China’s Digital Currency Strategy

China has been at the forefront of experimenting with a digital currency, with almost 21 million people taking part in digital yuan (e-CNY) tests through June, according to the People’s Bank of China (PBOC). A digital yuan offers better data for the PBOC—China’s central bank—and other government bodies. The more the digital currency is used, the more the government has instant awareness of purchases and transfers, even knowing the geographic location of activity.

Using digital yuan also means greater consumer efficiencies and analytics. Look to a new generation of freemium and bank-linked financial planning and insight activity. The Digital yuan system can make all the payments on many things including transportation, food, and entertainment.

Digital yuan allows for a greater ability to monitor as the Chinese government believes in control. A digital yuan can be used to steer people away from other digital currencies and bitcoin variants, which in turn keeps the data onshore. This control could be equally used to counter money laundering and other illegal activities. The Digital yuan system could also disintermediate other payment mechanisms.

A digital currency gives the yuan greater utility and the PBOC deserves credit for its willingness to experiment. Although there has been significant liberalisation in recent years there are still capital controls in China and the yuan is not freely convertible. The yuan in global finance could become quite significant in the coming decades if China adopts inflation targeting, substantially cleans up its banking system, opens up its capital account and allows its currency to freely float.

The introduction of a digital yuan will bring benefits to Chinese consumers and society, facilitate government data collection and monitoring, but will not have a material impact on the yuan’s international status.

Nonetheless, it poses an interesting question to financial leadership in the U.S. and Europe as to whether they also have the capacity to innovate and experiment. According to an article, China’s sovereign digital currency program, Digital Currency Electronic Payment (DCEP), has launched one of the largest real-world trials in several cities over the last few months. By May 2020, China had already filed more than 120 patent applications for its official digital currency (alternately referred to as digital yuan in this article), more than any other country.

PBOC has given the green light to conduct hypothetical-use tests of the digital yuan in several regions – Beijing-adjacent Xiong’an New Area, Shenzhen, Suzhou, Chengdu, and the Beijing 2022 Winter Olympic Games locations.

In the latest digital currency trials, Suzhou municipal government announced that it would give away 100,000 digital red packets, each containing RMB 200 (US$31) and totalling RMB 20 million (US$3 million), to residents via a lottery. Suzhou has been spearheading the digital currency trails. Since May, some Suzhou government employees have been receiving their transport subsidies in the form of digital currency.

China’s central bank is responsible for issuing and distributing the digital yuan to commercial banks. Commercial banks will then channel the digital money to end users. So far, China’s four major state-run banks – China Construction Bank, Bank of China, Industrial and Commercial Bank of China, and Agricultural Bank of China – have started large-scale internal testing of the digital RMB wallet.

As reported by OpenGov Asia, China’s monetary authorities will designate more payment service institutions to develop digital RMB electronic wallets with complicated functions to satisfy various types of payment needs. The digital RMB e-wallet with smart contracts has a new feature that allows users to implement payment autonomously under certain conditions and rules.

This system can prevent the illegal withdrawal of funds deposited in prepaid accounts. The digital RMB is expected to be one of the world’s first major sovereign digital currencies, and the central bank is gradually expanding its trials.

Singapore: Magnetic Muscle Therapy Reversing Ageing Trends

Digital innovation empowers ageing individuals by promoting better health management, social engagement, cognitive stimulation, safety, and access to resources, ultimately improving their overall quality of life.

While ageing is frequently accompanied by a deterioration in functional mobility, loss of muscle strength, and an increase in body fat, this trend could be reversed thanks to a novel magnetic muscle therapy developed by researchers at the National University of Singapore (NUS).

Weekly exposure to very low levels of proprietary pulsed electromagnetic field (PEMF) using the BIXEPS device invented by NUS researchers in 2019 is associated with significant improvements in mobility and body composition after 12 weeks, particularly in older people, according to a recent community study conducted in Singapore involving 101 participants aged 38 to 91 years old. After three months of magnetic muscle therapy, participants reported reduced pain perception.

Associate Professor Alfredo Franco-Obregón, who led the research team and is a Principal Investigator with NUS iHealthtech and co-founder of QuantumTX, says that the BIXEPS device uses a specific magnetic signature to target the muscles in a user’s leg and create metabolic activity in the cells, just like when a person exercises.

Studies from the past showed that when magnetic muscle treatment was used on one leg after knee surgery, the whole body’s metabolism improved. This was mostly seen as changes in the blood lipid profiles. That is, the effect went beyond just the leg that was treated and led to changes throughout the whole body.

After eight weeks of treatment, 72% of individuals reported improved skeletal muscle maintenance along with reductions in total and visceral fats, with 85% of subjects reporting improvements in functional mobility after 12 weeks, most notably among the elderly.

These encouraging findings suggest that this PEMF-based technology could be a beneficial adjunct to traditional geriatric therapies aimed at lowering the prevalence of frailty and metabolic diseases in the elderly population.

Importantly, visceral fat is an inflammatory fat that has been linked to a variety of metabolic diseases, including diabetes. Previous research has found that people in Southeast Asia retain visceral fat more persistently than persons in other regions of the world, despite exercise.

As a result, people in Southeast Asia get diabetes at a lower BMI than persons of other ethnicities. This has created a significant challenge for the Southeast Asian health business. Researchers finally have a solution to this local healthcare dilemma in the form of magnetic field therapy.

Based on the promising findings of the community study, the team has collaborated with research groups in the United States and Hong Kong to perform randomised controlled clinical studies to further validate the advantages of frailty across various ageing groups.

Since 2022, the team has also begun a senior-focused study with 200 elders across four Singapore community care centres to assess how the technology can improve function and ease chronic problems. This research is projected to be completed in 2023.

Real-world pilot data from current community programmes have also shown promise of improved HbA1c control – the most common measure for diabetes progression – after beginning weekly BIXEPS sessions.

The research team is currently collaborating with the Singapore General Hospital to perform a clinical trial to evaluate further the therapeutic potential of PEMF-based therapies for diabetes progression management.

India’s Urban Future: Innovations in the Smart Cities Mission

The consultative committee of the Ministry of Housing and Urban Affairs was briefed by Hardeep S. Puri, the Minister for Housing and Urban Affairs, about the progress made in the Smart Cities Mission. Minister Puri highlighted the significant advancements taking place within the 100 smart cities and their positive impact on India’s urban future. He underscored the vital role played by Special Purpose Vehicles (SPV) in effectively managing and implementing the mission at the city level, thus maximising its potential.

The Smart Cities Mission, launched in June 2015, seeks to enhance the lives of citizens by implementing “smart solutions” that focus on core infrastructure, a clean and sustainable environment, and a high quality of life. Under the initiative, 100 cities were selected through a two-stage competition to be developed as Smart Cities. According to the government, the regions are showcasing satisfactory advancements.

The Smart Cities Mission is overseen by an Apex Committee led by the Secretary of the Ministry of Housing and Urban Affairs. They regularly provide updates on the implementation status of projects through the Real-Time Geographical Management Information System (GMIS). According to the Smart Cities Mission Statement and Guidelines, each city establishes a Smart City Advisory Forum (SCAF) at the local level to facilitate collaboration and provide guidance. The SCAF comprises various stakeholders such as Members of Parliament, Members of the Legislative Assembly, the Mayor, the District Collector, local youth, technical experts, and other relevant parties. So far, the Smart Cities have convened more than 756 SCAF meetings.

In addition, at the state level, a High Powered Steering Committee (HPSC) chaired by the Chief Secretary has been established. This committee plays a crucial role in overseeing the Smart Cities Mission within the state. Furthermore, the Ministry of Housing and Urban Affairs appoints Nominee Directors to the Boards of Special Purpose Vehicles (SPVs) who actively monitor the progress of projects in their respective cities.

The Committee conducted visits to various project sites in Goa, including the ‘Mandovi Riverfront Promenade’, ‘Flood Mitigation Works’, and the Integrated Command and Control Centre (ICCC). During these visits, the status and progress of the projects were discussed as of 1 May 2023. It was highlighted that the Smart Cities Mission comprises approximately 7,800 projects with a total value of INR 1.8 trillion (US$ 21 billion). Out of these, more than 5,700 projects (73% by number) worth INR 1.1 trillion (US$ 13.3 billion) (60% by value) have already been completed. The remaining projects are expected to be completed by June 2024. Also, INR 38,400 crores (US$ 4.6 billion) have been released under the Smart Cities Mission as of 1 May, out of which INR 35,261 crores (US$ 4.2 billion) has been used.

The Ministry maintains regular communication and engagement with the states and Smart Cities through video conferences, review meetings, field visits, regional workshops, and more. These interactions occur at different levels and serve multiple purposes, including assessing the performance of cities and providing necessary support and guidance for their improvement.

An official said that ICCCs play a crucial role in enhancing situational awareness through the utilisation of advanced technologies. These centres provide comprehensive visualisations that enable civic officials to effectively address various urban functions and handle daily tasks, issues, and emergencies following detailed standard operating procedures. ICCCs have evolved into the central hubs of these smart cities, showcasing the effective application of technology in fortifying urban management.

Enhancing AI Precision for Plausible Explanations and Uncertainty Assessment

Although today’s artificial intelligence systems possess immense size and capability, they frequently struggle to differentiate between what is real and what is a hallucination. For instance, autonomous driving systems can fatally overlook pedestrians and emergency vehicles positioned directly in their path. Similarly, conversational AI systems confidently fabricate information and often provide inaccurate assessments of their level of uncertainty, particularly after undergoing reinforcement learning.

However, a collaboration between researchers at MIT and the University of California, Berkeley, has yielded a novel approach to constructing advanced AI inference algorithms. This method enables the algorithms to generate multiple plausible explanations for data while also accurately gauging the quality of these explanations.

The newly developed method utilises a mathematical technique called Sequential Monte Carlo (SMC). SMC algorithms are commonly used for uncertainty-calibrated AI to propose likely explanations for data and assess their plausibility as more information becomes available.

However, SMC falls short when applied to complex tasks due to the simplicity of generating probable explanations. Particularly in challenging domains like self-driving, where analysing video data, identifying objects, and predicting hidden motion paths are involved, sophisticated algorithms are required to make plausible guesses. Regular SMC cannot support such advanced algorithms.

The newly introduced SMC method with probabilistic program proposals (SMCP3) addresses these limitations. SMCP3 enables more intelligent approaches to generate probable explanations for data, update them based on new information, and accurately estimate their quality. Unlike previous versions of SMC, which only allowed simple strategies with calculable probabilities, SMCP3 allows using any probabilistic program that incorporates random choices. This flexibility enables sophisticated guessing procedures with multiple stages, overcoming the previous restriction.

The research paper on SMCP3 demonstrates that employing advanced proposal procedures can enhance the precision of AI systems in tracking 3D objects, analysing data, and improving the algorithms’ estimations of data likelihood. Previous studies conducted by MIT and other institutions have revealed that these estimations can be utilised to infer the effectiveness of an inference algorithm in explaining data compared to an idealised Bayesian reasoner.

George Matheos, the first co-author of the paper and soon-to-be MIT EECS PhD student, expressed great enthusiasm for SMCP3’s ability to enable the practical application of well-established, uncertainty-calibrated algorithms in complex problem scenarios where previous versions of SMC were ineffective.

Today, many new algorithms propose explanations based on data but often lack uncertainty calibration and fail to consider alternatives or assess their explanations. SMCP3 offers the potential to use these algorithms more effectively by incorporating uncertainty calibration, ensuring trustworthy AI systems for reliable and safe decision-making.

Vikash Mansinghka, the paper’s Senior Author, further explains, “Monte Carlo methods have been fundamental in computing and artificial intelligence since the advent of electronic computers.” However, designing and implementing them has always been challenging, requiring manual derivation of mathematical equations and awareness of intricate mathematical constraints. SMCP3 automates these complex mathematical aspects while expanding the range of possible designs.

New Zealand Balancing Productivity and Privacy in the Age of AI

The Privacy Commissioner, Michael Webster, has issued warnings regarding safeguarding personal information while utilising artificial intelligence (AI), addressing the private and public sectors. In releasing his expectations, Webster emphasised the need for adaptability as technological advancements in AI continue to evolve rapidly.

Webster’s emphasis on organisations exercising caution in handling personal information within the realm of AI highlights the critical need to balance the potential gains in productivity with the inherent privacy risks involved. With the increasing reliance on AI systems like ChatGPT, it becomes crucial to address the challenges associated with managing and controlling the information fed into these systems.

One key concern lies in the difficulty of retrieving information once it has been input into AI systems. Unlike traditional data storage methods, where retrieval is relatively straightforward, AI systems often lack easily accessible mechanisms to retrieve specific information. This poses significant challenges in ensuring the accuracy, integrity, and privacy of the data that has been processed.

Furthermore, the controls governing the usage of personal information within AI systems are often limited in scope. As AI technologies rapidly advance, it becomes imperative to establish robust frameworks and mechanisms to regulate and govern the use of personal data. Without adequate controls, there is a risk of unauthorised access, misuse, or inappropriate handling of sensitive information, leading to privacy breaches and potential harm to individuals.

Webster’s warning reminds organisations to carefully evaluate and address these concerns before implementing AI solutions. Organisations must thoroughly assess AI’s potential risks and implications, especially when handling personal or confidential information. This includes considering the AI system’s privacy impact, security measures, and ethical considerations.

In light of these concerns, Webster emphasised that agencies should conduct comprehensive due diligence and privacy analyses to ensure compliance with the law before venturing into the realm of generative AI. He advised against incorporating personal or confidential information into AI systems unless explicit confirmation is obtained that such data will not be retained or reused. One alternative approach could involve removing any re-identifiable information from input data.

Considering the potential privacy implications, staff members were encouraged to evaluate the necessity and proportionality of using AI and to explore alternative methods if available. Seeking approval from supervisors and privacy officers and transparently informing customers about the use of AI were recommended practices. Additionally, Webster emphasised the importance of human review of any AI-generated information before taking any consequential actions based on it.

Webster further outlined the steps agencies should undertake when considering the implementation of AI. These include conducting due diligence, performing a privacy analysis, and carrying out a Privacy Impact Assessment. Seeking feedback from impacted communities, including Māori, and requesting clarification from AI providers regarding privacy protections designed into their systems were identified as critical components of the evaluation process.

Before this, the commissioner had communicated his concerns to government agencies, cautioning against the hasty adoption of AI without proper assessment. He underscored the need for a holistic, government-wide response to address the emerging challenges posed by this technology.

The Privacy Commissioner’s warnings emphasise the imperative of preserving privacy rights when utilising AI. Organisations must exercise caution, conduct thorough assessments, and implement adequate safeguards to protect personal information in the face of AI’s evolving landscape.

Fuelling Digital Growth: Singapore’s Continuing ICT Investments

Singapore will spend about S$3.3 billion on information and communications technology (ICT) this year. This is on top of the money it has spent in previous years to improve its digital infrastructure and make services better for people, companies, and government workers.

Over the last five years, the government has spent about S$16 billion on ICT. In both FY 2021 and FY 2022, it was expected that S$3.8 billion would be spent on ICT. In the past, attempts to combine the demand for ICT services through bulk tenders and to update the back-end ICT infrastructure of the government through the cloud have saved money.

“Our ICT investments in the past five years have laid a firm foundation for the next bound of digital government,” said Kok Ping Soon, Chief Executive, GovTech.

He added that the Government will maintain a high level of ICT spending in 2023, as they continue to push ahead with the cloud strategy and find more ways to work closely with the industry through co-developed projects and bulk tenders. Providing opportunities for SMEs to take on government projects is also important, as SMEs form a key pillar of our Smart Nation efforts, he continued.

More than 30% (S$1 billion) of what the government plans to spend on ICT in FY 2023 will go towards developing apps for the Government Commercial Cloud (GCC).

Since the “Cloud First” Strategy was announced in October 2018, about 66% of qualified government systems have been moved to the Government Commercial Cloud (GCC). This makes it possible to reach the goal of 70% by the end of 2023.

In FY 2023, co-developed projects with industry are projected to be worth about 45% (S$1.49 billion) of all spending, up from 27% in FY 2022 and 20% in FY 2021.

Co-developed projects save time and money by using the SG Tech Stack and other government platforms for security compliance and interoperability, as well as reusing well-tested software components to build apps quickly.

Currently, 27 companies are qualified to work with the government on projects using the SG Tech Stack. When the S$0.62 billion Agile Co-Development and ICT Professional Services bulk tender is called in FY 2023, this list of providers will be updated.

In co-developed projects, engineers and developers from the government may oversee building one part while their peers from the private sector build another. This is different from the usual outsourced approach, in which a vendor builds the whole project based on what the government agency wants.

As a result of the Government’s planned ICT spending for FY 2023, a lot more projects will be given out through bulk bids. About 76%, or S$2.5 billion, of the planned spending will go to these projects. In FY 2022, only 27% of the spending went to these projects. By putting together all the requests for the same ICT goods and services, bulk tenders have helped public agencies save money, time, and effort.

This year, there are three important bulk contracts worth a total of S$1.85 billion: Enterprise Software-as-a-Service (SaaS), Hosting Support Services (HSS), and Personal Computers & Printer.

Small and medium-sized businesses (SMEs) still have a lot of chances, as nearly 80% of all procurement opportunities for FY 2023 will be open to SMEs, which is the same as the previous year.

The Ministry of Sustainability and Environment previously indicated that starting in 2024, government ICT contracts will include environmental sustainability criteria.

Suppliers who participate in the forthcoming PC and Printer bulk tender must follow energy and environmental regulations and reuse packaging and materials.

Additionally, GovTech is trying to optimise code reuse for cloud projects in FY 2023 and reduce the carbon footprint of the cloud infrastructure in GCC and government data centres to satisfy BCA-IMDA Green Mark criteria.

Satellite and Drone Tech for Forest Surveillance

Experts from Flinders University have secured a funding grant of nearly AU$ 1.4 million to enhance specialised satellite surveillance software and drone technology for a ground-breaking forestry research initiative. Over the course of two years, the College of Science and Engineering will conduct the project titled ‘Assessment of remote sensing techniques for monitoring the health of plantations.’ The research is financially supported by both federal and state governments through the Mount Gambier Centre of the National Institute for Forest Products Innovation (NIFPI).

Flinders University’s Associate Professor in Geospatial Information Systems (GIS), David Bruce, has outlined the objectives of the project aimed at enhancing plantation forestry surveillance. The research will involve the utilization of advanced ‘supercomputers’ to process satellite imagery, enabling early detection of underperforming trees for plantation foresters across Australia.

The project aims to identify various issues such as disease, waterlogging, inadequate management, drought, or storm damage by statistically comparing specific clusters of trees within the same age-class and species against the broader population.

In addition, the team plans to incorporate high-resolution satellite data collection to assess poorly performing tree patches and validate their analysis through low-altitude aerial observations using aircraft and drones in specific locations. This comprehensive approach will aid in developing a more effective early warning system for plantation health monitoring.

The Flinders University team comprises Associate Professor Bruce, an expert in remote sensing, and Marcio DaSilva, a PhD candidate who has previously been involved in satellite data collection related to the Kangaroo Island bushfires. Collaborating with computer programmer Michael Hillman, the team has dedicated over 18 months to testing algorithms on desktop computers.

Subsequently, they have progressed to experimenting with cloud computing environments in collaboration with experts from CSIRO. This iterative process has allowed them to refine and scale up their research methodologies effectively.

The AU$1.38 million research project involves collaboration with several key partners. These include experts from the Green Triangle Forest Health Group, NIFPI (National Institute for Forest Products Innovation), the Growers Research Advisory Committee, Forest Corporation NSW, the NSW Department of Primary Industries, UniSA (University of South Australia), as well as numerous forest companies in Australia. The project benefits from the diverse expertise and contributions of these partners.

Furthermore, it is worth noting that the latest round of grants has allocated a total of AU$ 6 million to support eight research projects. This underscores the significant investment being made in advancing research initiatives across various domains.

The Federal Minister for Agriculture, Fisheries, and Forestry emphasised that the funding provided for the third round of projects, amounting to AU$6 million, will not only support ongoing research careers in the forest and wood products sectors but also contribute to the development of future forestry jobs.

These projects are expected to play a crucial role in promoting innovation across various areas, including forest management, worker safety, advanced remote sensing, forest water use, tree breeding genetics, and optimising resource utilisation. The aim is to explore these domains and facilitate advancements that will have a positive impact on the forestry industry and its stakeholders.

In the October Federal Budget of 2022-2023, a significant commitment of AU$ 100 million over a span of five years was made to enhance and expand the National Institute for Forest Products Innovation (NIFPI) throughout Australia. The allocated funds are intended to support research and development endeavours aimed at addressing the national challenges faced by the forest and wood products industries. This substantial investment reflects the government’s recognition of the importance of these sectors and their potential to contribute to the country’s economic growth and sustainability.

Digital India Act: Building a Trustworthy Digital Realm

The Minister of State of Electronics and Information Technology, Rajeev Chandrasekhar, recently held the Digital India Dialogues outlining the principles of the Digital India Act (DIA). This forthcoming legislation is designed to replace the current IT Act and establish a robust legal structure that safeguards the rights of digital nagriks (citizens). The first draft of the Act will be released in early June.

According to Chandrasekhar, with India soon expected to have 1.3 billion people accessing the internet, it is crucial for digital citizens to approach the online realm without fear or mistrust, particularly as numerous government services transition to digital platforms. The Act has placed significant emphasis on the principles of safety and trust, which have “a huge section in the DIA”. The Minister also expressed concerns regarding the weaponisation of misinformation and disinformation, particularly with the added challenge of AI-driven deep fakes and stressed the need to address these issues effectively.

During discussions with stakeholders, the Minister addressed various concerns and provided clarifications on several issues. Regarding intersecting regulation by sectoral regulators, the DIA will enable sectoral regulators like the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and other ministries to establish additional safeguards. The aim is to harmonise different laws, and the input of sectoral regulators will be sought in this process.

In terms of regulating emerging technologies, the focus will be on assessing potential user harm caused by AI. The objective is to ensure that emerging technologies do not pose any harm to digital citizens. For blockchain and Web 3.0, the industry will be encouraged to propose guardrails. The intention is not to impose bans on innovations unless they are linked to user harm. The goal is to lead in the fields of Web 3.0 and AI while defining appropriate guardrails. The Minister expressed a preference to avoid creating additional compliance layers through excessive regulation.

Regarding compliance for startups, the Minister explained that in all recent laws, such as the CERT-In directions released in April 2022 or the upcoming Digital Personal Data Protection Bill, 2023, startups have either been provided exemptions or an extended period for compliance.

The proposed law will be an important pillar of the Global Standard Cyber law framework that the government is formulating to catalyse India’s digital economy goals. The Digital Personal Data Protection Bill, National Data Governance Framework policy, the recent amendments to the IT Rules, CERT-In guidelines will form the other elements of this framework.

The Digital India Dialogue session witnessed the participation of a wide array of stakeholders from the technology ecosystem, including industry associations, startups, IT professionals, think tanks, and legal experts. The session brought together approximately 300 stakeholders, with 125 individuals attending in person and 175 participating virtually. A similar dialogue was held in Bengaluru in March this year. These consultations are in line with Prime Minister Narendra Modi’s consultative approach to law and policy-making. This is the first time that the government held consultations on the principles of the Bill.

Digital India is an ambitious initiative launched by the government with the vision of transforming the country into a digitally empowered society and knowledge economy. It aims to leverage the power of technology to bridge the digital divide, empower citizens, and enhance the efficiency and transparency of government services.

May 29, 2023

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China’s Digital Currency Strategy

Singapore: Magnetic Muscle Therapy Reversing Ageing Trends

India’s Urban Future: Innovations in the Smart Cities Mission

Enhancing AI Precision for Plausible Explanations and Uncertainty Assessment

New Zealand Balancing Productivity and Privacy in the Age of AI

Fuelling Digital Growth: Singapore’s Continuing ICT Investments

Satellite and Drone Tech for Forest Surveillance

Digital India Act: Building a Trustworthy Digital Realm

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Singapore: Magnetic Muscle Therapy Reversing Ageing Trends

India’s Urban Future: Innovations in the Smart Cities Mission

Enhancing AI Precision for Plausible Explanations and Uncertainty Assessment

New Zealand Balancing Productivity and Privacy in the Age of AI

Fuelling Digital Growth: Singapore’s Continuing ICT Investments

Satellite and Drone Tech for Forest Surveillance

India’s Urban Future: Innovations in the Smart Cities Mission

Enhancing AI Precision for Plausible Explanations and Uncertainty Assessment

New Zealand Balancing Productivity and Privacy in the Age of AI

Fuelling Digital Growth: Singapore’s Continuing ICT Investments

Satellite and Drone Tech for Forest Surveillance

Digital India Act: Building a Trustworthy Digital Realm

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