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Preface
South East Asia over the past two decades, the region has witnessed a rapid metamorphosis from a collection of mainly agricultural and resource farming economies to a hotbed of technological manufacturing, enterprise and some forms of innovation. However, SEA countries have often been characterized as adopters rather than primary innovators in the field of technology, companies like Grab, Gojek and Lazada all have their US or Chinese counterparts which have long been established. This begs the question of what business opportunities would the SEA landscape provide in the world of technology?
Business Models
In the following points I will break down what I believe is a viable business model for technology and AI startups in South East Asia, I will predominantly base my opinions on what i’ve observed from my home country - Malaysia.
Chase the trends and localize the solution
Following trends of innovations that have already been established in more developed regions would allow SEA tech startups to leverage proven technologies and business models, minimizing risks and expediting progress. In a localized manner, emphasis on rapid adoption of technologies eg. ride sharing, e-commerce and logistics software could potentially yield indigenous innovations eg. gojek. Historical contexts, education systems, and economic conditions could contribute to the pattern of adopting and innovating as we continue to grow and evolve. The opportunity lies in how we strike a balance between adopting existing technologies and fostering our own homegrown innovations.
Capitalize on data diversity
South East Asia is a melting pot of cultures, languages and behaviors. This offers a rich tapestry of data, which also means that developing algorithms and AI models that could cater universally to the SEA region could potentially be a feasable business opportunity. While challenging, the opportunity lies in our creativity and inventiveness to apply already established technologies and frameworks to train better AI models to fit the local use case. Here are a couple of examples I could think of on the top of my head: AI-driven logistics management, manufacturing management and smart agriculture.
Leverage on laxed regulation and poor infrastructure
The only SEA country that can be at the forefront of AI research and regulatory framework is Singapore. But for others, the infrastructural challenge and regulatory impotency presents a business opportunity for startups to accelerate AI adoption within the region. While it’s tempting to be wary of the exuberance around AI in SEA due to a lack of venture cap funding or political and governmental dysfunction - the opportunity lies in the rapid expansion, exploration, and eventual maturation of these technologies within the region, capitlizing on laxed regulation on how we fine tune AI models to maximize profits or extract the resources within our economy could be a defining factor in building the next SEA unicorn.
Winners and losers
Will there be technology startups in SEA that fold? Absolutely, most will fail. But just like the dot-com era or the smart phone app bubble, this could be a necessary crucible for our innovation. From the ashes of tech bubbles rose tech giants that shaped our internet age. Similarly, in the crucible of SEA’s technology journey, there might emerge solutions that redefine how the world perceives the applications of software and artificial intellgence.
My conclusion
The technology opportunity in South East Asia is in its adoption of already existing models and uniquely localized challenges. I have no clue when the AI bubble might burst, but I know that the biggest tech bubble we’ve seen yet is already brewing in front of my eyes. The key is to diescern the localized potential applications of the technology and capitalize on the rapid growth of our enterprising landscape.