Southeast Asia is pushing forward in the race to harness artificial intelligence, as governments and companies roll out ambitious roadmaps, new hardware, and large-scale infrastructure projects. From Indonesia’s investment-driven strategy to Malaysia’s breakthrough in edge processing, the region is positioning itself as a fast-emerging AI hub.
Indonesia unveils AI roadmap
Jakarta has presented a national AI strategy designed to attract foreign investment and stimulate domestic innovation. The plan sets out incentives for developers, infrastructure upgrades, and support for applications in healthcare, agriculture and logistics. Officials say the roadmap is intended to turn Indonesia into a magnet for international technology partners, while strengthening its local research ecosystem.
Malaysia enters hardware race
In Malaysia, chipmaker SkyeChip has introduced the country’s first edge AI processor, the MARS1000. The processor is tailored for real-time computing and Internet of Things applications, marking a step forward for Malaysia’s ambitions to build a stronger domestic semiconductor industry. Analysts describe the launch as a signal that Southeast Asia can not only adopt AI but also play a role in its core technologies.
International tech firms expand presence
Global players are also increasing their footprint. Alibaba has opened an AI hub in Singapore, aiming to support over 5,000 companies and 100,000 developers with advanced AI models and cloud tools. The group is also planning new datacentres in Malaysia and the Philippines, reinforcing the regional network and creating opportunities for local enterprises.
Economic potential
The economic upside is considerable. Policy groups estimate that AI could lift regional GDP by between 13% and 18% by 2030, equivalent to nearly one trillion US dollars. The benefits are expected to flow across sectors from finance and logistics to education and healthcare, driven by efficiency gains and new business models.
Challenges ahead
Despite momentum, gaps remain in funding for local AI startups compared with other Asia-Pacific markets. Analysts highlight the need for more venture capital support, cross-border collaboration and skills training to ensure local innovators are not overshadowed by international giants. Regulation and governance around data use also remain sensitive issues for policymakers.
Outlook
Southeast Asia’s push into AI illustrates both ambition and urgency. With coordinated policy, targeted investment and a growing talent base, the region is well-placed to establish itself as a key node in the global AI economy, though sustained support for domestic startups will be critical to achieving long-term success.
REFH – Newshub, 28 August 2025
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