South-east Asia uniquely positioned to capitalise on AI boom: China-Asean panel

South-east Asia possesses unique advantages that enable it to capitalize on the artificial intelligence (AI) boom, according to panellists at the China-Asean Business Leaders Summit 2026. The region benefits from a young population, expanding infrastructure, and a neutral geopolitical position, making it well-suited for the next phase of AI development.

A significant factor in Asean's advantage is its large and young population, with nearly 700 million people under the age of 30. This demographic provides a substantial talent pool and consumer base for AI applications. Additionally, the region has seen a surge in AI investment, with over $55 billion committed in the past year alone, and data centre capacity doubling within a year in Johor.

Geopolitically, Asean enjoys a neutral stance, allowing it to choose between AI technologies from the US and China, two dominant global superpowers. This flexibility grants Asean a unique opportunity to benefit from both technological approaches. Furthermore, the region's youth demographic amplifies this advantage, as younger individuals are often more receptive to embracing new technologies.

Financing the AI ecosystem in Asean is viewed as a multi-layered process, encompassing energy, chips, infrastructure, models, and applications. The bank, UOB, is actively involved in financing the region, particularly in chip and data centre sectors, where demand is high and growth is expected. Manufacturers attracted by Asean's China +1 strategy are seeking structured trade financing to acquire essential chips from companies like Nvidia and Broadcom.

Technological advancements in computing power present another growth opportunity for Asean. Investors are increasingly focusing not just on computing power itself, but also on the consumption of these resources and the solutions they enable. Industrial AI, especially in a region known for its manufacturing prowess, is anticipated to be a significant potential market.

As for autonomous vehicles and robotics, supportive regulatory environments play a crucial role in fostering AI adoption. Singapore's recent approval of Neolix, a key player in this space, to deploy autonomous vehicles for mail delivery and logistics, exemplifies the region's potential in this area.

To fully leverage these advantages, panellists emphasized the importance of opening data borders, welcoming international talent, and fostering collaboration among stakeholders. They also stressed that the edge in AI is shifting from models to systems, with successful players able to cover local companies in their respective languages and navigate regional rules.

Ultimately, panellists urged regional leaders to commit to long-term investment in people, not just infrastructure, to sustain momentum and capitalize on Asean's unique position in the AI landscape.