Indonesia's Communication and Digital Affairs Ministry is mapping out strategic measures to close the AI capability gap, even as the country ranks among the world's highest adopters of the technology. Deputy Minister Nezar Patria stressed that adoption alone isn't enough — what matters is the depth of capability in using AI across education, healthcare, financial services, and government.

SSDU Innovations menandatangani Memorandum Kerjasama dengan EER Digital bagi meneroka pembangunan projek rintis pusat data mampan di Selangor. Inisiatif ini akan menilai penggunaan teknologi penyejukan rendaman GPU untuk menyokong infrastruktur AI berketumpatan tinggi dengan fokus kepada kecekapan tenaga, tadbir urus dan kemampanan jangka panjang.

Smart Selangor Delivery Unit (SSDU) and EER Digital have signed a memorandum of collaboration to study a pilot sustainable AI data centre in Selangor. The initiative will assess the feasibility of high-density AI infrastructure, focusing on energy efficiency, environmental impact, cybersecurity, governance and long-term scalability.

Thailand has approved nine major investment projects worth a combined USD 1.99 billion (66.3 billion baht) as global tech manufacturers shift their supply chains to Southeast Asia. Led by AI infrastructure, advanced electronics, clean energy, and aviation, the Board of Investment (BOI) projects include a massive USD 235 million GPU server hub by Japan's Datasection and key component manufacturing from South Korean and Taiwanese tech giants. To support this influx of data centers, the government is also fast-tracking clean energy infrastructure and policy transparency.

Malaysia can no longer rely on conventional approaches to national security as emerging digital threats extend far beyond traditional enforcement agencies, Prime Minister Datuk Seri Anwar Ibrahim warned. Speaking at the launch of National Security Month, Anwar emphasized that cybersecurity, artificial intelligence, and quantum technology have become central to national defense. He called for a unified "whole-of-nation" approach, breaking down ministerial silos and strengthening international cooperation to protect the country in an increasingly borderless world.

To achieve true national sovereignty in artificial intelligence, Indonesia must urgently develop a holistic ecosystem that integrates elite digital talent, computing infrastructure, and the semiconductor supply chain. Deputy Minister of Communication and Digital Affairs Nezar Patria emphasized that microchips have become critical instruments of national security, warning that the country must stop outsourcing technology processing to foreign nations and instead focus on technology transfer and regional collaborations.

Dong Tien commune in Thanh Hoa has become the first locality in the province to deploy a comprehensive AI-powered public service kiosk. Moving far beyond traditional queue-number machines, the system integrates advanced conversational virtual assistants, NLP, OCR, and VNeID connectivity. By guiding residents through full online applications via voice commands, the tech drastically cuts administrative processing times down to an average of just one minute.

At the 39th Asia-Pacific Roundtable, Prime Minister Datuk Seri Anwar Ibrahim highlighted the urgent need for Malaysia to establish a sovereign cloud infrastructure. Driven by data privacy risks under foreign frameworks like the US Cloud Act, the initiative aims to protect sensitive public and national security information via localized firewalls while ensuring Malaysia remains an open, attractive hub for global digital investments.

Indonesian Minister of Manpower Yassierli has urged the younger generation to remain adaptable by developing industry-relevant skills like AI and automation. Highlighting a new "Future Ready Programme" partnership with XLSMART, the Ministry emphasizes that future employment will prioritize practical technical skills over traditional schooling to mitigate layoff risks and digital disruption.

Highlighting nearly RM3 billion in losses from over 66,000 online fraud cases in 2025 alone, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi emphasized the urgent need for Malaysia to strengthen its digital defense laws. Briefing lawmakers on the upcoming Cybercrime Bill 2026, Zahid noted that modern digital threats have evolved far beyond basic system breaches to encompass ransomware, identity theft, and the malicious misuse of artificial intelligence (AI).

HE Group Bhd’s wholly-owned subsidiary, Hexatech Engineering Sdn Bhd, has secured a subcontractor contract worth approximately RM102 million for a data centre project in Johor. Slated for completion by September 2027, the deal pushes the electrical engineering service provider's total order book to RM275 million, positioning the company to capitalize on Malaysia's rapidly expanding cloud and AI infrastructure market.

The Indonesian Ministry of Communication and Digital Affairs has officially launched the Digital Ecosystem Alignment (DEAL) 2026 initiative. Designed to unite government, industry, academia, and startups, the movement introduces eight key collaboration packages—spanning AI integration, MSME training, and cyber safety—to ensure equitable and sustainable digital economic growth across the country.

Fueled by soaring global demand for high-tech components, artificial intelligence infrastructure, and data centers, Thailand’s exports expanded by 10.6% year-on-year in May 2026 to reach over $34.3 billion. This marks the country's 23rd consecutive month of trade expansion, led by heavy gains in computers and electronics alongside strong seasonal agricultural shipments. However, a massive parallel surge in imports has pushed the nation's five-month trade deficit past $25 billion.

While recent Indonesian clinical trials show medical AI outperforming human radiologists with up to 98% accuracy in stroke and cancer detection, the government is pumping the brakes on unregulated rollout. Deputy Health Minister Dante Saksono Harbuwono emphasized that because algorithmic errors carry life-or-death consequences, strict ethical guidelines and robust digital monitoring platforms like SATUSEHAT AI are non-negotiable.

Under the newly approved National Digital Economy Programme, Vietnam is fast-tracking the digital transformation of its tourism industry. The government has set a target for 70% of all tourism businesses to adopt digital platforms by 2030. By deploying AI-driven personalised travel experiences, virtual reality tours, and regional ASEAN tech integration, Vietnam aims to drastically modernise its global market appeal.

While AI transformation is reshaping the long-term future of Thai finance, the current decline in the banking workforce is driven by traditional branch rationalization. According to the Bank of Thailand, digital banking growth is shrinking traditional networks far faster than automation is replacing workers—though executives warn employees must still adapt to survive the next three years.

Thailand's Digital Economy and Society Ministry plans to renegotiate aspects of the 1.6 billion baht TH-AI Passport project following public scrutiny over procurement processes, budget transparency, and contract terms. The project aims to provide free access to premium AI models for five million Thais, while the government seeks to balance public benefits, transparency, and support for the country's AI ecosystem.

Pertamina is accelerating digital transformation across its energy value chain through AI, data analytics, and enterprise-wide digital initiatives. During a benchmarking visit by Medco E&P Indonesia, the company highlighted how its Digital Factory, Remote Surveillance, and Tech Orchestration Center programmes are driving operational efficiency, business value creation, and long-term transformation across upstream, midstream, and downstream operations.

Malaysia has reaffirmed its commitment to a human-centred future of work as AI reshapes the labour market. Speaking at the 114th International Labour Conference, Human Resources Minister Datuk Seri R. Ramanan outlined initiatives spanning workforce upskilling, workplace safety, industrial justice, and social protection to ensure workers remain equipped, protected, and included in an AI-driven economy.

RHB Research has maintained its overweight stance on Malaysia’s construction sector despite new US restrictions on advanced AI chip exports. The research house believes leading data centre contractors remain well positioned as demand continues to be driven by global hyperscalers and ongoing digital infrastructure investments. RHB highlighted opportunities linked to major data centre developments in Johor, Negeri Sembilan and Serendah, while noting that the greatest risk would come from any future scale-backs or cancellations of planned investments by multinational technology companies. The firm continues to rate all 12 construction stocks under its coverage as Buy.