Digital disruption and artificial intelligence (AI)

NEW YORK, US. November 21, 2024.

Artificial intelligence – one of the five mega forces that we track – can automate laborious tasks, analyze huge sets of data and help generate fresh ideas. Digital disruption goes beyond AI.

Explore this interactive page and learn more about our roadmap to help assess the investment implications of artificial intelligence.

AI’s big questions

AI offers great promise and has spurred heavy investment. But how could the economy change? Over what timeframe? And who will reap the rewards? In our latest report, we look at these questions and more – and explore what it all means for investors.

We anchor our framework to track the AI evolution around three key phases:

• Phase 1 - Buildout: The first phase is the race to build the infrastructure AI needs.

• Phase 2 - Adoption: As infrastructure grows and AI applications mature, adoption is likely to accelerate – packaged into different apps and software.

• Phase 3 – Transformation: This phase is where companies could unlock the full value of AI adoption, as broad productivity gains and new business models and industries emerge.

Read Full on: https://www.blackrock.com/corporate/insights/blackrock-investment-institute/publications/mega-forces/artificial-intelligence

Khazanah Nasional clarifies its divestment in FashionValet

November 01, 2024. KUALA LUMPUR, Malaysia.

Our investment rationale was anchored on the theme of Offline-to-Online e-commerce, as well as a commitment to support Malaysian entrepreneurs and promising early-stage companies.

Khazanah Nasional (“Khazanah”) had invested RM27m to acquire a 9% stake in FashionValet (“Company”) in 2018. At the time, the Company was a promising homegrown e-commerce fashion platform with more than 400 brands and 15,000 products on its platform and expecting revenue growth of ~60% annually. Our investment rationale was anchored on the theme of Offline-to-Online e-commerce, as well as a commitment to support Malaysian entrepreneurs and promising early-stage companies.

Over the years, the Company faced challenges, most of which were exacerbated by COVID-19, including in expanding its platform. This required FashionValet, under the guidance of its Board of Directors and shareholders, to shift focus from being an ecommerce platform for Southeast Asian brands to growing its wholly-owned in-house brands, Duck and Lilit, in order to preserve the Company’s operating margins and cashflow. The Company also took measures to rationalise costs and streamline operations, but continued to face challenges, including in securing capital during the difficult fundraising environment in 2022-2023.

In late 2023, NXBT Partners, led by a seasoned Malaysian entrepreneur, offered to acquire existing shareholders’ stakes and inject capital into the Company. In view of the Company’s urgent need for funds to continue operations, and the fact that the investment had reached the end of its targeted holding period, Khazanah considered and accepted the offer. The divestment represented a responsible exit to transfer ownership to a party who could help guide the Company to a new growth trajectory.

As the sovereign wealth fund of the nation, Khazanah will continue to invest responsibly and manage assets towards sustainable multigenerational returns for the country. As part of Khazanah’s Advancing Malaysia strategy anchored on “A Nation that Creates” framework, we remain committed to transforming Malaysian firms of all sizes to increase national productivity and competitiveness, aligned with the GEAR-uP programme, led by the Ministry of Finance.

We believe that the start-up ecosystem is a vital engine for innovation, economic growth and job creation in Malaysia. Despite the higher inherent investment risks and challenges with early-stage companies, Khazanah is fully dedicated to supporting local start-ups and will continue to promote their success and expansion.

We appreciate the continued trust and support from our stakeholders as we work towards the nation’s economic objectives in line with the government’s Ekonomi MADANI aspirations.

TAMAT

Source Link: https://www.khazanah.com.my/news_press_releases/khazanah-nasional-clarifies-its-divestment-in-fashionvalet/

Strengthening our ability to finance supply chains for hydrogen and related technologies1

May 16, 2024. TOKYO, Japan

Aim to provide JPY 2 trillion in funding for production

Mizuho Financial Group, Inc. (President & Group CEO: Masahiro Kihara) aims to provide JPY 2 trillion in financing for the production and supply of hydrogen and related technologies by 2030. This goal reflects our understanding of the growth in these funding needs.

Hydrogen and related technologies have been identified as a key component for decarbonization across various sectors, including power generation, transportation, and industry, as countries around the world move toward achieving carbon neutrality.

Despite ongoing R&D and feasibility studies in Japan and other countries, hydrogen's widespread adoption is currently hindered by issues that include, aside from the need to generate demand and reduce costs through innovation, companies' ability to secure necessary funding.

As outlined in the Mizuho Sustainability Focus 2023 report, entitled "Sustainability: Path to industrial competitiveness", Mizuho identifies hydrogen as a key component for achieving widespread decarbonization across various sectors. Based on this perspective, we have pursued the following initiatives to promote its extensive use in society.

Mizuho's recent initiatives in hydrogen and related technologies

Initiatives	Examples
1) Involvement in formulating Japanese government strategy	Support in formulating roadmaps for use of electrolyzers and fuel cells (Mizuho Research & Technologies) Conducting research projects for the formulation of hydrogen safety strategies (Mizuho Research & Technologies)
2) Development and commercialization support for key technologies	Using digital simulation to support the development and design of fuel cells and electrolyzers (Mizuho Research & Technologies) Management support for industry-academia-government collaborative research and development projects (Mizuho Research & Technologies) Advisory service for investing risk capital into venture capital funds focused on startups in the hydrogen production equipment area (Mizuho Securities)
3) Research, analysis, and information dissemination for social implementation of hydrogen	Research on global policy, market, and technology trends in the hydrogen field (Mizuho Research & Technologies). Published reports entitled "How Japan Can Win the Global Competition for Hydrogen", "How Japan Can Establish a Presence in the Hydrogen Industry – Using Water Electrolyzers", and "The Potential of Turquoise Hydrogen" (Mizuho Bank)
4) Support for the construction of hydrogen and related technology supply chains	Support for feasibility studies on hydrogen production and power generation technologies (Mizuho Research & Technologies) Supported feasibility studies and demonstrations for bioenergy carbon capture and storage (BECCS) hydrogen-related projects Supported regional collaboration and demonstration projects for low-carbon hydrogen technology Announced a joint proposal on hydrogen and related technologies with the Development Bank of Japan (Mizuho Financial Group) Participation in the Hydrogen Council, a global initiative to promote hydrogen (Mizuho Bank) Hosting of the Australian Hydrogen Showcase, a hydrogen event dedicated to promoting cooperation between Japan, Australia, and Thailand in building an international hydrogen supply chain (Mizuho Bank) Engaged in local hydrogen-related councils in Japan (Mizuho Bank), including: Akita Prefecture Port Decarbonization Promotion Council Kawasaki Carbon Neutral Industrial Complex Formation Promotion Council and Kawasaki Carbon Neutral Port Formation Promotion Council Provided strategic and financial advisory services for a large-scale green hydrogen/ammonia production project in Africa (Mizuho Securities)
5) Strengthening financing ability	Arrangement of finance for a large-scale green hydrogen and ammonia production project outside Japan (Mizuho Bank) Granting transition loans for the green energy sector, including in the ammonia area (Mizuho Bank) Provided financial advisory services to international players in the production and supply of hydrogen and related technologies (Mizuho Bank) Issued green and transition bonds to finance the construction of a clean hydrogen supply chain (Mizuho Securities)

Given the growing urgency to set up supply chains for hydrogen and related technologies, which require substantial investment for production facilities, financial institutions have an essential role to play in providing funding. At Mizuho, we aim to offer JPY 2 trillion in financing for the production and supply of hydrogen and related technologies by 2030. By adopting this proactive approach, we will contribute to the development of the supply chains and accelerate hydrogen adoption in society.

To achieve this ambitious aim, we are focusing on three key areas: (1) Developing business strategies focused on hydrogen and related technologies, (2) Establishing a group-wide framework dedicated to supporting hydrogen and related technologies, and (3) Expanding our pool of personnel specialized in related areas. Going forward, we will further expand our initiatives to promote the construction of supply chains for hydrogen and related technologies.

1: "Hydrogen and related technologies" refers to areas including hydrogen, ammonia, and e-methane.

Source Link: https://www.mizuhogroup.com/news_release/20240516release_eng.html