Southeast

• Ms Grace Fu, Singapore's Minister, delivered a keynote at the 13th Singapore Dialogue on Sustainable World Resources on May 7, 2026, describing Southeast Asia facing a 'perfect storm' from geopolitical developments and climate change. • She emphasized severe implications for the region, including supply chain disruptions and resource scarcity due to the dual threats. • The speech underscores the need for sustainable resource strategies to mitigate risks to economic stability and security.

• Grab's Q1 2026 earnings surged 466.7% to US$136 million from US$24 million in Q1 2025, reinforcing analyst confidence in the ride-hailing and delivery platform. • Analysts view Grab as the clear regional leader in Southeast Asia despite facing ongoing regulatory challenges across multiple markets. • The company's strong profit growth demonstrates the sustainability of its business model even amid tightening regulatory scrutiny in the region.

• UBS has strengthened its Southeast Asia wealth management presence through strategic appointments, including Vivian Li as senior client advisor in its global wealth management team. • The expansion reflects UBS's commitment to capturing high-net-worth client growth across Southeast Asian markets amid intensifying competition. • These moves position UBS to deepen regional client relationships and expand its private banking footprint in a key growth market.

• Delta Electronics presented cutting-edge smart manufacturing solutions at SEMICON Southeast Asia 2026 in Kuala Lumpur on May 5, 2026, emphasizing AI-enabled systems for semiconductor packaging production. • The company demonstrated how integrated, connected AI systems can enhance speed, precision, and scalability in advanced semiconductor manufacturing across the region. • Delta's focus on AI integration reflects growing industry demand for smarter manufacturing approaches in Southeast Asia's semiconductor sector, positioning the company as a key player in the region's tech infrastructure development.

• Japan's Prime Minister Sanae Takaichi announced an updated Free and Open Indo-Pacific (FOIP) strategy during her visit to Vietnam last weekend, emphasizing Tokyo's increased reliance on Southeast Asia amid U.S.-China rivalry. • The decade-old FOIP policy now prioritizes energy security, critical minerals, and deeper ties with ASEAN nations to bolster economic and security roles in the region. • This pivot underscores Japan's strategic shift toward Southeast Asia as a counterbalance to great-power competition, enhancing regional stability and supply chain resilience.

• Ecosystem Roundup from e27.co reports that the AI pay gap in Southeast Asia's startup industry has emerged and is accelerating, with AI-skilled workers commanding significantly higher salaries than non-AI peers as of May 5, 2026. • Key details highlight disparities where AI engineers in Singapore, Indonesia, and Malaysia earn 30-50% more than general software developers, driven by demand from firms like Sea Limited and Grab. • This matters as it risks exacerbating talent shortages and inequality across ASEAN tech hubs, potentially slowing non-AI startup growth while fueling AI dominance in Vietnam and Thailand.

• A May 5, 2026, report from Express Press Release details how cybersecurity has shifted to a core business priority in expanding digital ecosystems across Singapore, Malaysia, and Indonesia amid rising AI-powered threats. • Key trends include zero trust architectures reducing breach risks by 40% in Thai banks and AI-driven attacks increasing incident frequency by 25% in Vietnamese firms, per regional data. • This development matters as ASEAN businesses face sophisticated threat actors, with experts quoting 'cyber resilience now defines competitive survival' in the face of geopolitically motivated hacks.