Apple, Microsoft and Nvidia are investing billions of dollars in Southeast Asia. Here's why
Tim Cook and Satya Nadella, who last month embarked on their biggest tours across Southeast Asia in years. The investments they pledged are set to help turn the region into a major battleground between the likes of Amazon, Microsoft and Google in future frontiers such as artificial intelligence and the cloud. The region’s growing workforce is making it a viable alternative to China as a center of talent to support companies’ global operations.
As its governments pushed for improvements in education and infrastructure, it’s become an attractive base for everything from manufacturing and data centers to research and design. “The governments are pro cross-border investments and there’s a deep talent pool," said NWD’s Lim. Southeast Asia has also become a sizeable market for gadgets and online services.
About 65% of Southeast Asia will be middle class by 2030, with rising purchasing power, according to Singapore government estimates. That’ll help more than double the region’s market for internet-based services to $600 billion, according to estimates by Google, Temasek Holdings Pte and Bain & Co. Apple, whose pricey gadgets for long remained out of reach for the vast majority in the region, is now adding stores.
Chief Executive Officer Cook toured Vietnam, Indonesia and Singapore in late April, meeting prime ministers and announcing fresh investments as the company seeks new growth regions beyond China, where sales have sputtered. In Jakarta, besides pow-wows with the country’s leadership, Cook met a local influencer with almost 800,000 Instagram followers over chicken satay, and learned enough of the local language to say “How are you" in a video circulated on social media. On his X account, local customers asked Cook for an
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