EXCLUSIVE: Gerald Caron, Chief Information Officer & Assistant Inspector General for Information Technology, U.S. Department of Health and Human Services, Office of the Inspector General

Gerald Caron wears multiple hats – he is the Chief Information Officer & Assistant Inspector General for Information Technology U.S. Department of Health and Human Services, Office of the Inspector General, while also chairing multiple working groups concurrently. OpenGov had the pleasure of speaking with him on the advantages of Zero Trust Architecture, considerations and strategies when integrating Zero Trust Architecture in organisations.

A ‘watchdog’ is how Gerald described his role, which entails supporting the agency’s mission while ensuring that the parent agency is protected against fraud, waste and abuse. Part of his role includes making sure that the programmes are functioning the way they are supposed to.

With 1900 users in the agency, Gerald oversees the biggest force in the federal government doing general IT support infrastructure, applications and modernisation. Many of his clients do a lot of the data analytics and reporting, some of which goes to the federal government and the US public.

Gerald’s function allows him to access a “cross-pollination of data” and take a closer look at human behaviour. With copious experience working with data and information of people from different sources and agencies, Opengov Asia is keen to know what are the learnings looking at such a diverse group of people who are trying to achieve different outcomes using different technology. And with so much data and information at stake, Gerald’s reflections on Zero Trust Architecture and advice for others who are also attempting to implement changes is vital.

Understanding the use case for Zero Trust

Drawing from his 20 years of experience at the Department of State, supporting 109,000 users doing enterprise, one insight Gerald has gained is that “users are a weak point for any organisation”. When thinking about malicious activities, it is the insiders who create the biggest impact, he claims, citing Robert Handson and Edward Snowden. However, the intent of the insider may not always be malicious. In some instances, people are merely trying to complete their tasks. When they encounter restrictive security, their solution is to find all other ways to get the job done.

Although the users might not be mala fide, someone who does not have good intentions could exploit the processes that insiders undertook to complete their task. It is in light of such loopholes that Gerald believes in the importance of Zero Trust Architecture.

The key principle of Zero Trust is to ensure that people are who they claim to be in the digital space so that they can get the data that they need. It is a cybersecurity paradigm that moves defences from static, network-based perimeters to focus on users and resources. Zero Trust is indiscriminate in that it does not care if someone is an insider or an outsider. “I am going to check you at the door and I am going to keep checking you constantly while you’re inside my door,” Gerald explains.

Zero Trust is a necessity because it is simply insufficient to rely on people to flag issues. For Gerald, it is not possible to track data in real-time, understand where it is flowing all, determine who it is going to, or who is active. Automation is required because of heavy data traffic and the rate at which data is created. Machine learning and AI can help to identify what normal looks like, such that when the abnormal happens, the process of rectifying an issue is streamlined.

Historically, when an anomaly occurs, the cyber security team alerts someone to look into the oddity and deploys an analyst to look into it. It is then followed by a lot of lateral movement and persistence until the cause of the issue is figured out. That process is no longer sustainable or effective given the amount of data that is created every day. In that regard, automation is the key.

Work culture and risk tolerance in a changing world

In the US, there is the NIST SP 800-207 publication, which is Zero Trust Architecture listed by the National Institute of Standards and Technology. It is available to the public and explains Zero Trust. The policy engine directs the course of action in any given situation based on a set of principles. Coming up with the methodology that informs the policy engine is where organisations need to find alignment, Gerald opines.

Gerald believes that the difficulty of building architecture and coordinating integration effort is not as much about the technology as it is about understanding “people, processes, aspects of governance and risk tolerance”.

Before COVID-19, many of the practices that are now normal would have been unthinkable – mobile administration, working from home and accessing government information on personal devices. The pandemic engendered a reassessment of people’s new risk tolerances when people discovered safe and secure ways to allow people to work from home. It has proven is that the risk that people thought existed was not as extensive as they imagined. With the paradigm shift and the new measures, employees can keep organisational missions going.

Without a doubt, moving data to the cloud poses a different risk – it increases the attack surface. With people working remotely and accessing the cloud, the traditional perimeter of defence is gone. The key focus is to move the protection closer to the data now that organisations no longer have this big outer shell.

There are multiple levels of consideration when it comes to cybersecurity in the current landscape. While many people might think of devices as the fundamental facilitator of data access, Gerald first considers protection around applications before devices. The next level of consideration is the network, followed by the user.

Every level possesses different risks within them, Gerald asserts. Bring Your Own Device (BYOD) has a different level of risk than a fully managed laptop; a cleared government employee has a different level of risk than a public user. For Gerald, all the factors add to an overall risk level – a dynamic risk score that changes along with the circumstances. For example, the risk factor can change the moment the same user accesses data through the cloud, tipping the conditional access policy.

The playbook for navigating organisational shifts

Bringing change in the architecture such as Zero Trust would invite resistance. For a user who needs to transition to Zero Trust, it might feel like an introduction of cumbersome barriers daily that the user has to learn and overcome. “Is there a way to mitigate against this resistance and frustration?” OpenGov Asia asks.

The way to manage “the politics” of change, according to Gerald, is to refer to a playbook. One must have a strategy and a plan. When introducing Zero Trust, one needs to consider the different roles within the ecosystem. Using the analogy of a soccer game, Gerald explains the various organisational functions:

Players in the field: People who do the work and implementation
Coaching staff: Project managers and programme managers
Trainers: People who ensure that those in the field have the tools that they need to function
The Executive Suite: The CEO, CIO, and the people who hold resources and direct priorities for the organisation
The fans who cheer the team: The end-user population.

The analogy of soccer is apt because it humanises the process and experience of getting people on board. “Everybody is important – you can’t do one without the other” because responsibility exists at every level.

In the grand scheme of change, educating the end-user is critical. “The fans would need to understand why the team is making moves on the field, the rationale for the strategies undertaken,” Gerald believes. When the fans understand the principles, it translates into revenue in the private sector.

The end-user population need to understand why they are part of the team and journey. The implementers must also place the end-user at the centre and lubricate the process: to understand what end users like, what works and what does not. People working on bringing changes in the infrastructure have to understand how different personas like to work – how people like to work with the data they’re accessing and where people locate data.

The key to change is to ensure that it is not restrictive or prescriptive. Users must bring their use cases and the IT department must work at where users are at. Gerald shares a past example where US embassies all over the world were backhauling onto on-premises locations or data centres to access the internet. Now there are edge computing capabilities and services that can allow users to be directed to where they want to be. This solution achieves telemetry in management and policy management from a security perspective but achieves performance advantage by sending users directly to the internet.

Convincing end-users of the advantages of the architecture is key. One such benefit is going passwordless. In the process of bringing more applications and introducing Zero Trust Architecture, going password-less makes it easier for the actual end-user. BYOD is another advantage for end-users.

Instead of having what Gerald calls, network ‘anchors’ to offices and space, Zero Trust helps with mobile teams since the defence perimeter is around the data and not locations or networks. It frees people up from the need to be in a particular building or be protected from within walls.

Working with partners and conducting “inventory checks”

Gerald emphasises the need to work with vendors and collaborators. “We need to partner with them to be successful. They have the solutions,” he says. Yet knowing how to collaborate with vendors and coordinating the effort takes work.

First of all, it is important to get everyone in the organisation on the same page when defining Zero Trust and coming up with a standard criterion that the vendors can work with. Outlines and criteria also help to focus discussions on the organisation’s unique use cases. Otherwise, organisations will be clueless when interacting with vendors and reviewing solutions. For Gerald, it is important to conduct a self-inventory so that organisations can control the conversation when talking to vendors.

Organisations need to get clarity on their real risk tolerance. To do so, they need awareness of where their data sits, how data is classified, where data is going and the policies that need to change. Governance also needs to be put in place to structure the sharing of data and the bringing of a new system into this network. The process involves managing people, processes, procedures, understanding the organisation’s methodology.

Apart from that, it is also important to understand where people’s thresholds lie. While it is easy to be distracted by technology, the hard work is in the people, process, procedures, risk methodology, risk tolerance and politics. In some sense, nailing down the technology is sometimes easier than the non-technical aspect of the work.

When it comes to implementing changes, Gerald cautions against ticking boxes and being compliant. Organisations need to look deep into their processes to truly understand where the gaps and loopholes are. It might be easy to get carried away with everything that is bolted on, creating a false illusion that the data is well protected when the foundations are extremely weak.

“Nobody wants to go to the basement. Everybody likes going to top floors.” This creates many problems in the process. However, that is where people need to take a long, hard look.

Ultimately, Gerald asserts that introducing Zero Trust architecture is one that functions in hybrid mode. Most organisations do not have the luxury of creating an entirely new “greenfield.” More often than not, organisations will have to build infrastructures on top of what they already have. It is in that context that organisations need to not only get themselves up to speed with technology – doing inventory checks and understanding the organisation’s maturity – but also understand people, processes, methodology and risk appetites. After all, it is people who will be wielding technology.

EXCLUSIVE! Food-Tech Trends for Sustainability with Dr Chris Aurand, Open Innovation Leader, Thai Union Group PCL

The food industry has been impacted by the pandemic and is looking for ways to increase productivity, lower costs and be better prepared for any future disruptions. Furthermore, consumers are increasingly interested in healthier and more sustainable food options, which is prompting the industry to explore how best to meet these demands.

To tackle the challenges of improving efficiency, adapting to changing preferences and demands, and enhancing the overall customer experience, the food industry is proactively exploring technology-enabled solutions. Technological breakthroughs, transformative processes and interactive platforms are the need of the hour.

No doubt, industrialisation and automation have already significantly increased the capacity and effectiveness of the sector, resulting in a continuous transformation of the global food industry across the entire value chain. The global food-tech industry has grown to include a wide range of companies that use technology to improve food production, distribution and variety. Nonetheless, there is much yet to do.

Startups, incubators and accelerators can play a powerful role in revolutionising the sector. They can bring together top food-tech entrepreneurs and corporates through one-of-a-kind mentorship, networking and financing.

A vibrant food industry is vital globally as it plays an essential part in determining the future of food production, and distribution around the world, contributing to sustainability, health and food security.

Through their creative ideas and innovative use of cutting-edge technologies, entrepreneurs have a unique opportunity to positively impact the food industry. They foster innovation and economic growth while also advancing a more just and sustainable food system by actively bringing about change in the food industry.

All parties involved in the food system – from producers to consumers – could benefit from their innovations and ideas if they are implemented.

Food-tech innovations for a sustainable future

In an exclusive interview with OpenGov Asia, Dr Chris Aurand, Open Innovation Leader at Thai Union Group, PCL, shared the company’s strategies and solutions aimed at addressing gaps in the food sector.

Chris is appreciative of Thailand’s innovative culture and welcoming atmosphere, describing it as a wonderful place to live and work. In his role, he works to support startups and build the country’s food tech ecosystem.

He is responsible for developing the long-term strategy for SPACE-F, Thailand’s first dedicated food tech incubator and accelerator. This initiative is a collaboration between the Thai Union, ThaiBev, Mahidol University and The National Innovation Agency of Thailand, intending to establish Thailand as a hub for Foodtech startups. Additionally, Chris is a member of the Corporate Venture Capital team at Thai Union.

Thai Union Group is committed to fostering innovation and invests in early-stage startups with disruptive technologies and products that are in line with our strategic direction, “Healthy Living, Healthy Oceans” via Thai Union Ventures. Additionally, the company collaborates with third-party entities, including VisVires New Protein, and SPACE-F, the first dedicated global FoodTech startup incubator and accelerator in Thailand. These collaborations enable the group to access cutting-edge technologies and expertise, which help the company stay ahead of the curve in an ever-evolving industry.

“The initiative began in 2018 when we began collaborating with various country trade missions to scout startups and develop internally how we would work with startups. We realised that to drive innovation within the company and introduce fresh ideas, we needed to identify and collaborate with promising startups,” Chris recalls.

Seeing the potential, Thai Union Group established a fund to strategically support startups at the seed to series A funding stage in the areas of alternative proteins, biotechnology, functional nutrition and supply chain.

The company ensured that these investments fed back into the business unit, supporting its growth and contributing to its success. In fact, Thai Union Group’s support contributed to the growth of its first investment to the point where it was able to establish its own production facility in Thailand.

Chris believes that food tech companies introduce novel perspectives on food security and promote local production. Food tech startups can also assist in implementing new technologies to extend product shelf life while preserving product safety.

Moreover, food safety is becoming an increasingly critical concern as people become more aware of the potential emergence of diseases and bacteria due to climate change. Food security is not necessarily a matter of inadequate food supply to feed the world, but rather issues related to logistics, spoilage, and consumer preferences for specific food types. Chris believes that startups can introduce innovative solutions to address these challenges, particularly in the areas of sustainability and food safety.

Chris shared how startups supported by the SPACE-F are devising inventive strategies to combat food waste and promote sustainability. Some of the solutions include upcycling brewery wastewater into a source of protein, locating and distributing discounted baked goods and using food waste as feedstock to grow insects as a protein source for pet treats.

These initiatives not only help to reduce waste but also create new sources of sustainable protein, highlighting the potential for innovative technologies to drive positive change in the food industry. Chris points out that startups can build on previous ideas as well as offer corporations innovative solutions without significant investment.

As an example, he highlighted a Finnish startup, EniferBio that produces PEKILO® mycoproteins from a fungal strain, which was initially developed in the 1960s but later shelved due to changes in the pulp and milling industry’s processes.

The pandemic has led to increased awareness among people regarding the link between their diets and their health. Consumers are now more interested in healthier and more sustainable food options and are actively seeking out products that meet their dietary requirements and preferences.

As a result, there has been a growing interest in food technology, which is helping to drive innovation in the food industry. This has created an opportunity for food tech startups to develop new products and technologies that cater to these changing consumer demands, while also addressing challenges related to food security, sustainability, and food safety.

Startups in the food technology sector are gaining interest from investors and businesses due to their fresh ideas that have been tested locally and can be adapted globally. This is crucial in finding local solutions to global food supply issues caused by the pandemic.

Discussing their startup accelerator programme, Chris explained that it includes both domestic and international companies and highlighted the importance of regional production in promoting sustainability. They focus on regional production to promote sustainability, as well as address trends in the food industry, including the growing demand for sustainable and healthy products.

“We have an opportunity to incorporate healthy ingredients into their products while highlighting the importance of being mindful of additives and preservatives that could have negative long-term effects,” Chris points out.

Startups in Thailand are focusing on incorporating micronutrients, promoting sustainability, and developing healthier food options, while also considering the commercial viability and long-term benefits their products can provide. To support these efforts, incubators and accelerators are facilitating collaborations and the development of new ideas in the industry.

While perseverance and curiosity are foundational qualities for success in the startup community, context is as necessary. It is vital to engage with the local population and be prepared to alter products to satisfy customer demands. Understanding the consumer and being adaptable to branding and product changes are particularly crucial in the food-tech sector, as consumer preferences and demands are constantly evolving.

However, while consumers are becoming more aware of the importance of sustainability, they are not always willing to pay the additional price – cost can often be a deciding factor, especially during times of economic uncertainty. As inflation rises, consumers may prioritise affordable options over sustainable ones.

In the case of novel products such as plant-based and cultured meat, achieving the optimal texture and price point is essential for convincing consumers to make the switch. Rather than expecting these products to completely replace traditional meat products, Chris suggests targeting flexitarians who may be willing to regularly incorporate them into their diet.

Blockchain technology can help improve traceability and food safety in the food industry. By using blockchain, each step of the supply chain can be recorded and traced, from the origin of the ingredients to the final product. This makes it easier to identify any issues that arise and quickly address them.

The use of QR codes can also allow consumers to access information about the product they are purchasing, such as the origin and logisitcs, which can increase transparency and trust.

Implementing such solutions can improve the precision of logistics systems and ensure the safe delivery of goods. Traceability tools can also be utilised for marketing purposes by establishing a compelling narrative about the product’s origins and beneficiaries. Consequently, there is a growing focus on sustainability, reducing food waste and improving logistics.

Alongside AI and blockchain, other noteworthy developments are shaping the food technology sector. Advanced processing technologies such as high-pressure processing are gaining traction as a way to preserve food while maintaining its nutritional integrity.

In light of the increasing prevalence of antibiotic-resistant bacteria, promising technologies that had previously been shelved such as bacteriophages are being resurrected. Additionally, there is a strong shift towards more natural and holistic solutions to promote sustainability and minimise food waste.

The use of such technologies can also contribute to ethical improvements by decreasing chemical and antibiotic use in animal husbandry and improving animal welfare. As consumers become more conscious of ethical considerations in food production, such as organic and sustainably sourced products, there will be a growing demand for them. To establish a sustainable future, it may be necessary to revive traditional agricultural practices and implement regenerative agriculture.

Chris strongly feels that consumer education should encompass not only fundamental food safety measures like washing vegetables and cooking foods thoroughly but also the ability to recognise potential sources of foodborne illnesses..

People need to have a solid grasp of food safety and hygiene principles and prioritise their own health and wellness. As the food industry advances and new technologies and products emerge, it will become necessary to strengthen oversight and regulation to ensure that these new technologies provide healthy and safe foods for consumers.

“Facilitating the development of innovative food products will necessitate cooperation among startups, corporate partners, regulators and consumers to ensure safety, effectiveness and transparency,” Chris says emphatically.

Urban Ideas and Solutions Through LKYGBPC

The Lee Kuan Yew Global Business Plan Competition (LKYGBPC), which began in 2001, is a biennial global university start-up competition hosted in Singapore. Organised by Singapore Management University’s Institute of Innovation and Entrepreneurship, focusing on urban ideas and solutions developed by student founders and early-stage start-ups.

Chris is passionate about supporting startups and cultivating the food tech ecosystem to facilitate industry transformation.

In his role as Open Innovation Leader, he is responsible for implementing Thai Union’s open innovation strategy, collaborating with internal R&D stakeholders to understand their innovation needs and driving external collaboration; and being part of innovation platforms like LKYGBPC.

Working with youth is advantageous since they are not rigid in their thinking and can bring fresh and innovative ideas to the table, Chris says. But it is important to have separate tracks for ideation and revenue-generating businesses, while also promoting global collaboration and idea exchange.

Chris is convinced that “To inspire innovation among young people, it is essential to present it in a hands-on manner, similar to how LKYGBPC has done. Moreover, it is crucial to instill in them the notion that failure is an inherent and integral part of the learning process.”

He emphasises the importance of fostering an environment and culture of innovation that embraces trial and error. Failure must be embraced to allow learning from mistakes. Additionally, it is essential to comprehend one’s strengths, weaknesses, and dislikes.

To remain at the forefront of innovative entrepreneurship over the next five to ten years, the LKYGBPC must continue to evolve and accommodate new trends and challenges in the entrepreneurial landscape. This could involve broadening its scope and expanding its reach, partnering in new regions and industries.

They must be willing to embrace emerging tech and innovation and provide aspiring entrepreneurs with more resources and support.

Furthermore, the competition should continue to prioritise ethical and sustainable entrepreneurship, which is gaining importance to both businesses and consumers. They must encourage participants to develop innovative solutions to global concerns such as climate change, social inequality, and healthcare.

“The food technology sector has a substantial influence on daily life. One of the most exciting aspects for an entrepreneur in the industry is to develop a successful product and see it being sold on the shelves of a supermarket. This industry provides the opportunity to introduce solutions that have a significant, positive impact on people.” Chris concludes.

Singapore Launches Defense Emergency Video System

Like in business and other aspects, the future of crime fighting will be heavily influenced by technological advancements. Artificial intelligence (AI), machine learning (ML), automation, augmented reality, big data, and all the other most significant trends observed in other industries are equally impacting policing.

In Singapore, an Emergency Video System uses technology that is already on mobile phones. This lets people who call ‘999’ or ‘995’ tell the Singapore Police Force (SPF) and Singapore Civil Defence Force (SCDF) Operations Centres where the incident is happening and what it looks like.

This ability will make it much easier for SPF and SCDF Operations Centres, as well as first responders, to assess the situation and make decisions. With these technologies, police officers and intelligence agencies have more tools than ever before to stop crime and keep citizens safe. As criminals become more inventive in their own use of technology and data, SPF and SCDF also help combat the emergence of new types of crime.

The Police Operations Command Centre (POCC) and the SCDF Operations Centre will both be able to use the Emergency Video System. Hence, officers at the POCC and SCDF Operations Centre may encounter difficulties understanding the incident situation during emergency calls, particularly in complex and dynamic situations where the caller may be incapable to convey the extent of the situation.

The Emergency Video System supplemented the Home Team’s emergency call response by allowing SPF and SCDF officers at the respective Operations Centres to start live video streaming from the caller’s mobile phone to assist in decision-making and situational assessment.

Callers would also be able to share their real-time location with SPF and SCDF officers via the system, which would aid in the subsequent emergency response. Collaborations have emerged with other institutions to develop this new capability.

Additionally, where a live stream would be beneficial for a ‘999’ or ‘995’ incident, the Operations Centre will activate the Emergency Video System. The caller will give the operator permission to activate the live video stream from a safe location.

An SMS with a link will then be sent to the caller. By tapping on the hyperlink, the caller’s mobile phone’s web browser will be used to stream live footage of the incident, without the need to install any new applications. At the same time, the system will transmit the caller’s location to the Operations Centre, facilitating front-line emergency response.

During the live video streaming, the caller should stay on the ‘999’ or ‘995’ line while officers in the Operations Centre can talk to the caller over the phone while keeping an eye on the video feed.

Before responding officers arrive at the incident site, the Emergency Video System will provide SCDF and SPF with an additional means of triaging and sense-making. This will also help responding forces prepare for the incident while they are on their way to the scene. When both the SPF and the SCDF are responding to a major emergency, such as a major fire, they may use the same live stream.

By allowing organisations to respond to criminal activity in real-time, new digital technologies are transforming the way police protect and serve the public. It is crucial to stay up-to-date on technological advancements that can assist law enforcement on a global scale and to implement these advancements as they see fit in any given environment.

New Zealand Starts Construction on SouthPAN Uplink Centre

Land Information Minister, Damien O’Connor, has announced the start of construction on New Zealand’s first uplink centre for the Southern Positioning Augmentation Network (SouthPAN) at a recent event in Southland. The move will bring the country closer to world-class satellite positioning services that can enhance search and rescue operations, improve precision farming, and increase safety on construction sites by providing greater accuracy.

According to O’Connor, it will be the first time Satellite Augmented Positioning has been available in the Southern Hemisphere and is expected to benefit the economy by over $860 million in the long term. SouthPAN will boost the accuracy, reliability, and availability of positioning services to as little as 10 centimetres (like GPS). This represents a considerable improvement from the current accuracy range of five to ten metres.

SouthPAN is an open-access digital infrastructure that offers entrepreneurs the chance to develop new services and accelerate economic growth. It provides free access to early Open Services, which allow farmers and growers to leverage invisible fences and drone-based spraying techniques for the effective management of their livestock and crops.

The Minister explained that in five years, SouthPAN will allow helicopters and planes to fly safely in weather they are not able to fly in now, minimising disruption due to adverse weather conditions. Furthermore, SouthPAN’s technology will also provide virtual barriers that enhance safety in various industries, such as construction, protecting people from heavy machinery and other potential hazards.

The benefits of SouthPAN’s technology are expected to be widespread, ranging from simple conveniences like providing an accurate location for taxi services to more significant applications, such as improved monitoring of endangered species across conservation areas. The increased precision and reliability of SouthPAN’s services will open new possibilities for a wide range of industries, allowing for better decision-making and more effective operations.

Two 11-metre antennae are being built by a private project contractor at a satellite ground station in Awarua. They will link to a control centre in Invercargill, monitored by operators 24 hours a day.

The country’s future export growth relies on lifting its sustainability credentials, and SouthPAN will help farmers and growers with precision through the application of inputs and improved livestock management, O’Connor noted. “By telling us exactly where we are, SouthPAN will help us tell a story of who we are and how we farm.” SouthPAN is a joint venture with the Australian government to bring high-resolution positioning to Australasia.

The move to launch SouthPAN was announced in September last year. Australia’s Minister for Resources, Madeleine King, had explained that the investment is a major commitment between the Australian and New Zealand governments, providing broad benefits for all of Australasia. “We’ve already demonstrated that industry and the community can use this for ground-breaking applications that increase safety, improve productivity, and drive innovation across a broad range of industries,” King stated.

As OpenGov Asia reported, SouthPAN could generate over AUD$6 billion in benefits to the Australian economy over the next 30 years. The network will enable mining companies to install more accurate collision avoidance systems on automated mining haul trucks or allow visually impaired citizens to navigate cities with pinpoint assistive technologies. Further, it will enable light aircraft to land more safely in remote rural areas in all weather conditions, bringing benefits for essential services such as the Royal Flying Doctor Service and the communities they serve.

Spotlighting Southeast Asia’s Electronics Supply Chain

The Malaysia Ministry of International Trade & Industry (MITI), Malaysian Investment Development Authority (MIDA) and InvestPenang are eager to promote electronics manufacturing in the country. They are partnering to organise a global event for electronics manufacturing and supply chain.

The concentration of much of the world’s semiconductor manufacturing capabilities in Southeast Asia has attracted more global players to the region, as global electronics supply chains are being reshaped by geopolitical forces. According to Linda Tan, the President of the global industry association representing the electronics manufacturing and design supply chain, the timing is ideal for the region to strengthen its position as a vital hub for electronics manufacturing and deepen its integration with global value chains.

The Chief Executive Officer of the Malaysian Investment Development Authority stated that Malaysia has immense potential to expand its robust semiconductor ecosystem and benefit from global demand as the region’s semiconductor hub.

The manufacturing sector, which continues to contribute significantly to the country’s economy, has attracted a steady inflow of high-quality investments, making Malaysia a top investment destination in the region. In 2022, the sector registered a total of RM 84.3 billion (US$ 19.1 billion), accounting for 31.9% of total approved investments in various economic sectors.

The electrical and electronics (E&E) industry emerged as the top-performing industry within the manufacturing sector, receiving a total of approved investments of RM 29.3 billion (US$ 6.6 billion). This achievement highlights Malaysia’s commitment to maintaining its strong position as a vital player in the global semiconductor industry.

The theme of the event is “Boosting Agility and Resiliency for the Electronics Supply Chain” and will address the challenges posed by the current economic downturn and ongoing disruptions, and explore ways to build a more robust supply chain.

Global leaders in the industry will gather to examine strategies for the electronics industry to strengthen its supply chain and enhance its agility and resiliency. Industry leaders explore ways to capitalise on Southeast Asia’s strengths, boost global supply chain resilience, and position the industry for future growth and innovation. There will be vital discussions on crucial areas of semiconductor industry growth such as sustainability, smart manufacturing, smart mobility, smart MedTech, and workforce development.

The Chief Minister of Penang stated that the upcoming event aligns with Penang’s longstanding efforts to enhance its competitiveness in the global arena. Penang has established a significant presence in the semiconductor industry and is recognised for its expertise across the value chain.

InvestPenang, the state’s investment promotion agency, is committed to supporting the growth of emerging subsectors and expanding the semiconductor industry’s scope in Penang. Through these efforts, the state aims to strengthen its semiconductor ecosystem and offer a diverse portfolio of capabilities.

According to market research, the global semiconductor market had a size of US$ 527.88 billion in 2021 and is expected to grow from US$ 573.44 billion in 2022 to USD 1,380.79 billion in 2029, with a CAGR of 12.2% during the forecast period.

The global semiconductor market saw a growth of 6.8% in 2020 compared to the previous year. Despite the unprecedented and significant impact of the global COVID-19 pandemic, the semiconductor industry experienced positive demand worldwide, surpassing pre-pandemic levels.

The growth of the semiconductor market can be attributed to the increasing consumption of consumer electronics devices worldwide. Furthermore, the emergence of artificial intelligence (AI), the Internet of Things (IoT), and machine learning (ML) technologies are providing new opportunities for market development as these technologies aid memory chips in processing large amounts of data in less time. Additionally, the rising demand for faster and more advanced memory chips in industrial applications is expected to drive market growth during the forecast period.

Coordinated Push for Digitalisation in Indonesia

The Coordinating Minister for Maritime Affairs and Investment shared strategic goals and progress towards digitalisation in each sector in the Indonesia Maju cabinet. In his speech at the SPBE Summit 2023 for the Electronic-Based Government System, Luhut Binsar Pandjaitan, emphasised that all parties involved in digitisation must work together.

The action was taken to speed up the digitalisation process in Indonesia within the context of achieving digital sovereignty. Using the PeduliLindungi app during the Covid-19 outbreak was cited as an example of Indonesia’s successful large-scale digitalisation.

“We contribute greatly to the digitalisation process. Digitisation has increased our taxable income. There are a lot of bright young folks working on outstanding app creation now. I’d want us to work on this together,” Luhut stated when he visited the event in Jakarta. “I believe what’s here is good. It’s just how we connect it to save unnecessary funds.”

When Deputy VII Arif Mustofa spoke on behalf of Coordinating Minister for Political, Legal, and Security Affairs (Polhukam) Mahfud MD, he noted that his party was coordinating the digitalisation of services in the Polhukam sector, including everything from the management of the most recent cases to population services.

Mahfud explained that the Coordinating Ministry for Political, Legal, and Security Affairs is in charge of technical coordination for five different digital services, including the management of integrated crime cases using IT, online SIM issuance services, government information services and SPBE infrastructure services, state apparatus infrastructure services, regional government services, and population data.

Meanwhile, Expert Staff for Bureaucratic Transformation Aris Darmansyah Edisaputra spoke on behalf of Coordinating Minister for Human Development and Culture (PMK) Muhajir Effendy to say that the ministry’s efforts to speed up the PMK sector, mainly through digitalisation, continue unabated.

Presidential Regulation 132 of 2022 indicated that the acceleration of achievements in education, health, and social welfare also follows the national SPBE architectural strategic initiative. Since these three areas contribute to human and cultural development, Muhadjir argues they require substantial SPBE support in integrated digital services for each area.

Then, as Expert Staff for Digital Transformation Creativity and HR Edwin Rizal Manansang highlighted for Coordinating Minister for the Economy Airlangga Hartarto, digitisation in the economic sector has been running, notably for electronic payments.

In the business world, digital services are centred on a few key goals. The first involves improving the efficiency of a payment gateway or integrated payment system that links together different types of government digital services, such as immigration services, that are projected to be completely functional at airport checkpoints by the end of the first quarter of this year. According to Airlangga, this service will be integrated into the non-tax state revenue (PNBP) business process to improve the state’s revenue reporting system.

Indonesia’s digitalisation initiatives have steadily improved. Evidence of this may be seen in the rising levels of contentment with official online services. To give one concrete example, the National Public Service Complaint Management System – Services People’s Online Aspirations and Complaints (SP4N-LAPOR!) has a customer satisfaction rate of 73.7%. A total of 1,123 people participated in the study, which was conducted in 2022.

Data from throughout the country shows that AP4N-LAPOR! complaints typically receive a response within 6.1 days. Regarding following up on complaints, the city government of Surabaya is among the quickest in Indonesia, taking only 0.6 business days or around 2 hours. In 2022, the provincial government of East Java handled 6,160 reports and followed up on 97% of them. In addition, the SP4N-LAPOR Administration has issued a Decree to all East Javan provinces and municipalities, and 90% (35 out of 39) of districts/cities have some action plan.

Vietnam Protecting Online Consumer Rights

The Ministry of Industry and Trade has been focusing on protecting consumer rights online amid the boom of e-commerce and the digital economy since the COVID-19 pandemic. The Ministry launched Consumer Rights Day on World Consumer Rights Day, which is marked every year on 15 March.

The Ministry has stressed the importance of consumer protection in building a healthy environment and promoting socioeconomic development. This year’s event highlighted information transparency and safe consumption.

Despite the implementation of the Law on Consumer Rights Protection on 1 July 2011, there has been a persistent prevalence of consumer rights violations across multiple levels, with a growing level of complexity. Entering the post-COVID-19 period, e-commerce, especially borderless trade, has made consumer rights protection a new focus as there were several risks consumers face online. These risks include the sale of counterfeit and substandard products, as well as the misuse of personal information for fraudulent purposes.

The Vietnam Competition and Consumer Authority is preparing to revise the Law on Protection of Consumer Rights to ensure that the legislation stays up-to-date with the evolving landscape. The proposed amendments to the law are expected to be presented for approval at the National Assembly’s meeting in May.

Tran Huu Linh, General Director of the Vietnam Directorate of Market Surveillance, noted that apart from the online shopping trend, there has been an increase in trade fraud and risks to consumers, including fake and poor-quality products. According to statistics from the Ministry, over 1,660 online kiosks offering more than 6,400 products were taken down, and five e-commerce websites accused of selling counterfeit and/or uncertified products were blocked last year.

Linh emphasised that safeguarding consumer rights in the online realm was a priority for the market watch, particularly considering Vietnam’s ambition to become a frontrunner in digital economy development within the region. The government has set a goal for the digital economy to contribute 20% to the country’s GDP by 2025.

Owners of many online stores are prioritising consumer protection as one of their key business strategies. The official urged consumers to make orders from licensed platforms or official stores to ensure their rights are protected. The Deputy Director of the Vietnam Competition and Consumer Authority, Nguyen Quynh Anh, explained that consumer protection needs to have stronger and more substantive changes, which requires the active participation of businesses.

“We used to think that consumer protection was the matter of the State management agency and the consumers. Now, enterprises will be a more important subject in the consumer protection process,” Anh said. It is crucial for enterprises to recognise their responsibility in safeguarding consumer rights and ensuring that consumers have access to reasonably priced and safe products and services.

In 2020, Vietnam approved a National Digital Transformation Programme by 2025, with an orientation toward 2030. The strategy helps accelerate digital transformation through changes in awareness, enterprise strategies, and incentives toward the digitalisation of businesses, administration, and production activities.

The programme targets businesses, cooperatives, and business households that want to adopt digital transformation to improve their production, business efficiency, and competitiveness. The plan aims to have 80% of public services at level 4 online. Over 90% of work records at ministerial and provincial levels will be online while 80% of work records at the district level and 60% of work records at the commune level will be processed online.

New Computer Science School Launched in Malaysia

A computer science school, 42 Malaysia (42MY), will be established in Malaysia. The school, a result of a partnership between the sovereign wealth fund of Malaysia and the largest education-focused social enterprise in Malaysia will use peer-to-peer learning to train 10,000 competent tech professionals over the next decade.

The 42 programme, which boasts the Born2Code slogan, was introduced in France and opened its inaugural campus in Paris in 2013. It is now part of a global network of 47 campuses across 26 countries that provide tuition-free education to individuals 18 years and older, without regard to educational or socioeconomic status. On July 23, 2020, the social enterprise launched the Malaysian branch of 42, known as 42 KL, in Sunway City, Kuala Lumpur.

The educational framework of the programme emphasises peer-to-peer and project-based learning methods that simulate a professional work environment. Participants at 42MY have the opportunity to learn coding by working on genuine industry projects in collaboration with the program’s partner companies.

Additional programmes are expected to be implemented to enhance the skills of the domestic workforce by leveraging underutilised sources of talent through Technical & Vocational Education and Training (TVET) institutions. These initiatives are designed to equip individuals with sought-after skills, thereby increasing their chances of securing high-quality employment opportunities.

The Managing Director of the sovereign wealth fund of Malaysia believes that the presence of skilled professionals is a vital component in the ongoing growth of any industry. As such, he anticipates that 42MY will play a significant role in supporting Malaysia’s start-up and tech ecosystem by developing and nurturing local talent, which will aid the country’s digital economy and strengthen its IR 4.0 capability.

The collaboration demonstrates the potential benefits of partnerships and cooperation, and the wealth fund is excited about collaborating with like-minded partners who share the same objective of enhancing Malaysia’s digital and skilled talent supply.

The wealth fund has plans to implement additional initiatives aimed at upskilling and reskilling Malaysia’s domestic workforce. The strategy involves mobilising underutilised sources of talent by repurposing Technical & Vocational Education and Training (TVET) institutions. The primary objective is to equip individuals with high-demand skills to facilitate their access to top-quality employment opportunities.

An impact assessment framework called the SEMARAK Initiative is being developed. It converges global methodologies but is adapted for the Malaysian context.

MDEC is working to push forward digitalisation in Malaysia. They have developed a series of programmes aimed at preparing individuals for the digital future ahead. For example, eRezeki was established to help low-income groups and other citizens by providing them with opportunities to earn additional income by completing digital assignments using online sharing economy platforms. Participants are matched with digital work that aligns with their skills.

In addition, the Tech Talent @Institute of Higher Learning (IHL) initiative was also set up. This initiative involves the participation of Premier Digital Tech Institutions (PDTIs), the top tertiary institutions in Malaysia that focus on digital technology.

These institutions have a proven track record of producing high-quality graduates for high-value digital tech-based employment through research, education policies, industry connections, and career development services.

In addition, MDEC has other related initiatives to nurture the talent pipeline. These include:

Digital Tech Faculty Expert Program (DTeX): this programme aims to create a pool of digital tech subject matter experts among faculty members of Premier Digital Tech Institutions (PDTIs) and partner universities. The programme is structured to strengthen the quality of teaching and learning in digital tech education. It also creates a platform for technology partners to collaborate with PDTIs and partner universities to actively participate in nurturing and developing industry-ready teaching talent from the tertiary education level.
Internship & Employment: Partnering with industry players in the ecosystem allows university students to access internship and employment opportunities. Furthermore, upskilling programs are offered to prepare job-ready graduates for the industry.
Micro-Credentials: Micro-credentials are short and affordable online courses that provide digital certification upon completion, aimed at improving specific skills or competencies. They can be developed by universities, industries, or professional certification bodies and can be stacked for full credentials via transfer of credit. They are also known as digital badges, nano degrees, web badges, mini degrees, or open badges.

March 28, 2023

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