Tech Giants Shift Focus to Southeast Asia Amid China’s Declining Investment Appeal

Representatives from Apple, Microsoft, and NVIDIA have met with leaders of Indonesia, Malaysia, and Thailand, and proposed large-scale investments.

Participants check a Microsoft booth before CEO Satya Nadella's speech during an event named Microsoft Build AI Day in Kuala Lumpur on May 2, 2024. Microsoft on May 2, 2024 pledged a $2.2 billion investment in artificial intelligence and cloud computing in Malaysia to help develop the country's AI infrastructure, the tech giant said in a statement. (Photo by Mohd RASFAN / AFP) Photo by MOHD RASFAN/AFP via Getty Images

China’s political and economic environment is in a state of decline as geopolitical confrontations with Western countries increase. This has led to a significant shift in foreign investment from China to Southeast Asia. Recently, tech giants such as Apple and Microsoft have toured Southeast Asia, pledging billions of dollars in investments to develop artificial intelligence (AI) and cloud infrastructure in the region.

Targeting Southeast Asia

Over the past few months, representatives from tech giants like Apple, Microsoft, and NVIDIA have visited Southeast Asia, meeting with leaders of countries such as Indonesia, Malaysia, and Thailand, and proposing large-scale investment plans.

Earlier this month, Microsoft CEO Satya Nadella announced an investment of $2.2 billion in Malaysia to develop cloud and AI infrastructure following his visit to Malaysia, Indonesia, and Thailand. This marks Microsoft’s largest single investment in Malaysia in 32 years. Mr. Nadella also announced a $1.7 billion investment in Indonesia late last month to provide AI training and job opportunities for 840,000 people.