Southeast Asia wants Big Tech regulated. Why?

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A startup’s top fear? New laws. Just look at how regulations imposed by Singapore in 2018 almost wiped out all bike-sharing startups (e.g., Mobike and Ofo). Similarly, Big Tech startups have enjoyed some pretty good years in Southeast Asia. But alas, that might change soon as governments in the region are increasingly looking to introduce new rules.

Today, we look at the following:

• How greater regulatory scrutiny is coming to Southeast Asia
• A startup gets turbocharged to go vroom in Indonesia
• Other newsy highlights such as Tencent moving into Justco Singapore and revised laws for minors’ online activity in China

Brace yourself, regulations are coming

Big Tech loves mobile-first young consumers, and Southeast Asia is packed with a ton of them. That’s why plenty of companies are setting up base here such as TikTok parent firm ByteDance, which plans to expand its office in Singapore. But authorities are also starting to tighten the regulatory screws, which is bound to make things more challenging for tech players.

• Why is this happening? Governments have begun to realize that Big Tech has too much power. These firms have the personal data of their population and the reach to disseminate information and news as well as reap huge growing profits.
• Countries in the act: The Singapore government recently proposed changes to the country’s personal data laws. Meanwhile, Thailand took legal action against Facebook and Twitter just last month, and the ASEAN 6 countries have planned or already enforced value-added tax (VAT) on tech companies.
• How effective are these laws? In the case of Uber and Grab, it’s super effective. The companies had merged in Singapore two years ago and were fined a total of S$13 million for reducing competition in the country’s ride-hailing scene.

Read more: How Southeast Asian states are tightening the screws on tech giants

Startup gets turbocharged to go vroom in Indonesia

Rev up your engines! Singapore-based electric vehicle (EV) startup Ion Mobility has raised US$3.3 million to bring its smart electric motorbikes across Southeast Asia.

• Founded just last year, the startup aims to create more sustainable and affordable mobility alternatives for Southeast Asia’s large population of motorbike users.
• With the new seed funding, Ion Mobility plans to launch its first EV motorbike in Indonesia by next year while expanding its workforce and operations in Singapore, Jakarta, and Shenzhen.
• The market opportunity for the motorbike industry in Southeast Asia is huge – it’s expected to hit US$8.53 billion by 2023. Furthermore, it’s targeting Indonesia first: The archipelago has one of the biggest motorbike markets globally, with motorcycle sales pegged at 6.38 million units a year in 2019.

Quick bytes