The spotlight on the artificial intelligence stage has begun to hit Southeast Asia|SEA Now

Technology knows no boundaries, but it also has its own unique process. Here, we will review with you what events have occurred in the field of science and technology Internet in Southeast Asia this week (2024.05.06-2024.05.12).

Southeast Asia has ushered in another global tech giant.

Earlier this week, Amazon's cloud service platform AWS announced that it would nearly double its investment in Singapore to S$23.5 billion over the next four years (to '28). In this regard, AWS said that it hopes to further meet the growing demand for cloud services and accelerate the adoption of artificial intelligence through the construction of cloud and artificial intelligence infrastructure.

Against the backdrop of this development, Microsoft recently announced similar plans to invest nearly $4 billion in cloud and AI infrastructure in Southeast Asia over the next four years, and has developed long-term development plans for some of these countries.

In reality, it is clear that Southeast Asia, an emerging market, has more to go – and in terms of digitalization, it has only just begun its decade. But these options are also bound to be no coincidence. It has been suggested that one of the reasons why Southeast Asia is increasingly experiencing increased expectations under this AI boom is that these global giants are seeking a more diversified strategic layout to reduce the impact of the current uncertain geopolitical risks.

In addition, as a manifestation of Southeast Asia's increasing integration into the global map, the pivotal role of Southeast Asia is becoming more and more prominent at this stage, and this factor may also accelerate the entry of giants. Taking Singapore as an example, whether it is linking from here to the deeper ASEAN region, or from Southeast Asia to Asia and even Europe and the United States, the space and opportunities that can be touched by this "emerging market" are also constantly expanding.

Of course, going back to Southeast Asia itself, it is not difficult to find that the huge population base and relatively complex and diverse social structure that provide vitality for this region will also inject the same impetus into the artificial intelligence industry based on massive amounts of data. And not to mention ASEAN countries like Malaysia, which want to help themselves become data center hubs with the help of overseas tech giants...

At present, there are data predicting that the size of the artificial intelligence market in Southeast Asia is expected to be 10 billion US dollars during this year. By 2030, this figure is expected to reach nearly $26.9 billion, growing at a CAGR of 17.8%. Based on this momentum, it is not difficult to predict that Southeast Asia will become more and more on the stage of the current AI-focused technology boom in the future, and it will become a more concerned option.

Okay, without further ado, let's get to the point.

Industry & Dynamics

Amazon to invest another S$12 billion in Singapore: Amazon's cloud service platform AWS said today that it will invest another S$12 billion in Singapore over the next four years to develop its cloud and artificial intelligence infrastructure in the country, TechNode has learned. With the addition of this planning funding, AWS's investment in the country will reach S$23.5 billion.

AWS predicts in a study that by 2028, the investment is expected to contribute about S$23.7 billion to Singapore's GDP and provide more than 12,300 jobs for AWS and businesses using its cloud services.

BYD to produce electric vehicles in Indonesia in 2026: BYD has now officially confirmed plans to build an electric vehicle factory in Indonesia. To this end, BYD is purchasing 100 hectares of land in the Subang Smart City Industrial Estate, West Java. Construction will begin this year, with operations expected to begin in January 2026. BYD itself has not provided any information on production capacity, but Indonesia's coordinating minister for economic affairs, Airlangga Hartarto, said that BYD will produce 150,000 vehicles a year at the beginning of this year and invest about $1.3 billion. In January, BYD also celebrated its entry into the Southeast Asian market. After Thailand, Uzbekistan, Brazil and Hungary, the Indonesian plant will be BYD's fifth EV factory outside of China.

VinFast plans to expand to more than 120 authorized dealers by the end of this year: VinFast, a new energy vehicle company in Vietnam, said in a statement that it plans to further expand its national showroom and authorized dealer network to at least 120 by the end of the year in order to become a leading automaker in Vietnam and compete with established gasoline car brands. At the same time, the company noted that it is in the process of early pre-orders for the VF 3 mini electric SUV in the Vietnamese market. It was revealed that VinFast plans to start this operation from May 13 to 15.

Thai food delivery giant Line Man Wongnai plans to IPO next year: According to foreign media, Yod Chinsupakul, CEO and co-founder of Thai food delivery giant Line Man Wongnai, said that Line Man Wongnai is planning an IPO on Thai or US exchanges in 2025. It is reported that Yod also said that it is also possible to carry out dual listing in these two countries. As a backdrop, Line Man Wongnai joined the unicorn camp in '22 through a $265 million Series B funding round.

Malaysia's AI Governance and Ethics Framework to be Released Soon: According to foreign media reports, the development of Malaysia's AI Governance and Ethics (AIGE) framework has now entered its final stage and will be launched soon. Malaysia's Minister of Science, Technology and Innovation Chang Lih Kang noted that Aige is a framework that sets parameters for AI users in the industry – a framework that outlines seven principles of responsible AI that can be applied to all three main categories (i.e. users and the public, policymakers, and providers or developers of AI-based technologies). He said that adhering to these guidelines can ensure the ethical and safe use of AI.

Investment and financing

Agritech company Elevarm raises $2.6 million in funding: Founded in 2022, Elevarm provides a range of horticultural services and products through its platform, from fertilizer to soil testing to agricultural trading. As a backdrop, Elevarm said that often, access to high-quality seedlings and fertiliser is limited to large corporate farms, which often results in smallholder farmers with poorer seed and soil quality and lower yields. Therefore, Elevarm hopes to break this situation with its own model, which will ultimately improve the livelihoods of smallholder farmers.

Rize closes $14 million funding round for agritech platform: Founded in 2022, Rize aims to use its platform to collect key agricultural information needed for sustainable agriculture and help rice farmers reduce their planting expenses and water use by integrating data on farm performance and crop yields to better adapt to climate change.

Specifically, Rize will focus on wet and dry (AWD) and rice direct streaming (DSR) so that farmers can conserve water and reduce methane emissions without affecting harvests. As a background, there are data showing that rice cultivation currently accounts for 10% of global methane emissions (33% of methane emissions in Southeast Asia). At the same time, the industry accounts for more than one-third of the world's irrigation water.

Perspectives & Observations

From automation to artificial intelligence, when will the future of Malaysia's manufacturing industry arrive: Malaysia's manufacturing sector has long been hailed as the cornerstone of the country's economy, from which it has shown great resilience and potential.

According to some data, Malaysia's manufacturing GDP is expected to reach RM597.5 billion by 2030, an increase of 61% from the current level. However, in my opinion, as the global landscape evolves, the industry still faces an urgent challenge – it needs to use technology to bring more creative and innovative solutions to the market.