Asia First - Fri 1 Aug 2025
From the opening bell across markets in Southeast Asia and China, to the biggest business interviews and top financial stories, tune in to Asia First to kick-start your business day.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
21 minutes ago
- CNA
SoftBank's AI investment spree to be in focus on at Q1 earnings
TOKYO :When Japan's SoftBank Group reports earnings on Thursday, its mammoth investments in artificial intelligence companies are set to take the spotlight. Analysts and investors are keen for updates on how they will be financed, the timeline for returns to materialise and whether assets will be sold to fund the new projects. SoftBank has embarked on its biggest spending spree since the launch of its Vision Funds in 2017 and 2019. It is leading a $40 billion funding round for ChatGPT maker OpenAI. SoftBank has until the end of the year to fund its $22.5 billion portion, although the remainder has been subscribed, according to a source familiar with the matter. It is also leading the financing for the Stargate project - a $500 billion scheme to develop data centres in the United States, part of its effort to position itself as the "organiser of the industry," founder Masayoshi Son said in June. SoftBank has yet to release details on what kinds of returns its financing of the Stargate project could generate. The extent of third-party investment will determine what other financing tools, such as bank loans and debt issuance, it may have to deploy. In July, SoftBank raised $4.8 billion by selling off a portion of its holding in T-Mobile. "If other sources of capital are less supportive, SoftBank could look to asset-backed finance, which is collateralised by equity in other holdings," Macquarie analyst Paul Golding said. The Japanese conglomerate is expected to post a net profit of 127.6 billion yen ($865 million) in the April-June quarter, according to the average estimate of three analysts polled by LSEG. That would mark SoftBank's second consecutive quarter of profit and follow its first annual profit in four years when it was helped by a strong performance by its telecom holdings and higher valuations for its later-stage startups. Its results are, however, typically very volatile and difficult to estimate due to manifold investments, many of which are not listed. SoftBank's performance in exiting from investments and distributing profits has been patchy of late. The Vision Funds had made a cumulative investment loss of $475 million as of end-March. That said, 13 of 18 analysts have a "buy" or "strong buy" rating for SoftBank's stock, according to LSEG. Although there is some concern in the market that AI-related valuations have become bubbly, they continue to climb. OpenAI is in early-stage discussions about a stock sale that would allow employees to cash out and could value the company at about $500 billion, according to the source - a huge jump from its current valuation of $300 billion.
CNA
21 minutes ago
- CNA
South Korea June current account at biggest surplus on record
SEOUL :South Korea posted a record-high current account surplus in June on strong demand for technology exports, central bank data showed on Thursday. The country's current account stood at a surplus of $14.27 billion, up from $10.14 billion in May. It was the biggest monthly surplus in the data series dating back to January 1980. The balance of goods logged a surplus of $13.16 billion, up from the previous month's $10.66 billion and the biggest since September 2017, on robust exports of semiconductors and computer devices, according to the Bank of Korea.
CNA
an hour ago
- CNA
Ctrl-Alt-Pivot? Why China's tech titans are powering up in Southeast Asia
SHANGHAI: At Singapore's Jewel Changi Airport, a smiling digital concierge powered by Tencent Cloud greets travellers, offering directions, dining tips and real-time shopping recommendations in five languages. Once the realm of science fiction, such smart services are increasingly becoming everyday realities across Southeast Asia - and China is positioning itself at the heart of this digital transformation. From cloud deployments in Jakarta to artificial intelligence (AI) models tailored for Thai users, China's tech titans - Alibaba, ByteDance, SenseTime, Tencent and others - are expanding their regional footprint with new scale and sophistication. Heightened US-China tensions, tighter export controls and volatile Western markets have spurred Chinese firms to look beyond the West. Analysts say Southeast Asia has emerged as a key focus, a view echoed by Chinese tech executives in interviews with CNA. 'It's very clear to me that the investment is real. The market opportunity they are envisioning is real,' Ray Wang, research director for semiconductors, supply chain and emerging tech at advisory firm The Futurum Group, told CNA. But rather than a short-term pivot, observers say the shift is the result of a long-cultivated strategy - a multi-billion-dollar digital courtship aimed at turning Southeast Asia into a cornerstone of China's next global tech chapter. TECH, TIE-UPS AND TRANSFORMATION While an overall headline figure is hard to pin down, Chinese tech firms have been pouring billions of dollars into the region. In February, TikTok - the ByteDance-owned social media platform facing a potential ban in the United States - pledged US$8.8 billion over the next five years to build data centres and digital infrastructure in Thailand. Alibaba Cloud is also scaling up, announcing in July its third data centre in Malaysia, with another due to open in the Philippines this October. This development is part of Alibaba's 380 billion yuan (US$53 billion) investment plan in AI and cloud infrastructure over the next three years, a sum the company has said exceeds its total spending in this area over the past decade. The launch of its AI Global Competency Center in Singapore last month further underscores its regional ambitions, with the facility aiming to support AI adoption for more than 5,000 companies and 100,000 developers worldwide. SenseTime has also deepened its engagement in Southeast Asia. Best known for its AI and computer vision software, the firm signed an agreement with the Indonesian government at the recent World AI Conference in Shanghai. The agreement centres on jointly developing homegrown AI models, smart city technologies and nurturing local AI talent. It builds on SenseTime's existing footprint in smart city and green technology solutions in Singapore and Malaysia. All these moves are backed by massive national-level investment. Chinese AI capital expenditure is on track to reach US$98 billion this year, up 48 per cent from the previous year, according to a report by Bank of America, driving home Beijing's ambition to lead globally in AI, cloud computing and smart infrastructure. On the ground, Chinese technologies are increasingly embedded in everyday life and business operations across Southeast Asia. In June, GoTo Group and Alibaba Cloud announced the successful migration of GoTo Financial's infrastructure to Alibaba Cloud's data centres in Jakarta. In the Philippines, media organisation ABS-CBN uses Alibaba Cloud services for content storage and archiving, while in Thailand, the company partners with telecoms provider TrueBusiness to support digital transformation for local enterprises. At Indonesia's Telkomsel, Tencent Cloud's AI-powered palm verification technology is used to confirm users' identities and enable secure payments. In Malaysia, mobile network provider YTL Communications leverages Tencent's digital ID tools to streamline mobile registrations and curb fraud. 'We have helped many Southeast Asian enterprises adopt a robust multi-cloud strategy that is best suited to their business and compliance needs,' Bluefin Zhao, vice president of Tencent Cloud and managing director for APAC, told CNA. 'Our clients scale their business growth and success together with us in an ongoing and long-term manner,' he added. Zhao noted that Tencent's presence is particularly strong in Indonesia, Malaysia, Singapore, and Thailand - priority markets where the company has made 'significant headway', achieving double-digit growth rates over the past three years. He linked this progress to Tencent's roots in consumer technology. 'We have decades of experience from running one of the world's largest digital ecosystem platforms, WeChat/Weixin, that serves over a billion users to the largest video gaming ecosystems in the world,' Zhao said. That expertise is now powering Tencent's next-generation AI push. Its large model technology, Hunyuan, has recently been integrated into more than 700 internal products across Tencent's ecosystem, spanning 30 industries from public services and healthcare to tourism and finance. Large model technology refers to AI systems trained on vast amounts of data to perform a wide range of complex tasks, such as understanding language, generating content and analysing patterns. Wu Yongjian, the head of Tencent Cloud AI product and technology R&D, told CNA that Hunyuan delivers strong performance without heavy computing requirements, making it a good fit for mid-sized businesses and fast-growing markets. QUICK SHIFT OR COMMITTED STRATEGY? Geopolitical tensions are among the factors prompting Chinese tech firms to look more closely at Southeast Asia, as business with the West grows increasingly fraught, analysts say. The US has ramped up export controls on advanced semiconductors, placed dozens of Chinese tech firms on its export control entity list and urged allies and partners to curb reliance on Chinese digital infrastructure. But observers say it's not the overriding reason. Instead, they point to business fundamentals - from booming digital demand to favourable demographics - as the main drivers behind China's deepening tech pivot to the region. '(It is) a medium to long-term strategy for (the Chinese companies) to drive more growth to places beyond China and the North American market,' said Wang from The Futurum Group. Wang said Southeast Asia is 'naturally' appealing to Chinese tech companies due to years of business familiarity, established relationships and geographic proximity. These factors lower barriers to expansion and make it simpler to deploy talent and run cross-border operations compared to more distant markets, he said. 'Culturally, it's just a lot easier for Chinese companies to figure out … geographically, it's also a lot closer for the companies to set up their headquarters (in the region) and send the employees there.' Jia Kai, an associate professor at Shanghai Jiao Tong University's School of International and Public Affairs, highlighted the diversity of Southeast Asia and the varying levels of AI maturity across its economies. 'The Southeast Asian market is important because if we want to realise the potential of AI, we still need many applications in different fields, in different cultures and environments,' he told CNA. 'The most important thing for AI is to find different environments … the digital infrastructure of Southeast Asia has already been well established.' Senior executives from major Chinese tech firms interviewed by CNA also emphasised that Southeast Asia is a core strategic focus, especially considering the growing regional demand for AI services in the region. Governments, businesses and consumers are rapidly adopting AI-powered services to drive growth, boost efficiency and enhance daily life - a shift fuelled by urbanisation, mobile-first consumer behaviour and national efforts to digitise economies. AI, including its generative form, is expected to contribute around US$120 billion to Southeast Asia's gross domestic product (GDP) by 2027, according to an April report by Boston Consulting Group. Global management consulting firm iMARC Group noted that the Southeast Asian cloud computing market reached US$208.8 billion last year, and is projected to grow at a 10.49 per cent compound annual growth rate to exceed US$512 billion by 2033. Wu, the head of Tencent Cloud AI product and technology R&D, said that the company 'absolutely sees' Southeast Asia as a key strategic region, both as a market and as a testbed for refining its offerings. Fellow Tencent Cloud executive Zhao added that the region's rapid digital transformation, driven by progressive enterprises and supportive national policies, has been a 'key catalyst' for the company's accelerated growth there. 'The region is incredibly diverse and dynamic, with markets and industry verticals at varying stages of digital maturity,' Zhao said, adding that this presents opportunities as businesses seek customised digital solutions. In the case of the digital concierge at Jewel Changi Airport, for instance, early results from the pilot that began in March show that travellers prefer this intuitive, hands-free mode of engagement over traditional directories. Jeff Shi, SenseTime's Asia Pacific president, described the Southeast Asia market as 'huge and characterised by a young population' compared to others such as Northeast Asia, where the market is smaller and dominated by major corporations such as Sony and Honda. 'We are seeing faster growth and investing more, with over half of our approximately 200 enterprise customers in Asia based in Southeast Asia. Singapore, in particular, acts as a showcase for the region,' Shi told CNA. Choong Hon Keat, Singapore country manager at Alibaba Cloud Intelligence, said that Alibaba Cloud likewise views Southeast Asia as a key market, driven by 'escalating demand from local customers'. He added that a skilled workforce is the 'cornerstone' of successful digital transformation. 'We are unwavering in our commitment to invest in the development of digital talent (in the region),' Choong told CNA. Across the region, Alibaba Cloud is forging academic alliances. In Singapore, it has partnered with Nanyang Technological University to establish the Alibaba-NTU Global e-Sustainability CorpLab, aimed at advancing green technologies and promoting sustainable living. Meanwhile in the Philippines, the company has forged a partnership with De La Salle University to train students in advanced AI and cloud computing technologies. BUILDING TRUST ALONGSIDE INFRASTRUCTURE Even as Chinese tech firms eye further inroads into Southeast Asia, analysts warn that obstacles lie in store. Many governments and major firms in Southeast Asia remain more familiar with and are often deeply integrated into Western technology ecosystems. A 2023 report by the Center for Strategic and International Studies noted that US cloud giants such as Amazon Web Services, Microsoft Auzure and Google Cloud maintain a dominant foothold in the region. At the same time, the report found that US cloud computing companies face rising competition from Chinese rivals. It did not provide specific market share figures. This legacy integration - especially in government, banking, and regulated industries - means that most national agencies and large enterprises deploy hybrid or multi-cloud strategies, layering Western and Chinese infrastructure to balance performance with security and regulatory compliance. Jia from Shanghai Jiao Tong University said that adapting to divergent AI regulatory frameworks across the region poses a major hurdle for Chinese tech firms. CNA previously reported on how a race for AI regulation is taking place to avert the risks of the technology while hopefully reaping the rewards, with action being taken at the global, regional and national levels, including in Southeast Asia. This regulatory patchwork means that building trust will be just as important as building infrastructure, observers say. 'At present, I think misunderstanding and mistrust are the most significant bottlenecks to future cooperation or for Chinese tech companies entering the Southeast Asian market,' Jia said. Some companies in the region may have reservations about adopting Chinese cloud services or AI, said Wang from The Futurum Group. These concerns often centre on data privacy, regulatory compliance, and potential geopolitical pressure, particularly as governments grow more sensitive to issues of digital sovereignty and foreign influence. The Chinese tech firms will also need to carefully balance their own operational standards with those of local partners, Wang said. This tension between national concerns and global cooperation is not lost on Beijing, which has increasingly framed AI as a shared endeavour rather than a zero-sum race. 'AI must move toward inclusivity and shared benefit. It should become a public good for the benefit of all humanity,' said Chinese Premier Li Qiang as he opened the World AI Conference in Shanghai on Jul 26. He said if the world instead pursues 'technological monopolies, imposes controls, and erects barriers, AI will inevitably become a game exclusive to a privileged few'. Open AI ecosystems encourage diversity and multi-party engagement, providing an 'equal playground' for all, rather than central dominance, noted Jia from Shanghai Jiao Tong University. He further suggested that the effectiveness of these collaborative models will help determine whether Southeast Asia becomes primarily a proving ground or a true shaper of the next generation of Chinese AI models. 'If it's a public good, there is no leader - only stakeholders,' Jia said, describing the future of AI as a shared, multilateral enterprise rather than a contest for supremacy. Executives at Chinese tech firms acknowledge these sensitivities, saying they are working to build trust by focusing on long-term partnerships, transparency, and shared success. Wu from Tencent Cloud said that its partners help tailor workflows, knowledge management and deployment to specific industries. 'Although our product is robust, each customer's needs vary,' he said. 'Once deployed, the IP and knowledge stay with the client, which helps build trust and long-term value.' Choong from Alibaba Cloud Intelligence said the company operates on openness and trust. He cited Qwen3 - its most advanced open-source AI coding model to date - as an example, noting that by making it publicly available, Alibaba Cloud aims to foster a 'global community of innovation'. 'We believe that openness can in return democratise AI development, drive more AI innovation across businesses and society at large, and ultimately, benefit consumers with new and exciting AI applications.' Shi from SenseTime said the company's 'consistent' strategy is centred on helping partners succeed. 'We know the challenges and we also know the rewards of early AI adoption, so we share those with our partners, and we do want to share with more partners in Southeast Asia,' he said. 'I think customers are very happy with the fact that we are trying very hard to meet international norms - not (being) just a Chinese-Chinese company, but a company that is trying really to be international.'
