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Free and Open Indo-Pacific Strategy Spurs Growth in Southeast Asia’s Tech Sector

Johor:Nairobi In August 2016, the Free and Open Indo-Pacific (FOIP) strategy was unveiled by then Japanese Prime Minister Shinzo Abe at the Tokyo International Conference on African Development. Since its inception, the strategy has focused on principles such as respect for freedom, openness, and the rule of law. Over the years, FOIP has evolved to emphasize collaboration with partners like the Association of Southeast Asian Nations (ASEAN), fostering technological cooperation and workforce development in sectors like digital technology and semiconductors.

According to Philippines News Agency, Southeast Asia is emerging as a hub for artificial intelligence (AI) and semiconductor industries. This shift is partly due to 'de-risking' strategies that aim to reduce reliance on China by diversifying production bases amidst US-China tensions. Johor, Malaysia, has attracted major companies like Microsoft, Nvidia, and NTT Data, becoming a leading data center hub. Its growth is linked to Singapore's data center industry, which faced resource use concerns, leading to the suspension of new data center approvals in 2019.

Johor offers advantages such as abundant land and lower costs, complementing Singapore's economy. Malaysia's political stability and legal predictability have further encouraged investment. NTT Data is developing a large-scale data center campus in Johor, set to start operations in April 2027, to meet the growing demand for AI-driven data centers. The center will use advanced cooling technology to manage heat from servers.

Vietnam is also attracting digital investment. The government has made high-tech industries a priority, with companies like Intel and Samsung expanding operations there. Japan supports Vietnam's semiconductor workforce development, aiming to train 50,000 professionals by 2030. Vietnam Japan University, supported by the Japan International Cooperation Agency, is leading this effort. The program aims to build a semiconductor ecosystem in Vietnam, enhancing global supply chains and fostering strong people-to-people networks across Southeast Asia.