Arabian Post Staff -Dubai Gulf companies are pouring money into artificial intelligence, but many are finding that rapid adoption is not translating into measurable financial returns as weak data foundations, fragmented technology systems and governance gaps constrain deployment at scale. Around 84% of organisations across the Gulf are using AI in some form, yet only about 11% have reached a level where scaled deployments are producing clearly […]
At least 17,000 children need urgent humanitarian assistance after devastating flash floods tore through northern Nepal, destroying schools, homes, health facilities and critical infrastructure while rescue teams continue searching for missing people. The disaster struck Rasuwa, Nuwakot and Dhading districts on August 26, sending torrents of water, mud and debris through mountain communities and leaving thousands of families without shelter, clean water or reliable access to medical […]
A Russian-speaking ransomware operation has used the Cursor artificial intelligence coding agent to support intrusions into corporate networks, exposing how commercial AI assistants can be manipulated to accelerate hacking once attackers gain access to a target. Operators linked to the Aurora ransomware group employed Cursor Agent during hands-on exploitation of at least 10 organisations between April 8 and May 21, 2026. The AI system helped with network […]
US Immigration and Customs Enforcement is preparing to spend as much as $2 million on robotic dogs, extending a technology push accompanying the Trump administration’s drive to sharply increase immigration arrests and deportations. Federal procurement records show ICE is seeking Boston Dynamics’ four-legged Spot robots and accessories for law-enforcement and public-safety operations. The planned purchase has an estimated value of between $1 million and $2 million. The […]
Manchester Airports Group has disclosed a cyberattack that exposed personal information belonging to about 8.7 million customers across Manchester, London Stansted and East Midlands airports, though flight operations and aviation security were not affected. The breach involved customer information associated with car park, airport lounge and Fast Track bookings, as well as registrations for Wi-Fi services inside the three airports. Data accessed by an unauthorised third party […]
The clarification sets out the eligibility framework for companies considering operations in Pulau 1 of Forest City, where qualifying fintech businesses, Financial Global Business Services operations and foreign-owned payment system operators can apply for the special rate. The incentive runs for 10 consecutive years of assessment and may be extended for another 10 years if the company continues to meet the stipulated conditions.
Malaysia Digital Economy Corporation, or MDEC, is the government agency appointed to process applications, while approvals are subject to the national investment assessment framework. Eligibility does not arise simply from locating a technology business within Forest City.
Qualifying activities must incorporate at least one designated technology enabler. These include artificial intelligence or big data analytics, the Internet of Things, cybersecurity, cloud computing, blockchain, creative media technology, robotics or automation, and advanced network connectivity or telecommunications technology.
The framework therefore covers AI where the technology supports an eligible financial or business-service activity. A general AI developer or technology company does not automatically qualify for the Forest City incentive merely because it uses artificial intelligence.
Applicants must be companies incorporated under Malaysia’s Companies Act and resident in the country, with minimum paid-up capital of RM50,000. The qualifying business must be conducted in Pulau 1, Forest City. Companies must also comply with requirements covering employment, knowledge workers, operating expenditure, economic substance, environmental, social and governance commitments and any regulatory approvals applicable to their activities.
The Forest City incentive is separate from Malaysia Digital Status and the Malaysia Digital tax incentive administered by MDEC. Companies do not need Malaysia Digital Status to apply for the Forest City programme, and an applicant generally cannot receive another tax incentive for the same qualifying activity.
That distinction has become important because the national Malaysia Digital scheme includes figures of up to 100%, potentially creating confusion over whether technology and AI businesses can obtain complete corporate tax exemption in Forest City.
Under the Malaysia Digital tax incentive, companies making new investments can apply for a zero per cent reduced tax rate on qualifying intellectual-property income, subject to the applicable intellectual-property nexus rules. Qualifying non-IP income may receive a 5% or 10% reduced rate for up to 10 years, depending on whether the relevant conditions are met.
Alternatively, eligible new investments can choose an investment tax allowance of 60% or 100% of qualifying capital expenditure, which can be set against up to 100% of statutory income for a period of up to five years. The 100% figure refers to the investment tax allowance and does not constitute a general declaration that all income earned by an eligible company is tax-free.
Companies undertaking qualifying expansion investments face a different structure. The national digital programme provides a 15% reduced tax rate on qualifying IP and non-IP income for up to five years, or an investment tax allowance of 30% or 60% of qualifying capital expenditure, subject to the conditions attached to the scheme.
Applications for the Malaysia Digital tax incentive remain open until December 31, 2027. Applicants for that programme must first secure Malaysia Digital Status. Forest City’s programme has a longer application window, running to December 31, 2034 under the existing guidelines.
Forest City’s financial-zone incentives were formally unveiled by the government in September 2024 as part of an effort to establish Johor as a competitive financial and services hub close to Singapore. The package also includes separate arrangements for single family offices and knowledge workers.
Qualifying single family office vehicles operating under the Forest City framework can obtain a zero per cent tax rate on chargeable income from approved holding and investment activities, subject to Securities Commission Malaysia requirements. That concession is distinct from the 5% regime covering fintech, Financial Global Business Services and foreign payment system operators.
Forest City also sits within the wider Johor-Singapore Special Economic Zone, strengthening its role in Malaysia’s strategy to attract cross-border investment, advanced financial services and digital businesses. Johor has emerged as a major destination for digital infrastructure and technology investment, supported by its proximity to Singapore, expanding data-centre capacity and improving regional connectivity.
A federal judge has struck down the Pentagon’s blacklisting of artificial intelligence company Anthropic, ruling that the government unlawfully retaliated against the Claude developer over its restrictions on military uses of AI. US District Judge Rita F. Lin said the Defence Department’s decision to designate Anthropic as a national security “supply chain risk” violated the company’s First Amendment rights and was arbitrary and capricious. The ruling removes […]
Greenlogue/AP Flooding along the Nepal-Tibet frontier has killed at least 633 people and left nearly 3,000 missing, intensifying warnings that warming temperatures are making high-mountain communities increasingly vulnerable to catastrophic collapses of rock, ice and water. Rescue teams were searching devastated valleys on Saturday after the August 26 disaster sent a torrent of ice, boulders, mud and water through settlements, roads, bridges and hydropower facilities. Nepal had […]
The United States has revoked the visa of former Iraq finance minister Taif Sami Mohammed Al Shakarchi after she was placed on the FBI’s terrorism watchlist, marking an extraordinary reversal in Washington’s treatment of an official it honoured four years ago for fighting corruption. The State Department confirmed on Friday that Mohammed’s visa had been cancelled following her placement on the Federal Bureau of Investigation’s Terrorist Screening […]
PayPal-linked exchange-traded funds suffered steep losses on Friday after Stripe and Advent International abandoned their pursuit of the payments company, wiping out much of the takeover premium that had built into PayPal-related investments. PayPal Holdings shares closed 12.7% lower at $53.66 on August 28 after reports that the consortium had stopped pursuing a transaction valued at more than $50 billion. The sell-off was amplified in leveraged ETFs […]
Venezuela is considering leaving OPEC as its energy relationship with the United States deepens, raising fresh questions over the producer group’s cohesion only months after the United Arab Emirates ended nearly six decades of membership. No final decision has been taken in Caracas, but the possibility of withdrawing from the Organization of the Petroleum Exporting Countries has figured in discussions involving Venezuelan and US officials. Such a […]
JOHOR, MALAYSIA – Media OutReach Newswire – 29 August 2026 – Forest City has, over the past decade, built a recognised track record in green-building and sustainability credentials. Since the Malaysian Government announced the Forest City Special Financial Zone (“SFZ”) incentive package on 20 September 2024, the development has added a financial-services and digital-economy dimension. The Forest City Special Financial Zone (“FC-SFZ”) Tax Incentive offers a 5% special corporate tax rate for 10 consecutive years of assessment, extendable for a second 10-year period, to eligible companies undertaking qualifying fintech, Financial Global Business Services (“FGBS”) or Foreign Payment System Operator (“FPSO”) activities in Pulau 1, Forest City. Malaysia Digital Economy Corporation (“MDEC”) is the appointed government agency to process applications, which are assessed by the National Committee on Investment (“NCI”).
The FC-SFZ Tax Incentive is separate from Malaysia Digital (“MD”) Status and the MD Tax Incentive. A company does not need MD Status to qualify for the FC-SFZ Tax Incentive. Under MDEC’s current rules, an FC-SFZ applicant must also not have been granted another tax incentive for the same qualifying activity. Eligible MD Status companies may separately apply for the MD Tax Incentive, subject to the applicable criteria and approval process.
Key Incentives at a Glance
Forest City’s first decade was defined in part by its green-building and sustainability record. Forest City reports nearly 40 international awards and certifications as at August 2026, including LEED for Core and Shell (“LEED-CS”) Gold pre-certification and GreenRE Gold ratings. On 20 September 2024, the Malaysian Government announced the Forest City SFZ incentive package, adding a financial-services and digital-economy dimension to the development.
The current incentive landscape has four main components:
Taken together, these measures position Forest City SFZ as a potential regional base for qualifying financial-services and technology-enabled businesses assessing Malaysia’s tax framework, proximity to Singapore and access to ASEAN markets. However, the schemes are separate and should not be treated as automatically cumulative.
Forest City Tax Framework for Fintech and Technology-Enabled Financial Services
The FC-SFZ Tax Incentive is not a blanket 100% tax exemption for fintech, AI or technology companies. It is a 5% special corporate tax rate for qualifying activities under the FC-SFZ framework. MDEC is the appointed agency to process applications, while applications are assessed by the NCI.
The 5% rate applies to qualifying fintech activities, FGBS and FPSO activities carried out in Pulau 1, Forest City. The qualifying activity must utilise at least one promoted technology enabler: artificial intelligence (“AI”) or big data analytics (“BDA”); Internet of Things (“IoT”); cybersecurity; cloud; blockchain; creative media technology, including extended reality (“XR”) or mixed reality (“MR”); robotics or automation; or advanced network connectivity or telecommunications technology. Eligibility is not automatic based on location alone; companies must also satisfy the applicable corporate, activity, substance, regulatory and compliance conditions.
The “up to 100%” figure sometimes cited in relation to Malaysia Digital refers to the ITA available under the MD New Investment Incentive. It is an allowance on qualifying capital expenditure, not a 100% income tax holiday. The MD Tax Incentive is also separate from the FC-SFZ Tax Incentive and should not be assumed to stack with it for the same qualifying activity.
Comparison table:
| Scheme | What it covers | Headline rate / benefit | Authority & key note |
| Forest City SFZ — fintech / FGBS / FPSO incentive | Qualifying fintech, FGBS and FPSO activities in Pulau 1 using at least one promoted technology enabler | 5% special corporate tax rate for 10 consecutive years of assessment; extendable for a second 10-year period | MDEC processes applications; NCI assessment. Applications open 1 Sep 2024–31 Dec 2034. |
| Forest City SFZ — Single Family Office | Qualifying SFOV holding and investment activities | 0% tax rate for an initial 10 years; possible extension for a further 10 years | Securities Commission Malaysia; SFO tax rules gazetted on 3 Oct 2025. |
| JS-SEZ — eligible knowledge workers | Eligible knowledge workers working within the JS-SEZ, including qualifying roles in Forest City | 15% personal income tax rate for 10 years | Ministry of Finance / JS-SEZ incentive package; subject to eligibility conditions. |
| Malaysia Digital Tax Incentive — New Investment | Eligible MD Status companies undertaking qualifying Malaysia Digital Activities | 0% on qualifying IP income and 5% or 10% on qualifying non-IP income for up to 10 years; OR 60% or 100% ITA for up to 5 years | MDEC; MD Status required before tax-incentive application. Applications open until 31 Dec 2027. |
| Malaysia Digital Tax Incentive — Expansion | Eligible MD/MSC Malaysia Status companies undertaking qualifying new or expansion activities | 15% reduced tax rate for up to 5 years; OR 30% or 60% ITA for up to 5 years | MDEC; subject to the Expansion Incentive criteria. Applications open until 31 Dec 2027. |
| Malaysia standard corporate rate | Companies not qualifying for a lower or special rate | 24% headline corporate income tax rate | Inland Revenue Board of Malaysia (LHDN); lower tiered rates may apply to qualifying SMEs. |
For accurate and current policy information, companies should refer directly to official sources, including:
Malaysia Digital Status and Tax Incentive: A Separate National Framework
MD Status is granted nationally by MDEC. An MD Status company may then be eligible to apply separately for the MD Tax Incentive, subject to the relevant criteria. Under MDEC’s current framework, qualifying Malaysia Digital Activities comprise the research, development or commercialisation of solutions, or the provision of services, using promoted technology enablers such as AI or BDA, IoT, cybersecurity, cloud, blockchain, drone technology, creative media technology, integrated-circuit design with embedded software, robotics or automation, and advanced network connectivity or telecommunications technology.
Under the current MD Tax Incentive, the available options differ between New Investment and Expansion:
The “100%” figure therefore refers to the ITA rate under the New Investment Incentive. It does not mean that all company income is tax-free.
The MD Tax Incentive is open for applications until 31 December 2027. A company must first obtain MD Status before submitting an application for the MD Tax Incentive.
MD Status also provides access to non-tax benefits under the MD Bill of Guarantees, including the ability to apply for foreign knowledge-worker quotas and passes, subject to the relevant immigration requirements. MDEC’s Expats Service Centre administers the related Foreign Knowledge Worker processes for eligible companies.
Eligibility Summary: Entities, Sectors and Permitted Activities
Forest City SFZ 5% rate
Malaysia Digital (MD) Status and MD Tax Incentive
Accordingly, companies should assess the FC-SFZ and MD frameworks separately. Any proposed structure involving different activities, income streams or incentive programmes should be verified with MDEC and qualified tax advisers before any combined tax outcome is assumed.
Strategic Rationale: Proximity, Talent Incentives and Regional Access
Forest City’s location proposition is based on three interlocking factors: proximity to Singapore, targeted talent incentives and early investor interest.
By June 2026, Invest Johor reported that the Forest City SFZ had recorded 260 cumulative investor enquiries through the Invest Malaysia Facilitation Centre-Johor, against an RM2 billion investment target. Separately, the SC reported in October 2025 that six families had received conditional approval under the SFO Incentive Scheme, with indicative assets under management close to RM400 million.
This incentive framework sits alongside Johor’s rapid emergence as a major Malaysian data-centre market. JLL has highlighted strong data-centre expansion in Johor and the wider JS-SEZ, supported by major hyperscale investments and infrastructure development. This broader digital-economy momentum strengthens the regional technology narrative, but it should not be presented as a direct operating benefit or guaranteed outcome for individual Forest City SFZ companies.
Decision Framework: Two Pathways and a Diligence Caveat
The incentive structure is best assessed through two distinct pathways, with a separate due-diligence lens for investors and advisers.
This route may suit businesses that value proximity to Singapore while maintaining qualifying operations in Pulau 1. The RTS Link is expected to improve connectivity between central Johor Bahru and Singapore, but it does not remove the requirement for companies to maintain the approved substance and qualifying activities in Forest City.
Investors and advisers should note that headline rates are not the same as effective tax rates. The outcome for any entity depends on qualifying activities and income, approved commitments, substance conditions and the specific incentive secured. Groups with annual consolidated revenue of EUR750 million or more may also be subject to Malaysia’s domestic top-up tax rules where the relevant effective tax rate falls below 15%. Tax outcomes should therefore be modelled only after verification against current primary sources and professional advice.
The Verdict
Forest City’s proposition to fintech and technology-enabled financial-services companies is specific and condition-based: a 5% special corporate tax rate for qualifying fintech, FGBS and FPSO activities carried out in Pulau 1 using promoted technology enablers. The incentive runs for 10 consecutive years of assessment and may be extended for a second 10-year period, subject to compliance and approval. It is neither a blanket 5% rate for all AI or technology companies nor a 100% income tax exemption.
Alongside this are the separate SFO Incentive Scheme, which may provide a 0% tax rate for up to 20 years subject to SC requirements; the JS-SEZ’s special 15% personal income tax rate for eligible knowledge workers for 10 years; and the national MD Tax Incentive, which offers different reduced tax rates or ITA options depending on whether an applicant qualifies under the New Investment or Expansion category. Applications for the MD Tax Incentive are open until 31 December 2027.
Reported traction includes 260 cumulative investor enquiries recorded by Invest Johor by June 2026 and six families granted conditional approval under the SFO Incentive Scheme, with indicative assets under management close to RM400 million as reported by the SC in October 2025. Forest City also benefits from proximity to Singapore, while the RTS Link is targeted to commence service on 31 December 2026 between central Johor Bahru and Woodlands North.
For companies and investors, the key question is not simply whether these incentives exist, but whether their exact activities, income streams, location, substance commitments and corporate structure satisfy the conditions required to access them in practice. Current official guidance and qualified tax advice should be obtained before any investment or structuringHashtag: #ForestCity
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Arabian Post Staff -Dubai Federal government employees in the UAE will be allowed to adjust their working hours as children return to classrooms for the 2026-2027 academic year, giving parents greater scope to manage school drop-offs and pick-ups without disrupting government services. The Federal Authority for Government Human Resources has issued its annual “Back to School” policy to ministries and federal entities, setting out flexible attendance arrangements […]
Dubai’s facility management market is no longer defined by who has the largest workforce or the longest service menu. The stronger question is which operating model best matches the asset. A master community, five-star hotel, commercial tower, warehouse and residential portfolio can all require integrated FM, but the balance between engineering, manpower, technology, soft services, energy performance and governance will differ. That is why the best provider […]
A Tehran-based cybersecurity academy sanctioned by Washington is recruiting hundreds of young people for its largest training programme, renewing scrutiny of Iran’s expanding pool of cyber specialists and their potential links to state-backed hacking operations. Ravin Academy is seeking between 600 and 1,200 Iranians aged 17 to 30 for a free, year-long cybersecurity scholarship programme. The initiative represents a substantial expansion for an organisation that US authorities […]
China has formally removed Generals Zhang Youxia and Liu Zhenli from the state Central Military Commission, deepening an extraordinary leadership purge that has dismantled much of President Xi Jinping’s senior military command. The Standing Committee of the National People’s Congress approved the removal on Friday, seven months after authorities placed both officers under investigation for suspected serious violations of discipline and law. Zhang had served as the […]
Boston Scientific is battling a worldwide operational disruption after a cyberattack disabled key information systems used to process and ship medical-device orders, raising concerns over delays in equipment needed for cardiac and other hospital procedures. The Massachusetts-based medical technology group detected the attack on August 25 and activated its incident-response protocols, bringing in outside cybersecurity specialists to investigate and contain the intrusion. Systems supporting customer orders and […]
Kuwait and Pakistan have signed a new defence co-operation agreement expanding military training, operational co-ordination and security assistance as Gulf states reassess their strategic relationships during the prolonged Iran war. The Protocol Agreement-2026 was signed on Thursday, August 27, during Kuwaiti Defence Minister Sheikh Abdullah Ali Abdullah Al-Saleem Al-Sabah’s visit to Pakistan. Defence Minister Khawaja Muhammad Asif signed for Pakistan after talks focused on bilateral security ties […]
Arabian Post Staff -Dubai The UAE has granted Starlink Satellite Communications a 10-year licence to establish and operate a public satellite communications network, strengthening the country’s push to integrate space-based connectivity with its advanced terrestrial telecom infrastructure. The General Space Services Licence issued by the Telecommunications and Digital Government Regulatory Authority authorises Starlink to operate and manage its satellite network and provide broadband satellite internet services across […]
To register interest in the Aolani Token Factory, please visit: https://www.aolanicloud.com/services/token-factory.
Hashtag: #Aolani #AIInfrastructure #TokenFactory #Neocloud
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https://linkedin.com/company/aolani-cloud
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@AolaniCloud on LinkedIn. 
HONG KONG SAR – Media OutReach Newswire – 28 August 2026 – The Hong Kong Productivity Council (HKPC) today held the Launching Ceremony of the “AI for All” Inclusive Programme, aligning with the National 15th Five-Year Plan and the “AI+” initiative, and supporting the HKSAR Government’s policies of “industries for AI, AI for industries” and “AI for All”. Coordinated by the Innovation, Technology and Industry Bureau (ITIB), the “AI for All” Inclusive Programme aims to promote the widespread adoption of AI across society. As one of the programme implementation partners, HKPC will lead the “AI with HKPC – Business Empowerment” sub-programme, focusing on practical business applications, talent development, and inclusive technology adoption. The initiative will provide targeted support to SMEs, professionals, labour groups, and underprivileged communities through a range of training courses, hands-on application programmes, and industry-academia-research collaboration, promoting AI literacy and the practical deployment of AI technologies.
Professor SUN Dong, JP, Secretary for Innovation, Technology and Industry, officiated at the ceremony, joined by Mr Emil YU Chen-on, BBS, JP, Deputy Chairman of HKPC, and Mr Mohamed Butt, MH, Executive Director of HKPC. The event also brought together representatives from leading international and Chinese Mainland technology enterprises, chambers of commerce, and industry leaders, who shared successful case studies and practical insights, fostering collaboration across sectors to advance Hong Kong’s AI ecosystem.
Professor SUN Dong, JP, Secretary for Innovation, Technology and Industry, said: “AI has become a key factor in global industrial upgrading and driving the development of the digital economy. Helping SMEs to achieve digital transformation and enhance competitiveness through AI is one of the focal points of the ‘AI for All’ inclusive programme. This time, HKPC as the third implementing organisation for the ‘AI for All’ inclusive programme, leverages its years of experience serving businesses to provide targeted and professional support to SMEs, helping them seize opportunities in the AI era. I hope that through the ‘AI for All’ inclusive programme, AI will not only serve as an empowering tool to enhance corporate value and competitiveness but also transform into a super dividend that benefits SMEs and the general public. Let ‘AI for All’ become Hong Kong’s vision for ‘Upgrading for All’ and ‘Opportunities for All’.”
Mr Emil YU Chen-on, BBS, JP, Deputy Chairman of HKPC, said: “AI should not be a privilege reserved for large enterprises. It should become a productivity tool that every business, every employee, and people from all walks of life can leverage. HKPC has long been committed to helping enterprises, particularly SMEs, enhance productivity, drive digital transformation, and convert innovative technologies into tangible business value. We focus on integrating AI technologies across different industries by providing practical, scalable and replicable solutions that support smart transformation. As one of the implementation organisations of the ‘AI for All’ Inclusive Programme, HKPC will centre its efforts on ‘AI with HKPC – Business Empowerment’, connecting Government, industry, academia, technology partners and social service organisations to help enterprises, SMEs, professionals and underprivileged communities acquire AI capabilities and transform AI into real productivity and business value, thereby advancing Hong Kong’s high-quality development and digital inclusion.”
“AI for All” Officially Launches with “Business Empowerment” Series to Drive Widespread AI Adoption
To advance the “AI for All” Inclusive Programme, HKPC has launched the “AI with HKPC – Business Empowerment” training series, centred on practical business applications. Through a two-year training and promotion programme, HKPC will work with technology companies, chambers of commerce, labour groups and community partners to help SMEs, professionals, working individuals, labour organisations, underprivileged groups and the general public acquire AI knowledge and application skills. The initiative aims to accelerate the adoption of AI and support digital and smart transformation across industries, sectors and communities through three key focus areas:
1. Business and Industry Upgrading: Through AI-focused programmes such as “AI+ Industry Boost Training” and “SME AI Connect”, enterprises can rapidly adopt AI technologies to enhance productivity and competitiveness. Key training topics include:
2. Human Resources and Leadership: HKPC will continue conducting the “Hong Kong Enterprise AI Application Trends Survey” and share insights through “AI Talent Winning Tips”, helping organisations understand AI talent management and application trends while preparing for future workforce needs. Key topics include:
3. AI for ALL: Through the free online learning platform “AI BiteClass”, HKPC will provide convenient AI learning resources for SMEs, professionals, senior citizens and underprivileged communities, enabling people from all backgrounds to access AI fundamentals and the latest application trends anytime, anywhere. Key topics include:
“AI BiteClass” Debuts at Launch Ceremony, Bringing Global Technology Expertise to Hong Kong
As part of the launch event, HKPC presented a live edition of the “AI BiteClass”, featuring experts from HKPC and leading global technology companies, including Amazon Web Services (AWS), Google Cloud, Huawei Cloud, Lenovo, Samsung, Tencent Cloud and Microsoft. The sessions shared practical AI techniques and real-world application cases tailored for SMEs. Through concise yet insightful presentations, the guest speakers highlighted the best practices and implementation strategies for AI, demonstrating how businesses can leverage AI to drive growth and enhance operational efficiency.
Looking ahead, the “AI BiteClass” will introduce a range of free online courses covering popular topics such as generative AI, AI agents, workflow automation, data analytics and enterprise transformation. Members of the public will be able to access practical AI learning resources at any time through the online platform or via iAM Smart.
HKPC has long positioned itself as a “technology adopter and enabler”, committed to helping enterprises transform innovation into tangible business value. Since 2024, HKPC has organised more than 600 AI training sessions, serving over 32,000 participants, including SMEs, large enterprises, HR professionals, industry leaders, students, educators and members of the public. These efforts have played a pivotal role in fostering a more competitive AI application ecosystem in Hong Kong.
A series of “AI with HKPC – Business Empowerment” activities will be rolled out progressively. Enterprises and members of the public are welcome to register via iAM Smart and stay updated on the latest programmes. Through collaboration with global technology enterprises, industry organisations and community partners, HKPC aims to bring AI into businesses, workplaces and communities, advancing the vision of “AI for All” while empowering enterprises and co-building Hong Kong’s intelligent future. For details, please visit: https://www.hkpcacademy.org/en/aiforall/
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Hashtag: #HKPC
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The Hong Kong Productivity Council (HKPC) is a statutory body established in 1967, dedicated to enhancing the productivity and competitiveness of Hong Kong enterprises through world-class applied R&D, innovative technology services, and integrated manufacturing solutions. As a market-oriented, international R&D organisation, HKPC leverages its deep expertise and extensive industry experience in key areas such as AI, advanced manufacturing, life and health technology, green technology and new energy to drive new industrialisation and support the growth of emerging and future industries.
HKPC focuses on addressing businesses challenges and industrial technology needs, promoting the full integration between technological and industrial innovation. Through technology transfer, product innovation, intellectual property protection and commercialisation of R&D outcomes, the Council fosters collaboration with the local business community as well as top global R&D institutions, delivering added value to industries and advancing the development of new productive forces. HKPC’s world-class R&D achievements have been widely recognised over the years, winning an array of local and overseas accolades, reinforcing Hong Kong’s role as an international innovation and technology centre and a smart city.
To help enterprises capitalise on Hong Kong’s strengths in international connectivity to expand into global markets, HKPC offers comprehensive overseas expansion services tailored to critical areas including product development, technology, manufacturing, and management, enabling businesses to successfully go global from Hong Kong.
HKPC is also committed to providing timely and practical support to SMEs and startups with timely and practical , assisting them in accessing Government funding programmes. Through its FutureSkills training initiatives, HKPC helps both industry and academia stay ahead in latest digital and STEM technologies, nurturing a future-ready talent pool for Hong Kong.
For more information, please visit HKPC’s website: www.hkpc.org/en.
By TN Ashok India has built fighter aircraft, warships, tanks and some of the world’s most sophisticated missiles, but one weakness has repeatedly haunted its defence-industrial ambitions: engines. The country has been able to design and manufacture airframes, yet propulsion technology has remained heavily dependent on foreign suppliers. The latest agreement between the state-owned Hindustan […]
The article HAL-Safran helicopter engine deal: India breaks import trap? appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).
Quarterly Profitability: A Rare Milestone in Hong Kong’s AI Sector
In capital markets, ambitious visions must ultimately be backed by real financial performance—and Deepexi’s interim results provide clear proof of execution.
For the first half of 2026, the company generated RMB 284.0 million in total revenue, marking a 115.0% year-over-year increase. Its AI business served as the primary growth engine, contributing RMB 226.0 million—an impressive 209.2% year-over-year surge—bringing AI revenue to 79.6% of total corporate turnover.
Even more noteworthy is the marked improvement in profitability. First-half gross profit reached RMB 160.0 million, up 120.5% year-over-year, with gross profit margin expanding to 56.5%. Crucially, during the second quarter of 2026, Deepexi posted a standalone quarterly net profit of approximately RMB 30.1 million, officially crossing the breakeven threshold.
In Hong Kong’s technology sector, pure-play enterprise AI companies capable of achieving quarterly net profitability while sustaining high R&D investment remain exceptionally rare. This milestone underscores Deepexi’s operational efficiency, scalable software delivery, and self-sustaining monetization engine.
This scarcity value is equally evident in the company’s revenue composition and vertical reach. Industrial manufacturing accounted for more than 50% of total revenue, while retail and consumer goods contributed 30%, alongside expanding footholds in healthcare and smart transportation. In manufacturing, for example, equipment troubleshooting and predictive maintenance involve dense engineering schematics, real-time IoT sensor telemetry, and extensive historical maintenance logs—all of which Deepexi translates into structured logic that AI models can readily interpret. This deep vertical expertise and proprietary data accumulation create a formidable competitive barrier that general-purpose AI vendors cannot easily match.
Beyond the “SaaSpocalypse”: Deepexi’s AI-Native Platform Defies the Software Valuation Reset
The first quarter of 2026 witnessed what market observers have dubbed the “SaaSpocalypse”—a tectonic shift in which approximately $2 trillion in market capitalization was erased from B2B software equities, driven by a fundamental fear that agentic AI would cannibalize the traditional per-seat licensing model. The iShares Expanded Tech-Software ETF (IGV) plunged nearly 21% year-to-date, and enterprise software multiples (EV/Sales) cratered from a 5.6x average at the end of 2025 to 4.2x by mid-March.
Investors have pivoted decisively toward AI-native infrastructure—companies that manage the data and underlying plumbing of autonomous systems—while penalizing traditional application-layer SaaS vendors reliant on human-centric interfaces. As a recent Windsor Drake analysis notes, “AI-native agentic platforms clear 14x to 22x revenue, with private rounds at 20x to 30x,” while legacy standalone RPA trades at just 2.5x to 5x. The market is now rewarding AI-native architecture and measurable workflow ownership.
Deepexi sits squarely on the winning side of this divergence. Unlike traditional SaaS vendors whose revenues are tied to human seat counts—and thus vulnerable to agentic displacement—Deepexi’s token-based, consumption-driven model aligns directly with the agentic AI future. The company’s DeepWorks enterprise Agent platform does not sell per-seat licenses; it sells AI productivity, enabling enterprises to deploy autonomous agents that replace repetitive administrative work, not software seats. As the market shifts from “AI as a feature” to “AI as a replacement,” Deepexi’s business model is structurally insulated from the seat-compression forces that have punished legacy software vendors.
Focus on Enterprise AI Applications and Proprietary Domain Data
To ensure AI truly meets real-world enterprise demands, generic foundational models are insufficient on their own. Deepexi’s core competitive edge lies in its specialized “Data + AI” dual-engine architecture, anchored by the FastData enterprise data intelligence platform, the FastAGI agentic AI suite, and the Deepexi Enterprise Large Model Platform, supported by its proprietary Deepology ontology dataset containing over 2,000 vertical industry skills.
At the foundational layer, the FastData platform—powered by the FastData Foil fusion engine—acts as an intelligent lakehouse that tokenizes structured, semi-structured, and complex unstructured enterprise data into standardized formats ready for large model training and inference. Building upon this data foundation, the FastAGI platform and DeepWorks Enterprise Agent Platform provide organizations with a flexible, modular AI operating system.
Featuring a pluggable architecture, the platform connects seamlessly to leading open-source foundation models such as DeepSeek and Zhipu AI, giving enterprise clients complete autonomy while eliminating vendor lock-in. This “model-agnostic” approach is a key differentiator in an environment where enterprises increasingly demand flexibility to choose the best model for each use case, rather than being locked into a single provider.
Through native Model Context Protocol (MCP) frameworks and specialized agents—ranging from operational decision-making agents to productivity and autonomous workflow execution agents—Deepexi embeds intelligence directly into core business operations. DeepWorks is fully integrated with mainstream workplace collaboration suites such as DingTalk, Feishu, and Tencent Meeting, allowing employees to summon AI copilots directly for automated weekly reporting, data synthesis, and cross-departmental coordination—effectively turning AI into an indispensable daily productivity tool.
In an enterprise AI market where 42% of organizations already have AI agents in production and 72% are deploying across production and pilots combined, Deepexi’s proven, governed agentic workflows are no longer an experiment—they are core infrastructure.
Strategic Partnership with Huawei Cloud: Tackling Compute and Data Bottlenecks
In the commercialization of enterprise AI, computing costs and access to high-quality domain data represent two of the industry’s most critical bottlenecks. On August 12, Deepexi announced a strategic alliance with Huawei Cloud to jointly launch enterprise data intelligence solutions, providing strong operational backing for the company’s long-term expansion.
The partnership combines the complementary strengths of both technology leaders. Huawei Cloud provides underlying Ascend AI computing clusters and distributed cloud infrastructure, while Deepexi brings its deep expertise in enterprise data governance, data tokenization, and vertical AI agent deployments. By integrating with Huawei’s domestic Ascend compute clusters, Deepexi not only secures stable, long-term computing power but also significantly drives down token processing costs. This cost efficiency establishes ideal conditions for exploring usage-based, token-metered commercial billing models—precisely the kind of consumption-based pricing that aligns with the agentic AI future.
Crucially, falling AI costs are widely expected to accelerate enterprise adoption of autonomous agents. Deepexi’s partnership with Huawei Cloud positions the company to capture this demand wave with a cost structure that improves as token volumes scale—a powerful margin-expansion dynamic that stands in stark contrast to the fixed-cost burden of traditional SaaS.
Strong Institutional Backing Highlights Long-Term Investment Value
Reflecting strong capital market confidence, Deepexi announced on August 17 the successful placement of 14,286,000 new H-shares at HK$35.00 per share, raising net proceeds of approximately HK$488.0 million. Successfully closing a sizeable placement amid broader market volatility demonstrates strong institutional recognition of Deepexi’s proven business model, robust unit economics, and profitability trajectory.
The company’s strategic shareholder structure provides a solid foundation for long-term growth. It is supported by prominent independent investors, including Hillhouse, 5Y Capital, and BAI, as well as industry-focused investors such as Shanghai AI. These partnerships enhance Deepexi’s industry reputation, drive technological innovation, and strengthen its market competitiveness.
The newly raised funds are earmarked primarily for continuous R&D in next-generation enterprise agent systems and token productivity platforms—positioning the company to capture the $206.5 billion AI agent software market projected for 2026, which Gartner expects to grow to $376.3 billion in 2027.
Investment Thesis: Why Deepexi Stands Apart
1. AI-Native Architecture in an Agentic World. Unlike legacy SaaS vendors facing seat compression, Deepexi’s token-based model is structurally aligned with the agentic AI future. The company doesn’t sell software seats—it sells AI productivity.
2. Rare Profitability in Enterprise AI. Quarterly GAAP profitability at a 56.5% gross margin, with projected revenue CAGR of 95.5% through 2027, places Deepexi among the most financially disciplined enterprise AI companies globally.
3. Model-Agnostic, Vendor-Neutral Platform. In an environment where enterprises demand flexibility, Deepexi’s pluggable architecture—supporting DeepSeek, Zhipu, and other open-source models—eliminates lock-in and captures value regardless of which foundation model wins.
4. Proprietary Data Moat. With over 2,000 vertical industry skills and deep expertise in manufacturing, retail, healthcare, and transportation, Deepexi’s domain-specific data capabilities create barriers that general-purpose AI vendors cannot replicate.
5. Strategic Compute Partnership with Huawei Cloud. Long-term, cost-effective compute access, combined with token-metered pricing models, positions Deepexi for sustained margin expansion as token volumes scale.
6. Institutional Validation. Backing from top-tier investors and a successful HK$488 million placement amid market volatility signal strong institutional confidence in Deepexi’s business model and growth trajectory.
The enterprise AI market has decisively shifted from early conceptual exploration into a new era of commercial execution and tangible financial delivery. Backed by mature product suites across FastData and FastAGI, proprietary vertical ontologies, strategic cloud partnerships, and an official transition to net profitability, Deepexi Technology has proven that enterprise AI can deliver both transformative technology and sustainable profits.
Hashtag: #DeepexiTechnology
The issuer is solely responsible for the content of this announcement.
Deepexi Technology is China’s leading provider of enterprise large model AI application solutions. Through its FastData enterprise data intelligence solution and FastAGI enterprise AI solution, it empowers enterprises to integrate their data, decisions and operations efficiently at scale. Deepexi ranked fifth in China’s enterprise large model AI application solution market in terms of revenue in 2024. Its solutions have achieved large-scale commercialization across multiple verticals, including consumer goods, manufacturing, healthcare and transportation. As of June 30, 2025, Deepexi Technology served a cumulative total of 283 enterprise customers across various industries.
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those projected. The company undertakes no obligation to update any forward-looking statements.
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