Malaysia Ramps Up AI, Semiconductor Push to Safeguard Future Economy
Malaysia is accelerating efforts to strengthen domestic capabilities in artificial intelligence, semiconductors, digital technology, and innovation as it seeks greater strategic control over the technologies expected to shape its future economy. In a statement on Monday, Science, Technology and Innovation Minister Chang Lih Kang said the continuing conflict in West Asia highlights the volatility of the global environment and reinforces the need for national resilience across the economy, energy, technology, and supply chains. He stressed that one of the biggest lessons from repeated crises is the importance of technological sovereignty, noting that critical systems involving data, communications, cybersecurity, and digital infrastructure cannot depend entirely on foreign technologies.
The minister added that geopolitical instability is also reshaping global energy markets, making it essential for Malaysia to diversify its energy mix and accelerate its transition toward sustainable alternatives to ensure long-term energy security and economic stability. He also warned that rapid advances in AI and digital media can be misused during conflicts, particularly in spreading misinformation, underscoring the importance of ethical governance, responsible technology use, and public awareness. Despite the risks, Chang said crises can serve as catalysts for innovation and renewal, positioning Malaysia to build stronger national resilience through science, technology, and collaboration while remaining competitive in an increasingly uncertain world.
Editor’s Note: Malaysia is accelerating efforts in AI, semiconductors, and digital innovation to strengthen technological sovereignty and reduce reliance on foreign systems amid global instability. Science Minister Chang Lih Kang emphasized diversifying energy, ethical governance of AI, and leveraging crises as catalysts for resilience and competitiveness in the future economy.
AI Breakthrough Triggers Split in Memory-Chip Stocks as Flash Makers Extend Losses
A two-day selloff in global memory-chip stocks has exposed a growing divide within the artificial intelligence trade after Google unveiled its “TurboQuant” breakthrough, a technique designed to sharply improve AI inference efficiency. The development initially rattled the broader semiconductor sector, but shares of high-bandwidth memory (HBM) leaders such as Samsung Electronics, SK Hynix, and Micron Technology recovered much of their losses as analysts said demand for HBM used in Nvidia AI accelerators is likely to remain resilient. Instead, the pressure intensified on flash and NAND storage players including Kioxia Holdings and Sandisk, whose shares had surged in recent months on expectations of explosive AI-driven demand.
Analysts said TurboQuant’s ability to reduce memory requirements for running large language models by at least sixfold is reshaping investor assumptions, particularly around long-term demand from hyperscale data center operators such as Meta Platforms. While the technique is seen as having limited impact on core GPU memory and HBM needed to store model weights, it could significantly weaken future demand for NAND and flash products that also serve smartphones and consumer electronics. Despite the sharp reaction, market experts cautioned that the broader AI hardware investment theme remains a long-term secular growth story, arguing that the current selloff may reflect short-term profit-taking rather than a structural shift in the sector’s multi-year growth outlook.
https://theedgemalaysia.com/node/797663
Editor’s Note: Google’s “TurboQuant” breakthrough, which reduces memory needs for large language models by sixfold, triggered a sharp selloff in memory-chip stocks, hitting flash and NAND makers like Kioxia and Sandisk while HBM leaders such as Samsung, SK Hynix, and Micron rebounded. Analysts say the innovation may reshape long-term demand assumptions for data centers and consumer electronics, though the broader AI hardware growth story remains intact despite short-term volatility.
Higher Oil Prices Set to Boost EV Adoption in Malaysia, Says CIMB Securities
Rising crude oil prices are expected to accelerate Malaysia’s transition toward electric vehicles, particularly among premium internal combustion engine buyers seeking lower long-term running costs, according to CIMB Securities. The research house said EV penetration is likely to strengthen through 2026, supported by upcoming launches such as Proton’s e.MAS 5 and e.MAS 7 plug-in hybrid variants, alongside the continuation of tax incentives for completely knocked-down EVs. Despite the sector’s exposure to petroleum-linked segments and ongoing geopolitical tensions in Iran, national automakers are expected to remain resilient, with limited downside risk due to the fuel-efficient nature of most domestic models.
While February 2026 total industry volume declined 19% year-on-year to 52,414 units due to fewer operating days and the Chinese New Year holiday period, year-to-date sales for the first two months still edged up 1.5% to 116,712 units. CIMB Securities maintained its 2026 forecast of 800,000 units, slightly above the Malaysian Automotive Association’s projection, citing strong demand for national brands and steadily rising EV adoption. Proton emerged as a key growth driver with a 60% jump in sales during the period, helping the national segment’s market share climb above 71%, even as non-national brands such as BYD and Jetour continued gaining traction. The firm retained a neutral outlook on the sector, warning that currency weakness, tighter credit, and intensifying competition remain key downside risks.
https://theedgemalaysia.com/node/797631
Editor’s Note: Rising oil prices are expected to accelerate EV adoption in Malaysia, with Proton’s upcoming e.MAS models and continued tax incentives driving growth through 2026. Despite short-term sales fluctuations, CIMB Securities projects 800,000 units for 2026, highlighting strong demand for national brands and rising EV penetration, though risks from currency weakness, credit tightening, and competition remain.
Malaysia Targets Higher-Value Role in Southeast Asia’s Semiconductor Race
Malaysia is positioning itself to capture a larger share of Southeast Asia’s intensifying semiconductor race, with policymakers emphasizing the country’s shift from traditional backend manufacturing into higher-value segments. Malaysian Investment Development Authority chairman Tengku Zafrul Abdul Aziz said Malaysia remains one of ASEAN’s key semiconductor players, supported by its long-established strength in assembly, testing, and packaging, which accounts for roughly seven percent of global capacity. In a LinkedIn post, he highlighted growing momentum in advanced areas driven by expansion from global players such as Infineon and Intel, alongside the National Semiconductor Strategy and rising demand from artificial intelligence, data centres, and electrification.
He added that the Johor-Singapore Special Economic Zone offers a major structural opportunity to deepen Malaysia’s semiconductor role by combining its manufacturing scale, cost competitiveness, and growing talent pipeline with Singapore’s strengths in chip design, research and development, capital, and global connectivity. Tengku Zafrul said the collaboration could expand the region’s semiconductor ecosystem rather than create a zero-sum competition, while also generating high-value jobs, helping local firms move up the value chain, and strengthening long-term economic resilience. He stressed that the central challenge is no longer whether Malaysia will participate in the semiconductor race, but how quickly and how far it can climb toward the industry’s most lucrative segments.
Editor’s Note: Malaysia is moving beyond its traditional strength in assembly, testing, and packaging to capture higher-value roles in the semiconductor industry, supported by global expansions, AI demand, and the National Semiconductor Strategy. Policymakers see opportunities in the Johor-Singapore Special Economic Zone to combine Malaysia’s scale and talent with Singapore’s R&D and connectivity, aiming to climb quickly into more lucrative segments while creating high-value jobs and resilience.
Thailand Fast-Tracks EV, Semiconductor and Clean Energy Push Amid Global Uncertainty
Thailand is moving to turn rising geopolitical instability into an economic opportunity, positioning itself as a “safe and secure production base” for multinational companies seeking to reduce supply-chain risks. Thailand Board of Investment secretary-general Narit Therdsteerasakdi said the ongoing conflict in the Middle East reflects a deeper “new world order,” prompting Thailand to emphasize four pillars of resilience — food, energy, supply chain, and human security. The country is leveraging its established strengths as a global manufacturing hub, including producing 70–80% of the world’s hard disk drives, leading ASEAN in printed circuit board production, and serving as Southeast Asia’s largest electric vehicle manufacturing base.
To reinforce this advantage, the BOI is accelerating three urgent policy agendas focused on future industries. These include the EV 3.5 programme to maintain subsidies while increasing localisation of domestic parts, the near-complete rollout of a national semiconductor strategy, and new clean-energy measures to support the digital economy’s surging power needs. Major investments are already taking shape, with Analog Devices preparing to open its largest design centre in Thailand and Infineon Technologies expected to complete a new facility by the third quarter of 2026. The BOI is also pushing for a Direct Power Purchase Agreement mechanism to supply 2,000 megawatts of green electricity for expanding data centre and AI industries, reinforcing Thailand’s ambition to anchor itself in the next phase of global industrial realignment.
https://www.nationthailand.com/business/economy/40063867
Editor’s Note: Thailand is positioning itself as a secure production base amid global instability, leveraging strengths in EVs, semiconductors, and clean energy to attract multinational investment. The BOI is fast-tracking policies like EV 3.5, a national semiconductor strategy, and green power initiatives, with major projects from Analog Devices and Infineon reinforcing Thailand’s role in global industrial realignment.
Viriyah May Raise EV Insurance Premiums as Thailand’s Electric Vehicle Risks Evolve
Viriyah Insurance is considering raising premiums for electric vehicle policies in 2026 as the fast-growing segment continues to operate at a loss, underscoring the changing risk dynamics of Thailand’s EV market. Managing director Amorn Thongthew said the company’s EV insurance business is running a combined ratio loss of slightly above 10%, with claims and operating expenses exceeding premium income. Rather than applying a blanket increase, the insurer plans to introduce a model-by-model pricing strategy, with premiums adjusted according to the risk profile of each EV brand and model, particularly factors such as battery replacement costs, sophisticated electronics, and expensive repairs.
Despite the underwriting losses, the EV insurance segment remains a major growth area, with Viriyah holding roughly 40% of Thailand’s EV motor insurance market and collecting about 2.8 billion baht in premiums in 2025. The company expects the broader EV insurance market to increasingly focus on balancing pricing and coverage against model-specific risks as adoption expands nationwide. At the same time, Viriyah said conventional internal combustion engine vehicle insurance remains its most stable and profitable portfolio, while the firm also pushes diversification through non-motor insurance products, which are forecast to grow nearly 10% in 2026. The shift highlights how Thailand’s insurance industry is rapidly adapting its pricing models and claims management strategies to keep pace with the rise of electric mobility and new automotive technologies.
https://www.bangkokpost.com/business/motoring/3217514/viriyah-mulls-higher-ev-premiums
Editor’s Note: Viriyah Insurance is considering raising EV premiums in 2026 as underwriting losses exceed 10%, shifting to model-specific pricing based on risks like battery replacement and costly repairs. Despite challenges, Viriyah holds 40% of Thailand’s EV insurance market and sees growth ahead, while the broader industry adapts pricing and claims strategies to keep pace with rising electric mobility.
MFEC Urges Enterprises to Treat AI as Core Infrastructure at Inspire 2026
MFEC used its annual MFEC Inspire 2026 forum to push a clear message to business leaders: artificial intelligence must evolve from isolated experimentation into core enterprise infrastructure that drives measurable outcomes and long-term competitiveness. Held at the Grand Centre Point Lumphini in Bangkok on March 25, the event brought together senior executives from major organisations across multiple industries to explore how AI investments can deliver stronger value for money, cost efficiency, and strategic advantage in an increasingly competitive economic environment. Chief executive Siriwat Vongjarukorn said the event reflects MFEC’s annual response to shifts in technology, customer expectations, and the broader economy.
The conference focused heavily on translating AI strategy into practical execution, with chief operating officer Thanakorn Charlee highlighting a recurring challenge among clients: the need to justify IT spending through clear profitability and competitiveness gains. To address this, MFEC showcased enterprise AI solutions designed to reduce costs and unlock new business advantages under real-world economic constraints. The event was structured around four key components — strategic seminars, solution pavilions, a partner marketplace featuring more than 20 global technology firms, and hands-on workshops — all aimed at helping organisations move from AI theory to deployable business solutions that solve immediate operational challenges.
https://www.nationthailand.com/business/tech/40064305
Editor’s Note: MFEC’s Inspire 2026 forum in Bangkok urged enterprises to treat AI as core infrastructure rather than isolated experiments, highlighting its role in driving cost efficiency, competitiveness, and measurable outcomes. The event featured strategic seminars, solution showcases, and workshops, with MFEC presenting enterprise AI tools designed to translate strategy into practical, deployable business solutions.
Bangkok Motor Show Defies Market Uncertainty as EV Launches Keep Momentum Alive
The 47th Bangkok International Motor Show is pushing ahead with strong momentum despite economic uncertainty, geopolitical tensions, and rising oil prices, with organisers aiming to come close to last year’s milestone of more than 50,000 bookings. This year’s event has remained lively, driven by a wave of new brand participation and high-profile vehicle launches, particularly in the electric vehicle segment. Japanese automakers drew significant attention with Mazda unveiling its first EV, the Mazda 6e, while Honda officially launched the e:N2. European and Chinese brands also intensified competition, with Mercedes-Benz showcasing the new CLA 250+, and major EV players such as BYD, Changan, GWM, MG, and Nio expanding their line-ups.
Industry executives said the show’s strong product activity could help stimulate Thailand’s car market, which had been expected to grow modestly in 2026 before global conflict involving Iran, the United States, and Israel introduced fresh volatility into oil and energy markets. While higher fuel prices may encourage some consumers to shift toward EVs, executives cautioned that prolonged geopolitical instability could also raise electricity generation costs and weaken broader consumer spending. Market leaders including Ford Thailand and Geely distributor Thonburi Neustern said total vehicle sales are still likely to remain close to last year’s level of around 620,000 units, highlighting how resilient product innovation — especially EV launches — is helping offset external economic pressures.
https://www.nationthailand.com/blogs/business/economy/40064228
Editor’s Note: The 47th Bangkok International Motor Show is maintaining strong momentum despite economic uncertainty, driven by new brand participation and major EV launches from Japanese, European, and Chinese automakers. Industry leaders expect total vehicle sales to remain near last year’s 620,000 units, with resilient product innovation — especially in EVs — helping offset volatility from global conflicts and rising fuel costs.
Thailand Tightens Competition Rules on Shopee, Lazada and TikTok Shop
Thailand has rolled out stricter digital platform rules under the 2017 Trade Competition Act, with new guidelines taking effect this week to curb monopolistic practices across its fast-growing e-commerce market. The framework targets major platforms such as Shopee, Lazada, and TikTok Shop, where strong network effects have concentrated control over sellers, payments, and logistics. Trade Competition Commission secretary-general Visanu Vongsinsirikul said the guidelines clarify which business practices may be treated as monopolistic behaviour, with particular focus on excessive or discriminatory commission fees and restrictions that limit sellers’ freedom to choose independent logistics providers. Regulators say the move is aimed at weakening entrenched platform dominance, opening up logistics competition, and creating a fairer environment across Thailand’s 1.15-trillion-baht digital commerce sector.
The rules set out a wide list of prohibited conduct covering both pricing and non-pricing behaviour, including predatory pricing, resale price maintenance, price parity clauses, self-preferencing, unjustified seller delisting, and forcing merchants to use in-house services such as payments, logistics, or advertising. They also expand oversight into the role of algorithms and data, allowing authorities to scrutinise ranking systems, automated pricing tools, and misuse of third-party seller data if they produce discriminatory outcomes or unfair market advantages. Although the guidelines themselves do not specify penalties, violations fall under Sections 50, 54, 55, and 57 of the Trade Competition Act, with serious offences such as abuse of market dominance and cartel-like agreements carrying criminal penalties. The tougher rules signal a major step in Thailand’s efforts to regulate digital marketplaces as strategic infrastructure in the country’s digital economy.
https://www.bangkokpost.com/business/general/3224394/stricter-rules-for-digital-platforms
Editor’s Note: Thailand has introduced stricter e-commerce rules under the Trade Competition Act to curb monopolistic practices by platforms like Shopee, Lazada, and TikTok Shop, targeting excessive fees and restrictions on logistics choices. The guidelines also prohibit predatory pricing, self-preferencing, and misuse of seller data, expanding oversight to algorithms and automated tools, marking a major step in regulating digital marketplaces as strategic infrastructure.
Thailand Moves to Tighten Data Centre Rules Amid AI-Driven Investment Boom
Thailand is preparing a major regulatory shift for its rapidly expanding data centre industry, as the National Broadcasting and Telecommunications Commission moves to bring operators under stricter state oversight. Acting secretary-general Trairat Viriyasirikul said the sector’s rapid rise — fuelled by strong foreign direct investment and more than 20 licensed operators — has heightened concerns over electricity and water consumption, domestic data management, and broader digital governance. To address these risks, the NBTC is finalising a draft to reclassify data centre licences from Type 1 to the more stringent Type 3 category, formally recognising operators as entities with their own network infrastructure. The change would subject firms to tighter monitoring, higher annual regulatory fees, and possible zoning controls, with the draft expected to reach the commission board in the coming months before a public hearing and likely implementation later this year.
The proposed overhaul reflects Thailand’s push to balance hyperscale digital growth with stronger cyber sovereignty and resource sustainability as AI adoption drives demand for processing and storage infrastructure. Existing operators will be required to reclassify their licences, while new entrants will also fall under the stricter framework. Officials say the move is essential to maximise the benefits of foreign investment while limiting potential damage to critical resources and national data governance. A recent study commissioned by the telecom regulator projects Thailand’s data centre market will expand at an average annual rate of 27.7% from 2025 to 2031, with total value surging from about 470 billion baht to 2.02 trillion baht, while combined hyperscale investments from global technology giants are expected to reach roughly US$20 billion by 2030. The tighter rules signal Thailand’s intent to build a more self-reliant AI-era digital ecosystem while preserving long-term infrastructure resilience.
Editor’s Note: Thailand is set to tighten oversight of its booming data centre industry, reclassifying licences to a stricter Type 3 category that brings higher fees, zoning controls, and closer monitoring of resource use and data governance. The move aims to balance hyperscale AI-driven growth with sustainability and cyber sovereignty, as the market is projected to expand nearly 28% annually to 2.02 trillion baht by 2031, with global tech investments reaching US$20 billion by 2030.
AI Skills Programme Transforms Rural Communities in Thailand into Digital Entrepreneurs
Thailand is witnessing how artificial intelligence can drive grassroots economic transformation, as a simple school project in Buri Ram’s Non Din Daeng district evolved into a community income stream. A primary school student’s AI-assisted design, inspired by a dry leaf, has been turned into marketable products such as cotton bags, notebooks and bottles, now sold online by the Thai-Cambodian Border Grassroots Economic Community. Supported by initiatives like Microsoft Elevate, the project highlights how access to digital tools and training can unlock creativity and translate it into real economic value. Community leaders say the initiative demonstrates that AI is not a threat but a tool for empowerment when used responsibly, especially in areas where talent exists but access to technology has been limited.
The programme, now replicated across multiple regions, focuses on equipping individuals with practical AI and digital skills to improve livelihoods and expand participation in the digital economy. Backed by collaborations between Microsoft, government agencies and civil society groups, the initiative has already trained more than 70,000 people, including nonprofit workers and community members. Experts say AI is helping improve efficiency in public services, support research and decision-making, and even preserve cultural heritage through tools like voice-to-text. From enabling people with disabilities to communicate more effectively to connecting younger and older generations in shared economic activities, the programme underscores a broader trend: when access to skills increases, communities can leverage technology to create sustainable opportunities and strengthen social resilience.
Editor’s Note: Thailand’s AI skills programme is transforming rural communities into digital entrepreneurs, with projects like Buri Ram’s leaf-inspired designs turning into online income streams through grassroots initiatives. Backed by Microsoft and government partnerships, the programme has trained over 70,000 people, showing how access to AI tools can boost livelihoods, preserve culture, and strengthen social resilience.