
bussiness, ai
10-July-2024 17:13
All eyes on deck, this strong contending region is going AI incredibly fast. Starting from Singapore to the recent boom in Malaysia, Southeast Asian (SEA) countries always seem to be the main attraction for investors.
If you need proof, a recent analysis by INNOMA.VC showed 1740 samples from Singapore, Indonesia, Malaysia, Vietnam, Philippines, and Thailand receive investments up to 54.8 billion USD in 2022-2023, with AI as the main contributing sectors. Statista also projected that in 2030, the SEA AI market will grow up to 30.3 billion USD.
All of the data shown earlier only adds to the perspective that AI is the big thing in SEA and it is being embraced.
Those who are involved in the dynamics of AI developments in SEA are not only the business players, but also the government and society itself. They are all embracing AI as a propelling innovation to sustain its economy. SEA even developed a commitment to have AI governance, brimming the economic potential and youthful, tech-savvy population to a transformative future. For example, Singapore, Indonesia, and Vietnam openly regulate AI development as their country’s framework.
How is SEA really working towards an AI-powered future?
The surge of investments that SEA embraces becomes more evident with tech giants leaving their AI research and funding to startups across the region. These startups are essential to focus on developing a robust AI hub and infrastructure, especially in the developing countries.
Such cases can be found in the recent 1.7 billion USD investment by Microsoft to develop AI and cloud infrastructure in Indonesia. Supporting its investment, Microsoft also plans to enlarge their headquarters to Singapore, including opening stores in Vietnam, Malaysia, and Thailand. Before this investment was announced, Apple – Microsoft’s competitor – also raced the investing track in SEA countries, including forging partnerships with governments to grow AI sufficient talents. Bytedance, China’s biggest tech company, joined the game by investing 2.13 billion USD into AI in Malaysia, assisting the country’s national goal of a digital economy.
The signs don't stop in the big leagues, local startups are also experiencing a funding boom, as investors recognize the amazing potential of AI across various industries in SEA, including healthcare, finance, and agriculture.
Southeast Asia's AI revolution is in its nascent stages, but the momentum is undeniable. But as we put forward innovation, we believe that continued investment, collaborative efforts, and a commitment to responsible development hold the key to unlocking a new era of growth and prosperity for the entire region.
Source:
- East Asia Forum: Charting the future of Southeast Asian AI governance
- ERIA: Accelerating AI in ASEAN: Addressing Disparities, Challenges, and Regional Policy Imperatives
- Economic Times CIO SEA: ByteDance plans $2.1 bln investment in Malaysia for AI, minister says
- INNOMA.VC: AI startups have attracted more than $2.5 billion in Southeast Asian countries
- Statista: Artificial Intelligence - Southeast Asia
- The Diplomat: Microsoft CEO Announces AI Investments in Indonesia, Thailand
Search
© 2025 Innovation Factory All Rights Reserved