The Monetary Authority of Singapore (MAS) introduced a new initiative for enterprises, Sandbox Express, with the aims of offering a more efficient platform for the testing of innovative financial products and services within the market.
Enterprises which satisfy the criterion can begin testing products in Sandbox Express, within three weeks of applying to MAS. The new initiative comes with a pre-set sandbox. Each sandbox will come with its own restrictions, ease on regulations and forecast of outcomes.
Under the current regulations, it takes about six months to a year to customise a sandbox. Enterprises must go through a two-stage process to obtain the approval from MAS.
In the initial stage, it takes 21 days for applicants to be notified on the prospects of them being suited for the sandbox. The final stage will be the final approval given by MAS.
MAS said that as each sandbox used for testing of technologies is unique in its business, technical and regulatory complexities, it takes time for the application to get approved. Each sandbox is unique to its application.
This new initiative allows for faster processing of approvals as it follows standard disclosures and pre-determined rules.
Sandbox Express is best used for low-risk technology testing which are well-understood but the market and can be handled within the pre-set restrictions of the sandbox.
In a consultation paper released by MAS in November last year, it said that it will assess applications based on two criteria: (1) technological innovativeness of the financial service (2) Fitness and propriety of the applicant’s key stakeholders.
Sandbox Express will first be made available to insurance brokers, recognised market operators, and remittance businesses.
“Firms must comply with all conditions of approval, including providing clear and proper disclosure to the customer, as well as submitting regular progress reports to MAS,” said MAS.
A maximum of nine months is given for tests done to be kept in the sandbox. The incentive is to give enterprises additional time to find solutions to any business and technical challenges faced during the testing process.
Enterprises can use this time to plan their route for exiting the sandbox and move forward to releasing their innovation into the market.
It also gives MAS time to manage any regulatory disputes that may come along the way.
Sopnendu Mohanty, chief fintech officer at MAS said: “For innovation to take root, it is important for ideas to be tested quickly, and in a safe environment. Sandbox Express aims to achieve this through appropriate disclosures and pre-defined rules.”
He added that Sandbox Express is a product of experience from managing the previous sandbox. He said that MAS is committed to promote experimentation efforts and an increase in adoption of innovative technologies, within the financial sector.
MAS will be keeping track of whether Sandbox Express is satisfying the growing needs and interests of enterprises in the financial industry.
It will also formulate ways of widening the collection of financial products and services that Sandbox Express could potentially provide.
What is Sandbox?
The FinTech Regulatory Sandbox is an approach that was launched by MAS in 2016 to provide a venue for the conducting of real-time experiments of innovative financial services and business models within the stipulated regulations.
It was established with the aim of promoting experimentation in financial technology (FinTech) and the adoption of these technologies among enterprises. It also aims to push for FinTech adoption on a larger scale, worldwide.
China Construction Bank (CCB) was recently commended by Deputy Prime Minister Heng Swee Keat for reaching an important milestone in Singapore, which is evidence of the long-lasting collaboration that has developed between the two countries over the past 25 years.
The CCB is one of China’s four largest state-owned banks and is actively expanding its business abroad, with branch offices in Hong Kong, Macau, and Singapore, among other places.
In 1998, when CCB made the bold decision to establish a presence in Singapore, the Asian economies were emerging from the depths of the Asian Financial Crisis. CCB’s move to set up shop in Singapore was a bold show of faith in the future of Asia and a belief that the region was poised for a resilient comeback.
Over the years, CCB has deepened its roots in Singapore, forming vital partnerships and emerging as one of CCB’s largest overseas nodes. DPM Heng Swee Keat, who once led the Monetary Authority of Singapore (MAS), recalls productive meetings with CCB’s leadership regarding their expansion plans in the region.
This partnership led to significant milestones, including MAS upgrading CCB’s Singapore branch to a wholesale bank in 2010 and subsequently to a Qualifying Full Bank (QFB) in 2020.
The timing of this expansion is crucial, as it enables CCB to support Chinese companies looking to explore new opportunities while also contributing to the internationalisation of the renminbi.
Simultaneously, it provides invaluable support to Singaporean companies with aspirations in the Chinese market. Singapore’s status as an international financial centre ensures a plethora of growth opportunities for both CCB and Singapore.
Financial cooperation has been a cornerstone of the enduring relationship between Singapore and China. Recent upgrades in their partnership have expanded the scope of activities, going beyond traditional corporate and commercial lending to include green financing solutions, offshore debt raising, and even FinTech and innovation research in Singapore.
Regulators from both nations have joined hands to explore emerging areas like sustainable and digital finance, aiming to strengthen cross-border collaboration and deepen capital market connectivity within the region.
This is due to the rise of digital technology which has transformed the financial landscape, leading to the emergence of digital finance. This encompasses a wide range of innovations, including mobile banking, digital payments, blockchain technology, and digital currencies.
By exploring digital finance, Singapore and China are not only embracing financial technology (FinTech) but also revolutionising the way financial services are accessed and delivered. This shift has the potential to enhance financial inclusion, streamline transactions, and increase the efficiency of capital markets. Also, it opens doors to cross-border collaboration in developing and adopting cutting-edge FinTech solutions.
By strengthening capital market connectivity, these nations are not only boosting their own financial sectors but also attracting foreign investments, promoting regional economic stability, and potentially positioning themselves as hubs for sustainable and digital finance in Asia.
Innovations in digital finance and technology have revolutionised access to banking services and improved efficiency. CCB’s Fintech innovation lab in Singapore offers a platform for research, technology sharing, and the forging of new partnerships. These innovations are poised to enhance resource allocation, promoting real growth and job creation.
The collaboration between Singapore and China in these emerging areas is a strategic move to shape the financial landscape of the future, where sustainability, innovation, and cross-border cooperation will be key drivers of success.
The Minister for Finance, Minister for Women, and Minister for the Public Service of Australia provided updates on technology and digital identity-related legislation. The Minister delved into the topic of Digital ID and its significance for Australia’s future.
The primary focus of the address was the introduction of the draft Digital ID legislation, marking the commencement of consultations for the exposure draft. She highlighted that Digital ID is akin to an online version of presenting one’s passport or driver’s license to verify their identity but without relinquishing the physical document. It aims to provide a secure and convenient way to verify identity online.
The draft Digital ID legislation, now open for consultation, represents a significant milestone in Australia’s efforts to create a national Digital ID system. The Minister outlined four guiding principles for this system: security, convenience, voluntariness, and inclusivity. She stressed that Digital ID would remain voluntary, ensuring alternate channels for those who prefer not to use it.
Moreover, Digital ID is seen as a means to enhance inclusion by bringing government services online and extending their accessibility to underserved communities, including individuals with disabilities. However, the Minister emphasised that those unable or unwilling to obtain a Digital ID would still have access to government services through traditional channels.
The current system, which operates without legislation, allows individuals with Digital IDs to verify their identity without repeatedly providing sensitive documents. Nevertheless, it has limitations, as it is not yet a nationwide system and private sector providers cannot verify individuals against government-issued ID documents. The government envisions a national Digital ID system as an important economic, productivity, and security reform, and efforts are underway to address these shortcomings.
To ensure trust, data protection, and choice in the Digital ID system, the draft legislation establishes governance arrangements, a regulator (with the ACCC as the interim regulator), and privacy safeguards. Senator Gallagher emphasised the need for explicit consent for sharing identity information, the secure deletion of biometric data, and the prohibition of using identity data for direct marketing purposes.
Additionally, the Minster announced the formation of an AI taskforce, in collaboration with colleague Ed Husic, to ensure responsible and safe usage of AI across government agencies. AI has the potential to improve productivity within the APS and enhance government services, but it also requires careful management to mitigate risks.
The government is committed to creating boundaries and safeguards for emerging technologies like AI. The AI Taskforce will assess the risks and benefits of different AI systems within the public service.
The upcoming release of the first Long Term Insights Brief on AI and trust in public service delivery was also mentioned. Four key findings from the brief highlighted the importance of designing AI with integrity, preserving empathy in service design, enhancing public service performance, and investing in AI literacy and digital connectivity for all Australians.
The Minister expressed her determination to see the establishment of an Australian Digital ID system through legislation, despite the challenges and opposition. She acknowledged that it has been an eight-year work in progress, but she believes it is a worthy project with significant benefits for individuals, businesses, and the economy as a whole.
The address highlighted the importance of Digital ID legislation and AI governance in shaping Australia’s technological future. These initiatives aim to enhance security, convenience, and inclusivity while safeguarding individuals’ privacy and ensuring responsible AI usage within the public service.
Efforts to advance digital identification in Australia align with the country’s broader initiatives to establish a national Digital ID system, as discussed by the Minster. The focus of one pilot program, reported on by OpenGov Asia earlier, was on enabling individuals to prove their identity without the need for multiple physical documents corresponds to the principles of Digital ID outlined by the Minister, emphasising secure digital verification over physical information exchange.
Additionally, student volunteers from Deakin University demonstrated practical applications of digital identity within the education sector, mirroring the efficiencies mentioned by Senator Gallagher in her speech. These developments reflect Australia’s growing interest and innovation in the digital identification ecosystem.
Vietnam, Laos, and Cambodia will cooperate in the digital economy. Experts have said that the substantial potential for trade and investment collaboration among the countries has not yet been fully realised.
The three governments jointly organised a conference to discuss digital economic development trends and their potential to enhance trade and investment among the countries, opportunities and challenges arising from digital transformation for the growth of trilateral ties, and strategies to advance their cooperative efforts in the digital era. The conference reflects the countries’ readiness to build digital-transformation-oriented socio-economic infrastructure.
Experts at the event recommended that the sides establish and improve institutional and legal environments that align with the demands of the international integration era within the context of the digital economy. Additionally, the nations should invest in developing digital infrastructure to foster their national digital economies.
The conference, which was organised by the Vietnam Academy of Social Sciences (VASS), Lao Academy of Social and Economic Sciences (LASES), and Royal Academy of Cambodia (RAC), saw the participation of over 100 experts, managers, and diplomats from the three countries.
According to a representative from VASS, prioritising the advancement of the digital economy is considered a key task in accelerating the restructuring of an economy. This approach is closely linked with innovation in the growth model and the enhancement of growth quality. The aim is to assist a nation in escaping the middle-income trap and progressing toward becoming a fully developed, industrialised country. The trend presents both opportunities and challenges for countries involved, as they work to develop and expand their investment and commercial partnerships.
An official from LASES noted that Laos is in the early stages of its digital transformation journey, encompassing multiple sectors, including commerce and investment. Consequently, Laos is eager to collaborate with experts from Vietnam and Cambodia, aiming to exchange knowledge and gain insight from their respective digital transformation efforts.
Highlighting the longstanding bond among the three nations, an official from RAC acknowledged that in the realm of digital transformation, Vietnam has been making swifter advancements compared to Cambodia and Laos, particularly in sectors like tourism, commerce, and investment. Collaborative efforts among these nations, particularly in the domain of the digital economy, hold considerable importance in advancing the development of each country.
In 2020, Vietnam kicked off a national digital transformation programme, under which the country would renovate the management and administration activities of the government, the production and business activities of enterprises, and the overall way of living and working. It is working to develop a safe, humane, and wide digital environment. The national digital transformation programme has the dual purpose of both developing the digital government and economy and establishing Vietnamese digital businesses with a global capacity.
In the second quarter of 2023, the digital economy contributed approximately 15.26% to the total Gross Domestic Product (GDP) of Vietnam. Compared to 2021, the growth of Vietnam’s national digital transformation index did slow down, but the component indices of digital government, digital economy, and digital society still maintained a high growth rate of 45-55%.
Vietnam’s digital economy was valued at around $14 billion in 2020, showing remarkable growth of 450% since 2015. Projections indicate that it is expected to expand by roughly 30% between 2020 and 2025.
Minister of PANRB Abdullah Azwar Anas stated that in 2023, the diplomatic relations between the Republic of Indonesia and Korea will reach its 50th year. Both countries continuously work to enhance their relations and cooperation, both bilaterally, regionally, and multilaterally.
In light of this, the governments of Indonesia and Korea are continuing their cooperation in Electronic Government Systems (EGS) through the Digital Government Cooperation Forum. This event, organised through the collaboration of the Ministry of Administrative and Bureaucratic Reform (PANRB), the Ministry of the Interior and Safety (MoIS), and the National Information Society Agency (NIA), discusses the implementation of cooperation in 2023 and the cooperation project plans for 2024.
“The closeness of this relationship and cooperation is certainly supported by the complementary nature of resources and advantages possessed by Indonesia and Korea, in addition to the excellent economic and political progress, making opportunities for cooperation in various sectors increasingly wide open,” said Minister PANRB Abdullah Azwar Anas.
In 2023, the governments of Indonesia and Korea embarked on a cooperation project related to digital ID development strategies and poverty alleviation digitalisation strategies. As for the extension of the DGCC cooperation project in 2024, there are several project proposals from the DGCC Committee, including support for government efforts in digitalising Nusantara City into a smart city focusing on intelligent government aspects.
“These cooperation proposals include the use of Big Data and AI for government administrative services, open-source technology-based designs, and big data designs in service provision,” explained Anas.
In his opinion, strengthening the strategic partnership between Korea and Indonesia for a shared future, especially in digital transformation, is not just an aspiration but a necessity. Indonesia’s digital transformation is already on the right track, where digital transformation serves as an accelerator for development acceleration.
Strengthening partnerships with Korea, one of the global technology industry leaders can bring Indonesia significant benefits. Korea has extensive experience and expertise in digital transformation and cutting-edge technologies such as artificial intelligence, the Internet of Things, and 5G. Through knowledge sharing and close collaboration, Indonesia can accelerate the implementation of these technologies to support various sectors, including industry, education, healthcare, and public services.
Furthermore, strengthening this partnership can also open doors for investments in Indonesia’s technology ecosystem. With financial and technical support from Korea, Indonesian startups and technology companies can further develop their innovations and compete in the global market. This will create new job opportunities, drive economic growth, and strengthen Indonesia’s position in an increasingly interconnected international community.
“Interoperability of systems and applications continues to be pursued to realise integrated services nationally. However, we continue to strive and learn best practices from various countries, especially Korea, to strengthen digital transformation breakthroughs in Indonesia,” he said.
NIA President Jong Sung Hwang stated that in the future, his agency will actively assist Indonesia in digital governance, similar to what they did by establishing NIA in 1987 to support the digitalisation of the South Korean government. “The South Korean government used to have 17,060 silo systems, but they managed to integrate them all into an all-in-one service,” explained Jong Sung Hwang.
Jong Sung Hwang added that in the era of digital governance, everything should run smoothly, and data should be easily accessible. “Usually, data preparation takes a lot of time, but with data infrastructure, it can be done more quickly and data is easier to use,” he added.
In an era where technology defines many aspects of daily life, strengthening a strategic partnership with Korea in digital transformation is not just an option but a necessity. This step will help Indonesia address challenges and seize opportunities from the global digital revolution. With strong cooperation between the two countries, Indonesia can achieve a brighter and more sustainable future in the digital era.
A prominent player in the oats industry, tracing its origins back to its establishment in 1965, inaugurated a new cutting-edge oat processing plant in Malaysia. This company has consistently evolved and embraced innovation, establishing itself as a major contributor to the global export of oat products.
The recent success of this enterprise can be largely attributed to its strategic investments in cutting-edge technologies. The newly unveiled plant will have an expansive floor area and specialise in the production of a diverse range of oat products, including oat flakes, kilned dried hulled oats, oat bran, and oat flour.
Malaysian government officials and industry experts have lauded the expansion, recognising its positive impact on the local economy and its alignment with broader industrial development plans. The company’s emphasis on technology and production capacity not only benefits its supply chain but also enhances its position in the global market, particularly within the Halal food sector. Additionally, the increased capacity aligns seamlessly with national food security goals, contributing to the accessibility and affordability of food, especially healthy products.
The Deputy Managing Director of the company has emphasised their commitment to expanding their product offerings and capacity to meet market demands. With an impressive 58 years of experience in oat milling, they remain dedicated to innovation and sustainability.
The newly inaugurated oat processing plant uses state-of-the-art automation and advanced technology to ensure impeccable control over the entire oat milling process, guaranteeing consistency and quality in every product it delivers to the market.
This commitment to quality and innovation has been duly recognised by certifications from global food authorities, including FSSC 22000, ISO 22000, and HACCP, as well as Halal and non-GMO certifications. These certifications not only underscore the company’s dedication to delivering safe and high-quality products but also highlight its embrace of modern technology in food processing, ensuring that every product meets stringent global standards.
The plan is to explore ways to enhance its sales and marketing efforts. Leveraging data-driven strategies and digital platforms, the company aims to reach a wider audience and cater to the evolving preferences of consumers, particularly the younger generation.
Leveraging the new cutting-edge facility, the company is expected to extend its reach into the rapidly growing plant-based beverage and meat industries. Additionally, it will be unveiling a Captain Innovation Hub, scheduled for completion by 2028. This hub aligns seamlessly with the pursuit of healthier lifestyles, aiming to introduce a range of innovative oat products to the younger generation, all of which will be underpinned by advanced technology.
This move aligns with key initiatives of the Malaysian government. The advanced automation mirrors the government’s push for technology-intensive industries over labour-intensive ones, while its commitment to Halal certification bolsters Malaysia’s reputation as a provider of high-quality Halal products.
Furthermore, the company’s increased milling capacity and production of nutritious oat products support national food security objectives, and its global success contributes to Malaysia’s trade goals. The forthcoming Captain Innovation Hub underscores its dedication to innovation and sustainability, paralleling the government’s encouragement of forward-looking industries, ultimately showcasing how private sector enterprises can advance Malaysia’s economic and strategic aspirations.
OpenGov Asia has also reported that MIDA has signed a Collaborative Agreement with a global leader in intelligent sensing and emitting technology. A key component of this plan was the establishment of an advanced 8-inch microLED manufacturing facility in Kulim, Malaysia.
This facility, characterised by its state-of-the-art automation and technology, is a groundbreaking development in the global microLED industry. Construction of this pioneering facility commenced in 2022, and it is well on its way to completion.
In a resolute move to drive technological innovation and secure a prominent position on the global stage, China significantly bolstered its investment in research and development (R&D) in 2022. The National Bureau of Statistics (NBS) revealed that the country allocated an impressive 3.08 trillion yuan (S$422.1 billion) to R&D, marking a 10.1% year-on-year increase.
This surge in R&D funding underscores China’s unwavering dedication to advancing basic research and achieving breakthroughs in critical technologies.
The amplified R&D investment not only fuels technological innovation within Chinese enterprises but also enhances their core competitiveness on the international front. Experts believe that this substantial investment will inject a potent dose of momentum into China’s ongoing economic recovery.
The surge in R&D investment reflects China’s resolute implementation of an innovation-driven development strategy, positioning the nation as a science and technology powerhouse. This strategy equips China with a competitive edge in the fierce international arena, driving the creation of new growth engines.
Pan Helin, co-director of the Digital Economy and Financial Innovation Research Centre at Zhejiang University’s International Business School, underscores the pivotal role of continuous investment in basic scientific research.
He highlights its significance in fostering high-quality economic growth and promoting the intelligent transformation and upgrading of traditional industries. Pan calls for harnessing the leading role of enterprises in driving technological innovation, thereby ensuring sustainable progress.
Enterprises in China are indeed heeding this call, expanding their investments in vital sectors and laying a robust foundation for pioneering core technologies in key domains. The NBS highlighted the government’s commitment to providing continued financial support and encouraging local authorities to amplify their R&D investments while optimising the efficiency of capital utilisation.
China’s prowess in science and technology innovation has undergone a remarkable transformation in recent years. The 2022 Global Innovation Index, released by the World Intellectual Property Organisation, positioned China at the 11th spot globally, making it the only middle-income economy within the top 30.
Further, Luo Zhongwei, a researcher at the Chinese Academy of Social Sciences’ Institute of Industrial Economics advocates intensifying investments in cutting-edge and forward-looking fields, including quantum information, artificial intelligence (AI), biological sciences, new energy, and new materials.
According to him, these investments are essential to achieve breakthroughs in key domains through independent innovation, particularly as protectionism continues to rise in some countries.
China’s intensified investments in cutting-edge fields like quantum information and AI confer a multitude of advantages. This commitment propels China to a position of technological leadership on the global stage. By allocating substantial resources to these transformative technologies, China not only sets industry standards but also influences international trends and fosters innovation.
Besides, these investments fuel economic growth by catalysing the development of new industries and markets. Quantum information and AI have the potential to spawn high-tech startups, generate employment opportunities, and stimulate economic prosperity.
As China excels in these domains, it enhances its global competitiveness, exporting technological advancements, products, and expertise while strengthening its standing in international trade and diplomacy.
Also, this strategic move ensures China’s national security and technological sovereignty. Quantum information and AI play pivotal roles in safeguarding against cybersecurity threats and advancing military capabilities.
Likewise, these investments reduce China’s reliance on foreign technology, allowing greater control over critical infrastructure and ensuring resilience against external disruptions. Overall, China’s intensified focus on these advanced fields promises not only technological leadership but also economic growth, national security, and global influence.
The Hong Kong Science and Technology Parks Corporation (HKSTP) spearheaded an initiative aimed at promoting innovation and technology in the biotech sector, showcasing Hong Kong’s pioneering advancements and entrepreneurial spirit.
This initiative was part of the “Think Business, Think Hong Kong” event organised by the Hong Kong Trade Development Council (HKTDC) in Paris recently. The event was a platform to underscore the potential for cross-border collaboration between Hong Kong and France in the field of biotechnology and innovation.
The CEO of HKSTP emphasised the critical purpose behind this endeavour. He pointed out the immense potential for synergy and cooperation between Hong Kong and French biotech ecosystems, highlighting their role in propelling startups and pharmaceutical companies to global prominence.
The journey of biotech innovation is long and arduous, and comprehensive support is essential. This initiative aimed to highlight Hong Kong’s ability to nurture and support biotech innovators throughout their growth trajectory and establish the city as a global hub for innovation and technology.
At its core, this initiative sought to underscore Hong Kong’s strengths in driving innovation to global success. It aimed to showcase the city’s unique ecosystem that fosters innovation and technology, making it a prime destination for biotech entrepreneurs. Moreover, it underlined the immense market potential in Asia as a growth engine for the global biotech industry.
The thematic session organised by HKSTP and the accompanying pavilion, titled “Unlocking Asia’s Opportunities in Healthcare Innovation,” was central to this initiative. These components received a warm reception from the French biotech and pharmaceutical industry.
Four distinguished biotech experts from Hong Kong-based ventures were featured, collectively illustrating Hong Kong’s capacity to lead in global innovation and technology. They highlighted the city’s potential as a gateway to the Asian market, positioning it as a central hub for biotech growth and development.
To further accentuate the significance of this initiative, a special gala dinner was convened, attended by influential leaders from the French, European, and Hong Kong business communities. Key dignitaries including the President of the Ile de France Region, the Financial Secretary of the HKSAR Government, and the Chairman of HKTDC were present. This gathering aimed to foster meaningful connections and collaborations that would propel innovation and technology in the biotech sector forward.
HKSTP’s initiative was not just about an event; it was about catalysing collaboration and innovation in the biotech sector. It sought to highlight Hong Kong’s unique strengths as a global player in biotech innovation and technology. By bringing together experts, entrepreneurs, and industry leaders, this initiative aimed to pave the way for groundbreaking advancements in biotech, positioning Hong Kong as a prominent player in the international innovation and technology landscape.
OpenGov Asia previously reported that the Government Chief Information Officer of Hong Kong led a delegation from the city’s innovation and technology (I&T) sector to the 25th China International Software Expo (CISE). The mission aimed to strengthen collaboration and explore business opportunities in the technology sector.
The Hong Kong Pavilion at CISE showcased more than 20 innovative I&T products and solutions sourced from esteemed competitions like the Hong Kong ICT Awards and the “Maker in China” SME Innovation and Entrepreneurship Global Contest. These exhibits covered cutting-edge domains such as artificial intelligence, virtual reality, cloud computing, and biotechnology.
These innovations spanned sectors like fintech, smart construction site management, and digital entertainment, demonstrating the integration of digital technology into the tangible economy. To engage potential buyers and partners, the Hong Kong Pavilion featured a mini-stage for exhibitors to present their products and services.
This delegation’s participation in CISE emphasised Hong Kong’s technological capabilities and commitment to international collaboration. It aligned with Hong Kong’s goal of becoming a global hub for technological innovation in a rapidly evolving I&T landscape.