Your tech company needs a lobbyist-in-chief

Recently, the Monetary Authority of Singapore (MAS) – the country’s central bank – unveiled its criteria for companies applying to get a digital banking license.

What stood out: a commitment of S$1.5 billion (US$1 billion) in paid-up capital for the digital bank business.

And oh, MAS will only consider applicants “who are anchored in Singapore, controlled by Singaporeans, and headquartered in Singapore.”

Gojek CEO Nadiem Makarim (second from left) with Indonesian President Joko Widodo (center) / Photo credit: Presidential Press Bureau

In Southeast Asia and everywhere else around the world, politics and tech intertwine.

It’s easy to see why MAS wants licensees to be limited to Singaporeans. The country’s status as a finance hub could be threatened if local banks fail to compete against innovative fintech companies from Silicon Valley, China, or Europe.

This prominent example is but one instance of how governments are butting into tech businesses and flexing their muscles.

Uber tried to circumvent the authorities and paid a heavy price. In Singapore, Facebook got a dressing down in Parliament for its stance towards policing fake news. E-scooter startups are finding hard to flourish in the city-state because public anger has delayed the issuance of operating licenses.

See: E-scooter services are fighting a multifront battle for survival in Singapore

Governments intervene for a variety of reasons: social stability, power preservation, business protectionism, and public safety, among others.

In Southeast Asia, what’s changing is how more startups and tech companies are investing more heavily in currying favor from governments and influencing legislation to their advantage.

I’m seeing that “public policy” personnel are becoming ubiquitous at big tech companies like Airbnb, Twitter, and WeWork. These people are responsible for making sure that the public narrative for their employer doesn’t turn into a political liability.

Meanwhile, smaller fintech startups are banding together to engage governments as a collective. In Singapore, there’s Access, an association of blockchain startups. There’s also the Mobility Industry Association for transportation players.

Indonesia’s AFPI, which was set up by an official order from the government, is made up of online lending players in the country. There’s also the Asosiasi FinTech Indonesia for the broader fintech sector.