ASEAN region poised to capitalise on AI and digital revolution

 

Southeast Asia is poised to capitalise on the transformative power of artificial intelligence (AI) and blockchain technology, but the region must act decisively to secure its place in the digital future.

 

A panel of business leaders and policymakers gathered at a forum in Thailand on Friday evening to explore the vast opportunities presented by recent advances. 

 

The event, titled "The World's Next Opportunities and Beyond", was hosted by MFC Asset Management to commemorate its 50th anniversary. 

 

 

 

Key figures, including former prime minister Thaksin Shinawatra, BlackRock’s Elaine Wu, Tools for Humanity CEO Alex Blania and GoTo Group chief executive officer Patrick Walujo, explored both the promises and the challenges facing the region.

 

 

Regional Advantages and the AI Boom

Patrick Walujo pointed to the ASEAN region's inherent advantages, including abundant energy resources (in the case of Indonesia), a large and youthful population, and a degree of geopolitical neutrality. 

 

These factors position the region as an attractive destination for investment, particularly in the development of AI infrastructure.

 

Patrick Walujo

 

“We have abundant energy in the case of Indonesia,” Walujo noted, “and we have a big population in Southeast Asia. And I think it is also one of the areas where we are pretty neutral in the geopolitical space.”

 

The AI boom is seen as a major catalyst for growth, with predictions that it will transform industries from healthcare and finance to energy and transport. 

 

Alex Blania, co-founder and CEO of Tools for Humanity, a global software and hardware development company, offered a bullish outlook on technology's transformative potential, suggesting that AI could be "the most transformative technology in human history".

 

 

Alex Blania

 

"AI will transform every industry, with rapid acceleration in fields like science, chemistry, biology and medicine," Blania predicted. "We can anticipate a 10-fold improvement in many fields within the next five years."
 

To exploit this potential fully, ASEAN countries must address key challenges, including talent development, infrastructure gaps, and the need for clear regulatory frameworks.

 

 

Thailand's Vision for Blockchain and Digital Leadership

Thailand is aiming to position itself as a regional hub for blockchain technology. 

 

Former prime minister Thaksin Shinawatra outlined Thailand's ambitious plans, noting that the country is planning to establish a regulatory sandbox in Phuket to accept cryptocurrency and introduce a government-bond-backed stablecoin.

 

"We are working on a digital wallet to pave the way for issuing digital IDs to Thai citizens," Thaksin said. "Additionally, we will build our own national blockchain, which is expected to be in place this year."

 

 

Thaksin Shinawatra

 

Thaksin also highlighted Thailand's efforts to address the energy costs associated with AI development, with plans to reduce electricity costs to make the country competitive in the AI race.

 

"Data centres are like crude oil and need AI, the 'refinery', to be useful," Thaksin explained, emphasising that the country would require clean energy solutions to power its technological ambitions.

 

 

AI Transforming Industries and Business Models

Walujo shared insights from GoTo Group's experience with AI development, revealing that the company is building its own large language model (LLM) in collaboration with Singapore.

 

"We are planning to launch a model with 72 million parameters next month and are currently working on 'distillation' in collaboration with DeepSeek," said Walujo, whose company serves about 35 million monthly users across the ride-hailing, delivery, payments, and e-commerce sectors.

 

 

Walujo highlighted three reasons for developing a proprietary LLM: "To offer differentiated services, reduce costs through efficiency, and cultivate future AI leaders within the company, with a focus on local languages and context."

 

He also noted the rapid development of Southeast Asia's tech talent pool, particularly in Indonesia, where GoTo now operates a significant tech centre after previously relying on talent from India.

 

 

BlackRock's Framework for Understanding Global Shifts

Elaine Wu, managing director at BlackRock, offered a framework for understanding the macro environment, identifying four "mega forces" driving structural economic changes: geopolitical fragmentation, artificial intelligence, low-carbon transition, and ageing demographics.

 

Elaine Wu

 

"Geopolitical fragmentation is changing how companies approach supply chains, while AI is driving digital disruption and creating investment opportunities," Wu explained. "The low-carbon transition is influencing investments in the energy system, and ageing demographics are affecting labour pools and contributing to higher wages and inflation."

 

Wu maintained that Southeast Asia remains attractive for infrastructure investment, particularly at "the intersection of AI, transition, and geopolitical fragmentation", citing examples such as renewable power plants for AI data centres.

 

Addressing Thailand specifically, Wu noted that Thaksin's vision for reducing power costs aligns with global demand trends, and she highlighted potential in Thailand's medical-tourism sector through AI integration.

 

 

The Transformative Potential of AI and Blockchain

Blania offered that blockchain technology "will gain more adoption with the US taking a strong stance", and that Thailand becoming a leader in the space "will be very important".

 

Alex Blania

 

He identified key emerging trends: the shift from foundation models to applications in AI, the acceleration of biospace and synthetic biology through AI integration, and the development of "agentic behaviour" in AI systems that can solve increasingly complex problems.

 

 

Energy and Talent Cited as Critical Success Factors

A consistent theme throughout the discussion was the importance of both energy resources and technical talent for countries seeking to capitalise on technological opportunities.

 

 

Walujo identified Southeast Asia's competitive advantages in capturing the AI trend as "energy availability, talent, growing demand, and geopolitical neutrality", while Thaksin acknowledged Thailand's tech-talent shortage, saying the country "needs to build stronger foundations and a tech community to apply AI technologies effectively".

 

The panellists concluded that achieving success in the rapidly evolving technological landscape requires strategic investments in infrastructure, education, and regulatory frameworks that can adapt to the fast pace of innovation while also addressing challenges like energy costs, talent development, and geopolitical complexity.

 

 

Looking ahead, the panellists expressed optimism about the ASEAN region's future, but emphasised that seizing the opportunities of the digital age demands proactive and adaptive strategies. 

 

As Thaksin encapsulated, the key to progress lies in embracing technology, nurturing talent, and fostering an environment where innovation can flourish. He envisages a future where "Thai people will have AI literacy within 10 years", acknowledging the increasing role of artificial intelligence in shaping daily life and boosting productivity across all sectors of the economy.