AI

Opportunities for SE Asia in the AI Race Between US and China | Asian Insider Podcast

The Straits Times
The Straits Times•Mar 13, 2026

Why It Matters

AI’s rapid diffusion will reshape Southeast Asian labor markets and growth trajectories, making proactive policy and corporate responses essential for competitiveness.

Key Takeaways

  • •US and China dominate global AI development
  • •Southeast Asia faces talent and infrastructure gaps
  • •Automation threatens BPO and radiology jobs regionally
  • •Policy options include UBI and upskilling programs

Pulse Analysis

The United States and China are cementing their lead in artificial intelligence, investing billions in research, talent pipelines, and commercial applications. Their dominance creates a geopolitical technology corridor that Southeast Asian nations must either join or strategically sidestep. For economies like Singapore, Malaysia, and Vietnam, the challenge lies in leveraging limited resources to attract AI talent while avoiding dependence on external platforms. Understanding the broader Fifth Industrial Revolution—where cognitive tasks are automated—helps policymakers gauge the scale of transformation ahead.

In the region, AI threatens traditional employment strongholds, especially business process outsourcing and specialized medical imaging. Automation can replace routine data entry and even radiology diagnostics, prompting concerns about widespread job displacement and potential deflationary pressures. These dynamics revive debates around universal basic income and aggressive upskilling initiatives. Countries that act swiftly to reskill workers, foster AI‑ready curricula, and create safety nets will mitigate social unrest and preserve consumer demand, essential for sustained economic growth.

Strategically, Southeast Asian firms should pursue partnerships with leading AI hubs, invest in localized data centers, and nurture homegrown startups. Governments can incentivize R&D tax credits, streamline data governance, and launch public‑private AI labs to accelerate innovation. By aligning education, infrastructure, and regulatory frameworks, the region can position itself as a complementary AI ecosystem rather than a peripheral consumer, turning the US‑China rivalry into an opportunity for diversified growth and technological sovereignty.

Original Description

How South-east Asia can navigate the age of AI and its impact on the economy and employment.
Artificial Intelligence is impacting the world at a pace far greater than that of previous general-purpose technologies, such as the steam engine, electricity, and computing.
As the world adjusts to the so-called Fourth Industrial Revolution, marked by tremendous advances in automation and robotics, it now faces the Fifth Industrial Revolution, the era of AI and its impressive ability to perform cognitive tasks normally performed by humans.
In this episode, host Ravi Velloor speaks with the eminent economist Dr Khor Hoe Ee, who witnessed the Latin American debt crisis and the Asian Financial Crisis.
Dr Khor, formerly Chief Economist at AMRO, also saw how events like Covid-19 had a major impact on the economy.
They discuss how the US and China dominate the AI space, the speed of disruption, which South-east Asian economies are most exposed and what firms in the region can do to cope with the impact of this new technology.
They also cover other topics, for instance: What happens to employment as we know it? Is there a threat of widespread deflation? Should we consider a universal basic income?
Highlights (click/tap above):
0:00 Intro
4:51 The Fifth Industrial Revolution of AI is like no other period in history
9:45 South-east Asia’s options when US, China lead in AI
14:19 Jobs at risk; from radiology to business process outsourcing
20:38 Is there a case for Universal Basic Incomes?
22:59 Who’ll win the AI race and how the region should position itself
Read Ravi's columns: https://str.sg/3xRP
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Host: Ravi Velloor (velloor@sph.com.sg)
Produced and edited by: Fa’izah Sani
Executive producer: Ernest Luis
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