Economic Archives | Digital Watch Observatory

Malaysia expands national AI strategy through Microsoft partnership

Malaysia is strengthening its national AI strategy through an expanded partnership with Microsoft, launching the Microsoft Elevate initiative to accelerate AI readiness across society.

The programme aligns with the country’s AI Nation 2030 ambitions and extends digital skills development beyond traditional sectors.

An initiative that targets educators, public sector institutions, small businesses and wider communities, aiming to embed practical AI capabilities into everyday economic and social activity.

Early deployment has already reached tens of thousands of learners, reflecting a shift from pilot programmes to large-scale national implementation.

Government and industry leaders in Malaysia emphasise that long-term competitiveness depends not only on technological investment but on widespread adoption and understanding of AI tools.

The programme therefore prioritises workforce activation, institutional capacity and sustainable integration across sectors.

Malaysia’s approach reflects a broader global trend where public–private partnerships are increasingly central to AI development, focusing on inclusive access, responsible use and real-world application rather than purely technological advancement.

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EU Global Green Bond Initiative Fund unlocks €20 billion for sustainable infrastructure

The European Union and its financial partners have launched the Global Green Bond Initiative Fund to mobilise up to €20 billion for sustainable infrastructure in developing economies.

The initiative reflects a broader shift towards using private capital alongside public investment to accelerate climate and environmental goals.

Moreover, the fund will prioritise green bonds issued by governments, local authorities, and businesses, with a focus on first-time issuers and least developed countries. By supporting both euro and local-currency bonds, the initiative also aims to strengthen domestic capital markets while expanding the international role of the euro.

Backed by major European financial institutions and supported through the EU guarantees, the GGBI Fund is designed to reduce investment risk and attract private investors at scale.

Alongside financing, the initiative includes technical assistance and subsidy mechanisms intended to improve access to green finance and lower borrowing costs.

The programme forms part of the EU’s Global Gateway strategy, linking economic development with sustainability goals while promoting high environmental standards and long-term resilience across partner regions.

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Digital euro standards advance with European Central Bank support

The European Central Bank has signed agreements with the European Card Payment Cooperation, nexo standards, and the Berlin Group to support the future rollout of digital euro payments. Existing open technical standards will be reused to process transactions, to make implementation more accessible for payment service providers and merchants across Europe.

CPACE supports contactless payments, nexo standards help connect merchants with providers, while the Berlin Group supports account-based transactions using identifiers such as mobile numbers. Together, these standards are intended to create a more consistent technical environment for digital euro transactions across devices and platforms.

Reliance on open standards is designed to reduce costs and limit dependence on proprietary systems controlled by global card schemes and digital wallets. The ECB says this should help European payment providers expand beyond domestic markets without requiring major upgrades to point-of-sale infrastructure, while also improving interoperability and competition.

The final impact still depends on the adoption of the digital € regulation by the EU co-legislators, which the ECB says is necessary to unlock the initiative’s full potential and provide market actors with greater certainty for future investment.

Why does it matter?

Adoption of open standards by the European Central Bank reduces reliance on global payment providers and lowers costs for banks and merchants. Regulatory clarity on the digital euro would enable European solutions to scale across borders and strengthen control over the payments infrastructure.

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New Chinese rules restrict digital promotion of financial products

China has introduced new online marketing rules for financial products, further tightening its long-standing restrictions on cryptocurrency-related activity. The new framework limits the promotion of financial products to licensed entities and treats digital currency trading and issuance as illegal financial activity.

Issued by the People’s Bank of China and seven other regulators, the Administrative Measures for Online Marketing of Financial Products will take effect on 30 September 2026. The rules extend responsibility to platforms, intermediaries, and content creators who promote or facilitate financial products online.

Any assistance in promoting or facilitating prohibited financial activity may now be treated as participation in illegal finance, expanding enforcement beyond direct trading bans. In practice, that broadens the focus from financial products themselves to the wider digital promotion layer, including online displays, traffic generation, and other forms of internet-based marketing support.

Authorities say the measures are intended to protect consumers by limiting misleading or aggressive online promotion, including livestream marketing and viral investment content. In that sense, the rules are not only about crypto, but about tighter control over how financial products are marketed in digital environments.

The policy also reinforces China’s existing position, dating back to 2021, when regulators declared all cryptocurrency transactions illegal, while pushing enforcement deeper into the digital advertising and distribution layers of financial markets.

Why does it matter?

Stronger oversight of online financial promotion shows that crypto-related advertising is increasingly being treated as a regulatory risk category, not just a marketing issue. The Chinese move also points to a broader trend in which regulators are extending scrutiny beyond financial products themselves to the digital channels, influencers, and platforms that help distribute them.

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New whitepaper aims to streamline virtual asset oversight in Nigeria

A Pan-African industry body, the Virtual Asset Service Providers Association, has introduced Project Green-White-Green, a policy framework designed to bring virtual asset transactions more fully into Nigeria’s formal financial system.

The proposal targets regulatory inefficiencies while seeking to capture an estimated $92.1 billion in annual transaction activity currently operating with limited formal integration.

VASPA Executive Chair Franklin Peters, who also leads Boundlesspay, said the framework addresses overlapping mandates among the Securities and Exchange Commission, Central Bank of Nigeria, and Corporate Affairs Commission. The model proposes more coordinated supervision, alignment of foreign exchange standards, and identity verification through integration with the National Identity Management Commission.

The whitepaper also introduces an API-based system intended to automate VAT and capital gains tax collection at the point of transaction. The aim is to reduce administrative friction, improve compliance, and create clearer regulatory pathways for Web3 businesses operating in Nigeria.

Although designed for Nigeria, the framework is presented as scalable across other African markets. Its proponents argue that better regulatory coordination and more structured taxation could support wider economic goals, including stronger formalisation and improved public revenue collection.

Why does it matter?

The framework directly tackles regulatory fragmentation that has slowed crypto and Web3 development in Nigeria.

By aligning the roles of the Securities and Exchange Commission of Nigeria, the Central Bank of Nigeria, and the Corporate Affairs Commission of Nigeria, it aims to reduce legal uncertainty and create a clearer path for startups to operate formally.

It also introduces structured taxation and compliance mechanisms, which could improve state revenue collection while bringing virtual asset activity into the formal economy.

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UNCTAD data shows that global economic transformation gaps remain uneven

New data from the UN Conference on Trade and Development (UNCTAD) highlights how productive capacities, rather than headline growth figures, determine whether economies achieve meaningful and sustained development.

While some countries record rising GDP, structural weaknesses often prevent these gains from translating into improved living standards.

At the centre of the analysis is the Productive Capacities Index (PCI), which evaluates 43 indicators across areas such as infrastructure, human capital, energy, institutions and private sector development.

The index shifts focus from output-based metrics towards the underlying systems that enable economies to produce goods and services effectively.

The findings by UNCTAD reveal significant global disparities. Developed economies continue to outperform other regions, while developing countries have made gradual progress but have not closed the gap.

Africa remains the lowest-performing region overall, though countries such as South Africa, Tunisia and Morocco show comparatively stronger results within the continent.

Technology, particularly information and communication technologies, has been a key driver of improvement in least developed countries.

However, reliance on natural resources continues to pose risks, limiting diversification and long-term resilience.

UNCTAD’s report underscores the need for governments to adopt multidimensional policy frameworks that prioritise capacity-building instead of short-term growth indicators.

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Agentic AI to take over half of UAE public sector

The UAE has announced an ambitious government framework to integrate Agentic AI across 50% of the public sector and services within two years. Revealed at a Cabinet meeting chaired by Sheikh Mohammed bin Rashid Al Maktoum, the initiative positions AI as an operational partner managing government functions autonomously.

Agentic AI systems will be deployed to monitor developments, analyse data, recommend actions and run operational workflows without human intervention. Authorities expect the shift to improve service speed and efficiency, cut costs, and enable real-time evaluation and continuous improvements across federal entities.

The programme will roll out in phases under a dedicated task force, with performance-based assessments for government entities and leadership. A parallel focus has been placed on workforce development, with training programmes designed to equip employees with advanced AI capabilities.

The framework builds on two decades of digital transformation in the UAE, including earlier national AI strategies and smart government initiatives, and expands the country’s push towards fully integrated, data-driven governance systems.

Why does it matter?

The project marks a shift from digital tools to autonomous governance, where AI can directly run and optimise public services in real time. That raises efficiency and responsiveness, but also makes strong oversight, governance, and workforce readiness essential to ensure safe and effective implementation.

The approach could also serve as a global blueprint for large-scale government AI adoption, shaping how states modernise public services and integrate autonomous systems into core governance.

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Wikipedia-based AI model identifies 100 emerging technologies to watch in 2026

A new analysis by Australian researchers reveals how AI is reshaping the way emerging technologies are identified and tracked.

Using a dataset derived from thousands of Wikipedia entries, the researchers mapped more than 23,000 technologies to produce the ‘Momentum 100’ list, highlighting the fastest-growing technologies across science and industry.

The findings place reinforcement learning at the top, followed closely by blockchain and other rapidly advancing fields such as 3D printing, soft robotics and augmented reality.

These technologies reflect a broader shift towards data-driven innovation, where systems capable of learning, adapting and scaling are becoming central to both research and commercial applications.

Unlike traditional forecasts, which often rely on expert judgement, the model uses large-scale data analysis to detect patterns of growth and interconnection between technologies.

The approach offers a more dynamic and repeatable method, capturing early signals that might otherwise be overlooked in manual assessments.

Despite its advantages, researchers caution that predicting real-world impact remains difficult at early stages.

While AI-driven mapping provides valuable insights, policymakers and industry leaders still rely on hybrid approaches that combine data analysis with expert evaluation, as seen in frameworks developed by organisations such as the World Economic Forum.

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UK’s FCA steps up enforcement on crypto

The UK’s Financial Conduct Authority has led its first coordinated crackdown on illegal crypto trading, targeting firms operating without authorisation. The action forms part of wider efforts to enforce compliance in the sector.

According to the Authority, the operation involved identifying and taking action against companies that unlawfully promoted or offered crypto services. The move aims to protect consumers from potential risks.

The regulator stated that illegal crypto promotions can expose users to financial harm and undermine market trust. It emphasised the importance of ensuring firms meet regulatory requirements before operating.

The Authority said the crackdown reflects a stronger enforcement approach to unauthorised crypto activity, with further action expected to support market integrity in the UK.

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World Economic Forum analysis explains what drives startup growth today

Findings from the World Economic Forum (WEF) highlight a shift in how early-stage ventures grow from pilot projects into fully operational businesses.

Evidence gathered from more than 200 start-ups by UpLink, the early-stage innovation initiative by WEF, alongside investors and policymakers, suggests that scaling no longer depends primarily on innovation itself, but on the conditions enabling deployment.

Core and emerging technologies already exist across sectors, yet barriers remain in market adoption, coordination, and institutional readiness.

Resilience has moved from a strategic ambition to an immediate operational requirement. Start-ups are increasingly built around urgent, clearly defined problems, allowing them to adapt quickly in volatile environments shaped by geopolitical tensions, supply chain disruption, and climate pressures.

Strong partnerships have emerged as a central priority, with a significant majority of ventures seeking collaboration with larger corporate actors to gain access to infrastructure, regulatory pathways, and credibility.

Collaboration at early stages is proving essential in reducing risk and accelerating adoption. Traditional scaling models, based on proving technology before securing buyers, are losing effectiveness in complex sectors with high institutional risk.

Shared responsibility across multiple stakeholders enables innovation to move beyond demonstration phases into real-world application, particularly when aligned with procurement systems and regulatory frameworks.

Commercial viability has also become central to scaling success. Impact alone is no longer sufficient, as investors and buyers increasingly prioritise measurable financial outcomes such as cost efficiency, risk reduction, and resilience.

Market signals, including early contracts and partnerships, now outweigh funding rounds as indicators of credibility.

Why does it matter?

The WEF analysis underscores that scalable growth depends less on innovation alone and more on coordinated ecosystems that turn pilots into real-world adoption.

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