Economists say rising global demand for data centres that support artificial intelligence is creating an advantage for several Asian economies, because their manufacturing sectors produce the high-end equipment those centres require.
Which countries are gaining
Goldman Sachs economists noted that surging exports are expected to drive GDP growth in Malaysia, South Korea, Taiwan and Vietnam. They also highlighted that fast-rising corporate profits in Seoul and Taipei have boosted tax receipts, enabling higher government spending in those economies.
Barclays analysts pointed out that Japan is also benefiting, but further up the supply chain: Japanese firms make semiconductor manufacturing equipment used by many of the other Asian producers.
Who is falling behind and why
Not all Southeast Asian countries are reaping the same benefits. Economists say Indonesia is held back by populist policy choices; the Philippines is vulnerable to job losses from AI, particularly in its outsourcing sector; and Thailand faces risks from demographic decline.
Why this matters
As technology shifts, production and investment patterns can change: countries with the capacity to manufacture higher-tech equipment can see direct gains in exports and fiscal revenues. Political decisions, the structure of the workforce and demographic trends are key determinants of whether an economy can capture these gains.
Summary
Global expansion of AI-related capacity is boosting exports for certain Asian manufacturers that produce high-end equipment, strengthening growth and public finances in those places. At the same time, policy, labour-market and demographic headwinds mean some Southeast Asian nations remain exposed and may not benefit equally.
