Photo source: FMT
Southeast Asian nations are actively competing to establish themselves as leading AI hubs, promoting both collaboration and subtle rivalries within the region. The Association of Southeast Asian Nations (ASEAN), comprising ten countries with a total population of 672 million, holds certain advantages over Europe and the United States.
The region’s youthful, tech-savvy demographic—over 200 million individuals aged 15 to 34—positions it well to adapt to future technological advancements. This demographic advantage, combined with government initiatives to accelerate AI development, could yield benefits for local workers.
Jun Le Koay from Access Partnership noted that “AI can significantly improve productivity across industries,” potentially leading to increased incomes and new job opportunities requiring AI skills.
Despite these advantages, Grace Yuehan Wang, CEO at Network Media Consulting, does not foresee any ASEAN country emerging as a clear leader in the AI race soon. She pointed out that while ASEAN demonstrates strong GDP growth, it still lacks critical components for a robust AI ecosystem, such as advanced digital infrastructure and high-level technical talent.
All ten ASEAN member states have introduced national AI strategies. Singapore was an early adopter, introducing its vision in 2019 and updating its plans in December 2023. The city-state aims to triple its AI workforce to 15,000 and has committed to investing 1 billion Singapore dollars (approximately NZ$741 billion) over the next five years.
Singapore’s focus on research and development has positioned it at the forefront of the region’s AI efforts, as evidenced by its top ranking in Salesforce’s 2023 Asia Pacific AI Readiness Index.
Neighbouring countries are also pursuing ambitious AI goals. Vietnam aims to become ASEAN’s center for AI research by 2030 and recently launched PhoGPT, an open-source language model tailored for Vietnamese users. Meanwhile, Cambodia seeks to leverage AI for agricultural technology, which is vital to its economy.
However, developing nations face significant challenges in becoming AI-ready. In February, ASEAN countries released a regional guide on AI governance and ethics, opting for a “light-touch approach” rather than adopting strict EU-style regulations.
The primary challenge for these nations is political rather than technological. The COVID-19 pandemic has encouraged closer collaboration among countries regarding trade and diplomacy. To achieve their AI ambitions, retaining their young, tech-savvy population is crucial, and implementing national education strategies could be key to building growth in this sector.