A (3:19)

So the multipolar world theme has come back to the foreground in 2025 as trade tensions have risen, as deal making has been struck or attempted and we've seen the concept of weaponized interdependence really being proven out in the second quarter of 2025 as China has been in recent years implementing frameworks for export controls and leveraged these quite effectively. So economic security initiatives have come back to the focus of for investors over recent years we've seen a number being set up across the region including Japan's Economic Security Promotion act, the Self Reliant India Framework and South Korea's Supply Chain Stabilization act as well as Australia's National Reconstruction Fund. So we see a number of investment opportunities flowing from these reforms. Ultimately the critical mineral and permanent magnet supply chain is very much in focus but we're also expecting to see semi localization so semiconductor localization efforts continuing to drive investment and activity. Naturally, defence has been a key area of focus for investors in 2025 and overall we see defence spending rising in Asia from 600 US billion dollars in 2024 to 1 trillion in 2030. So Tim, the energy security theme fits as part of this overall future of energy theme that you've been exploring with the team. How do you see this intersection with the multipolar world and and what are the key investment opportunities for the future of energy?

B (4:42)

I think the energy story is really at the core of Asia multipolar world positioning. Take an example, we are seeing for Southeast Asia, the region is importing gas from US and then also Korea and Japan are also trying to export their nuclear technology to the Western world as well. I think all these have a part to play in the multipolar world but at the same time they are also crucial for for these countries to meet their own energy target and strategy and Asia Pacific. When we look at the future of energy there are a few driving force. One is the very strong growth of renewable energy. Take an example in India we are seeing a huge CAPEX going into the renewable energy sector and solar sector as well. China is already the biggest market in solar panel. And then also Korea and Japan are developing their nuclear sector capacity as well. And as I have mentioned, they also exploring to export their nuclear technology to the Western world. So I would say these Asian countries are balancing the multipolar world priorities with their future of energy target as well. And then there were also lots of opportunities. Between these dilemmas I will highlight two examples. One is the nuclear renaissance thesis that we have written extensively in the past two years. We have highlighted Japan and Korea being the key beneficiaries under this multiple level and future of energy dynamics. And then the other would be the gas globalization in Southeast Asia or ASEAN region where we see opportunities in the gas distributed gas infrastructure in Southeast Asia. And then gas is going to be much more important when it comes to the energy security and transition agenda in Southeast Asia region. So we are seeing lots of development in the future of energy in Asia Pacific. But when it comes to the other big theme that is AI, Asia Pacific is also a leader in global AIways. So Danny, what are the most notable trend that you're seeing on a national or regional level on tech division and AI in Asia Pacific?

A (6:50)

So the concept of competitive reinvention also is useful in understanding Asia's response to AI and technology diffusion. So we're seeing China in particular looking to strengthen its position in the development phase of new technologies. And we're also seeing on the export competition front, more incentives to compete for the next phase of supply chain diversification. We're also seeing the emerging class of China MNCs that are sitting at the heart of our China emerging Frontiers research. And another key area of discussion and research for us is understanding China's unique AI path where we're seeing more of a focus on policymakers and corporates playing to strengths in terms of power, data and talent, given the shortages of compute and at the same time wanting to pursue a localization strategy over the medium term. On the technology front, we think the India stack is also still underappreciated as a digital enabler of opportunities in the new India. And then more broadly we are looking for companies that we see in Asia that will prove to be AI adoption leaders. So this underpins a really another key work stream for us in identifying opportunities from AI and tech diffusion into the region. So Tim, how about when we turn to the theme of longevity, what are the key investment opportunities you see in Asia Pacific?

B (8:09)

First of all, let's look at China. So China is entering a super age society and by 2030 China's elderly population will hit 260 million. So that is a bit number which accounts for 18% of the population and Japan as well and Korea as well. Korea is already entering the super age society and then there have been reform program on health care, financial system, pension and labor market in order to support these aging population. And for Japan the focus is really on not just living longer but also living more healthy. Take an example, we have done some reports on the healthy food industry in Japan and how different companies are providing affordable healthy food to consumer and we think that will create opportunities for investors if they would like to look into longevity as a theme. Overall, we are seeing new market in healthcare, pharmaceutical and affordable healthy food as well as the reform in the wealth management and pension system that will create opportunities in the financial market as well. And longevity economy and or the silver economy is becoming a big theme for Asia Pacific for a long time to come.

A (9:27)

Tim, thanks for taking the time to talk.

B (9:29)

Yeah, great speaking of you Daniel, and thanks for listening.

A (9:34)

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C (9:42)

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