Can Khazanah fix Malaysia's startup FOMO?

This week’s On the Rise explores Khazanah Nasional's missed opportunities, and Vietnamese EV players challenging China. [Read from your browser]( On the Rise 🚀 Welcome to On the Rise! Delivered every Tuesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in emerging tech. If you’re not a subscriber, get access by [registering here](. --------------------------------------------------------------- IN FOCUS In today's newsletter, we look at: - Khazanah Nasional’s [role]( in the Malaysian startup ecosystem - Vietnamese EV founders [take on]( their Chinese counterparts - Scientists using animal brains to train AI Hello {NAME} , A while back, I had a chat with an old friend about the general elections in India, and the conversation drifted to her hometown, Jamshedpur. She suggested that the government should hand the city back to the [Tata family]( the folks who laid out and built it in the first place. It got me thinking about how much we rely on private players like Tata to keep the nation running smoothly. I mean, it seems like whether it’s India, Vietnam, or anywhere else, countries need these companies in order to grow. Developing nations often lure large firms with cheap labor, low taxes, or cool subsidies, but the game changes when countries have surplus cash. These nations often invest in their own country via sovereign wealth funds. Norway, a country with the largest sovereign wealth fund, invests about 70% of capital back into equities. In Southeast Asia, places like Malaysia and Singapore pump their extra cash back into their economies or into private businesses around the world. This week's first big story, penned by my colleague Emmanuel, dives into the impactful role of Khazanah Nasional, Malaysia's sovereign wealth fund, in the country's tech and startup scene. However, the piece also explores its low contribution to the startup ecosystem, with only 4% of its investment portfolio in startups, as well as the fund’s missed opportunities. In this week’s second big story, my colleague Huong sheds light on the electric vehicle giants in Vietnam who are challenging their Chinese counterparts. Despite the fierce competition from Chinese firms, [Nguyen Nguyen]( co-founder and CEO of Selex Motors, expressed confidence during Tech in Asia's Saigon Summit that the firm can make its EVs stand out due to their technology and price. While in this week’s AI Odyssey, I discuss scientists making better robots from animal brains! -- Lokesh Choudhary  --------------------------------------------------------------- THE BIG STORIES 1️⃣ [Mapping Khazanah’s role in Malaysia’s tech investments]( The Malaysian sovereign wealth fund seeks to up its game, but government policies may hamper its progress. 2️⃣ [Unfazed by foreign rivals, Vietnamese e-bike makers plan expansion]( Dat Bike and Selex Motors believe that their electric motorbikes and battery infrastructure can rival Chinese and regional competitors. --------------------------------------------------------------- AI ODYSSEY Promising AI projects we’re noticing. University research shows that simplicity might be the next big development in AI My father, a retired soldier, used to tell me how he sent [telegrams]( to my mother during the [1999 Indo-Pakistan war](. With telephone lines down, he sent a simple “All good here, fit and well. See you soon” every Friday. Those brief messages meant the world to her. Sometimes, things don’t need to be complex to be effective. Scientists at [Delft University of Technology]( in the Netherlands have recently come to a similar conclusion. Until now, mainstream AI research has largely focused on building bigger, more complex models like GPT-4 and those fancy [image generators]( - at least that’s what the media have focused on. These models use [Deep Neural Networks]( (DNNs), which try to mimic the human brain with tons of graphics processing units. Everything from [driverless cars]( to even drones rely on DNNs to process the images in front of them. While systems like OpenAI’s GPT-4 or Tesla’s Autopilot can handle these energy-hungry models, smaller robots like drones can’t do the same. Their batteries just can't keep up. But now, researchers at [Delft University]( have turned this challenge on its head by studying how animal brains work. Unlike the bulky and energy-hungry AI models patterned after our brains, animal brains operate with minimal data and power. Think of how a bird flits effortlessly through the trees or a dragonfly hovers with pinpoint precision. Nature's designs are incredibly efficient, using just the right amount of energy to perform complex tasks. This efficiency is what the Delft researchers aimed to replicate. Their solution? A drone powered by "[neuromorphic processing]( This tech mimics how biological neurons work, communicating through sparse, energy-efficient signals called "spikes." These spikes are brief bursts of electrical activity, used only when necessary. This uses less energy because the brain is not constantly working at full power; it only works hard when it really needs to. The drone also uses special "[neuromorphic cameras]( that only send information when something changes – like a shift in light or movement. Combining these cameras with the neuromorphic processor makes the model 64x faster and far more energy-efficient than regular AI systems. It can handle sudden shifts in lighting and react quickly, just like an insect navigating a forest. Now imagine swarms of these tiny, agile drones doing jobs that bigger robots can't. They could monitor crops, inspect industrial sites, or even help with search and rescue missions in dangerous areas. Also, deploying them in a swarm becomes easier due to the lower cost. Some believe we might be starting a new line of mass-produced robots, with analysts noting future [growth opportunities]( in the military drone industry.  --------------------------------------------------------------- NEWS YOU SHOULD KNOW Also check out Tech in Asia’s coverage of the emerging tech scene [here](. 1️⃣ [Thai tech bridge]( Thailand partnered with the Asia Berlin Forum to help local startups expand into the European market, particularly in Berlin, known for its active startup scene and strong investment environment. 2️⃣ [AI ascendancy]( Wrtn Technologies, a South Korean AI firm, has raised US$18.3 million in a pre-series B funding round led by BRV Capital Management, with participation from existing investors. 3️⃣ [Sandbox success]( The Sandbox, a metaverse project by Animoca Brands, has raised US$20 million in a funding round, reaching a US$1 billion valuation cap. The round was led by Kingsway Capital and Animoca Brands, with investments from LG Tech Ventures and True Global Ventures. 4️⃣ [Chip king]( Nvidia has surpassed Apple to become the world's second most valuable company, driven by the increasing demand for its AI chips. Nvidia's market capitalization exceeded US$3 trillion as its share price reached a record high. 5️⃣ [Orbital triumph]( Astroscale, a Japan-based spacetech startup specializing in orbital debris removal, raised US$153 million in its Tokyo IPO, valuing the company at US$632 million. The IPO saw a 51% post-IPO share price increase, bringing Astroscale's market cap close to US$1 billion.  --------------------------------------------------------------- FYI 1️⃣ [How Prism+ built a profitable business despite missteps]( The Singapore-based startup has been profitable for at least two consecutive years and is consistently paying dividends to shareholders. 2️⃣ [Apple’s next nebulous idea: Smart home robots]( : Apple is exploring robotics projects, focusing on simpler ideas like a small robot that follows you around or a large iPad display on a robotic arm that emotes along with the caller. ---------------------------------------------------------------  EVENTS HAPPENING You can also check out a curated list of trending tech events [over here]( and Tech in Asia’s signature events [here](. [Tech in Asia Conference Kuala Lumpur 2024 : Malaysia on The Rise on 24 - 25 July]( Join us for Investor Hour, a bespoke 1-1 networking mixers for founders to explore opportunities, get advice, and connect in-person with the right audience. This program offers a unique platform for founders to: - Open doors to the right investors - Receive personalized feedback and advice - Increase your visibility and credibility Apply for Investor Hour today, while slots last! [Tech in Asia x Airwallex Startup Night on June 19]( [Product Development Conference (Jakarta, 25-26 June 2024)]( Seed round or Series C, the struggle to build a winning product is real! Is there a one-size-fits-all strategy for every funding stage? Join us to find out at PDC 2024! Last chance to get 20% off your PDC ticket; this offer ends on June 19th. [Snap up your ticket]( now or risk FOMO!  [FutureMakers Challenge in collaboration with BRI (Jakarta, 25-26 June 2024)]( Are you passionate about fintech and its potential to revolutionize the banking industry in Indonesia? Join the FutureMakers Challenge powered by Bank Rakyat Indonesia (BRI). Don't miss the chance to win prizes worth hundreds of millions of rupiah and tickets to the PDC 2024 for all applicants! Register before June 16, 2024, [here](. [Tech in Asia x Airwallex Startup Night on June 19]( In Singapore's fast-paced startup scene, standing still means falling behind. This exclusive networking mixer is where you'll connect with the movers and shakers from Keppel Logistics, Janio, Carro, Coinhako, and more, who are shaping the future of Singapore's tech landscape. Ready to rewrite your startup story? [Apply for an invite today!](  [AI Trailblazer: A conversation with Yi Tay, former research scientist at Google Brain on June 13]( For one night only, Tech in Asia subscribers will have exclusive access to an unfiltered conversation with Yi Tay, co-founder and chief scientist of Reka and a former research scientist at Google Brain, where he’ll share his insights on where AI goes next. Rub shoulders with fellow AI enthusiasts, go beyond the hype, and get your front-row seat to the future. This event is complimentary for Core subscribers. Non-subscribers are welcome to join at US$59. [RSVP to secure your spot now!]( [Tech in Asia Conference Jakarta on Oct 23-24]( Where is the next Silicon Valley? It might just be Jakarta! Indonesia's young tech talent is booming, and Tech in Asia Conference Jakarta puts you right in the center of the action. Join us at #TIAConferenceJKT to connect with 4000+ region's brightest minds, 150+ hottest startups, and hear straight from 80+ experts. Early-bird tickets are now available! [Snatch the 75% discount while it lasts!]( ---------------------------------------------------------------  That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to your “edit profile” page and choosing that option in our preference center. See you soon! [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. 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