Few industries transcend territorial boundaries quite like tech – a belief reaffirmed by my travels in Southeast Asia this month.
With UK-Southeast Asia Tech Week organised by the Department of Business and Trade taking place, I joined tech leaders from across the region for an event designed to strengthen UK relations with some of the world’s most promising tech ecosystems.
My visit involved a whistle-stop tour of two of the region’s key growth hubs in Thailand and Malaysia’s capital cities – Bangkok and Kuala Lumpur.
With the Association of Southeast Asian Nations (ASEAN) growth projected to perform on par with its neighbour China in 2024, the impetus for engagement with the bloc is indisputably clear.
ASEAN: bursting with tech potential
The world’s great innovators are so often defined by their ability to think years ahead of their competitors. This is particularly true in the tech sector – new international innovation hubs are constantly being created by the ever-increasing demand for more efficient solutions to increasingly complex problems.
In every direction, ASEAN members are regularly reminded of this fact. With Australia and New Zealand lying South of the region and China, India, South Korea, Japan and Taiwan all easily accessible from the northernmost part of the bloc, the group is primed to follow in the footsteps of its neighbours.
Sceptics need to look no further than the raft of major tech companies that have set up bases in Bangkok – my first stop. Household names such as IBM, Microsoft, Oracle and Dell all have a presence in the Thai capital, exemplifying a global recognition of the dynamic potential the city – and wider region – possesses.
Meeting with members of #GTASEAL – the Global Tech Advocates Southeast Asia Leadership group – in the city reminded me of the region’s convening power, with GTA members joining from Thailand, Malaysia, Philippines, Singapore and our newest group Tech Vietnam Advocates.
Our leaders of Tech Thailand Advocates are focused on net zero and sustainability and also lead one of the largest tech events in Southeast Asia each August called Techsauce.
There is no reason why Taiwan’s success in semiconductors, Japan’s in robotics and South Korea’s in telecoms are not replicable by ASEAN members, should the right decisions be taken in both private and public spheres.
Carving out opportunities for the UK
In addition to my capacity in expanding the reach of Global Tech Advocates, my trip to South East Asia hinged on creating new opportunities for engagement with the UK.
As Britain’s imminent ascension to the CPTPP demonstrates, the UK’s gaze is increasingly cast further ashore. With Singapore, Vietnam, Malaysia and Brunei Darussalam all members, there is little doubt of the ASEAN group’s influence.
While the government has said the immediate economic impact of the UK’s ascension will be limited, the opportunity to enhance our collaboration with the region’s leading innovators is a clear benefit of the decision.
Make no mistake, the UK’s $1tn tech sector is not going unnoticed around the world. London, Singapore and Hong Kong rank second, third and fourth in the Global Financial Centres Index, ahead of all except New York, and three places ahead of China’s closest rival centre, Shanghai. The case for engagement with these financial centres is evident, with business-based commonalities transcending relative geographic distances.
In Kuala Lumpur, the second stop on my trip, I learnt of the burgeoning fintech ecosystem in the city. Malaysia’s young, educated workforce is driving growth in an industry that the UK can confidently call one of its specialities. I also visited MRANTI, Malaysia’s largest technology park, and met with leaders from the Cradle Fund, a vehicle to invest in Malaysian startups.
Malaysia is also making a move in terms of leadership in semiconductors, having a 13% market share in packaging, assembly and testing for chips. Penang in Malaysia calls itself the Silicon Valley of the East, and the New York Times recently published an in-depth profile of the sector’s importance to Malaysia.
UK engagement: the time is now
Ultimately, my core mission as head of Global Tech Advocates is to convene tech talent around the world under one umbrella, providing a space for dynamic changemakers to share ideas and innovate together.
While established markets – of which the UK is one – are the beating heart of today’s global ecosystem, each year new regional centres emerge. In 2014, the Southeast Asian region had just three unicorns; today, this has grown to 23 and this number will no doubt continue to increase as the region develops – both in its infrastructure and drive for entrepreneurship.
Remarkable growth stories such as these abound across the ASEAN bloc, and the UK is well-placed to engage with this vibrant and diverse group. Scaling businesses across the UK would likely benefit from international expansion to this high-growth and dynamic region of the world.
Russ Shaw CBE is the founder of Tech London Advocates & Global Tech Advocates, and a regular UKTN columnist.
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