operations.
💡Developed to bolster emergency rescue capabilities, the AG600 family is tailored for firefighting, maritime search and rescue, and operations across diverse terrains in China.
Singapore
Global aviation component solutions specialist Artemis Aerospace is expanding its presence with a new hub in Singapore, following the successful launch of similar sites in the US earlier this year. Announced last month, the new facility adds to their existing locations in Miami, FL, and Los Angeles, CA, improving order processing and deliveries for customers in these regions and enhancing global service efficiency.
💡According to Artemis’ co-founder and managing director, Jim Scott, the local hub will streamline services for customers in Southeast Asia, ensuring faster and more efficient delivery times.
Technical Assistance
Singapore
The Singapore Airlines (SIA) Group announced the launch of the Singapore Airlines Foundation on May 17, aiming to support individuals and communities in need within Singapore while advancing the country’s aviation sector. With an initial endowment of S$30 million from SIA, the foundation will offer two programs: the Youth Uplift Programme, providing financial aid and industry exposure to students from disadvantaged backgrounds, and the Youth Outreach Programme, offering hands-on aviation experiences to upper secondary and junior college students during school holidays.
💡Applications for the Youth Uplift Programme are expected to open in July 2024.
Global
During the 57th Annual Meeting, donors and the Asian Development Bank (ADB) agreed to replenish the Asian Development Fund (ADF) 14 and the Technical Assistance Special Fund (TASF) 8 with $5 billion. More than $2.5 billion will come from donor contributions, including new donors from Armenia and Georgia. ADB will increase its net income transfers to nearly $1.6 billion and provide $16.7 billion in concessional loans during the ADF 14 period, allowing over $8 in grants and loans for every $1 in donor contributions.
💡The funds will aid small island developing states, fragile and conflict-affected countries, and support climate change adaptation, disaster risk reduction, regional cooperation, and gender action.
Automotive
China
Reuters reports that Tesla is advancing plans to utilize data from China for developing its self-driving system, processing it within the country. This strategic shift, led by Elon Musk, includes establishing a data center in China to train algorithms for fully autonomous vehicles, according to two anonymous sources familiar with the project. Previously, Tesla sought approval from Chinese regulators to transfer data generated by its electric vehicles in China to other countries for its "Full Self Driving" (FSD) system, according to the same sources and another person with knowledge of the matter.
In separate news, Shanghai has compiled a list of data that can be transferred overseas without security assessments. Under a one-year pilot project, companies registered in the city's free-trade Lingang Area, where Tesla's Shanghai factory is located, may transfer data on the list overseas without needing further security assessments. The document, shared at an event announcing the whitelist, outlines broader plans for Lingang to become a hub for cross-border data and specifies scenarios for each of the three sectors classified as "ordinary data. “from China for developing its self-driving system, processing it within the country. This includes establishing a data center in China to train algorithms for fully autonomous vehicles, according to two anonymous sources familiar with the project.
💡Foreign companies, including financial institutions and automakers such as Tesla, have been lobbying Chinese authorities to allow cross-border information sharing. This comes in response to Beijing's increased control over domestic data as part of its national security efforts.
China
Baidu has unveiled its sixth-generation, developed in collaboration with Jiangling Motors Group, at a cost less than half that of its predecessor. Priced at 200,000 yuan ($27,702) each, down over 50%, the new model offers enhanced passenger convenience with front seating and sliding rear doors.
Wuhan plans to deploy 1,000 RT 6 robotaxis by year-end, targeting its population of over 13 million. With advanced autonomy, eliminating the need for onboard safety monitors, Baidu aims to reduce operational expenses and achieve profitability for Wuhan's business by 2025.
Baidu's robotaxi service operates in over 10 cities, providing over 6 million rides. The company plans rapid expansion, able to replicate Wuhan's model in other cities within six months.
💡In separate news, Shanghai Securities News reports that Baidu is interested in exploring collaboration opportunities with Tesla to utilize its robotaxis. Elon Musk announced in April that Tesla would unveil a robotaxi on Aug. 8, although specifics remain unclear. Tesla recently announced plans to launch its own ride-hailing service using a fleet of robotaxis, positioning itself as a competitor to Uber.
Marine
Philippines
HD Korea Shipbuilding & Offshore Engineering Co. announced plans on May 15 to establish a production base in the Philippines for its offshore wind power business. The company intends to lease part of the land and facilities at the Subic Yard to produce offshore wind farm substructures and provide maintenance, repair, and operations (MRO) services. Located in Subic Bay, the yard was previously involved in shipbuilding until its suspension in 2019 and is now owned by Cerberus Capital Management. HD Hyundai Heavy Industries, a subsidiary of HD Korea Shipbuilding, established a naval support center at the Subic Yard in 2022 for MRO operations.
💡The Philippines is viewed as an emerging nation for offshore wind power production bases, and the company aims to develop the yard into a comprehensive maritime industry complex.
Space
Indonesia
Elon Musk visited Indonesia over the weekend to launch SpaceX’s Starlink internet service. The company is collaborating with local network access providers to provide internet services to remote areas across the country.
Musk also signed an agreement to enhance connectivity in Indonesia’s health and education sectors. Details about the agreement between the Indonesian government and SpaceX were not provided
💡SpaceX has previously collaborated with Indonesia, launching an Indonesian telecommunication satellite in June 2023. Discussions regarding potential partnerships with Tesla have also taken place, with Minister Panjaitan meeting Musk in San Francisco in August 2023 to discuss a potential Tesla investment in Indonesia, particularly in battery materials.
Singapore
Singapore's national space office, the Office for Space Technology & Industry (OSTIn), has released the "Guidelines for Singapore-Related Space Activities." These non-mandatory guidelines address two main issues: registration of space activities and space sustainability/safety.
💡The document can be accessed here.
**Nothing in this article is intended to be or should be construed as legal or financial advice.**