ASEAN’s AI hub race raises growth hopes — and risks for workers, SMEs and the environment
Summary
ASEAN countries are competing to become AI hubs, investing heavily in AI infrastructure and adoption, but face challenges including job displacement, inequality, environmental stress, and risks to SMEs.
Key Points
- Malaysia, Singapore, and Thailand are investing heavily in AI-related infrastructure such as semiconductors and data centres to become regional AI hubs.
- AI adoption in ASEAN raises environmental concerns, including high energy and water usage and ecological risks from mining rare earth elements.
- AI-driven automation risks displacing workers, especially gig economy and lower-skilled jobs, while also affecting white-collar roles in finance and services.
- Large corporations rapidly adopt AI, but SMEs face challenges keeping up, risking increased economic inequality within ASEAN societies.
