Malaysia has been ranked second in ASEAN in the GSMA Digital Nations Index 2025, reflecting strong progress in digital readiness. The country excelled in digital skills and access, while new initiatives such as the AI Nation Framework and AI-powered banking highlight its innovation drive.

Experts stress that Vietnam must reform its legal framework and prioritise strategic technologies to strengthen competitiveness, safeguard digital sovereignty, and secure a role in global value chains. Stronger institutions, financial incentives, and bold innovation policies are key to turning science and technology into drivers of sustainable growth.

The Ministry of Communication and Digital Affairs has launched the AI Talent Factory to prepare Indonesia for global tech competition. The programme aims to nurture advanced AI experts capable of addressing national challenges and fostering innovation, while encouraging the development of locally grounded AI applications.

Malaysia is accelerating its artificial intelligence (AI) ambitions with Budget 2026 set to introduce new funds, programmes, and regulatory frameworks aimed at turning the country into an “AI Nation.” Digital Minister Gobind Singh Deo said the initiatives will strengthen GovTech, expand public–private partnerships, and invest in digital talent to close the AI divide, positioning Malaysia as a leader in Southeast Asia’s digital economy.

Indonesia’s sovereign wealth fund, the Indonesia Investment Authority (INA), is sharpening its focus on digital infrastructure, healthcare innovation, and renewable energy to attract global partners and boost sustainable growth. With $10 billion in assets under management, INA is investing in data centres, AI applications in healthcare, and clean energy projects, while prioritising Indonesia-linked opportunities to strengthen the nation’s economic resilience.

The ASEAN-Korea Centre launched the “ASEAN-Korea Sustainable Innovation Talks” and workshop in Seoul, bringing together policymakers, experts and companies to strengthen collaboration on ESG and AI. The two-day event highlights the shared goal of building a sustainable, inclusive and innovation-driven future for ASEAN and Korea.

Malaysia and Vietnam have agreed to strengthen bilateral security cooperation through a new cross-border memorandum of understanding (MoU). During the 19th ASEAN Ministerial Meeting on Transnational Crime in Melaka, Malaysia’s Home Minister Datuk Seri Saifuddin Nasution Ismail and Vietnam’s Minister of Public Security General Luong Tam Quang highlighted plans to enhance cybersecurity collaboration. Malaysia is in the process of acceding to the Budapest Convention on Cybercrime and will officially sign the United Nations Convention Against Cybercrime in Hanoi this October. The visit, which includes senior Malaysian and Vietnamese officials, aims to reinforce long-standing ties between the two nations.

Indonesia’s Deputy SOEs Minister Kartika Wirjoatmodjo has urged stronger cybersecurity measures to safeguard the country’s growing digital economy, with banks increasingly targeted by phishing and ransomware. He stressed the need for “cyber troops” and integrated security systems to protect public trust and financial stability.

Philippine President Ferdinand Marcos Jr’s recent state visit to Cambodia (Sept 7–9) has brought renewed focus on Southeast Asia’s growing transnational scam hubs. A newly signed memorandum of understanding between the Philippine and Cambodian police expands cooperation against cybercrime, human trafficking, and arms trafficking, marking a rare alignment in security priorities. Analysts see the deal as a critical step toward curbing online fraud syndicates while strengthening bilateral ties ahead of the Philippines’ ASEAN chairmanship in 2026.