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.**
Summary
Financing & Investments: China to Build World's Largest Airport on Man-Made Island; India Rejects Proposal to Bring Aviation Fuel Under GST; ANAHD Acquires Full Ownership of Peach Aviation; Yondr Secures Over $900 Million Financing for Hyperscale Data Center in Malaysia; Singapore's Stock Market Faces Decline as IPOs Slow; and BIDV Signs Credit Contract for Phuc Long Industrial Park Expansion
Environmental Sustainability: China Unveils First ESG Disclosure Standards; MTU Maintenance Zhuhai Becomes First MRO Shop in China to Offer SAF Engine Testing; UK Government Launches SAF Mandate and Jet Zero Taskforce; Japan Airlines Recognized in Dow Jones Sustainability Asia Pacific Index for Third Year; and Adelaide Airport Achieves Carbon Neutrality
Aviation: AAR Agrees to Pay Over $55 Million to Settle FCPA Violations in Nepal and South Africa; IATA Calls for Stronger Airport Slot Regulations to Address Capacity Gaps; Okayama Air Service Suspended for Maintenance Failures; Drone Sighting Forces Runway Closure at Iwakuni Airport; Air Macau Seeks MOP1.6 Billion Bailout to Avoid Closure; and Delhi High Court Summons SpiceJet Executives Over Lease Defaults
Advanced Air Mobility: EHang Secures Key Partnerships to Advance China's Low-Altitude Economy; and GAC Group Joins Forces with Covestro to Advance Flying Car Prototype GOVY AirJet
Artificial Intelligence: Chinese Start-Up DeepSeek Unveils Powerful LLM, Outperforming Meta and OpenAI Models; AQSolotl Launches CHRONOS-Q to Bridge Conventional and Quantum Computing; and NUS Medicine Launches Brain-JEPA AI Tool for Advanced Brain Activity Analysis
Marine: Australia Unveils 2024 Naval Shipbuilding and Sustainment Plan; UWA Deploys Drifting Wave Buoys to Improve Forecasting; NYK and ENEOS Collaborate on Carbon Removal for Marine Fuel; EMF Partners with CIMC SOE for New LNG Bunkering Vessel; and Seatrium Secures EPC Contract for Kaskida FPU Project
Space: Chinese Kinetica-1 Rocket Fails After Record Launch Year; India to Launch Spadex Mission for Satellite Docking Technology Test; and Synspective Achieves Dual Milestones with Tokyo Stock Exchange Listing and Rocket Lab Launch
Financing & Investments
China
China is constructing the world's largest airport on a man-made island in Dalian, off the northeast coast. The Dalian Jinzhou Bay International Airport will span 20 square kilometers, featuring four runways and a 900,000-square-meter passenger terminal. Planned for completion by 2035, the airport is designed to handle 80 million passengers annually across 540,000 flights. The project will surpass Hong Kong International Airport and Japan’s Kansai Airport to become the largest artificial island airport globally.
💡Dalian, with a population of 7.5 million, has outgrown its current airport, prompting the need for a larger facility. China's aviation market, which reached 700 million passengers in 2024, is set to become the world's largest by 2043, with a projected market value of $61 billion.
India
India's government panel has rejected the proposal to bring aviation turbine fuel (ATF) under the Goods and Services Tax (GST) regime. Airlines had lobbied for this change to standardize the tax nationwide, but state governments opposed it, citing potential revenue losses. Currently, state authorities determine how ATF is taxed, and they fear losing control over this source of income.
💡Finance Minister Nirmala Sitharaman confirmed the decision after the GST Council meeting on Saturday.
Japan
ANA Holdings (ANAHD) has acquired the remaining 7% of shares in Peach Aviation, making it a wholly owned subsidiary as of December 20, 2024. Peach, Japan's first low-cost carrier, has seen significant growth, including a record-high revenue in the first half of fiscal year 2024. The acquisition aims to strengthen ANAHD's business portfolio, capitalize on the anticipated increase in inbound tourism to Japan, and enhance collaboration within the ANA Group.
💡ANAHD is focused on boosting profits and expanding its airline business, with a target of attracting 60 million visitors to Japan.
Malaysia
Yondr Group has secured more than US$900 million in financing for the construction and operation of its 98MW hyperscale data center in Johor, Malaysia. The loan, provided by a consortium of major financial institutions including DBS Bank, Deutsche Bank, HSBC, and the International Finance Corporation (IFC), will fund the first phase of the development at Sedenak Tech Park.
💡The project, once complete, will become the largest hyperscale data center campus in Southeast Asia, delivering 300MW of IT capacity
Singapore
The number of companies listed on Singapore's stock exchange has fallen to its lowest level in two decades, with only four companies going public this year. The decline is attributed to factors including the allure of larger international markets and shifting business strategies. As a result, the Monetary Authority of Singapore (MAS) has initiated a review of the country's equity markets, aiming to reverse the slide and attract more IPOs. Although some measures are under discussion, such as relaxing disclosure rules, experts suggest that 2024 will likely remain a challenging year for listings.
💡Meanwhile, countries like Malaysia, Indonesia, and Thailand have seen higher IPO activity, outpacing Singapore in terms of volume and value.
Vietnam
Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and Phuc Long Investment and Construction Company Limited has signed a credit contract to finance the expansion of Phuc Long Industrial Park. The project, with an investment of over 6,000 billion VND, covers more than 328 hectares in Long An Province.
💡The expanded industrial park will focus on clean, environmentally friendly technology, contributing to sustainable development and long-term economic growth.
Environmental Sustainability
China
China has introduced its Corporate Sustainability Disclosure Standards, aiming to align business practices with global ESG (Environmental, Social, and Governance) expectations. The Ministry of Finance, along with other departments, released the Basic Standards, which provide a voluntary framework for companies to report on sustainability. Full implementation is expected by 2030.
💡China’s ESG disclosure system is structured in three components: Basic Standards (general principles for reporting), Specific Standards (detailed criteria on key ESG issues), and Application Guidelines (practical guidance for implementation). These standards aim to ensure consistent, transparent, and comparable ESG disclosures across industries, supporting both national priorities and global benchmarks.
China
MTU Maintenance Zhuhai has become the first maintenance, repair, and overhaul (MRO) facility in China to offer engine testing with Sustainable Aviation Fuel (SAF). The company carried out its first SAF test with launch customer China Southern Airlines, using an IAE V2500 engine, successfully testing it with a 10% SAF blend. The facility has procured 30 tons of SAF from China National Aviation Fuel and plans to offer SAF testing to all customers.
💡The service follows similar initiatives by MTU in Hannover, where a 100% SAF test was conducted in March 2024. SAF, derived from waste oils, can reduce lifecycle greenhouse gas emissions by up to 80% compared to conventional jet fuel. The V2500 engine, known for its fuel efficiency, is approved for operation with up to 50% SAF blend.
UK-Global
The UK government has officially signed into law its SAF mandate, set to take effect on January 1, 2025. The mandate requires 2% of all jet fuel to come from sustainable sources, increasing to 22% by 2040. To support this, the government has also launched the Jet Zero Taskforce, aimed at tackling aviation emissions. Chaired by the Transport Secretary, the taskforce will include CEOs from major airlines, airports, fuel producers, and leading universities. The taskforce will focus on supporting SAF production, zero-emission flights, and improving aviation system efficiency.
💡The UK government has invested £450,000 to assist other countries in aviation decarbonisation efforts and offsetting emissions from international flights.
Japan
Japan Airlines (JAL) has been named to the Dow Jones Sustainability Asia Pacific Index for the third consecutive year, highlighting its commitment to ESG principles. JAL achieved high ratings in areas such as decarbonization efforts, reducing single-use plastics, information security, and human capital management.
💡The airline was also praised for its disclosures in line with the TCFD and TNFD frameworks
Australia
Adelaide Airport has become the first major airport in Australia to achieve carbon neutrality. Since 2018, the airport has reduced its carbon emissions by nearly 90% through energy efficiency improvements, increased renewable energy use, and sourcing 100% renewable electricity from a local wind farm. The final step was purchasing certified Australian Carbon Credit Units from a land regeneration project in South Australia's Gawler Ranges to offset remaining emissions for 2024/25.
💡In addition to eliminating Scope 2 emissions with renewable electricity, the airport plans to replace gas-powered systems with electric alternatives and transition its vehicle fleet to hybrid or electric models. Adelaide Airport aims to reduce Scope 1 and 2 emissions by 100% by 2030 and achieve net-zero carbon emissions by 2050. The development of SAF is key to these goals, with recent collaboration on a low-carbon fuel production facility in Whyalla.
Aviation
USA-Nepal-South Africa
AAR Corp., an Illinois-based aviation services company, has agreed to pay over $55 million to resolve investigations by the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) into Foreign Corrupt Practices Act (FCPA) violations. The case centers around AAR's involvement in bribing government officials in Nepal and South Africa to secure business with state-owned airlines.
Between 2015 and 2020, AAR paid bribes to officials in both countries, leading to nearly $24 million in illicit profits. The company entered into an 18-month non-prosecution agreement (NPA) with the DOJ, agreeing to pay $26.36 million in penalties and $18.57 million in administrative forfeiture. AAR will also pay $29.24 million in disgorgement and prejudgment interest as part of the SEC’s investigation.
In Nepal, AAR obtained business with Nepal Airlines by offering bribes to Nepali officials through intermediaries. In South Africa, the company secured an aircraft component contract with South African Airways Technical by paying bribes via a third-party agent.
💡AAR received credit for its cooperation in the investigation, including self-reporting the misconduct, providing assistance, and improving its compliance program. The DOJ commended AAR’s proactive approach, which earned it credit under the Corporate Enforcement and Voluntary Self-Disclosure Policy. The case also resulted in guilty pleas from two individuals connected to the bribery schemes.
Global
The International Air Transport Association (IATA) is urging changes to airport slot regulations to enhance global air transport capacity and improve passenger services. In its newly released white paper, IATA calls for airports to regularly review and update their capacity declarations, ensuring greater transparency and identifying potential areas for increasing capacity. Additionally, airports should be obligated to expand and improve capacity, with their performance measured against global best practices. IATA also proposes that there should be consequences for airports that fail to deliver the capacity they have promised.
💡IATA argues that while the current slot system has contributed to increased connectivity and lower fares, stronger regulations are needed to address the significant disparity between well-performing and underperforming airports. The proposed changes aim to ensure that airports meet growing demand, providing better service to passengers and improving accessibility to air travel worldwide.
Japan
The Japanese Civil Aviation Bureau has suspended Okayama Air Service for 60 days due to failure in performing required aircraft maintenance, with some issues dating back 22 years. The suspension follows an October 22 engine malfunction incident on a Beech 58 aircraft. A subsequent inspection revealed improper maintenance and unfulfilled inspections on multiple aircraft. The airline is required to implement a business improvement plan and address safety management responsibilities.
💡Okayama Air Service, a subsidiary of Sojitz Business Jets, operates a fleet that includes Citation Jet 2, Citation Jet 4, Citation Latitude, HondaJet Elite, Cessna 172, Cessna 206, and Beech 58.
Japan
Multiple drone-like objects were spotted over the runway at Iwakuni Kintaikyo Airport in Yamaguchi Prefecture on Sunday night, causing a temporary closure for about an hour. The sighting disrupted two flights, affecting approximately 240 passengers. An All Nippon Airways flight from Haneda was diverted to Hiroshima Airport, and its return flight was delayed.
💡The airport, which shares a runway with the U.S. Marine Corps Air Station Iwakuni, closed the runway after air traffic controllers identified the drone-like objects at around 7 p.m. Tythe Yamaguchi Prefectural Police are investigating the incident, which follows a pattern of recent drone sightings near airports and military facilities, areas designated as no-fly zones.
Macau
Air Macau has requested a MOP1.6 billion (US$200 million) capital injection from its stakeholders, including MOP344.1 million from the Macau government, to avoid potential dissolution. The airline, primarily controlled by Air China and the Macau government, is facing severe financial issues, with a solvency ratio set to breach local regulations by year-end. Despite a 20.6% increase in operating income, Air Macau’s losses have doubled in 2024.
💡This marks the fourth time since 2009 that shareholders have had to inject capital into the airline.
India
The Delhi High Court has summoned the CEO and COO of SpiceJet to explain why they failed to comply with a May 2024 order to pay USD 6 million to lessor Team France 01 SAS. The summons, issued on December 10, 2024, requires the executives to appear on January 16, 2025, after SpiceJet defaulted on payment and was ordered to return leased engines.
💡SpiceJet also faces contempt proceedings for returning leased aircraft and engines with missing parts. The court will revisit the case on January 14, 2025.
Advanced Air Mobility
China
EHang announced partnerships with Weihai High-Tech Zone and China Communications Information & Technology Group (CCIT) to boost its urban air mobility efforts. Weihai purchased 30 EH216-S aircraft and will host a new eVTOL manufacturing hub, integrating low-altitude tourism and local industries. Meanwhile, CCIT will collaborate with EHang to build 100 UAM hubs and 100 tourism terminals by 2025, leveraging technologies like 5G and satellite communications.
💡The agreements follow EHang’s December 26 deal with Beijing’s Fangshan District to establish a National Headquarters for Low-Altitude Emergency Rescue Equipment, focusing on UAV-based disaster response.
China-Germany
GAC Group’s flying car subsidiary, Guangdong GOVY Technology, has partnered with German materials giant Covestro. The collaboration focuses on advanced materials for the GOVY AirJet prototype, which debuted December 18. Covestro will contribute expertise in polycarbonate and polyurethane to enhance vehicle performance, weight reduction, and sustainability.
Key areas of development include innovative glazing solutions, smart lighting systems, and low-carbon material integration, aligning with urban air mobility (UAM) and circular economy goals. GAC also entered into agreements with eight other tech firms to support artificial intelligence, aviation technology, and carbon fiber composites.
💡GAC’s GOVY AirJet, featuring an 8-axis, 8-propeller design, offers a range of 200 km, extendable to 400 km with GAC’s next-gen solid-state batteries.GOVY plans to begin certification, production, and pre-orders by 2025.
Artificial Intelligence
China
DeepSeek, a Chinese AI start-up, has launched its new large language model (LLM), DeepSeek V3, which outperforms models from Meta and OpenAI in benchmark tests. The model, with 671 billion parameters, was trained in two months at a cost of $5.58 million, using significantly fewer computing resources compared to its competitors.
DeepSeek V3 showed superior performance in text understanding, domain knowledge, coding, and problem-solving tests, surpassing Meta's Llama 3.1 and Alibaba’s Qwen 2.5, and matching OpenAI’s GPT-4 and Anthropic's Claude 3.5 Sonnet. Despite US sanctions blocking access to advanced semiconductors, DeepSeek leveraged cost-effective architecture and Nvidia's China-tailored H800 GPUs to train the model with just 2.78 million GPU hours—much less than Meta's 30.8 million GPU hours for Llama 3.1.
Singapore
Singapore-based startup AQSolotl, a spin-off from Nanyang Technological University (NTU) and the National University of Singapore (NUS), has unveiled CHRONOS-Q, a quantum controller designed to connect conventional computers with quantum systems. The breakthrough aims to simplify quantum computing operations, making them more accessible for research and industry applications.
💡CHRONOS-Q offers real-time feedback, modular scalability, and a compact design, which could drive advancements in fields such as AI, cryptography, and climate modeling.
Singapore
Researchers at NUS Medicine have developed Brain-JEPA, an AI tool designed to analyze complex brain activity patterns. By using large-scale brain recordings, Brain-JEPA creates a "functional map" that helps predict demographic traits, diagnose brain disorders, and uncover insights into cognition. It improves analysis speed and accuracy using innovations like Brain Gradient Positioning and Spatiotemporal Masking.
💡The tool promises advancements in early disease diagnosis, personalized treatment plans, and global neuroscience research, with potential impacts on conditions like Alzheimer's and mental health.
Marine
Australia
The Australian Government has unveiled the 2024 Naval Shipbuilding and Sustainment Plan, detailing a national program aimed at strengthening maritime capability for the Australian Defence Force (ADF) and expanding the maritime industrial base. The plan outlines a significant investment of $123 – $159 billion in defence projects, focusing on key initiatives such as conventionally-armed nuclear-powered submarines, enhanced surface combatants, minor war vessels, and Army landing craft.
💡The plan also emphasizes the need for workforce growth, predicting around 8,500 jobs in naval shipbuilding and sustainment by 2030, and an additional 20,000 jobs to support the Nuclear-Powered Submarine Program over the next 30 years.
Australia
The University of Western Australia (UWA) is enhancing wave forecasting with small, solar-powered drifting buoys. The buoys collect real-time data on wave height, period, and direction, improving ocean condition predictions. Recently deployed in the Indian Ocean, the new buoys will complement an existing fleet and help refine forecasting models by providing data for better accuracy.
💡The initiative, supported by Australia's Integrated Marine Observing System (IMOS), aims to assist industries like aquaculture, tourism, and fishing by offering more reliable and timely wave forecasts.
Japan
Japanese shipping giant Nippon Yusen Kabushiki Kaisha (NYK) has partnered with ENEOS to purchase marine fuel bundled with carbon dioxide (CO2) removal credits (CDR credits) created through direct air capture and carbon storage (DACCS). The agreement involves ENEOS procuring CDR credits from 1PointFive’s STRATOS DAC plant in Texas, set to begin operations in 2025.
The CDR credits, generated by removing CO2 from the atmosphere and storing it underground, will be sold alongside marine fuel to NYK starting in 2028. Both companies aim to support decarbonization in the maritime industry and contribute to a carbon-neutral society. NYK’s efforts include transitioning to next-generation fuels like LNG, ammonia, and methanol, while offsetting residual emissions with CDR credits.
💡Recently, NYK also partnered with Yusen Logistics to use a digital platform for reducing Scope 3 GHG emissions through alternative fuels in various transport sectors.
Singapore
Singapore’s Equatorial Marine Fuel Management Services (EMF) has signed a deal with Chinese shipbuilder CIMC Sinopacific Offshore and Engineering (CIMC SOE) for a new LNG bunkering vessel. The vessel will feature a 160-meter length, 25-meter beam, and 20,000 cubic meters of cargo capacity, with a speed of 15.5 knots. Powered by a dual-fuel engine and designed to meet IMO Tier III NOx emissions standards, it will reduce methane slip and greenhouse gas emissions.
💡The vessel will join EMF's fleet, operating in Singapore's port to serve LNG bunkering customers.
Singapore
Singapore’s Seatrium Limited has signed an EPC contract with BP Exploration and Production Inc. for the Kaskida Floating Production Unit (FPU) project in the US Gulf of Mexico. The Kaskida project, located 250 miles southwest of New Orleans, involves a single topside module on a four-column semi-submersible hull, supported by subsea production wells at a depth of 6,000 feet. T
💡The FPU will have a production capacity of 80,000 barrels of crude oil per day.
Space
China
A Chinese Kinetica-1 solid rocket failed during its launch on December 26, marking the first loss of the vehicle after five successful missions. The rocket lifted off from the Jiuquan Satellite Launch Center but experienced a failure during stage 3 ignition, leading to a self-destruct mechanism activation. The failure is under investigation by CAS Space, the rocket's operator. Aboard were multiple satellites, including CASAA-Sat and DEAR-3.
💡The launch, part of China’s 68th launch attempt in 2024, set a national record for the most launches in a calendar year, surpassing the 2023 record of 67.
India
India's space agency is set to launch the Spadex mission, aimed at testing cost-effective satellite docking technology. The mission will deploy two 220-kilogram satellites into a 470-kilometre orbit, where they will dock and separate at distances of 10-20 kilometres. The satellites will demonstrate energy transfer and remain operational for two more years.
💡Spadex marks a key step in India's space ambitions, advancing technologies for lunar missions, sample returns from the Moon, and a future space station.
Japan
Japanese satellite company Synspective marked a major achievement at the end of 2024, with a public listing on the Tokyo Stock Exchange Growth Market on December 19 and a successful satellite launch on December 21. Rocket Lab launched Synspective’s sixth StriX synthetic aperture radar (SAR) satellite, continuing its partnership with the company.
💡The launch set a new record for Rocket Lab, marking the 16th Electron launch of the year. Synspective has secured 10 additional launches with Rocket Lab to expand its satellite constellation.
**Nothing in this article is intended to be or should be construed as legal or financial advice.**