Issue #69 of Data+AI in Asia

Welcome to a new edition of Data+AI in Asia! This week’s newsletter covers stories on how East Venture believes AI will boost Southeast Asia’s GDP by 13% in the next five years, China's new alliance for semiconductors and AI companies, Malaysia’s new plan to transform into an AI-powered nation, Indonesia’s government encouraging small and medium-sized businesses to adopt AI, Singapore ranking second in AI readiness globally, South Korean Rebellion raising money ahead of an IPO, and Japan’s SMBC establishing a US$300 million fund for AI and fintech startups

Enjoy!

This week in Data+AI in Asia:

• AI Expected to Boost Southeast Asia’s GDP by 13% by 2030

• China’s New Alliance for Semiconductor and AI Companies

• Malaysia’s 5-year Plan to Transform the Country into an AI-powered Nation

• Indonesia’s Government Encourages MSMEs to Adopt AI

• Singapore Ranks Second in AI Readiness in the World

• South Korea’s Rebellion Raises Money Ahead of IPO

• Japan’s SMBC Sets Up US$300m Fund for AI and Fintech Startups in the US

AI Expected to Boost Southeast Asia’s GDP by 13% by 2030

According to a report by East Ventures, AI is predicted to significantly transform the business landscape and public services in Southeast Asia, potentially adding nearly US$1 trillion to the region's GDP by 2030. This economic boost will be driven by productivity gains, operational efficiencies, and improved engagement through AI-powered personalization in various sectors, including banking, retail, and manufacturing. By 2030, East Ventures expects the development and adoption of AI across key sectors to boost GDP in Southeast Asia by 13%, equivalent to approximately US$950 billion. Generative AI, a branch of AI that can produce original content like text, images, or code, is expected to deliver significant value by enhancing productivity and user engagement across various sectors. In e-commerce and digital marketplaces, genAI is projected to boost user engagement and conversion rates by 25% through hyper-targeted marketing strategies. Singapore leads Southeast Asia in AI adoption, with 46% of enterprises adopting AI-enabled solutions in 2024. The country has been pioneering in AI policy and innovation, launching a model AI governance framework and committing US$773 million for the next five years. Major international players have also established a presence in Singapore, such as OpenAI, Microsoft Research Asia Lab, and ByteDance. Malaysia is emerging as a key destination for AI infrastructure investment, with around US$22 billion in commitments from major technology firms including Oracle, Microsoft, AWS, Nvidia, and ByteDance. Oracle is looking to invest more than US$6.5 billion in Malaysia to expand its AI and cloud computing capabilities, while AWS plans to inject US$6.2 billion in the country through 2038. ByteDance is investing around US$2.13 billion to set up an AI hub in Malaysia.

Read the report here

And more here

China’s New Alliance for Semiconductor and AI Companies

Chinese semiconductor and AI companies have formed an alliance to promote the use of locally developed processors for AI projects. The Model-Chips Ecosystem Innovation Alliance, which includes Tencent Holdings-backed AI start-up StepFun, Infinigence AI, SiliconFlow, Huawei Technologies' Ascend computing business unit, MetaX, Biren Technology, Enflame, Iluvatar Corex, Cambricon Technologies, and Moore Threads, was announced at the recent World Artificial Intelligence Conference (WAIC). The alliance reflects the growing efforts in the country's semiconductor industry and nascent AI sector to push Beijing's tech self-sufficiency agenda amid US export restrictions on China and rising geopolitical tensions. The group's establishment also comes at a time when the Cyberspace Administration of China (CAC) has sent an inquiry to Nvidia regarding tracking features in its chips. Nvidia was recently given the green light by the Trump administration to resume shipments of its China-specific H20 AI processors. 

Read more here (paywall)

Malaysia’s 5-year Plan to Transform the Country into AI-powered Nation

Malaysia has unveiled its latest economic roadmap to climb the global value chain, aiming to produce premium tech products like semiconductors and tap into AI in its push for developed nation status by 2030. The "Made by Malaysia" aspiration is central to the 13th Malaysia Plan (13MP), the country's five-year development blueprint for 2026 to 2030. Prime Minister Anwar Ibrahim has said the plan would position Malaysia to lead Southeast Asia in AI, digital technology, and green energy by developing locally designed, world-class products and services. The government projected its efforts would help grow exports by an average of 5.8% annually and support economic growth of between 4.5 and 5.5% over the new plan's five-year term. It is also planning to restructure the economy from export-driven to a "consumption powerhouse" aimed at boosting national productivity and household incomes.

Read more here

And here (paywall)

Indonesia’s Government Encourages MSMEs to Adopt AI

The Indonesian State-Owned Enterprises (SOEs) Ministry is encouraging micro, small, and medium enterprises (MSMEs) to use digital technologies, particularly AI, to expand their market reach and improve competitiveness. The ministry's expert on finance and MSME development, Loto Srinaita Ginting, has emphasized the importance of digital transformation in strengthening supply chains and fostering a robust industrial ecosystem. AI can help MSMEs manage production processes more effectively, integrate data between buyers and sellers, and make business processes more responsive to market dynamics.

Read more here

Singapore Ranks Second in AI Readiness in the World

A new Salesforce study ranks Singapore second in AI readiness globally, with only the US receiving higher scores. Salesforce’s Global AI Readiness Index evaluates AI readiness in 16 countries across five areas: governance, diffusion, innovation, investment, and talent. Together, these indicators provide a framework for how prepared a country is to harness AI technology. Salesforce stated that Singapore’s ranking affirms the country as a global leader in AI. Singapore thus retains the top spot in the Asia Pacific AI Readiness Index. Singapore gets top scores for regulatory preparedness and adoption, but is below average in terms of innovation capacity.

Read more here

South Korea’s Rebellion Raises Money Ahead of IPO

South Korean AI chip startup Rebellions has started to raise money in a funding round reaching between US$150 and US$200 million. One of the investors in the new funding round is tech giant Samsung. This fundraising takes place with the company aiming for a public listing after the round is closed. Rebellions, which merged with Sapeon last year, is positioned as a potential rival to Nvidia in South Korea. Since its founding in 2020, Rebellions has raised $220 million. The company is currently in talks with current and global investors, including SK Hynix, SK Telecom, Korea Telecom, and Saudi Arabian oil giant Aramco. Rebellions designs AI inferencing chips, aiming to challenge Nvidia and AMD and other startups in the inferencing space. The funding will partly go towards Rebellion’s product development, with Samsung manufacturing its semiconductor using its 4 nanometer process. If Rebellions finds a large customer base, this could give Samsung a major customer for its foundry business. This is important for Samsung, which holds a very distant second position behind TSMC when it comes to market share in the foundry business.

Read more here

Japan’s SMBC Sets Up US$300m Fund for AI and Fintech Startups in the US

Sumitomo Mitsui Banking Corp. (SMBC) is set to establish a US$300 million venture capital fund, the SMBC Fin Atlas Beyond Fund, in partnership with US asset manager Fin Capital. The fund will invest in AI and fintech startups, focusing on advancements in payments, financing, and AI fields. It is set to provide funding for US-based companies in these fields. SMBC will provide most of the funding and run the fund for 10 years. The fund will also foster business partnerships in finance. In July, SMBC’s parent company, Sumitomo Mitsui Financial Group, said that it will team up with former Microsoft Asia President Ahmed Mazhari to establish a new company in Singapore that will focus on leveraging AI.

Read more here (paywall)