Four drivers of innovation in Southeast Asia in 2024 you need to know

The future of innovation in Southeast Asia is human-centric, not just tech-centric, according to the 2024 Edges of Southeast Asia report by the Deloitte Center for the Edge

“Southeast Asia is a region of innovation,” says Michelle Khoo, centre leader for the Deloitte Center for the Edge Southeast Asia. While many look to the West, in particular Silicon Valley, for leadership in innovation, Khoo notes that Southeast Asia’s unique set of challenges has proven to be a catalyst for creativity in the region.

“There are different challenges here, but entrepreneurs are turning these disadvantages into advantages,” she notes.

In August, the organisation published the second edition of the 2024 Edges of Southeast Asia report in conjunction with the Economic Development Board (EDB) of Singapore and the US-Asean Business Council, which highlights the greatest drivers for innovation in the region.

These four drivers illustrate that innovation in Southeast Asia is not solely driven by technology but is deeply intertwined with human-centric values, sustainability and inclusivity.

This is in line with the mission of the Deloitte Center for the Edge: “There’s a common thread that runs through a lot of our research: Yes, we talk about technology, business model innovation and how to stay ahead of disruption. But we also want to be that voice that takes a pause and says, ‘What’s good for humanity? What’s good for our future? What’s the right thing to do?’,” says Khoo.

Below, we outline the main trends that are driving innovation in the region.

Human-centric solutions

Above Bike Scouts harnesses the power of community by recruiting bikers to become first responders (Photo: Bike Scounts)

Above The National University Health System Singapore breeds innovation within its culture, as demonstrated by the cutting-edge Holomedicine surgeries that have been developed (Photo: NUHS)

Bike Scouts harnesses the power of community by recruiting bikers to become first responders (Photo: Bike Scounts)

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The future of innovation is not just tech-centric, but human-centric, says Khoo, as the report saw a renewed focus on human and social capital. This is evident in the Philippines-based Bike Scouts, which harnesses community power by training bikers as first responders, demonstrating how leveraging the strength of the community can lead to impactful solutions.

Then, there’s Hijra's inclusive Islamic finance model proves that ethical and accessible financial services can be achieved without compromising on profitability, showcasing the potential of alternative financial models.

Additionally, the report underscores how organisations prioritising human values cultivate more engaged employees, ultimately driving greater innovation and success. Khoo adds, “When organisations focus on the human value, they have more engaged employees.”

This was seen at the National University Health System in Singapore, which fosters innovation within its ranks. With deep technological and medical understanding, its surgeons developed an in-house AI and holomedicine for precise surgeries, highlighting the potential of nurturing intrapreneurship.

Catering to those on the fringes

Some of the more successful companies have also been successful in identifying and serving new markets, including those often overlooked. “[The Philippine’s] PCX is an example where they’re trying to create the carbon market equivalent for plastics,” says Khoo.

Essentially PCX combats plastic pollution by facilitating a marketplace where companies can purchase plastic credits to offset their environmental impact and support projects that responsibly manage plastic waste, resulting in over 100 million kilograms of plastic diverted from the environment.

Utilising underused surfaces

Above Xinterra has developed Cozterra, which acts as a carbon-absorption agent by soaking up CO2 (Photo: Xinterra)

Xinterra has developed Cozterra, which acts as a carbon-absorption agent by soaking up CO2 (Photo: Xinterra)

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How can we derive value from underutilised resources? A great example is Singapore-based SuperFreeze, which is transforming the cold storage industry by tapping into the dormant utility of cold energy released during LNG regasification. By recycling this wasted cold energy, SuperFreeze reduces electricity consumption in its warehouses by 75 percent, lowers carbon emissions, and offers cost-competitive ultra-cold storage for food and pharmaceuticals, as evidenced by its role in storing Covid-19 vaccines.

Meanwhile, Xinterra is developing carbon-absorbing fabrics, transforming its wearers—aka, all of us—into absorption agents. This demonstrates the potential for even everyday surfaces to contribute to a greener future.

Read more: Are fossil fuels over?

Democratising access to information for better decision-making

Above UrbanMetry uses data to track lifestyle patterns, to allow for better decision-making (Photo: UrbanMetry)

UrbanMetry uses data to track lifestyle patterns, to allow for better decision-making (Photo: UrbanMetry)

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Data-driven insights are key to informed decision-making and inclusive development. Malaysia’s UrbanMetry uses data analytics to track urban lifestyle patterns and assess climate risks, empowering various stakeholders, from investors to end-consumers, to make informed decisions and contribute to the development of smarter, more inclusive, and resilient cities.

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Topics

Innovation Southeast Asia Deloitte Center For The Edge Business trends

Tatler Asia

These are the four drivers of innovation in Southeast Asia in 2024

Human-centric solutions

Catering to those on the fringes

Utilising underused surfaces

Democratising access to information for better decision-making