Technology knows no boundaries, but it also has its own unique process. Here, we will review with you what events have happened in the field of science and technology Internet in Southeast Asia this week (2024.06.24-2024.06.30).
As the title suggests, in this issue, we are looking at some of the explorations in Southeast Asia in the matter of payroll.
Although it is not a new thing to get paid before payday, in recent years, with the increasing popularity of the startup ecosystem in Southeast Asia, startups with Earned Wage Access (EWA/Earn Access, which can be roughly understood as flexible settlement of wages) have also emerged in the local area, and continue to gain the favor of capital institutions (such as Paywatch in the main body of this issue or startups such as GIMO, Wagely, and Salary Hero earlier). and these companies have received significant financing).
Of course, the popularity of EWA in Southeast Asia is clearly closely related to the local social context. As we have discussed time and time again, for Southeast Asia, nearly 70% of the underbanking population makes it impossible for the working class to alleviate cash flow problems through the credit consumption channels of banking institutions. And when they turn to third-party lending platforms, the relatively high interest rates can further exacerbate their financial problems. In this case, EWA, which provides the flexibility to withdraw wages, is a less risky alternative.
But this approach doesn't always give the outside world a lot of optimism. On the one hand, in the view of some, EWA may lead to more irrational spending by workers with unsound consumption concepts. On the other hand, since EWA is mostly "advanced" to workers by startups that do business, and these startups are often financed by financing, when EWA companies begin to target larger business groups, their carrying capacity will also raise more questions.
It can be seen that at present, in Southeast Asia, in addition to providing payroll, some EWA companies are also trying to provide other related services such as financial management, financial education, and human resource management for service enterprises, so as to try to broaden the "meaning" of EWA itself. However, considering that Southeast Asia has a long way to go in terms of "underbanking", EWA will also face a race against time.
Okay, without further ado, let's get to the point of this issue.
Industry & Dynamics
Southeast Asian tech startups raised 65% year-on-year in the first half of this year: According to a report released by Traxcn a few days ago, Southeast Asian tech startups raised only $1.6 billion in funding during the first half of '24, a sharp drop of 65% from $4.5 billion in the same period last year. At the same time, the report also pointed out that the figure also showed a 37% decline compared to the total of $2.5 billion in the second half of last year.
Great Wall Motor plans to build factories in Malaysia, Indonesia, Vietnam this year and next year for local assembly: Cheng Jinkui, president of Great Wall Motor's ASEAN business, said in an interview that the group will not achieve full coverage of the ASEAN region until 2023, according to Singapore's Business Times. Cheng Jinkui believes that the company's investment in ASEAN is still in the early stages, and more progress is expected to follow. Currently, Great Wall operates a fully completed plant in Thailand, with new plants in Malaysia, Indonesia and Vietnam expected to start production this year or next. Specifically, Great Wall Motor is cooperating with EP Manufacturing in Malaysia to seek to assemble products in Malacca, Malaysia, and is expected to start production as soon as July; The assembly plant in Indonesia is expected to come on stream in July or August this year; The Vietnam plant will start local assembly next year.
According to foreign media reports a few days ago, Malaysia's economy minister Rafizi Ramli said that Malaysia is in talks with potential Chinese investors about establishing a data center in the country to attract more "high-quality" investment. In the interview, he said that some US tech giants, including Microsoft Corp., Google and Nvidia, have successively announced plans to build data centers in Malaysia, and Chinese companies are also interested in building more data centers to serve Malaysian tech companies that want to enter the Southeast Asian market.
More than 40 government agencies in Indonesia hit by cyberattacks: According to foreign media reports this week, more than 40 local institutions, including Indonesia's Ministry of Immigration, have been affected by cyberattacks on data centers. According to the report, the cyberattack was the worst in Indonesia in recent years, causing disruptions to immigration services and affecting the operations of Indonesia's main airports for several days. Indonesia's Ministry of Communications said earlier this week that the attackers used malware called Lockbit 3.0 and demanded a ransom of $8 million, which was rejected by the Indonesian government. It is reported that the data of five agencies, including the Immigration Service and the Investment Coordination Department, have been restored, while the local government is also working to restore the data of 39 other agencies.
Investment and financing
Paywatch, payroll management platform, raises $30 million in funding: Founded in 2020, Paywatch is a startup that focuses on the concept of Earned Wage Access. According to reports, at present, Paywatch has processed more than $58 million in wages through its system, and the monthly salary expenditure has increased to nearly $8 million, with a month-on-month growth rate of up to 15%. Based on this figure, Paywatch says it has also become the largest EWA service company in Asia by transaction volume.
Fintech company Atome Financial secures $100 million debt financing: Atome Financial is a subsidiary of Singapore-based big data company Advance Intelligence Group, which operates buy now, pay later, platform Atome, and Indonesian digital lending platform (licensed by Indonesia's Financial Services Authority) Kredit Pintar.
Fintech unicorn Ascend Money Raises $195 Million Investment: Founded in 2013 as part of Ascend Group, the fintech arm of Thailand's CP Group, Ascend Money provides payments and financial services to seven Southeast Asian countries (Thailand, Cambodia, Myanmar, Vietnam, the Philippines, Indonesia and Malaysia). According to reports, its TrueMoney platform has a range of financial solutions including electronic payments, loans, buy now, pay later (BNPL), investment, insurance, and more.