Hadoop’s 10th Anniversary – Apache Hadoop Founder, Doug Cutting, on the future of Hadoop and its growing ecosystem

OpenGov Asia had the opportunity to attend the very first Strata + Hadoop World Conference in Beijing in early August 2016 and took some time to speak to Doug Cutting, one of the speakers at the conference. Hadoop is an open source software framework for distributed storage and distributed processing of very large data sets on computers built from commodity hardware. We find out from the founder himself about his milestones in developing Hadoop and what is on the horizon.

Hadoop celebrates its 10th birthday this year. As the founder of Hadoop, what do you think are the most significant milestones for you?

I think there are a number of significant milestones. It really started before it was even called Hadoop, when we first founded the project. 10 years ago, in 2006, Yahoo! decided to invest in the technology – that was the first real significant milestone. Then we renamed those parts that matched to become Hadoop; so that was the birth of Hadoop right there in 2006.

About a year later, we had something useable by a lot of people, something that really did scale and was reliable enough. It was a huge milestone in 2007 when we could run it on a thousand nodes and it would stay up for weeks at a time, and people could really process petabytes with open source software.

I think the subsequent milestones were really the arrival of more technologies on top of Hadoop. The initial ones were pig, hive and Edge-Base, and using MapReduce as the engine but providing other tools.

From that point onwards, it’s hard to pick another milestone. Spark has been a huge one in that it shows that we can really start replacing Hadoop with other technologies. I think that shows us that this ecosystem is something that can evolve over time and continue to improve in fundamental ways with significant new execution engines, new storage engines, and new schedulers. We’ve got another scheduler besides yarn in Hadoop, called mesos. I think this competition is very healthy – this means that the ecosystem can continue to progress in its technical, political and economic architecture.

If you think about the relational database, it didn’t evolve very quickly and I think that was because it was controlled by companies that sold the databases and they would undercut their business if they embraced a different technology. They couldn’t afford to change the technology because that would change their business, creating an innovator’s dilemma. Once you have a successful business, it’s very hard to change because it will undermine your successful business. Fortunately, in open source, that doesn’t exist and Spark really demonstrated that first to me very clearly; that this platform can progress and companies like Cloudera are not left behind.

Cloudera is the first vendor to adopt Spark and today, we are still the largest supporter of Spark. People always ask, “Is Spark going to replace Hadoop?”, as though Spark is something we should be afraid of. Instead, Spark is something we very much embrace. It is beginning to replace Hadoop but not completely – it adds more capabilities, and we are also adding search capabilities with solar, and interactive sequel with impala and storage capabilities with kudu. Through this, we keep seeing this ecosystem get more powerful and stronger. Thus, I think that Spark is a milestone that really demonstrates that the ecosystem has the capacity to grow and become stronger.

More recently, it’s hard to find a specific milestone but it would probably be the degree to which Hadoop and the Hadoop ecosystem are becoming the standard for data processing across industries. We see an incredible spectrum of customers from banks to telcos, retail, and even those who are making airplanes, cars, tractors and curing diseases.

This is something I never expected and I think even when we started Cloudera, we weren’t even sure that was going to happen. Now, it is really happening.

What can we expect from the Hadoop technology in the next 3-5 years’ time from your observations and what has been happening so far?

I think Hadoop is becoming more of a style of data processing and for building technology, where we can have this loosely coupled ecosystem of projects and data that we load before we apply a schema.

I think Hadoop was the first project to really set this style in motion and now we’re seeing that as being the most successful approach, to have a collection of open source projects, and to permit people to experiment and explore their data as a style.

The old style was what we call the waterfall technique, where you first do all of the design and once you are done with the design, then you begin the implementation. With Hadoop, we encourage people to experiment, and to build a very early prototype because they can afford to. We empower them with the tools and they can then evolve all the layers of the application as they see it working. This is a much more effective approach as they can change the application and improve it over time.

Share with us about your role as Chief Architect of Cloudera.

I do a number of different things – I help advise folks building the technology, so I talk to engineers and then the executives about where we’re going. I also work as an ambassador for the open source technologies, travelling as I am today and talking to people about how this open source ecosystem operates.

I also help out with the company strategy; how we can best use the open source methodology, what new technologies should we be building, essentially helping to start new initiatives and new investments in open source.

Cloudera, in many ways, is like an open source project. In open source projects, at least in Apache open source ones, you don’t have leaders, rather, you have contributors and Cloudera works that way as well. We do have some leaders, but technically, we have a lot of contributors and so I try to help out in all our processes.

We just saw the launch of BASE in China, which was also launched in Singapore and Malaysia earlier this year. What are your thoughts on BASE and why do you think governments and schools should come aboard to join the initiative?

A major driver of the new economy now is technology and in particular, data technology. If you want your economy to be successful, and your citizens to have better lives with good jobs (and the right jobs), then you want them to be involved in technology and have the right skills to stay on par.

Manufacturing is no longer about people holding tools, it is more about people programming robots to do automated and repetitive tasks, and this is happening in most industries. They are using more and more IT, and the skills that are most in-demand are software and technical skills.

I think governments recognise that, and so we, as a company, contribute to the ecosystem from the beginning with a model that trains people and then places them with the right jobs within the ecosystem as well. We adopted this model so that there will be people who understand the technology, which in turn helps to make our business more meaningful. This ends up benefiting industries and economies at large.

Therefore, we are happy to encourage and help countries build this kind of knowledge in their citizens that will help the country progress as a whole. The Big Analytics Skills Enablement (BASE) initiative is great because it involves not just the educational institutions, but also governments, as well as recruitment and placement organisations to form a holistic ecosystem, much like the open source model.

As an open source software evangelist, how do you think the transition from legacy systems to open source based ones for organisations can be made easier?

Our business is not focused on replacing existing systems. Existing systems tend to work well but they tend to be based on data that was entered on keyboards, which is the traditional database system. What we help people with is the building new systems with machine-generated data. Originally, Hadoop was very popular for web-search engines and web advertising systems, analysing the logs from web servers. These are all machine-generated data and now, we’re seeing even more of this.

Automobiles have sensors on them, airplanes have sensors on them, even hospital beds have sensors; we’re seeing more of it as Internet of Things (IoT) spreads and it is a new kind of data that people don’t have the tools to store and analyse. But Hadoop lets them do that, allowing them to find a lot of value in their data.

Sometimes we get involved in legacy data or importing legacy data. The legacy data system will continue to run, but they want to use the data from that system to combine it with data from other new systems to fully understand their business and their customers. So we work a lot on import and export to legacy systems, and sometimes people will replace them because the costs of the legacy systems are becoming too expensive as their business grows. The cost of open source technologies are so much lower.

But most of our business is actually new applications in companies.

In terms of public sector or government-related projects which make use of big data and Hadoop, are there any examples that come to your mind?

Some of the earlier ones we have seen are tax agencies and government services, that use big data and Hadoop to prevent fraud, making sure that people are paying their taxes and that the people who are collecting money from the government are not getting more than they should be.

Also, several government agencies are interested in applying big data analytics in healthcare, military and intelligence businesses. They have massive volumes of data and are using technologies like Hadoop and Cloudera to help them manage and understand that data, securely.

There are several other applications for government use, and we’re starting to see more in managing utilities, traffic, and other government services. There are a lot of opportunities for government services to use data to better understand how systems are being used and how to improve them for the well-being of the community at large.

EXCLUSIVE! Chatbot Development for Public Service

OpenGov Asia has recognised GovTech for the public sector’s evolving digital use. The agency has streamlined government operations and broken new ground with its Virtual Intelligent Chat Assistant (VICA). The project is part of GovTech’s ongoing efforts to develop and deploy chatbots to fill gaps in government services and enhance the lives of citizens.

VICA is the most recent citizen assistant platform from GovTech, utilising Artificial Intelligence (AI) to create more efficient and beneficial chatbots for government agencies to manage and for end users. The ‘Ask Jamie’ Virtual Assistant will eventually be replaced by VICA.

The engine-neutral platform employs cutting-edge tech to enhance performance and precision. VICA utilises natural language processing engines, machine learning and AI to enhance virtual and phone interactions between Singapore government institutions and residents or businesses.

This platform not only learns and interprets conversations but also offers businesses the ability to design and train chatbots, features that Ask Jamie did not provide. The automated processes provided by VICA make it easier for agencies to onboard and “train” their chatbots.

This accomplishment earned GovTech the prestigious OpenGov Asia Recognition of Excellence Award, which will be presented at the 8th Annual Singapore OpenGov Leadership Forum 2023.

Chatbot advancement to improve citizen experience

In addition to providing a simple FAQ, VICA improves transactional services in numerous other ways. Streamlining transactions provides greater convenience and access to government services and information, as well as quicker and more direct responses to user inquiries.

Taxi drivers and hawker stall owners, for instance, can use the IRAS chatbot to request assistance with tax filing. The Municipal Services Office’s OneService Chatbot, Kaki, which allows residents to easily report municipal issues via WhatsApp and Telegram, is also powered by VICA.

VICA-powered chatbots provide the public with timely updates, such as the Gov.sg chatbot, which provides COVID-19 updates and disseminates important government announcements in English, Chinese, Malay and Tamil.

Using NLP technology has allowed VICA-powered chatbots to better understand and interpret human language, particularly in the context of Singaporean English, thereby improving overall user experience. It is possible to create more structured conversational flows by defining intents, entities and context management – the building blocks that provide directions to chatbots and allow them to meet the needs of users.

VICA provides detailed analytics and insights into the performance of the chatbot as well as user conversations. With this information, the team can identify areas for improvement to enhance performance and accuracy.

Technology is constantly evolving, and the team is continuously on the lookout for and learning about new AI trends. Hence, VICA has been experimenting with a Generative AI programme that can understand written prompts and respond with helpful assistance in real-time since mid-2022.

VICA’s development involves the gradual integration of cutting-edge technology that meets the requirements of the entire government. These technological upgrades will include a unified chat frontend to ensure consistent branding across all government ministries and agencies – Singpass Integration, Live Chat Escalation, and support for various chat platforms like WhatsApp and Telegram.

As part of the closed beta programme with internal testers, the VICA team has been utilising these technologies to improve the quality and efficacy of the chatbots with citizens.

Developers also want to reduce the time and effort that their agency partners have to invest in training and maintaining their chatbots. While the team has always been receptive to new technologies, they take a measured approach, through progressive internal testing phases with the selected partner agencies before launching to the public.

The strategy is to determine how technological advancements can benefit not only the agency partners but also citizen users.

VICA intends to surpass FAQ-style chatbots with near-human conversation capabilities in the long run. It intends to combine services and transactional capabilities so that chatbots can assist users with their inquiries and complete transactions.

Given the potential risks and shortcomings associated with the development of intelligent development of platforms, it is vital to have an ethics framework in place. This will allow developers to plan for and be aware of the pitfalls and limitations of AI, which include:

Accuracy: Models can give false responses that sound convincing
Bias: Inherent biases may exist in the training dataset, which can be difficult to pre-empt due to the lack of information. This could then manifest in the model’s responses;
Harmful content: To create a safe and healthy environment for users’ interaction with chat apps, chat moderation is important to monitor and regulate user input messages against inappropriate and offensive content;
Data governance: When interacting with chatbots, users may inadvertently volunteer personal and confidential data through the chatbot’s prompts.

It is essential to encourage interactions with them and provide feedback to ensure that chatbots are performing as intended and to improve their overall performance.

Despite the functionality and enormous potential of generative AI, VICA has placed a high priority on governing its use to ensure that such technology is employed in an ethical manner benefitting both end users and society.

To mitigate the risk of unintended prejudices and ensure adherence to data governance rules, it is crucial to adopt an intentional strategy for the collection and transformation of raw data into useful and insightful outputs. Such a strategy can help ensure that the data is handled fairly and responsibly and that any potential risks are addressed pre-emptively or proactively. Moreover, this approach ensures that the resulting outputs are accurate, reliable and trustworthy.

About the team

The organisation recognises the importance of aligning team members towards a shared vision and objective, regardless of their diverse backgrounds. With a diverse team, each member can bring their unique perspectives and expertise to the table. Working collaboratively, the team can leverage these diverse perspectives to generate innovative problem-solving strategies.

The VICA team fosters an atmosphere of open communication and encourages feedback, creating a cooperative environment where team members feel heard and valued. This establishes a safe place where everyone feels comfortable sharing their thoughts and ideas.

They frequently organise team-building activities outside of work to foster camaraderie, build stronger relationships and create a more cohesive team dynamic. They believe this approach can lead to more innovative solutions and better decision-making.

Defining clear objectives and goals is crucial for the success of the VICA team. Every team member understands that they are working towards a common objective, providing a sense of purpose and direction.

Clear missions and defined tasks allow the team to stay on track and ensure that their efforts are moving the project forward in the right manner. This approach helps ensure that everyone is aligned and focused on achieving the same goals, which ultimately contributes to the success of the project.

The VICA team has implemented a robust project management framework that outlines the roles and responsibilities of team members at each project stage. They adhere to budget planning procedures to manage costs effectively. This framework helps ensure that everyone is clear on their responsibilities and contributes effectively to the project’s success within the specified budget.

The VICA team has adopted an agile approach that emphasises adaptability, speed and continuous quality improvement. The team uses retrospectives to evaluate what works well and what doesn’t, identifying opportunities for future improvement. This enables the team to quickly make adjustments and continuously improve the project’s quality, resulting in a more successful outcome.

EKSKLUSIF! Pemerintah Singapura Pakai AI dan ML untuk Bikin Chatbot Cerdas

Proyek VICA (Virtual Intelligence Chat Assistant) adalah platform layanan chatbot yang bisa digunakan sebagai dasar pengembangan berbagai layanan chatbot di berbagai instansi pemerintahan Singapura. Platform ini ditenagai dengan Kecerdasan Buatan (Artificial Intelligence/ AI) dan pembelajaran mesin (Machine Learning/ ML) agar chatbot yang dikembangkan oleh berbagai instansi pemerintahan bisa memberikan respons yang lebih ‘manusiawi’ kepada warga dan berbagai perusahaan di Singapura.

Layanan platform chatbot VICA dikembangkan oleh GovTech, yaitu Badan Teknologi Pemerintah (Government Technology) yang mendorong transformasi digital ke berbagai instansi pemerintah di Singapura. GovTech mengembangkan VICA sebagai perbaikan dari layanan chatbot sebelumnya; Ask Jamie.

Untuk membantu VICA memberikan jawaban yang lebih natural dan akurat, GovTech memanfaatkan teknologi NLP (natural language processing) terbaru dengan platform mesin-agnostik. Menerapkan kecerdasan buatan dan pembelajaran mesin membuat VICA mampu mempelajari dan menafsirkan percakapan dan meningkatkan interaksi ketika ‘diajak bicara’ secara virtual maupun lewat telepon. Sebagai sebuah platform, VICA juga digunakan oleh berbagai instansi pemerintah lain untuk melatih chatbot yang mereka kembangkan. Fitur ini sebelumnya tak ada di platform chatbot Ask Jamie.

VICA merupakan bagian dari upaya GovTech untuk membangun dan menggunakan chatbot guna menjembatani pemerintah dengan warga dan swasta. Kepiawaian dan inovasi GovTech ini mendapat atensi dari OpenGov Asia untuk mendapatkan penghargaan OpenGov Asia Recognition of Excellence Award yang akan diberikan pada Singapore OpenGov Leadership Forum 2023 tahunan ke-8.

Chatbot pintar

Dalam wawancara dengan CEO dan Pemimpin Redaksi OpenGov Asia, tim pengembang VICA menyebut mereka telah meningkatkan berbagai fitur untuk memperbaiki cara chatbot anyar ini dalam melayani pengguna. VICA bisa memberi jawaban lebih cepat dan sesuai konteks sehingga ia tak hanya menjawab pertanyaan berdasarkan jawaban yang sering ditanyakan atau sesuai template semata. Hal ini membuat pengguna merasa lebih nyaman ketika berinteraksi dengan VICA.

Sebagai sebuah platform, VICA juga digunakan untuk mengembangkan chatbot instansi pemerintah lain. Contohnya adalah chatbot IRAS yang digunakan wiraswasta seperti supir taksi atau pemilik kios jajanan untuk meminta bantuan dalam pengajuan pajak. Kaki, chatbot layanan terpadu dari Kantor Layanan Kota bisa yang akan menampung laporan dan keluhan warga soal masalah kota lewat WhatsApp dan Telegram.

Selain itu, platform chatbot VICA juga bisa memberikan informasi terbaru secara real-time kepada warga. Contohnya, chatbot Gov.sg yang memberikan pembaruan status COVID-19 dan pengumuman pemerintah dalam bahasa Inggris, Mandarin, Melayu, dan Tamil.

Agar interaksi dengan VICA lebih ramah pengguna, tim memanfaatkan teknologi NLP untuk bisa memahami dan menginterpretasikan bahasa manusia. Namun, bahasa utama yang paling baik diinterpretasikan VICA saat ini adalah bahasa Inggris Singapura.

“Dengan memahami maksud pertanyaan, siapa yang menanyakan, dan konteks pertanyaan, ini akan jadi bahan arahan bagi chatbot untuk memberikan jawaban yang memuaskan kebutuhan pengguna, sehingga alur percakapan bisa lebih terstruktur,” jelas tim VICA.

Agar performa VICA makin bagus, tim juga melengkapi platform ini dengan analisis data. Hasil analisis itu memberikan gambaran terperinci tentang kinerja chatbot serta bagaimana kinerjanya atas percakapan pengguna. Hal ini membuat tim VICA bisa mengidentifikasi hal yang bisa diperbaiki untuk meningkatkan akurasi VICA.

Ketika memanfaatkan AI, terdapat kekhawatiran masalah etika dari kecerdasan buatan yang digunakan. Sebab, pada beberapa kasus, AI kerap memberi jawaban yang menyesatkan atau tidak sesuai etika. Tim VICA menyadari hal dan sepakat kalau model AI bisa memberikan respons yang salah namun terdengar meyakinkan.

Jawaban yang keluar dari model AI juga bisa terkontaminasi oleh bias. Bias bawaan ini mungkin terjadi imbas dari kumpulan data yang digunakan untuk melatih model AI itu. Namun hal ini bisa jadi sulit dicegah karena kekurangan informasi yang dimasukkan dalam data latihan AI tersebut. Bias dan jawaban menyesatkan tadi kemudian nampak dalam respons AI atas pertanyaan pengguna.

Untuk menjaga pembicaraan yang sehat, model AI juga perlu menyaring konten yang ditanyakan pengguna. “Moderasi obrolan diperlukan untuk memantau dan menyaring pesan yang dimasukkan pengguna untuk mengatur respons AI terhadap konten yang tidak pantas dan menyinggung.”

Etika lain yang dipertimbangkan tim pengembang VICA adalah soal tata kelola data. Saat berinteraksi dengan chatbot, pengguna mungkin secara tidak sengaja memberikan data pribadi dan rahasia secara sukarela akibat perintah chatbot.

“Terlepas dari fungsi dan potensi AI generatif yang sangat besar, kami memastikan teknologi ini digunakan dengan cara yang etis dan menguntungkan pengguna dan masyarakat,” tegas tim VICA.

Untuk mengurangi berbagai risiko disinformasi, misinformasi, bias, dan masalah etis lain, tim memastikan efisiensi dan kegunaan tiap informasi yang dikumpulkan dan ditransformasi sebagai bahan data mentah pelatihan model AI yang mereka kembangkan. Hal ini juga dilakukan agar mereka mematuhi aturan tata kelola data yang berlaku. Selain itu, mereka pun senantiasa memeriksa umpan balik pengguna agar chatbot yang dikembangkan berfungsi semestinya.

Ketika ditanya soal pengembangan VICA ke depan, sejak pertengahan 2022, tim pengembang telah mulai bereksperimen dengan program AI Generatif. Program ini bisa memahami petunjuk tertulis dan merespons dengan bantuan yang bermanfaat secara real-time.

Dalam jangka Panjang, VICA akan terus disempurnakan dengan teknologi terkini yang paling sesuai dengan kebutuhan Whole-Of-Government. Mereka akan mengembangkan antarmuka obrolan terpadu sehingga branding pada chatbot pemerintah lebih seragam di semua kementerian dan lembaga. Selain itu, mereka juga berencana melakukan integrasi VICA dengan Singpass, memperbanyak fitur Live Chat, serta integrasi dengan platform chat seperti Whatsapp dan Telegram.

Selain itu, tim VICA juga telah menjajaki teknologi kemampuan percakapan tingkat lanjut seperti yang digunakan oleh ChatGPT. Mereka tengah menelisik teknologi ini dalam program beta tertutup dan tengah melakukan pengujian internal untuk meningkatkan kualitas dan kenyamanan pemakaian chatbot. Langkah selanjutnya adalah menerapkan cara yang dapat mempermudah para mitra GovTech ketika mengadopsi platform VICA ketika mereka ingin membuat chatbot sendiri. Dengan VICA, mereka bisa mempersingkat waktu dan mengurangi kerumitan dalam melatih serta memelihara chatbot mereka.

“Kemajuan teknologi apa pun harus bisa memberikan pelayanan yang lebih baik bagi mitra instansi dan warga, itu sudah menjadi DNA kami,” tegas tim VICA

Cita-cita jangka panjang lain adalah membuat chatbot VICA bisa digunakan sebagai media transaksi. Jadi, chatbot ini tak sekedar bisa menjawab pertanyaan saja, tapi juga bisa terintegrasi dengan operasional layanan pemerintah. “Kami juga selalu terbuka untuk teknologi baru dan siap melakukan kalibrasi melalui fase pengujian internal, sebelum meluncurkan layanan itu kepada warga.”

Membangun tim inovatif

Tim VICA lantas membeberkan sejumlah cara yang mereka lakukan untuk memastikan inovasi berkelanjutan dan keberhasilan program.

“Dengan menetapkan tujuan dan sasaran yang jelas, setiap anggota tim akan terbantu untuk memahami bahwa mereka memiliki tujuan bersama yang jelas, sehingga setiap orang memahami tugas dan tanggung jawab masing-masing.”

Di tahap awal, tim membangun kerangka kerja manajemen proyek. Kerangka ini membantu peran dan tanggung jawab anggota tim untuk pembagian beban kerja yang sehat di setiap tahap proyek. Kerangka ini juga berguna untuk penentuan perencanaan anggaran agar biaya bisa dikelola secara efektif. Tim juga menciptakan suasana yang terbuka terhadap berbagai umpan balik, sehingga setiap anggota tim bisa dengan bebas dan merasa aman dan didengar ketika mengajukan pendapat.

Untuk mengukur dan mengevaluasi keefektifan kerja, tim VICA mengadopsi metodologi Agile. Metode ini dianggap lebih fleksibel, cepat, dan bisa membantu tim untuk meningkatkan kualitas kerja mereka. Sementara dalam proses pengembangan produk, mereka mendapat manfaat dari metode Scrum dan Kanban. Sebagai bahan evaluasi, tim juga mengandalkan retrospektif untuk mempelajari kembali apa yang berhasil dan apa yang tidak. Bahan ini lantas digunakan untuk perbaikan produk di masa mendatang.

Ketika berinteraksi dengan tim yang berbeda latar belakang, tim VICA memulai proyek dengan membangun rasa saling percaya dan menyelaraskan visi dan tujuan bersama. Sehingga, tiap anggota bisa memiliki cara masing-masing untuk berkontribusi dengan caranya yang unik. Dengan menyatukan semua pendapat berbeda ini, mereka dapat menciptakan dan menemukan solusi inovatif untuk berbagai masalah.

Sementara untuk menjaga kebersamaan dan kolaborasi yang efektif dalam tim, mereka memperbanyak waktu bersama lewat sesi curah pendapat (brainstorming), proyek bersama, hingga kegiatan team bonding. Mereka pun mengembangkan budaya untuk menghargai kontribusi dan menghormati pendapat setiap anggota tim. Inisiatif ini menjamin tiap pendapat didengar serta memberikan lingkungan yang aman bagi tiap anggota untuk berbagi pandangan yang berbeda.

Singapore, Indonesia Team Up on Green-Tech, Digitalisation

Singapore and Indonesia reaffirmed their strong and long-standing economic ties; and to explore opportunities in the development of Indonesia’s new capital city, Nusantara, both nations welcomed the Letters of Intent submitted by Singapore-based businesses from a variety of sectors, including construction, telecommunication and finance. This collaboration in renewable energy and the digital economy was expanded.

Singapore’s Senior Minister and Coordinating Minister for National Security Teo Chee Hean and Indonesia’s Coordinating Minister for Maritime Affairs and Investments Luhut Binsar Pandjaitan signed a Memorandum of Understanding (MOU) on Renewable Energy Cooperation.

Both countries will facilitate investments in the development of renewable energy manufacturing industries, such as solar photovoltaics (PV) and battery energy storage systems (BESS) in Indonesia, as well as cross-border electricity trading projects between Indonesia and Singapore, under the terms of the MOU.

Recognising the synergies shared by Singapore’s and Indonesia’s tech ecosystems, Singapore’s Minister for Trade and Industry Gan Kim Yong and Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto also signed the MOU on the Singapore-Indonesia Tech:X Programme.

The MOU will establish the Tech:X Programme, which enables young tech professionals from Singapore and Indonesia to work in each other’s countries, strengthens ties between the two nations’ tech ecosystems, and enables young tech professionals to pursue expanding opportunities in the digital economy.

“Through the Tech:X Program, we hope that young tech talent from both countries will be able to learn from one another, gain exposure, and expand the capabilities of both countries’ tech workforces,” Minister Gan says.

Ministers Gan and Airlangga also witnessed the signing of nine partnership documents between Singapore and Indonesia companies on 15 March 2023, in conjunction with the Leaders’ Retreat. In addition to health tech and ed-tech, the partnerships are in the digital economy.

The annual G2G platform, as well as the Singapore-Indonesia Six Bilateral Economic Working Groups (6WG), facilitate close economic collaboration between Singapore and Indonesia.

The 6WG platform addresses economic collaboration in the following areas: Batam, Bintan, Karimun, and other Special Economic Zones: Investments, Manpower, Agribusiness, Transportation, and Tourism.

Singapore and Indonesia have close commercial and investment ties. With bilateral trade totalling S$76.4 billion in 2022, Indonesia is Singapore’s sixth-largest trading partner. Since 2014, Singapore has been Indonesia’s top source of Foreign Direct Investment (FDI), with Singapore’s investments in Indonesia totalling US$17.5 billion by 2022.

OpenGov Asia earlier reported that Prime Minister Lee Hsien Loong and Indonesian President Joko Widodo recently met at the Singapore-Indonesia Leaders’ Retreat. This was the sixth Leaders’ Retreat for Prime Minister Lee and President Joko Widodo and the first to be held in Singapore since the COVID-19 pandemic.

During President Joko Widodo’s two terms in office, the relationship between the two countries had significantly improved, according to both leaders. This laid the groundwork for them to collaborate in new ways that are profound, multifaceted, forward-looking, and beneficial to both countries.

The ratification of all three agreements under the Expanded Framework was celebrated by the Leaders. These included the Agreement on the Realignment of the Boundary between the Jakarta Flight Information Region (FIR) and the Singapore FIR, the Extradition Treaty, and the Defense Cooperation Agreement.

The Leaders anticipated the next step of obtaining International Civil Aviation Organisation approval for the new arrangements under the FIR Agreement so that both countries could implement all three agreements at a mutually agreed upon date. The resolution of these enduring issues demonstrates the maturity and resilience of bilateral relations.

South Australia Programme Provides Free Tech Training

Within a year of its commencement, the innovative education model FORTE (Financing of Return to Employment) has shown excellent early outcomes for both local career seekers and employers as the first groups of South Australian students transition from training to employment.

The FORTE pilot programme, which commenced in May 2022, is supported by the Department for Industry, Innovation, and Science. It provides high-quality training at no cost, aimed at equipping 150 South Australians with the necessary digital skills to work in the state’s rapidly growing hi-tech sectors.

Under the FORTE model, local training providers such as Generation Australia, General Assembly, _nology, and 42 Adelaide deliver the training, which is initially funded by private investors. Running for a duration of three years, the pilot programme has shown encouraging early indicators. Over 40% of recent FORTE graduates have already secured jobs at various tech companies.

The remaining graduates are currently actively seeking employment and attending interviews, with the FORTE team providing support to ensure they are matched with appropriate job opportunities within the next three to six months.

The South Australian Government will only make repayments under the FORTE model when a participant has demonstrated a successful employment outcome, meaning that they have secured work in their desired field, achieved higher income, and generated higher income tax as a result. By implementing this approach, the FORTE model ensures that the South Australian Government only funds labour force interventions that are effective.

According to the Founder & CEO of FORTE, talent is abundant throughout South Australia, and the programme aims to provide everyone with the opportunity to learn new in-demand skills, attain financial independence, and reach their full potential.

The FORTE model guarantees that the South Australian Government only invests in labour force interventions that have proven effectiveness. The CEO believes that there is an abundance of talent in South Australia and that the programme is designed to provide everyone with an opportunity to learn new in-demand skills, achieve financial independence, and reach their full potential.

The programme aims to help Adelaide become a leading tech hub in the Asia-Pacific region. A great tech talent pipeline is essential for this goal to be achieved. Thus far, the initiative has contributed to bridging the gender divide in the tech industry. Women who are re-entering the workforce, especially those who have taken a break to raise a family, are a valuable talent pipeline that FORTE aims to tap into.

The Forte Tech Program is a three-month full-time training programme aimed at improving the tech skills of participants. The programme also includes career development services to assist participants in securing employment opportunities in the tech industry. These services include introductions to potential employers, assistance in crafting resumes and profiles, and one-on-one coaching.

The programme is entirely remote, enabling participants to work from home while receiving top-quality training, hands-on project experience, and ongoing support. The training focuses on fields such as Data Analytics, Software Development, and Cloud Computing, which offer excellent salaries, and flexibility and are in high demand for the future. In addition, the training comes at no cost to participants.

New Zealand Releases First National EV Charging Strategy

The Transport Minister, Michael Wood, launched the country’s first electric vehicle (EV) charging strategy, which includes plans to provide EV charging stations in almost every town in New Zealand. The strategy is titled Charging Our Future. According to Wood, the government’s vision is for Aotearoa New Zealand to have world-class EV charging infrastructure that is accessible, affordable, convenient, and reliable.

The strategy aims to offer journey charging hubs every 150-200 kilometres on main highways, a public charger for every 20-40 EVs in urban areas, and public charging at community facilities for all settlements with 2,000 or more people. Meeting the targets would see tens of thousands more EV chargers across the country, Wood said.

Emissions from the light vehicle fleet are the single largest source of transport emissions in New Zealand, partially due to having some of the most fuel-inefficient and emissions-intensive vehicles in the OECD. This is expensive and damaging to people’s health and the environment. “Switching to EVs would be like buying petrol for 40c/litre, which would make a big difference for household budgets,” he explained.

Last May, the government released Aotearoa New Zealand’s first emissions reduction plan. The plan explored how the country would meet the first emissions budget for 2022–25 and put it on track to meet future emissions budgets. As per the strategy, transport is one of New Zealand’s largest sources of greenhouse gas emissions and is responsible for 17% of national gross emissions and 39% of total domestic carbon dioxide emissions.

The Emissions Reduction Plan includes the action to rapidly adopt low-emissions vehicles including by improving EV-charging infrastructure across Aotearoa to ensure that citizens have adequate access to charging facilities. Although EVs are not a solution, they are a crucial part of a decarbonised transport system, complementing increased opportunities for adults and children to safely walk, cycle, and use high-quality public transport, the strategy wrote. The country needs an EV charging plan to provide certainty to all parties about the role government will play in supporting EV charging infrastructure.

These new targets will facilitate infrastructure to support different trips and journeys that EV drivers make as well as ensure that rural and provincial New Zealand locations are accessible for residents and visitors with EVs. Wood noted that the success of the government’s clean car policies means there are more than 69,000 EVs on roads, over 80% more than at the end of 2021. This strategy will ensure New Zealand can sustain the uptake of EVs as it is witnessing more people make the switch.

The Ministry will work with local government and industry across transport, energy, and other sectors to deliver on these initiatives. “We also want to make sure we’re working alongside the public. I hope everyone will take the opportunity to feed into the draft strategy and the discussion document,” Wood stated.

The country’s capital, Wellington, previously announced it aims to replace all fossil-fuel-powered passenger vehicles with electric alternatives by 2030. Last year, the Wellington City Council added 24 electric vehicles (EVs) to its fleet. As OpenGov Asia reported, by mid-August, there were 40 EVs for staff to use for daily operations.

A study by the New Zealand Transport Agency (Waka Kotahi) about Kiwi behaviour showed that on average, people don’t travel more than 20 to 50 kilometres a day. Introducing electric vehicles that are capable of a 250-300 kilometres range in one full charge will be the right match for most Council operations. As Wellington city is compact, there are many opportunities for people to change the way they travel throughout the city and have an impact on carbon emissions. More recently, the capital approved trialling a public e-bike share scheme, allowing residents and visitors to hire e-bikes to get around the city.

HKUST Releases Regtech Study

The HKUST Business School conducted a comprehensive research study aimed at guiding policy and strategy development for Hong Kong’s regtech sector. The study highlights the pain points currently facing the industry and proposes measures that could strengthen its growth.

To create a more vibrant and innovation-friendly regtech ecosystem, regulators should consider leading in technology development, providing incentives for technology use, and issuing clear guidelines to facilitate technology adoption.

Regtech is a subsector of fintech that adds value to financial institutions and end-users of financial services by automating compliance processes and facilitating innovative customer services such as remote bank account opening. The Hong Kong Government recognises the significance of regtech as part of its fintech strategy and promotes its growth in the city.

To conduct the study, the research team collected insights from regtech solution providers and users, including senior management from banks, payment service providers, and asset management companies. The team used an online survey and focus group discussions to gather this information. Based on their findings, the team developed two reports that summarise their key observations and recommendations.

The research team identified the potential of regtech in automating financial institutions’ know-your-customer (KYC) processes and recommended establishing clear protocols for releasing government data for document verification purposes.

Additionally, the team proposed several solutions to address Hong Kong’s regtech talent shortage, including allocating more resources for on-the-job training, mandating IT courses for finance majors, and establishing an accredited regtech program that is widely recognised.

The Dean of HKUST Business School expressed that financial institutions are turning towards regtech to stay competitive and provide consistent value to customers amid a rapidly changing market with numerous regulatory requirements.

He hopes that this study will help policymakers, regulators, and industry participants to enhance the regtech capabilities of the city and accelerate industry growth. Additionally, the school plans to allocate more resources and focus on regtech research in the future.

The following are the recommendations provided by the HKUST Business School’s study on promoting regtech development in Hong Kong:

Creating a Friendly Regulatory Environment that Encourages Innovation:

Establish clear guidelines with notes on interpretation and provide prompt feedback
Provide incentives to the industry, startups, and academics to facilitate regtech innovation

Building a Connected, Inclusive, and Vibrant Regtech Ecosystem:

Regulators to take lead in technology solutions to address pain points of the industry
Build an inclusive regtech network through the facilitators
Accreditation of regtech solution providers

Facilitating the Sharing of Data & Technology in the Regtech Community:

Standardise the APIs for different banks to share data
Provide shared databases and platforms to be accessed by different regtech stakeholders
Allow successful sandbox projects to share solutions

Facilitating KYC Processes and Cross-Border Data Access:

Establish protocols for verification of documents and identities (individuals and corporates)
Collaborate with Mainland China to offer standardised procedures and data access

Solving Hong Kong’s Regtech Talent Shortage:

Government and regulators to allocate more resources for on-the-job training
Government to sponsor more internships, as firms may not have the resources to support student internships
Government could provide living allowance to expatriates, or subsidise the companies that offer housing benefits to expatriates to increase their willingness to relocate to Hong Kong
Higher education providers to include mandatory IT courses in the curriculum for finance majors
Establish a widely accepted accredited program with regtech as a specialisation for graduates and practitioners to certify fintech and regtech talent
Provide a clear path for the regtech profession and offer a more rewarding scheme and more interesting future prospects to attract students into the field.

The Policy Innovation and Coordination Office (PICO) and the Research Grants Council (RGC) funded the study.

EXCLUSIVE! Selecting Startups to Fund with Kei Furukawa

Venture Capital (VC) has played a significant role in driving innovation and economic growth by providing essential financing for startups and early-stage enterprises. With rising interest rates and complicated loan approval processes, many entrepreneurs are turning to VC financing opportunities to bridge the gap between funding sources for innovation and traditional, lower-cost forms of finance available to existing businesses.

To attract private equity funds and entice entrepreneurs with high-return ideas, the VC industry must offer a satisfactory return on capital, provide appealing returns for its members, and demonstrate promising upside potential. However, consistently outperforming investments in inherently risky business operations remains a significant challenge

Despite not being long-term ventures, the goal of VC investments is to provide financial support to a company’s balance sheet and infrastructure until it achieves a certain size and level of credibility that makes it attractive for acquisition by a corporation or provides the opportunity for liquidity in the institutional public equity markets.

Due to the saturation of the startup market and ongoing inflation concerns, many investors are opting for a more conservative approach. Venture capitalists today are adopting a more cautious, long-term strategy, departing from the previously prevalent aggressive, short-term investment approach.

Venture Capitalists Measure When Funding a Startup

Kei Furukawa, a Partner in Investment & Business Development at the UTokyo Innovation Platform Co (UTokyoIPC), presents the Innovative Platform as the entity in charge of enhancing the University of Tokyo (UTokyo)’s innovation ecosystem. It is tasked with ensuring returns on its investments as a funding corporation as well as disseminating academic research outcomes from the world-leading university in Japan to society as a whole.

“UTokyo IPC aims to accelerate innovation on a global scale that leveraged the University of Tokyo through three key activities: supporting entrepreneurs, facilitating corporate innovation, and investing in startups,” Kei reveals.

The company’s primary activity is Venture Capital (VC), which consists of meaningful investments and the exiting of those portfolios. A concurrent objective is to apply UTokyo’s research, intellectual assets and other resources to businesses.

While the ultimate goal is to make investments, Kei shared that they also conduct extensive research and academic work, that can be commercialised.

The company has invested in around 60 companies or portfolios that are primarily focused on various fields including biotech (drug discovery, medical devices, agriculture), robotics, aerospace, IT and AI (mainly enterprise solutions).

“It is pertinent that our company was established as a result of a political decision, indicating that the government is currently experiencing a period of uncertainty,” Kei explains. “Ministry of Economy, Trade and Industry (METI), and the Ministry of Education, Culture, Sports, Science and Technology (MEXT)made a joint decision to increase funding for startups emerging from universities, to explore ways to transform research into viable business ventures. This decision ultimately led to the creation of our company.”

Typically, national universities in Japan are not permitted to invest in companies, but an exception was made in this case. As a result, the VC firm is deeply invested in the growth of startups and takes a deep interest in their success.

Kei explained that the national budget was used to establish our funds. It is noteworthy that the funds comprise public and private sources, with a government disbursement allowing it to undertake investments with significantly greater risk.

He acknowledges that the company employs a matrix to evaluate the success of its investments. However, due to their focus on early-stage deep tech investments, it can be extremely challenging to conduct such measurements, particularly at an early stage. Nonetheless, his team closely monitors the progress of each investment and ensures that the milestones established for both business and technology are met.

The company operates an incubation and accelerator programme called “1st Round” (https://www.1stround.jp/) that serves as a bridge between academia and business. It is a programme co-hosted by 13 Top national and private universities from Japan. To participate in the initiative, start-ups are not required to be incorporated but must do so if chosen. If already incorporated, they must be under 3 years, and must not be funded by a VC at application timing.

He notes that they have numerous corporate sponsors, consisting of major Japanese corporations of a wide spectrum of industry fields. They strongly encourage partnerships between the startups and the sponsoring companies to conduct proof of concept (POC) projects together. This safe and close-knit community has resulted in many successful ventures between companies and startups.

The venture capitalist arm has a follow-on investment strategy aimed at providing support to the companies they invest in, particularly during challenging times. They take a hands-on approach by having members sit or observe boards meeting of portfolio companies to offer guidance and mentorship for business development, HR support (has own recruitment platform “Deep tech Dive” (https://www.utokyo-ipc.co.jp/dive/), and public relations. Also since their fund terms are 15 years, relatively longer than other VC funds, which helps deep tech startups to firmly bring technology to the market.

The VC strongly believes in the value of persistence and is committed to not giving up on its investments. They are determined to work tirelessly until the very end to revitalise the company, a trait they consider critical of a successful investor.

As a university subsidiary, they do not limit themselves to any particular investment areas and remain open to various types of startups. While there may be some sectors that are more attractive to non-tech venture capital, they generally favour startups that may be complex to comprehend but possess the potential to bring about transformative changes in the world.

They take a long-term investment approach and have transitioned from short-term rapid investment to supporting social impact and sustainability, particularly in healthcare startups. However, they also must balance this with the need for financial returns.

When making investments, financial returns are undoubtedly important, but they are not the sole factor that should be taken into account. The overall impact of the investment, including its social, environmental and ethical implications, should also be carefully considered.

Startups have several options for obtaining capital, such as crowdfunding, venture loans, and revenue-based finance. Each strategy has its own advantages and disadvantages, and therefore, entrepreneurs must have a deep understanding of these options.

Having multiple funding options can be advantageous, provided that entrepreneurs and shareholders are well-informed about the pros and cons of each. A thorough understanding of the funding options can help them make an informed decision that aligns with their business goals and objectives.

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, focuses on urban ideas and solutions developed by student founders and early-stage start-ups.

According to Kei, as an entrepreneur, it is essential to have the appropriate capacity and seek guidance from knowledgeable individuals, particularly in the early stages of the business. As a university subsidiary, UTokyoIPC is well-equipped to assist entrepreneurs and help prevent them from making fatal mistakes out of ignorance.

The success of promoting entrepreneurship in culture depends on the ecosystem and environment that encourages and supports it. Singapore has a strong entrepreneurial environment, with universities such as SMU and NUS emphasising entrepreneurship. In contrast, Japan has a larger economy but tends to be more conservative.

The University of Tokyo has been actively fostering entrepreneurship by offering courses to students, which has led to the creation of numerous companies. The critical factor behind this success is the creation of an environment that supports entrepreneurship and motivates people to pursue it. Marketing and promoting the benefits of entrepreneurship are also vital to its success.

“The programme is expanding and involving many other universities beyond Singapore. This makes LKYGBPC an excellent platform for startups or the venture capital industry, as it is close to many countries in the region.” Kei believes.

Since joining the company in 2019, Kei has been actively involved in supporting startups, professors, and students through various initiatives. His passion is on deep tech startups or those with the potential to bring about positive changes in the world. He has invested in a diverse range of fields, including IT, robotics, AI and agritech.

Many successful entrepreneurs come from different backgrounds, such as business, engineering, finance, marketing and more. While having a technical background can be advantageous in some industries, it is not always necessary for achieving business success, Kei opines.

“Ultimately, having a strong business sense is more crucial than any specific technical background. What truly matters is possessing a good grasp of business and the necessary skills to succeed in it. This entails competencies such as strategic thinking, financial management, leadership, communication, and problem-solving,” Kei concludes.

March 25, 2023

8th Annual Singapore OpenGov Leadership Forum 2023, 10 - 11 MAY 2023 - CLICK HERE FOR DETAILS

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