Governments worldwide struggle with intricate social, economic, and environmental challenges. Tight budgets often leave them with limited resources to address these issues head-on. However, innovation offers a powerful path forward.
By embracing new technologies, adapting to cultural shifts, and fostering new skills, structures, and communication methods, governments can find solutions within existing constraints.
Find out how public sector innovation is optimising internal operations, improving service accessibility, bridging the financial gap, transforming healthcare, and building a sustainable future.
Click here to download ‘Innovation in Government: Social, Economic, and Environmental Wins’ as a PDF
Optimising Operations: Tech-Driven Efficiency
Technology is transforming how governments operate, boosting efficiency and allowing employees to focus on core functions.
Here are some real-world examples.
Singapore Streamlines Public Buses. A cloud-based fleet management system by the Land Transport Authority (LTA) improves efficiency, real-time tracking, data analysis, and the transition to electric buses.
Dubai Optimises Utilities Through AI. The Dubai Electricity and Water Authority (DEWA) leverages AI for predictive maintenance, demand forecasting, and grid management. This enhances service reliability, operational efficiency, and resource allocation for power and water utilities.
Automation Boosts Hospital Efficiency. Singapore hospitals are using automation to save man-hours and boost efficiency. Tan Tock Seng Hospital automates bacteria sample processing, increasing productivity without extra staff, while Singapore General Hospital tracks surgical instruments digitally, saving thousands of man-hours.
Tech for Citizens
Digital tools and emerging technologies hold immense potential to improve service accessibility and delivery for citizens. Here’s how governments are leveraging tech to benefit their communities.
Faster Cross-Border Travel. Malaysia’s pilot QR code clearance system expedites travel for factory workers commuting to Singapore, reducing congestion at checkpoints.
Metaverse City Planning. South Korea’s “Metaverse 120 Center” allows residents to interact with virtual officials and access services in a digital environment, fostering innovative urban planning and infrastructure management.
Streamlined Benefits. UK’s HM Revenue and Customs (HMRC) launched an online child benefit claim system that reduces processing time from weeks to days, showcasing the efficiency gains possible through digital government services.
Bridging the Financial Gap
Nearly 1.7 billion adults or one-third globally, remain unbanked.
However, innovative programs are bridging this gap and promoting financial inclusion.
Thailand’s Digital Wallet. Aimed at stimulating the economy and empowering underserved citizens, Thailand disburses USD 275 via digital wallets to 50 million low-income adults, fostering financial participation.
Ghana’s Digital Success Story. The first African nation to achieve 100% financial inclusion through modernised platforms like Ghana.gov and GhanaPay, which facilitate payments and fee collection through various digital channels.
Philippines Embraces QR Payments. The City of Alaminos leverages the Paleng-QR Ph Plus program to promote QR code-based payments, aligning with the central bank’s goal of onboarding 70% of Filipinos into the formal financial system by 2024.
Building a Sustainable Future
Governments around the world are increasingly turning to technology to address environmental challenges and preserve natural capital.
Here are some inspiring examples.
World’s Largest Carbon Capture Plant. Singapore and UCLA joined forces to build Equatic-1, a groundbreaking facility that removes CO2 from the ocean and creates carbon-negative hydrogen.
Tech-Enhanced Disaster Preparedness. The UK’s Lincolnshire County Council uses cutting-edge geospatial technology like drones and digital twins. This empowers the Lincolnshire Resilience Forum with real-time data and insights to effectively manage risks like floods and power outages across their vast region.
Smart Cities for Sustainability. Bologna, Italy leverages the digital twins of its city to optimise urban mobility and combat climate change. By analysing sensor data and incorporating social factors, the city is strategically developing infrastructure for cyclists and trams.
Tech for a Healthier Tomorrow
Technology is transforming healthcare delivery, promoting improved health and fitness monitoring.
Here’s a glimpse into how innovation is impacting patient care worldwide.
Robotic Companions for Seniors. South Korea tackles elder care challenges with robots. Companion robots and safety devices provide companionship and support for seniors living alone.
VR Therapy for Mental Wellness. The UAE’s Emirates Health Services Corporation implements a Virtual Reality Lab for Mental Health, that creates interactive therapy sessions for individuals with various psychological challenges. VR allows for personalised treatment plans based on data collected during sessions.
The widespread adoption of cloud technologies, hybrid work models, and the rapid integration of GenAI are driving unparalleled levels of productivity and efficiency. Yet, the promise of efficiency often collides with the imperative of safeguarding sensitive data.
This ebook, in partnership with NEC, and HPE Aruba Networking unveils how Secure Access Service Edge (SASE) offers a unified approach to security and connectivity. Addressing threats like AI-enhanced phishing, refining data governance, and tackling hybrid work challenges, SASE emerges as the cornerstone for modern security strategies in Australia. Download your copy.
Download eBook – Cracking the Code: Security Strategy for the GenAI-Enabled, Hybrid Workforce
(Clicking on this link will take you to the NEC website where you can download the eBook)
With over 70% of the world’s population predicted to live in cities by 2050, smart cities that use data, technology, and AI to streamline services are key to ensuring a healthy and safe environment for all who live, work, or visit them.
Fueled by rapid urbanisation, Southeast Asia is experiencing a smart city boom with an estimated 100 million people expected to move from rural areas to cities by 2030.
Despite their diverse populations and varying economic stages, ASEAN member countries are increasingly on the same page: they are all united by the belief that smart cities offer a solution to the complex urban and socio-economic challenges they face.
Read on to discover how Southeast Asian countries are using new tools to manage growth and deliver a better quality of life to hundreds of millions of people.
ASCN: A Network for Smarter Cities
The ASEAN Smart Cities Network (ASCN) is a collaborative platform where cities in the region exchange insights on adopting smart technology, finding solutions, and involving industry and global partners. They work towards the shared objective of fostering sustainable urban development and enhancing livability in their cities.
As of 2024, the ASCN includes 30 members, with new additions from Thailand and Indonesia.
“The ASEAN Smart Cities Network provides the sort of open platform needed to drive the smart city agenda. Different cities are at different levels of developments and “smartness” and ASEAN’s diversity is well suited for such a network that allows for cities to learn from one another.”
Taimur Khilji
UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP)
Singapore’s Tech-Driven Future
The Smart Nation Initiative harnesses technology and data to improve citizens’ lives, boost economic competitiveness, and tackle urban challenges.
Smart mobility solutions, including sensor networks, real-time traffic management, and integrated public transportation with smart cards and mobile apps, have reduced congestion and travel times.
Ranked 5th globally and Asia’s smartest city, Singapore is developing a national digital twin to for better urban management. The 3D maps and subsurface model, created by the Singapore Land Authority, will help in managing infrastructure and assets.
The Smart City Initiative promotes sustainability with innovative systems like automated pneumatic waste collection and investments in water management and energy-efficient solutions.
Malaysia’s Holistic Smart City Approach
With aspirations to become a Smart Nation by 2040 (outlined in their Fourth National Physical Plan – NPP4), Malaysia is making strides.
Five pilot cities, including Kuala Lumpur and Johor Bahru, are testing the waters by integrating advanced technologies to modernise infrastructure.
Pilots embrace sustainability, with projects like Gamuda Cove showcasing smart technologies for intelligent traffic management and centralised security within eco-friendly developments.
Malaysia’s Smart Cities go beyond infrastructure, adopting international standards like the WELL Building Standard to enhance resident health, well-being, and productivity. The Ministry of Housing and Local Government, collaborating with PLANMalaysia and the Department of Standards Malaysia, has established clear indicators for Smart City development.
Indonesia’s Green Smart City Ambitions
Eyeing carbon neutrality by 2060, Indonesia is pushing its Smart City initiatives.
Their National Long-Term Development Plan prioritises economic growth and improved quality of life through digital infrastructure and innovative public services.
The goal is 100 smart cities that integrate green technology and sustainable infrastructure, reflecting their climate commitment.
Leaving behind congested Jakarta, Indonesia is building Nusantara, the world’s first “smart forest city“. Spanning 250,000 hectares, Nusantara will boast high-capacity infrastructure, high-speed internet, and cutting-edge technology to support the archipelago’s activities.
Thailand’s Smart City Boom
Thailand’s national agenda goes big on smart cities.
They aim for 105 smart cities by 2027, with a focus on transportation, environment, and safety.
Key projects include:
- USD 37 billion smart city in Huai Yai with business centres and housing for 350,000.
- A 5G-powered smart city in Ban Chang for enhanced environmental and traffic management.
- USD $40 billion investment to create a smart regional financial centre across Chonburi, Rayong, and Chachoengsao.
Philippines Fights Urban Challenges with Smart Solutions
By 2050, population in cities is expected to soar to nearly 102 million – twice the current figure.
A glimmer of optimism emerges with the rise of smart city solutions championed by local governments (LGUs).
Rapid urbanisation burdens the Philippines with escalating waste. By 2025, daily waste production could reach a staggering 28,000 tonnes. Smart waste management solutions are being implemented to optimise collection and reduce fuel consumption.
Smart city developer Iveda is injecting innovation. Their ambitious USD 5 million project brings AI-powered technology to cities like Cebu, Bacolod, Iloilo, and Davao. The focus: leverage technology to modernise airports, roads, and sidewalks, paving the way for a more sustainable and efficient urban future.
Ecosystm research reveals that customer-centricity is the primary driver for tech investments in the Philippines, with 62% of organisations investing in AI specifically to enhance customer experience.
Learn about other major trends transforming The Philippines’ technology landscape.
Southeast Asia’s massive workforce – 3rd largest globally – faces a critical upskilling gap, especially with the rise of AI. While AI adoption promises a USD 1 trillion GDP boost by 2030, unlocking this potential requires a future-proof workforce equipped with AI expertise.
Governments and technology providers are joining forces to build strong AI ecosystems, accelerating R&D and nurturing homegrown talent. It’s a tight race, but with focused investments, Southeast Asia can bridge the digital gap and turn its AI aspirations into reality.
Read on to find out how countries like Singapore, Thailand, Vietnam, and The Philippines are implementing comprehensive strategies to build AI literacy and expertise among their populations.
Download ‘Upskilling for the Future: Building AI Capabilities in Southeast Asia’ as a PDF
Big Tech Invests in AI Workforce
Southeast Asia’s tech scene heats up as Big Tech giants scramble for dominance in emerging tech adoption.
Microsoft is partnering with governments, nonprofits, and corporations across Indonesia, Malaysia, the Philippines, Thailand, and Vietnam to equip 2.5M people with AI skills by 2025. Additionally, the organisation will also train 100,000 Filipino women in AI and cybersecurity.
Singapore sets ambitious goal to triple its AI workforce by 2028. To achieve this, AWS will train 5,000 individuals annually in AI skills over the next three years.
NVIDIA has partnered with FPT Software to build an AI factory, while also championing AI education through Vietnamese schools and universities. In Malaysia, they have launched an AI sandbox to nurture 100 AI companies targeting USD 209M by 2030.
Singapore Aims to be a Global AI Hub
Singapore is doubling down on upskilling, global leadership, and building an AI-ready nation.
Singapore has launched its second National AI Strategy (NAIS 2.0) to solidify its global AI leadership. The aim is to triple the AI talent pool to 15,000, establish AI Centres of Excellence, and accelerate public sector AI adoption. The strategy focuses on developing AI “peaks of excellence” and empowering people and businesses to use AI confidently.
In keeping with this vision, the country’s 2024 budget is set to train workers who are over 40 on in-demand skills to prepare the workforce for AI. The country will also invest USD 27M to build AI expertise, by offering 100 AI scholarships for students and attracting experts from all over the globe to collaborate with the country.
Thailand Aims for AI Independence
Thailand’s ‘Ignite Thailand’ 2030 vision focuses on boosting innovation, R&D, and the tech workforce.
Thailand is launching the second phase of its National AI Strategy, with a USD 42M budget to develop an AI workforce and create a Thai Large Language Model (ThaiLLM). The plan aims to train 30,000 workers in sectors like tourism and finance, reducing reliance on foreign AI.
The Thai government is partnering with Microsoft to build a new data centre in Thailand, offering AI training for over 100,000 individuals and supporting the growing developer community.
Building a Digital Vietnam
Vietnam focuses on AI education, policy, and empowering women in tech.
Vietnam’s National Digital Transformation Programme aims to create a digital society by 2030, focusing on integrating AI into education and workforce training. It supports AI research through universities and looks to address challenges like addressing skill gaps, building digital infrastructure, and establishing comprehensive policies.
The Vietnamese government and UNDP launched Empower Her Tech, a digital skills initiative for female entrepreneurs, offering 10 online sessions on GenAI and no-code website creation tools.
The Philippines Gears Up for AI
The country focuses on investment, public-private partnerships, and building a tech-ready workforce.
With its strong STEM education and programming skills, the Philippines is well-positioned for an AI-driven market, allocating USD 30M for AI research and development.
The Philippine government is partnering with entities like IBPAP, Google, AWS, and Microsoft to train thousands in AI skills by 2025, offering both training and hands-on experience with cutting-edge technologies.
The strategy also funds AI research projects and partners with universities to expand AI education. Companies like KMC Teams will help establish and manage offshore AI teams, providing infrastructure and support.
Ecosystm research shows low GenAI adoption in Indonesia, with 83% of organisations hesitant due to governance or language barriers.
Learn about the key trends transforming the Indonesian technology landscape and watch this space for more data-backed insights on Southeast Asia’s tech markets.
To mitigate the challenges of cloud vendor lock-in, 44% of organisations in Thailand will prioritise data centre consolidation and infrastructure modernisation in 2024.
Explore the key trends impacting Thailand’s technology adoption. Keep an eye out for more data-backed insights on tech markets across Southeast Asia.
ASEAN, poised to become the world’s 4th largest economy by 2030, is experiencing a digital boom. With an estimated 125,000 new internet users joining daily, it is the fastest-growing digital market globally. These users are not just browsing, but are actively engaged in data-intensive activities like gaming, eCommerce, and mobile business. As a result, monthly data usage is projected to soar from 9.2 GB per user in 2020 to 28.9 GB per user by 2025, according to the World Economic Forum. Businesses and governments are further fuelling this transformation by embracing Cloud, AI, and digitisation.
Investments in data centre capacity across Southeast Asia are estimated to grow at a staggering pace to meet this growing demand for data. While large hyperscale facilities are currently handling much of the data needs, edge computing – a distributed model placing data centres closer to users – is fast becoming crucial in supporting tomorrow’s low-latency applications and services.
The Big & the Small: The Evolving Data Centre Landscape
As technology pushes boundaries with applications like augmented reality, telesurgery, and autonomous vehicles, the demand for ultra-low latency response times is skyrocketing. Consider driverless cars, which generate a staggering 5 TB of data per hour and rely heavily on real-time processing for split-second decisions. This is where edge data centres come in. Unlike hyperscale data centres, edge data centres are strategically positioned closer to users and devices, minimising data travel distances and enabling near-instantaneous responses; and are typically smaller with a capacity ranging from 500 KW to 2 MW. In comparison, large data centres have a capacity of more than 80MW.
While edge data centres are gaining traction, cloud-based hyperscalers such as AWS, Microsoft Azure, and Google Cloud remain a dominant force in the Southeast Asian data centre landscape. These facilities require substantial capital investment – for instance, it took almost USD 1 billion to build Meta’s 150 MW hyperscale facility in Singapore – but offer immense processing power and scalability. While hyperscalers have the resources to build their own data centres in edge locations or emerging markets, they often opt for colocation facilities to familiarise themselves with local markets, build out operations, and take a “wait and see” approach before committing significant investments in the new market.
The growth of data centres in Southeast Asia – whether edge, cloud, hyperscale, or colocation – can be attributed to a range of factors. The region’s rapidly expanding digital economy and increasing internet penetration are the prime reasons behind the demand for data storage and processing capabilities. Additionally, stringent data sovereignty regulations in many Southeast Asian countries require the presence of local data centres to ensure compliance with data protection laws. Indonesia’s Personal Data Protection Law, for instance, allows personal data to be transferred outside of the country only where certain stringent security measures are fulfilled. Finally, the rising adoption of cloud services is also fuelling the need for onshore data centres to support cloud infrastructure and services.
Notable Regional Data Centre Hubs
Singapore. Singapore imposed a moratorium on new data centre developments between 2019 to 2022 due to concerns over energy consumption and sustainability. However, the city-state has recently relaxed this ban and announced a pilot scheme allowing companies to bid for permission to develop new facilities.
In 2023, the Singapore Economic Development Board (EDB) and the Infocomm Media Development Authority (IMDA) provisionally awarded around 80 MW of new capacity to four data centre operators: Equinix, GDS, Microsoft, and a consortium of AirTrunk and ByteDance (TikTok’s parent company). Singapore boasts a formidable digital infrastructure with 100 data centres, 1,195 cloud service providers, and 22 network fabrics. Its robust network, supported by 24 submarine cables, has made it a global cloud connectivity leader, hosting major players like AWS, Azure, IBM Softlayer, and Google Cloud.
Aware of the high energy consumption of data centres, Singapore has taken a proactive stance towards green data centre practices. A collaborative effort between the IMDA, government agencies, and industries led to the development of a “Green Data Centre Standard“. This framework guides organisations in improving data centre energy efficiency, leveraging the established ISO 50001 standard with customisations for Singapore’s context. The standard defines key performance metrics for tracking progress and includes best practices for design and operation. By prioritising green data centres, Singapore strives to reconcile its digital ambitions with environmental responsibility, solidifying its position as a leading Asian data centre hub.
Malaysia. Initiatives like MyGovCloud and the Digital Economy Blueprint are driving Malaysia’s public sector towards cloud-based solutions, aiming for 80% use of cloud storage. Tenaga Nasional Berhad also established a “green lane” for data centres, solidifying Malaysia’s commitment to environmentally responsible solutions and streamlined operations. Some of the big companies already operating include NTT Data Centers, Bridge Data Centers and Equinix.
The district of Kulai in Johor has emerged as a hotspot for data centre activity, attracting major players like Nvidia and AirTrunk. Conditional approvals have been granted to industry giants like AWS, Microsoft, Google, and Telekom Malaysia to build hyperscale data centres, aimed at making the country a leading hub for cloud services in the region. AWS also announced a new AWS Region in the country that will meet the high demand for cloud services in Malaysia.
Indonesia. With over 200 million internet users, Indonesia boasts one of the world’s largest online populations. This expanding internet economy is leading to a spike in the demand for data centre services. The Indonesian government has also implemented policies, including tax incentives and a national data centre roadmap, to stimulate growth in this sector.
Microsoft, for instance, is set to open its first regional data centre in Thailand and has also announced plans to invest USD 1.7 billion in cloud and AI infrastructure in Indonesia. The government also plans to operate 40 MW of national data centres across West Java, Batam, East Kalimantan, and East Nusa Tenggara by 2026.
Thailand. Remote work and increasing online services have led to a data centre boom, with major industry players racing to meet Thailand’s soaring data demands.
In 2021, Singapore’s ST Telemedia Global Data Centres launched its first 20 MW hyperscale facility in Bangkok. Soon after, AWS announced a USD 5 billion investment plan to bolster its cloud capacity in Thailand and the region over the next 15 years. Heavyweights like TCC Technology Group, CAT Telecom, and True Internet Data Centre are also fortifying their data centre footprints to capitalise on this explosive growth. Microsoft is also set to open its first regional data centre in the country.
Conclusion
Southeast Asia’s booming data centre market presents a goldmine of opportunity for tech investment and innovation. However, navigating this lucrative landscape requires careful consideration of legal hurdles. Data protection regulations, cross-border data transfer restrictions, and local policies all pose challenges for investors. Beyond legal complexities, infrastructure development needs and investment considerations must also be addressed. Despite these challenges, the potential rewards for companies that can navigate them are substantial.
Ecosystm research shows that customer engagement is emerging as the main beneficiary of AI implementations in Malaysia with 44% of AI investments being led by CX/Marketing/Sales teams.
Explore the key trends that are transforming the Malaysian technology landscape and stay tuned for more data-backed insights on Southeast Asia’s tech markets.
