#26 GKC | 📖 Quality Education & Skills Development

Happy Friday! Few more weeks to the year end. Enjoy time with self and family!

Continuing our Know Your Investors Series, in collaboration with Turbo Net Zero.

Turbo Net Zero is a pure-play sustainability consultancy company focuses on delivering ESG value-creation solutions for corporates and investors.

We’ll discuss about the evolving field of impact investing across Southeast Asia in three parts.

1. Overview of global impact investing frameworks

2. Sector-specific impact themes within SEA (Today’s Episode)

3. Case studies of successful impact investors and companies in SEA

Let’s get started!

Navigating Quality Education In Southeast Asia

Southeast Asia offers significant opportunities for investments in Quality Education and Skills Development (QESD), driven by shifting demographics, workforce demands, and technological advancements.

Key areas such as Technical and Vocational Education and Training (TVET), Educational Technology (EdTech), and skills enhancement programs are addressing local challenges while aligning with global trends.

This newsletter highlights how strategic investments in these areas can transform the region’ s educational landscape, foster innovation, and build a future-ready workforce, contributing to long-term economic growth and resilience.

Unlocking QESD Opportunities in Southeast Asia

The following sections outline the most promising pathways within these themes, aligning with Southeast Asia’s changing needs in education.

i. TVET

Curriculum Modernization

Curriculum modernization is a primary focus, ensuring that TVET programs align with current industry standards and technological advancements. This alignment helps graduates possess relevant skills that are immediately applicable in the workforce.

Apprenticeships and Internships

Engaging with industry stakeholders helps develop and implement TVET programs that meet labor market needs. This collaboration ensures that the training provided is aligned with industry requirements, making graduates more attractive to employers.

Additionally, inclusive education initiatives ensure that TVET programs are accessible to all, including marginalized and disadvantaged groups, promoting social equity and inclusion.

Investing in TVET offers substantial rewards, including the development of a competent workforce that can drive economic growth. TVET graduates are often more employable and can command higher wages, contributing to poverty reduction and social mobility.

ii.  EdTech

Artificial Intelligence and Adaptive Learning

Artificial intelligence (AI) and machine learning are transforming the EdTech landscape by enabling personalized learning experiences. AI-driven platforms can adapt educational content to meet individual student needs, enhancing engagement and outcomes.

For example, platforms like Ruangguru in Indonesia use AI to provide tailored tutoring services, helping students improve their academic performance. Additionally, AI is being used to develop intelligent tutoring systems that offer real-time feedback and support, making learning more interactive and effective.

E-Learning Platforms and Digital Classrooms

E-learning platforms are central to the EdTech ecosystem in Southeast Asia. These platforms offer a wide range of courses and educational content, making learning accessible to a broader audience.

Virtual classrooms have also become essential, especially during the COVID-19 pandemic, enabling remote teaching and learning. These digital classrooms support synchronous and asynchronous learning, allowing students to learn at their own pace and convenience.

Investment Landscape in Southeast Asia

Geographically, Singapore dominates the EdTech scene, representing nearly half of the top 50 startups. Vietnam is emerging as a strong player, with many startups founded in the last six years, while Indonesia's share of startups has decreased, indicating a maturing market.

Most startups operate on a direct-to-consumer (D2C) model, particularly in the K12, higher education, and workforce segments. Despite these developments, venture capital funding in Southeast Asia declined by 57% in 2023 compared to 2022, with Singapore experiencing a 60% drop. This highlights the broader economic challenges and cautious investor approach.

Notable Healthcare Investors

• EduSpaze: Based in Singapore, EduSpaze is an EdTech accelerator that has supported startups like FutureLab and Noodle Factory.

• Transcend Network: The Transcend Fellowship is a selective program for early-stage founders building in education and the future of work

• East Ventures: This early-stage venture capital firm has invested in several EdTech companies, including Zenith Learning Group

Key Takeaways

QESD in Southeast Asia has attracted substantial venture capital, with global investors pouring $1.4 billion over the past eight years. However, the sector itself remain challenges to be solved in order to achieving a more equitable education access for all.

Again, thank you Turbo Net Zero for this amazing content collaboration. (Check out our other collab content!)

If you are an impact investor looking to implement ESG strategies OR corporates exploring impact measurement strategies, hit Kenny up!

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Hope this is helpful! 🙂 

Feel free to reach out via LinkedIn or email if you have more questions.

References

• 2023 Southeast Asia EdTech 50

• UNESCO

• EdTech in Southeast Asia

• Education Technology Transactions by ASEAN-Based Investors

• Southeast Asia EdTech - $480M of VC in 5 Years

• How EdTech in Southeast Asia Transforms Learning

• TVET acceleration pathways in the Southeast Asian countries

• Mapping national and regional TVET initiatives in Southeast Asia and beyond in response to students and labour mobility

• Technical and Vocational Education and Training (TVET) in South Asia

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