How AI Regulations Are Taking Shape in Southeast Asia

Southeast Asia is entering a pivotal phase in the regulation of Artificial Intelligence (AI), as countries across the region prepare to enact formal governance frameworks in 2025. With growing international investment and increasing domestic interest in AI-driven innovation, regional governments are aligning their strategies to balance innovation with accountability. Guided by the ASEAN Guide on AI Governance and Ethics, policymakers across Singapore, Indonesia, Thailand, Vietnam, Malaysia, and the Philippines are laying the groundwork for structured oversight, while prioritizing local talent development and international cooperation.

Market Overview: Fragmented Approaches, Shared Priorities

With US$3.2 billion in AI investment expected by 2028, countries in Southeast Asia (SEA) must move quickly to ensure that AI tools are aligned with regulatory frameworks. All nations in the region currently follow voluntary principles aligned with the ASEAN AI Guide, released in mid-2024. However, national-level legislative developments are expected to take shape over the coming year. Indonesia, Thailand, and Vietnam have all released or are preparing AI-related draft laws, while Singapore continues to lead with its sector-based approach.

Malaysia has taken preliminary steps by establishing its National AI Office (NAIO), and while the Philippines lacks a clear timeline for AI legislation, it has expressed strong intent to develop a national framework. Across the region, the integration of AI with existing data protection laws and consumer rights policies remains a core concern.

In parallel with regulatory movement, governments are emphasizing education and workforce reskilling as critical components of national AI strategies. Public-private partnerships and collaborations with global technology firms—including Google, Microsoft, and NVIDIA—are becoming instrumental in upskilling domestic workforces and expanding AI ecosystems in Asia.

“One common regulatory concern across the SEA region is the alignment of AI/ML technology usage with each country’s data protection and consumer rights protection policies. There are also concerns about overregulation, which could stifle the growth of the country's AI ecosystem.” – Benjamin Chan, Research Analyst

ASEAN AI Guide: A Blueprint for Regional Coherence

The ASEAN Guide on AI Governance and Ethics provides the foundation for regional alignment. Updated in 2025, the guide promotes principles such as accountability, transparency, safety, data governance, and AI for public good. While it is non-binding, the guide encourages a pro-innovation regulatory posture and serves as a reference for countries tailoring local policies.

Importantly, ASEAN’s framework aligns with global developments, including the European Union’s (EU) AI Act and China’s regulatory proposals, signaling SEA’s intent to remain interoperable with international governance models.

National Developments: A Closer Look at Country-Level Strategies

Singapore: Leading with Sectoral Governance and AI Workforce Expansion

Singapore’s AI regulatory model relies on sector-specific implementations. Financial services operate under the Veritas framework, while broader compliance and testing are supported by IMDA’s AI Verify initiative. These tools are co-developed with major cloud and AI vendors, including Amazon Web Services (AWS), IBM, and Microsoft.

On the talent front, the country’s National AI Strategy (NAIS) 2.0 aims to grow the AI practitioner base to 15,000 by 2025. A US$110 million investment in the Enterprise Compute Initiative will further support enterprise-level AI adoption.

Indonesia: Horizontal Regulation Anchored in National Law

Indonesia is expected to release comprehensive AI regulations by mid-2025. These laws will expand on existing AI circulars and align closely with its Personal Data Protection Law and electronic information statutes. Its National AI Strategy prioritizes AI integration in public sectors like healthcare, education, and agriculture, with partnerships driving localized innovation. For example, 1,400 crop farmers in West Java have piloted AI-based crop yield prediction tools.

Like other countries, Indonesia must ramp up expertise in AI, and it will do that by establishing partnerships with technology leaders (e.g., NVIDIA and Gojek) and training thousands of AI engineers by the decade’s end. However, investor confidence has recently waned in the country due to startups facing liquidation.

Thailand: Risk-Based Regulation and Workforce Ambition

Thailand’s AI governance draws from the EU’s tiered risk model and is expected to codify practices under a Royal Decree focused on AI systems. A 2022 framework already guides AI implementation with input from the Ministry of Digital Economy and Society.

The country’s AI strategy targets a 30,000-strong AI workforce by 2027, supported by a US$29.6 million budget allocated to the National Electronics and Computer Technology Center (NECTEC).

Malaysia: Laying the Groundwork Through Guidelines and Reskilling Initiatives

Malaysia lacks formal AI regulations, but it introduced national AI governance guidelines in late 2024. These emphasize shared responsibility across developers, providers, and end users. The newly formed National Artificial Intelligence Office (NAIO) is expected to lead future regulatory development.

Malaysia’s primary AI strategy centers on workforce transformation. Government-backed initiatives aim to retrain 600,000 workers by 2027, with global partnerships supporting broader outreach. Notably, Google’s AI Policy and Skilling Lab initiative pledges to train 800,000 Malaysians by 2025.

Vietnam and the Philippines: Emerging Policies, Unclear Timelines

Vietnam’s draft AI regulations are currently under public review, covering digital technologies and data privacy. They are expected to align closely with the ASEAN AI Guide and the EU AI Act. A core aspect of Vietnam’s AI strategy roadmap is training 7,000 AI experts in international standards and supporting 500 AI startups by 2030.

Meanwhile, the Philippines’ Department of Information and Communications Technology (DICT) plans to establish a regulatory framework for governing AI. DICT’s approach to AI governance seeks to encourage innovation, while limiting “over-regulation.” The DICT is expected to create a “bill of rights” on AI safety and establish the Philippine Artificial Intelligence Board (PAIB) to aid development, research, and application compliance.

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As Southeast Asia positions itself as a key AI innovation hub, the urgency to establish reliable regulatory foundations has never been greater. Download ABI Research’s full analysis to explore the impact on AI tech vendors, investors, and businesses operating in the region.