China’s Belt and Road crediblity collapsing fast in Thailand – Asia Times

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BANGKOK – China’s Belt and Road Initiative projects are being scrutinized in Thailand after Myanmar’s 7.7 earthquake pancaked a 30-floor building 966 kilometers ( 600 miles ) away that Chinese engineers were constructing in Bangkok.

The incomplete building was the only creating to decline in the gently damaged Thai capital. But the crisis exposed reportedly poor metal reinforcing rods that had snapped, reducing the tower to a large dust pile that crushed about 87 construction workers, including 15 confirmed dead and 72 who disappeared.

” I watched many videos of the tower decline from various points”, a startled Thai Prime Minister Paetongtarn Shinawatra said.

” From my experience in the construction business, I have never seen an problem like this.

” We must research carefully because a significant portion of the funds was allocated, and the date for execution had been extended,” Paetongtarn said.

The analysis began with a crazy, disturbing look. Two weeks after the March 28 collapse, four Chinese people were filmed grabbing in their hands as some construction-related files as they could have and running away from the wreckage site.

Police detained, questioned and released them. China’s military in Bangkok and Thailand’s effective interior ministry, which oversees the police, met to discuss the skyscraper’s decline, but their deals were not made public.

China’s picture is critical for Beijing’s exclusive standing among Thais.

Washington and Beijing have been formally competing with each other for decades to control Bangkok’s politics, politics, economy and martial through financial support, investment, tourism, education, ancestorial ties and different ways.

In the collapsed skyscraper’s debris, investigators extracted two different types of steel reinforcing bars, also known as rebars, which were supposed to provide support for the building while encased in cement pillars.

After the earthquake, the Iron and Steel Institute of Thailand reportedly discovered the chemical composition, mass, and stress strength of the rebars appeared to fail its tests.

Photographs displayed by the industry ministry and local media showed a word embossed on a steel rebar dug out of the wreckage.

That brand name was allegedly linked to a Chinese steel-making company in Thailand, the Bangkok Post reported April 2.

Concern about China’s role in the unfinished skyscraper’s deadly collapse comes at a time when some Thais have expressed anxiety about Beijing’s increasing reach into the kingdom.

The earthquake also hit Thailand’s troubled economy, sophisticated tourism industry, multi-billion-dollar high-rise condominium and construction market, insurance rates and other sectors.

This Southeast Asian nation faces an estimated loss of more than$ 1 billion because of the quake, economists said.

At least 30 high-rise buildings in Bangkok were deemed uninhabitable because of the earthquake, the Public Works Department said on April 2.

” We will focus on communicating a single message, ensuring that Thailand is safe for travel,” Tourism and Sports Minister Sorawong Thienthong said.

Thailand’s government institutions for inspecting building contracts, design plans and materials used in construction, and its anti-corruption policies, are being criticized by the public and Thai media for having been unable or unwilling to correct the doomed skyscraper’s flaws before the earthquake.

Many Thais noted, with grim irony, that the only building to collapse in Bangkok was the State Audit Office’s ( SAO ) new headquarters. That government agency is tasked with preventing fudged contracts and dodgy government-linked projects.

” The Facebook page of the State Audit Office is no longer accessible on Wednesday ( April 2 ) after it came under heavy criticism and was accused of corruption related to the collapsed building with over 70 construction workers still unaccounted for, “reported Khaosod English news.

The construction contract was a joint project between the Chinese government’s China Railway No. 10 Engineering Group and the Thailand-based Italian-Thai Development ( ITD ) public company.

ITD was founded in 1958 by an Italian and a Thai who met while salvaging a ship stuck on Thailand’s Chao Phraya River.

Its website says ITD is” the largest infrastructure construction company in Thailand, and one of the largest in Southeast Asia.

“ITD has expanded internationally to numerous regions, including India, Bangladesh, Cambodia, Laos, Indonesia, Maldives, Myanmar, the Philippines, Madagascar etc”, it says.

Among its many projects in Thailand is the 2006 construction of a passenger terminal at Bangkok’s Suvarnabhumi International Airport.

China Railway No. 10 Engineering Group, meanwhile, is part of China Railway Engineering Corp ( CREC ), one of the biggest engineering and construction firms in the world.

” All concerned agencies were instructed to delve deeper to find out how many other projects the company has undertaken”, Prime Minister Paetongtarn said April 1.

” All buildings in Bangkok must meet legal standards. Safety must be the top priority”, she said.

In Thailand, CREC and Railway No. 10 are driving China’s proudly showcased Belt and Road Initiative ( BRI ). The BRI is an international development and financial expansion strategy boosted by Beijing’s investments and loans.

CREC’s projects for the BRI include China’s impressive Beijing-Shanghai and Qinghai-Tibet railways and, in East Africa, the Mombasa-Nairobi railway across Kenya.

CREC is an enterprise owned by the Communist Chinese government and has completed and worked on other projects in Thailand.

These include laying tracks on a link in what will eventually become a high-speed railway connecting Beijing and Singapore via Bangkok by train for the first time.

CREC helped construct one of Bangkok’s underground metro lines and was bidding for others.

The Commerce Ministry, Royal Thai Police Economic Crime Suppression Division and Revenue Department, meanwhile, reportedly opened investigations into a dozen other projects in Thailand allegedly linked to CREC and China Railway No. 10.

Before the quake, CREC proudly heralded the Bangkok SAO skyscraper construction contract as the” first high-rise building for the bureau overseas”.

Philip J Cunningham, a researcher of Asian politics in media, said CREC’s website, after the earthquake, deleted photos, quotes and other pages related to the SAO building, including CREC’s earlier announcement:

” In response to the national Initiative of the Belt and Road, China Railway 10th Bureau set up an Asia-Pacific branch, taking entry into the Thai market as the first step to fully open up new Southeast Asian markets!

” The National Audit Office of Thailand…is the highest height and largest single-building construction project undertaken by the 10th Bureau so far,” a deleted quote said according to Cunningham.

China Railway No. 10 was also constructing a behind-schedule$ 20 million airport terminal at Narathiwat in southernmost Thailand, local media reported.

At a hospital under construction for outpatients and accidents in the southern city of Songkhla, the hospital director told reporters”, The quality of construction materials is under strict control and the building was designed to withstand earthquakes.”

Investigators, meanwhile, are checking if any other Chinese nationals used fake contracts to hide their collaboration with other Thai construction firms.

Richard S. Ehrlich is a Bangkok-based American foreign correspondent reporting from Asia since 1978, and winner of Columbia University’s Foreign Correspondents ‘ Award. Excerpts from his two new nonfiction books”, Rituals. Killers. Wars. &amp, Sex. — Tibet, India, Nepal, Laos, Vietnam, Afghanistan, Sri Lanka &amp, New York “and” Apocalyptic Tribes, Smugglers &amp, Freaks “are available here.

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AI power play: who, how and now of the tech changing everything – Asia Times

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Artificial intelligence ( AI ) has seen rapid growth, transforming industries and daily life. From bots to superior conceptual designs, AI’s skills continue to expand, driven by effective businesses investing heavily in research and development.

” The development of AI is as important as the design of the microcontroller, the individual computer, the Internet, and the smart phone”, wrote Bill Gates in 2023. ” It may change the way people work, learn, travel, get health care, and communicate with each other”.

In 2025, companies such as OpenAI, Google, Anthropic, and emerging challengers like DeepSeek have pushed the boundaries of what large language models ( LLMs) can do. Additionally, business solutions from Microsoft and Meta are making AI equipment more accessible to companies and developers alike.

This article explores the latest Artificial designs available to the public, their advantages and drawbacks and how they compare in the dynamic AI environment.

AI designs rely on considerable computational resources, especially large language versions ( LLMs) that require large data and processing power. The leading AI designs undergo difficult education procedures that involve billions of parameters, consuming substantial energy and equipment.

Important AI players invest in cutting-edge technology and marketing strategies to improve effectiveness while maintaining high efficiency. The harmony between computing power, speed, and pricing is a significant factor in differentiating these AI models.

The Dynamic Landscape: Best AI Models

OpenAI’s ChatGPT

ChatGPT, developed by OpenAI, is one of the most recognized and commonly used AI types in the world. Built with a dialogue-driven style, ChatGPT is designed to reply follow-up questions, challenge incorrect facilities, admit mistakes, and accept improper calls. Its versatility has made it a leading AI tool for both casual and professional use, spanning industries such as customer service, content creation, programming, and research.

ChatGPT is ideal for a wide range of users, including writers, business professionals, educators, developers, and researchers. Its free-tier accessibility makes it an excellent starting point for casual users, while businesses, content creators, and developers can leverage its advanced models for enhanced productivity and automation.

It is also among the most user-friendly AI models available, featuring a clean interface, intuitive responses, and seamless interaction across devices. However, organizations that require custom AI models or stricter data privacy controls may find its closed-source nature restrictive, particularly compared to open-source alternatives like Meta’s LLaMA.

The latest version, GPT-4o, is available for free-tier users and offers a strong balance of speed, reasoning, and text generation capabilities. For users seeking enhanced performance, ChatGPT Plus provides priority access and faster response times at a monthly subscription cost.

For professionals and businesses requiring more robust capabilities, ChatGPT Pro unlocks advanced reasoning features through the o1 pro mode, which includes enhanced voice functionality and improved performance on complex queries.

Developers looking to integrate ChatGPT into applications can access its API, a type of software interface. Pricing starts at approximately$ 0.15 per million input tokens and$ 0.60 per million output tokens for GPT-4o mini, while the more powerful o1 models come at a higher cost. A token is defined as a fundamental unit of data, like a word or subword, that an AI model processes to understand and generate text.

One of ChatGPT’s greatest strengths is its versatility and conversational memory. It can handle a broad range of tasks, from casual conversation and creative writing to technical problem-solving, coding assistance, and business automation. When memory is enabled, ChatGPT can retain context across interactions, allowing for a more personalized user experience.

Another key advantage is its proven user base—with hundreds of millions of users worldwide, ChatGPT has undergone continuous refinement based on real-world feedback, improving its accuracy and usability. Additionally, GPT-4o’s multimodal capabilities allow it to process text, images, audio, and video, making it a comprehensive AI tool for content creation, analysis, and customer engagement.

While a free version exists, the most powerful features require paid subscriptions, which may limit accessibility for smaller businesses, independent developers, and startups. Another drawback is an occasional lag in real-time updates, even though ChatGPT has web-browsing capabilities, it may struggle with the most recent or fast-changing information.

Lastly, its proprietary model means users have limited control over modifications or customization, as they must adhere to OpenAI’s data policies and content restrictions.

Google’s Gemini

Google’s Gemini series is renowned for its multimodal capabilities and its ability to handle extensive context, making it a versatile tool for both personal and enterprise-level applications.

General consumers and productivity users benefit from Gemini’s deep integration with Google Search, Gmail, Docs, and Assistant, making it an excellent tool for research, email drafting, and task automation. Business and enterprise users find value in Gemini’s integration with Google Workspace, enhancing collaboration across Drive, Sheets, and Meet.

Developers and AI researchers can leverage its capabilities through Google Cloud and Vertex AI, making it a strong choice for building AI applications and custom models. Creative professionals can take advantage of its multimodal abilities, working with text, images, and video. Meanwhile, students and educators benefit from Gemini’s ability to summarize, explain concepts, and assist with research, making it a powerful academic tool.

Google Gemini is highly accessible, especially for those already familiar with Google services. Its seamless integration across Google’s ecosystem allows for effortless adoption in both personal and business applications.

Casual users will find it intuitive, with real-time search enhancements and natural interactions that require little to no learning curve. Developers and AI researchers can unlock advanced customization through API access and cloud-based features, though utilizing these tools effectively may require technical expertise.

The current versions, Gemini 1.5 Flash and Pro, cater to different needs, with Flash offering a cost-efficient, distilled option and Pro providing higher performance. Meanwhile, the Gemini 2.0 series, designed primarily for enterprise use, includes experimental models like Gemini 2.0 Flash with enhanced speed and multimodal live APIs, as well as the more powerful Gemini 2.0 Pro.

Basic access to Gemini is often free or available through Google Cloud’s Vertex AI. Still, advanced usage, especially when integrated into enterprise solutions, was introduced at$ 19.99–$ 25 per month per user, with pricing adjusted to reflect added features like a 1-million-token context window.

Gemini’s main advantage over other AIs is that it excels in processing text, images, audio, and video simultaneously, making it a standout in multimodal mastery. It also integrates seamlessly with Google Workspace, Gmail, and Android devices, making it a natural fit for users already in the Google ecosystem. Additionally, it offers competitive pricing for developers and enterprises needing robust capabilities, especially in extended context handling.

However, Gemini’s performance can be inconsistent, particularly with rare languages or specialized queries. Some advanced versions may be limited by safety testing, delaying wider access. Furthermore, its deep integration with Google’s ecosystem can be a barrier for users outside that environment, making adoption more challenging.

Anthropic’s Claude

Anthropic’s Claude is known for its emphasis on safety, natural conversational flow, and long-form contextual understanding. It is particularly well-suited for users who prioritize ethical AI usage and structured collaboration in their workflows.

Researchers and academics who need long-form contextual retention and minimal hallucinations, as well as writers and content creators who benefit from its structured approach and accuracy, will find Claude an essential and beneficial AI assistant.

Business professionals and teams can leverage Claude’s” Projects” feature for task and document management, while educators and students will find its safety guardrails and clear responses ideal for learning support.

Because Claude is highly accessible for those seeking a structured, ethical AI with a strong contextual understanding, it is moderately suitable for creative users who may find its restrictive filters limiting and less ideal for those needing unrestricted, fast brainstorming tools or AI-generated content with minimal moderation.

Claude 3.5 Sonnet, on the other hand, is the flagship model, offering enhanced reasoning, speed, and contextual understanding for both individual and enterprise users. For businesses and teams, the Claude Team and Enterprise Plans start at approximately$ 25 per user per month ( billed annually ), providing advanced collaboration features.

Individual users can access Claude Pro, a premium plan that costs around$ 20 per month, offering expanded capabilities and priority access. A limited free tier is also available, allowing general users to explore basic features and test its functionality.

Unlike most AIs, Claude excels in ethical AI safety, extended conversational memory, and structured project management, making it ideal for users who require reliable and well-moderated AI assistance. Its intuitive interface and organization tools enhance productivity for writers, researchers, educators, and business professionals.

However, there are instances when availability constraints during peak hours can disrupt workflow efficiency. Claude’s strict safety filters, while preventing harmful content, sometimes limit creative flexibility, making it less suitable for highly experimental or unrestricted brainstorming sessions. Additionally, enterprise costs may be high for large-scale teams with extensive AI usage.

DeepSeek AI

DeepSeek, a newcomer from China, has quickly gained attention for its cost efficiency and open-access philosophy. Unlike many established AI models, DeepSeek focuses on providing affordable AI access while maintaining strong reasoning capabilities, making it an appealing option for businesses and individual users alike.

” DeepSeek R1 is one of the most amazing and impressive breakthroughs I’ve ever seen—and as open source, a profound gift to the world”, said Marc Andreessen, former software engineer and co-founder of Netscape.

Being an excellent choice for cost-conscious businesses, independent developers, and researchers who need a powerful yet affordable AI solution, DeepSeek is particularly suitable for startups, academic institutions, and enterprises that require strong reasoning and problem-solving capabilities without high operational costs.

It is highly accessible for individuals due to its free web-based model, and even developers and enterprises benefit from its low-cost API. However, organizations requiring politically neutral AI models or strict privacy assurances may find it less suitable, especially in industries where data security and regulatory compliance are paramount.

The latest model, DeepSeek-R1, is designed for advanced reasoning tasks and is accessible through both an API and a chat interface. An earlier version, DeepSeek-V3, serves as the architectural foundation for the current releases, offering an extended context window of up to 128, 000 tokens while being optimized for efficiency.

DeepSeek is free for individual users through its web interface, making it one of the most accessible AI models available. However, for business applications, API usage comes at a significantly lower cost than US competitors, making it an attractive option for enterprises looking to reduce expenses.

Reports indicate that DeepSeek’s training costs are drastically lower, with estimates suggesting it was trained for approximately$ 6 million, a fraction of the cost compared to competitors, whose training expenses can run into the tens or hundreds of millions.

One of DeepSeek’s biggest strengths is its cost efficiency. It allows businesses and developers to access powerful AI without the financial burden associated with models like OpenAI’s GPT-4 or Anthropic’s Claude. Its open-source approach further enhances its appeal, as it provides model weights and technical documentation under open licenses, encouraging transparency and community-driven improvements.

Additionally, its strong reasoning capabilities have been benchmarked against leading AI models, with DeepSeek-R1 rivaling OpenAI’s top-tier models in specific problem-solving tasks. As Anthropic co-founder Jack Clark wrote in his” Import AI” newsletter,” R1 is significant because it broadly matches OpenAI’s o1 model on a range of reasoning tasks and challenges the notion that Western AI companies hold a significant lead over Chinese ones”.

A notable problem with DeepSeek is that its response latency, especially during periods of high demand, makes it less ideal for real-time applications where speed is crucial. Censorship and bias are also potential concerns. DeepSeek aligns with local content regulations, meaning it may sanitize or avoid politically sensitive topics, which could limit its appeal in global markets.

Additionally, some users have raised privacy concerns due to its Chinese ownership, questioning whether its data policies are as stringent as those of Western AI companies that comply with strict international privacy standards.

Microsoft’s Copilot

Microsoft’s Copilot is a productivity-focused AI assistant designed to enhance workplace efficiency through seamless integration with the Microsoft 365 suite. By embedding AI-powered automation directly into tools like Word, Excel, PowerPoint, Outlook, and Teams, Copilot serves as an intelligent assistant that streamlines workflows, automates repetitive tasks, and enhances document generation.

Ideal for businesses, enterprise teams, and professionals who heavily rely on Microsoft 365 applications for their daily operations, Microsoft’s Copilot is particularly beneficial for corporate professionals, financial analysts, project managers, and administrative staff who need AI-powered assistance to enhance productivity and reduce time spent on routine tasks.

However, organizations that prefer open-source AI models or require flexible, cross-platform compatibility may find Copilot less suitable, especially if they rely on non-Microsoft software ecosystems for their workflows.

Microsoft 365 Copilot is available across Microsoft’s core productivity applications, providing AI-powered assistance for document creation, email drafting, data analysis, and meeting summarization.

The service costs approximately$ 30 per user per month and typically requires an annual subscription. However, pricing can vary based on region and enterprise agreements, with some organizations receiving customized pricing based on their licensing structure.

One of Copilot’s most significant advantages is its deep ecosystem integration within Microsoft 365. For businesses and professionals already using Microsoft Office, Copilot enhances workflows by embedding AI-driven suggestions and automation directly within familiar applications.

Its task automation capabilities are another significant benefit, helping users generate reports, summarize meetings, draft emails, and analyze data more efficiently. Furthermore, Copilot receives continuous updates backed by Microsoft’s substantial investments in AI and cloud computing, ensuring regular improvements in performance, accuracy, and feature expansion.

In contrast, one of the significant drawbacks of Microsoft’s Copilot is its ecosystem lock-in—Copilot is tightly coupled with Microsoft 365, meaning its full potential is only realized by organizations already invested in Microsoft’s software ecosystem. Limited flexibility is another concern, as it lacks extensive third-party integrations found in more open AI platforms, making customization difficult for businesses that rely on a broader range of tools.

Additionally, some users report occasional response inconsistencies, where Copilot may lose context in long sessions or provide overly generic responses, requiring manual refinement.

Meta AI

Meta’s suite of AI tools, built on its open-weight LLaMA models, is a versatile and research-friendly AI suite designed for both general use and specialized applications. Meta’s approach prioritizes open-source development, accessibility, and integration with its social media platforms, making it a unique player in the AI landscape.

It is ideal for developers, researchers, and AI enthusiasts who want free, open-source models that they can customize and fine-tune. It is also well-suited for businesses and brands leveraging Meta’s social platforms, as its AI can enhance customer interactions and content creation within apps like Instagram and WhatsApp.

Meta AI is highly accessible for developers and researchers due to its open-source availability and flexibility. However, businesses and casual users may find it less intuitive compared to AI models with more refined user-facing tools. Additionally, companies needing strong content moderation and regulatory compliance may prefer more tightly controlled AI systems from competitors like Microsoft or Anthropic.

Meta AI operates on a range of LLaMA models, including LLaMA 2 and LLaMA 3, which serve as the foundation for various applications. Specialized versions, such as Code Llama, are tailored for coding tasks, offering developers AI-powered assistance in programming.

One of Meta AI’s standout features is its open-source licensing, which makes many of its tools free for research and commercial use. However, enterprise users may encounter service-level agreements ( SLAs ) or indirect costs, especially when integrating Meta’s AI with proprietary systems or platform partnerships.

Meta AI’s biggest advantage is its open-source and customizable nature, allowing developers to fine-tune models for specific use cases. This fosters greater innovation, flexibility, and transparency compared to closed AI systems.

Additionally, Meta AI is embedded within popular social media platforms like Facebook, Instagram, and WhatsApp, giving it massive consumer reach and real-time interactive capabilities. Meta also provides specialized AI models, such as Code Llama, for programming and catering to niche technical applications.

Despite its powerful underlying technology, Meta AI’s user interfaces and responsiveness can sometimes feel less polished than those of competitors like OpenAI and Microsoft. Additionally, Meta has faced controversies regarding content moderation and bias, raising concerns about AI-generated misinformation and regulatory scrutiny.

Another challenge is ecosystem fragmentation, with multiple AI models and branding under Meta, navigating the differences between Meta AI, LLaMA and other offerings can be confusing for both developers and general users.

AI’s impact on the future of technology

As AI adoption grows, the energy demand for training and operating these models increases. Companies are developing more efficient AI models while managing infrastructure costs.

Modern AI models, particularly those known as large language models ( LLMs), are powerhouses that demand vast computational resources. Training these models involves running billions of calculations across highly specialized hardware over days, weeks, or even months.

The process is analogous to running an industrial factory non-stop—a feat that requires a tremendous amount of energy. The rise of AI assistants, automation, and multimodal capabilities will further shape industries, from customer support to content creation.

” The worst thing you can do is have machines wasting power by being always on”, said James Coomer, senior vice president for products at DDN, a California-based software development firm, during the 2023 AI conference ai-PULSE.

AI competition will likely drive further advancements, leading to smarter, more accessible, and environmentally conscious AI solutions. However, challenges related to cost, data privacy, and ethical considerations will continue to shape the development of AI.

AI companies are actively addressing concerns about energy consumption and sustainability by optimizing their models to enhance efficiency while minimizing power usage. One key approach is leveraging renewable energy sources, such as solar and wind power, to supply data centers, which significantly reduces their carbon footprint.

Additionally, advancements in hardware are being developed to support more energy-efficient AI computation, enabling systems to perform complex tasks with lower energy demands. These innovations not only help reduce environmental impact but also contribute to long-term cost savings for AI companies.

Beyond technological improvements, regulatory policies are being introduced to ensure AI growth aligns with environmental sustainability. Governments and industry leaders need to work together to establish guidelines that encourage responsible energy consumption while promoting research into eco-friendly AI solutions. However, the fear of governmental regulation often makes technology leaders hesitant to collaborate.

One voice at the forefront of global AI governance is Amandeep Singh Gill, the United Nations Secretary-General’s envoy on technology, who emphasizes the importance of collaborative governance in AI development —and sustainable development needs to be part of this cooperation and coordination.

” ]W] e have to find ways to engage with those who are in the know”, he said in a September 2024 interview in Time. ” Often, there’s a gap between technology developers and regulators, particularly when the private sector is in the lead.

When it comes to diplomats and civil servants and leaders and ministers, there’s a further gap. How can you involve different stakeholders, the private sector in particular, in a way that influences action? You need to have a shared understanding”.

No matter the level of collaboration between the private and public sectors, companies need to aggressively explore emission-mitigation methods like carbon offset programs and energy-efficient algorithms to further mitigate their environmental impact.

By integrating these strategies, the AI industry is making strides toward a more sustainable future without compromising innovation and progress.

Balancing innovation and responsibility

AI is advancing rapidly, with OpenAI, Google, Anthropic, DeepSeek, CoPilot and MetaAI leading the way. While these models offer groundbreaking capabilities, they also come with costs, limitations, and sustainability concerns.

Businesses, researchers, and policymakers must prioritize responsible AI development while maintaining accessibility and efficiency. The Futurist: The AI ( R ) evolution panel discussion held by the Washington Post brought together industry leaders to explore the multifaceted impact of artificial intelligence ( AI ) on business, governance, and society.

Martin Kon of Cohere explains that his role is securing AI for business with an emphasis on data privacy, which is essential for” critical infrastructure like banking, insurance, health care, government, energy, telco, etc”.

Because there’s no equivalent of Google Search for enterprises, AI, Kon says, is an invaluable tool in searching for needles in haystacks–but it’s complicated:” Every year, those haystacks get bigger, and every year, the needles get more valuable, but every enterprise’s haystacks are different. They’re data sources, and everyone cares about different needles”. He is, however, optimistic on the job front, maintaining that the new technology will create more jobs and greater value than many critics fear.

” Doctors, nurses, radiologists spend three and a half hours a day on admin. If you can get that done in 20 minutes, that’s three hours a day you’ve freed up of health care professionals. You’re not going to fire a third of them. They’re just going to have more time to treat patients, to train, to teach others, to sleep for the brain surgery tomorrow”.

May Habib, CEO of Writer, which builds AI models, is similarly optimistic, describing AI as “democratizing”. ” All of these secret Einsteins in the company that didn’t have access to the tools to build can now build things that can be completely trajectory-changing for the business, and that’s the kind of vision that folks need to hear. And when folks hear that vision, they see a space and a part for themselves in it”.

Sy Choudhury, director of business development for AI Partnerships at Meta, sees a vital role for AI on the public sector side. ” ]I ] t can be everything very mundane from logistics all the way to cybersecurity, all the way to your billing and making sure that you can talk to your state school when you’re applying for federal student–or student loans, that kind of thing”.

Rep. Jay Obernolte (R-CA ), who led the House AI Task Force in 2024, acknowledges the need for” an institute to set standards for AI and to create testing and evaluation methodologies for AI” but emphasizes that” those standards should be non-compulsory …” And while agreeing that AI is” a very powerful tool”, he says that it’s still” just a tool”, adding that “if you concentrate on outcomes, you don’t have to worry as much about the tools …”

But some of those outcomes, he admits, can be adverse. ” ]O ] ne example that I use a lot is the potential malicious use of AI for cyber fraud and cyber theft”, he says. ” ]I ] n the pantheon of malicious uses of AI, that’s one of the ones that we at the task force worried the most about because we say bad actors are going to bad, and they’re going to bad more productively with AI than without AI because it’s such a powerful tool for enhancing productivity”.

Consumers can also do their part by managing AI usage wisely—turning off unused applications, optimizing workflows, and advocating for sustainable AI practices. AI’s future depends on balancing innovation with responsibility. The challenge is not just about creating smarter AI but also ensuring that its growth benefits society while minimizing its environmental impact.

Sharon Kumar is a technology editor at The Observatory, where he provides analysis and critical perspectives on the rapidly evolving tech landscape. As a seasoned MAANG tech professional with over a decade of experience in program management, strategic planning, and technology-driven business solutions, including AI and system performance optimization, Kumar has a deep understanding of emerging trends, digital infrastructure, and software development.

This article was produced by The Observatory, a project of the Independent Media Institute, and is republished with permission.

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Thai rice to be hit hard by US tariffs, MP urges action

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Govt warned big problems facing farmers

PUBLISHED: 5 Apr 2025 at 03: 30

The grain export field is being told to prepare for effects caused by the 36 % tariff on goods from Thailand announced by US President Donald Trump, while the government is being urged to deal for a lower price level.

Chadchawan Phaethayathai, a Roi Et MP of the criticism Thai Sang Thai Party, yesterday predicted a huge impact from the high tax rate on Thailand’s grain export market, saying hom mali rice, which is very popular in the US, may be particularly hard hit.

As s mali rice’s main trade industry is the US, at least US$ 8 billion ( 274 billion baht ) in deficits are estimated now, said Mr Chadchawan, who described the situation as a major issue now facing Thai producers who form the majority of Thailand’s people.

The higher price level means the price of hom mali rice from Thailand sold in the US will hop from between US$ 900 and US$ 1, 000 per tonne to around US$ 1, 400 per tonne, which could make the rice less appealing to price-sensitive buyers, especially when compared with rice from another exporters at a lower price.

” I call on the government to urgently discuss the matter to find a solution to this problem”, he said.

He suggested that the government negotiate for a relaxation of the reciprocal tariff or additional benefits for products from Thailand in the Generalised System of Preferences ( GSP).

He also recommended that the government speed up expanding rice export markets in Europe, the Middle East and China, among other places, while adding more value to Thai rice through supporting more exports of organic Thai rice.

More importantly, he said, the government would, from now on, have to focus on bringing down the production costs of Thai rice to improve the product’s competitiveness in the global market.

The government had better start now as the new rice growing season is due to begin next month. Otherwise, rice prices will plummet during the harvest, he said.

Chukiat Opaswong, the honorary president of the Thai Rice Exporters Association, said that with the 36 % tariff rate imposed on Thai products, Thailand risks losing its rice export share in the US market to Vietnam, whose fragrant rice is priced way cheaper than Thai hom mali rice.

Last year, Thailand recorded rice exports to the US of more than 850, 000 tonnes, while in the first two months of this year, more than 100, 000 tonnes of Thai hom mali rice were exported to the US following news of the imminent reciprocal tariff plans, he said.

Assoc Prof Kiatanantha Lounkaew, an economics lecturer at Thammasat University, said the US has always signalled that it is open to negotiations, while Thailand needs to act fast and efficiently.

To meet the US president’s expectations, Thailand urgently needs to craft a clear action plan that can be brought to the negotiating table with the US, while possibly having to demonstrate a greater distance from China to the US.

He also warned that the government should be prepared to tackle an even more serious situation whereby cheap Chinese products could flood the Thai market as a result of China facing high US tariffs as well.

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After America: Redefining global leadership in an age of collapse – Asia Times

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For years, the earth moved along a distinct trail of creation laid down by the United States.

As the political anchor and designer of the post– World War II international order, America not just offered protection and investment—it also sold a powerful narrative of what improvement meant. Progressive politics, free markets, eternal growth—these were packaged as the only legitimate way to the prospect.

But slowly, we began to realize the value. Natural loss. Social injustice. A deepening issue of interpretation. The problem today is no longer whether this concept works but why we still cling to it even as its fissures grow louder and wider.

As American hegemony falters—marked by rising protectionism, trade war and declining world trust—many will mourn the pump of global leadership.

But apparently in that very pump lies a long-overdue offer: a time to wait, turn around and question again—what sort of enhancement do we truly need? Not only development that creates work or hydrocarbons GDP, but one that sustains career, heals the earth and restores human integrity in our relation with each other and the Earth.

The growth model that America designed and spread—through organizations like the IMF, World Bank and WTO—quietly imposed a hierarchy of principles. A state was deemed “advanced” if its business grew rapidly, its markets opened wide and its rules conformed to international standards set by a privileged few.

But today, we live in a world fractured by climate crisis, ecological exhaustion and extreme inequality. In such a world, development can no longer mean expansion, it must become consolidation. Not scaling up extraction but rebalancing power and rethinking how we relate to nature, capital and each other.

This reckoning reached a turning point in 2025, when Donald Trump returned to the presidency and declared what he called” Liberation Day” on April 2.

Standing at the White House, he announced sweeping tariffs on nearly all imports, framing them as an act of economic emancipation—an attempt to free the United States from what he called the shackles of unfair global trade.

But beyond its protectionist aims, Liberation Day marked something far more symbolic: the world’s leading superpower formally retreating from the very global order it had built and championed for decades.

Suddenly, the stage lacked an anchor. And in that moment of rupture, a door opened—not just for trade realignments but for deeper reflection. Has global development ever truly been designed for all? Or has it long functioned as a mechanism to prolong dominance beneath the language of universality?

We often associate sustainability with clean energy, green tech, and ESG investing. But true sustainability demands more than surface solutions: It requires structural change. The world cannot achieve ecological balance while its economic logic still rewards fossil fuel dependency, large-scale mining and supply chains that externalize harm.

There will be no climate justice as long as financial systems continue to incentivize extractive growth. And there can be no real sustainability if it remains a corporate slogan rather than a core principle of global governance.

America’s dominance normalized inequality. Countries deep in debt were pressured to cut social protections to meet loan conditions. Environmental regulations were weakened in the name of competitiveness.

Even the energy transition was calculated through the lens of profit, not collective survival. What the world needs now is not just redistribution of resources but a redistribution of direction. A reorientation of what development is meant to serve and whom.

Still, a world without a dominant power carries its own risks. Multipolarity without ethics can easily descend into new forms of chaos. Those stepping into the void may replicate the very logic they seek to replace: seeking influence, expanding control and chasing growth.

The question, then, is not who leads—but how we redefine leadership itself. Leadership not as domination but as collective responsibility. Leadership that serves life, not leverage.

We need global institutions that are no longer beholden to geopolitical monopolies. The United Nations must be reformed to be more democratic and responsive. The IMF and World Bank must abandon their outdated logic of austerity and begin centering justice. Global trade must internalize ecological and social costs into its core pricing structures.

This is not a technical reform. This is a transformation of values. Because no system can fix the crisis it was designed to protect unless it first changes what it believes to be valuable.

At this juncture, we must find the courage to admit: sustainable development is not about balancing growth with the environment—it’s about choosing the values that guide our lives together.

Will we continue to measure progress through GDP? Or will we begin to ask deeper questions—about community resilience, ecological limits and our shared capacity to live with dignity?

If American dominance handed us one model that dismissed these questions, then a post-American world must become the space where they are answered—honestly, urgently and together.

Perhaps for the first time in modern history humanity stands at the threshold of redesigning the global order—not from the ruins of war, but from a consciousness quietly rising from within the wreckage of illusion.

A consciousness that knows the planet cannot endure another century of extractive ambition. That the climate crisis is not just technical, it is moral. And that true sustainability cannot be owned by any single country, system or ideology.

If we can see America’s retreat not as a void but as an opening—for co-creation, co-responsibility, and collective redesign—then we are entering a new era of development.

One not obsessed with speed but rooted in depth. One not built on control, but on shared stewardship. One that refuses to be dictated by markets alone and begins instead with meaning.

From here, a quieter kind of hope can emerge. Not loud or triumphant, but grounded and enduring. A hope that does not seduce us with promises, but one that invites us back to what matters. The chance to build a world that no longer serves empire but serves life.

Setyo Budiantoro is Nexus Strategist at The Prakarsa, MIT Sloan IDEAS Fellow 2024,
and member of the Advisory Committee of Fair Finance Asia

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Trump’s trade ignorance will make America poorer – Asia Times

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I don’t really think you may beat Trump’s tariffs by arguing with them sensibly or by explaining financial concept. I mean, how do you say with something like this?

I’ve resigned myself to the concept that the only way America is going to travel to the large revelation that broad-based tariffs are negative is to experience the adverse consequences first-hand — i. e., to reach the proverbial warm stove. Luckily, I think Americans properly be coming about very quickly:

Source: Gallup

But regardless, this is an economy website, and so even though I don’t expect it to give some political earnings, I thought I might as well explain why trade imbalances don’t make a country poorer ( though that doesn’t mean they’re Fine ).

Trump’s mistaken perspective of business imbalances

Trump and his officials and sycophants believe that business imbalances constitute America being “ripped off” by foreign nations. &nbsp, As I explained in today’s blog, this is why Trump set his price prices at a level that he thinks may reduce America’s trade imbalance with each unique country.

Trump’s perspective of business deficits is based on two fundamental errors. The second is&nbsp, a basic finance problem. Trump’s officials looked at the formula for GDP and noted that goods get subtracted from GDP.

They didn’t know that this is because goods even get&nbsp, added&nbsp, to use and investment, so you have to remove them at the end in order to eliminate them from the amount. The truth is that goods don’t change GDP one way or another.

Trump’s subsequent mistake is based on the idea that imports will be replaced 1-for-1 by domestic production — i. e., if you stop America from importing a cleaning system, an American company will make one more cleaning system instead. That’s certainly one&nbsp, possible&nbsp, outcome, but it’s not the only one. American consumers could just go without one washing machine, making everyone poorer.

In fact, Trump and his people probably don’t even realize these are two&nbsp, separate&nbsp, misunderstandings. They probably think that their mistaken belief about accounting ( i. e. that imports reduce GDP ) follows naturally from their mistaken belief about import substitution. The two mistakes mutually reinforce each other.

Anyway, because Trump misunderstands trade deficits in these two ways, he believes that when America runs a trade deficit with a country, that country is ripping us off. He thinks imports are lowering U. S. GDP by forcing us to produce less stuff — essentially, &nbsp, stealing American production. He thus sees trade deficits as a measure of how much is being stolen from America.

But that’s not actually how trade deficits work at all.

A trade deficit is like buying stuff with a credit card

Suppose you import a washing machine from some Chinese guy named Ruimin. Why would Ruimin give you that washing machine? Nothing is free. Basically, you can pay for that washing machine in two ways. The first way is to give Ruimin something he wants — say, 50 interesting books ( Ruimin famously likes to read ). The second way is to write Ruimin an IOU. 1

The first case is called&nbsp, balanced trade. You get a washing machine, Ruimin gets 50 books. There’s no trade deficit or surplus.

The other thing that can happen is&nbsp, unbalanced&nbsp, trade. In this case, instead of 50 books, you give Ruimin a US Treasury bond. A bond is an IOU. In this case, you’ve contributed to America ‘s&nbsp, trade deficit&nbsp, with China. A real good or service — the washing machine — went from China to America, and the only thing that went back in return was a slip of paper (or, actually, a number in a spreadsheet ).

At some point when you hear economists discuss trade, you might hear them talk about the” current account” and the” capital account”. The current account is basically just the net flow of real goods and services, 2&nbsp, and the capital account is basically just the net flow of IOUs.

If you give Ruimin an IOU in exchange for a washing machine, it means you’ve contributed to America ‘s&nbsp, current account deficit, and you’ve also contributed to its&nbsp, capital account surplus. &nbsp, Both of those things just mean “paying foreigners for stuff with IOUs”.

Now you can see why a trade deficit is like buying stuff with a credit card. When I buy a washing machine from Target with my credit card, I’m writing an IOU and I’m getting a tangible thing in return.

Does using your credit card to buy a washing machine from Target mean that Target has ripped you off? No. Does it make you poorer when you use your credit card to buy a washing machine from Target? Nope. You now have less money, but you have &nbsp, more stuff. In just the same way, a trade deficit means that the US has &nbsp, less money and more stuff. It does not mean America is poorer, or that it has been ripped off by foreigners.

A case where trade deficits can be good

Asking whether trade deficits are good or bad is like asking whether buying stuff with borrowed money is good or bad. The answer is pretty obviously “it depends on whether the purchase was worth it”.

One thing to remember is that not all purchases are for consumption — a lot are actually&nbsp, productive investment. If an American factory buys a Japanese CNC machine tool for$ 100, 000, and the Japanese toolmaker simply stashes the money in US Treasury bonds, that contributes to the US trade deficit. But if the American factory uses that tool to make and sell$ 500, 000 worth of car parts, it has come out ahead — and America has come out ahead too.

This is what South Korea did when it was rapidly industrializing. Around 1980 and then again in the early 1990s, South Korea ran a trade deficit:

Source: &nbsp, World Bank

This was a time when South Korea was investing a huge amount in its industrial economy:

Source: &nbsp, World Bank

As an aside, in the late 70s and early 80s, at the same time it was running a trade deficit, Korea was also ramping up&nbsp, exports&nbsp, — not just in dollar terms, but also as a percent of its GDP:

Source: &nbsp, World Bank

Remember that exports add to GDP, while imports don’t subtract from GDP. So even as South Korea ran a big&nbsp, trade deficit, trade was &nbsp, adding more and more to South Korea’s GDP&nbsp, each year. A MAGA guy will have a very hard time wrapping his head around that fact.

But anyway, South Korea’s trade deficits at that time were probably worth it, because importing capital goods ( machinery, etc. ) helped them industrialize more rapidly than if they had had to take the time to make all those capital goods themselves. They just bought the machines and immediately used them to make cars and TVs and other useful stuff, much of which they sold to the rest of the world at a profit.

In fact, the US does some of this as well. When we think of U. S. trade deficits, we usually think of&nbsp, consumption goods &nbsp, — cheap Chinese TVs and such. But the US also&nbsp, imports a decent amount of&nbsp, capital goods, which American companies use to produce and sell things. The US&nbsp, did even more of this in the 1990s, when we ran a trade deficit but also had an investment and export boom.

But be careful here:” Using a trade deficit for investment” doesn’t mean” The trade deficit is good”. If companies import a lot of capital goods but see a low return on the investment, it can be bad.

What if trade deficits are used for consumption? Is that good or bad?

Anyway, what about when you use trade deficits to buy consumption goods — those cheap Chinese TVs and Canadian-made cars and such? Consumption goods a majority of America’s trade deficit these days. Is&nbsp, that&nbsp, trade deficit good or bad?

In this case, we have to decide whether “buy now, pay later” is good or bad. Remember, a trade deficit is like buying something with a credit card. When America imports Chinese TVs and Canadian cars, and China and Canada get US Treasury bonds in exchange, it means that America now&nbsp, owes China and Canada money.

At any time, China and Canada can choose to sell the bonds for dollars and use those dollars to buy US goods and services. If they eventually do this, then at that time, they’ll run&nbsp, a trade deficit with the US. &nbsp, In that case, what basically happened is that the US&nbsp, borrowed from China and Canada, and paid them back later.

This is just like if you buy a washing machine from Target with your credit card, then work to earn some salary, and then use your paycheck to pay off your credit card. Was this bad or good? It depends.

Maybe you could have just waited to get the washing machine until you had the cash in the bank. Or maybe it was worth it to you to get the washing machine now instead of waiting a few months, even though you had to pay a bit of interest on the credit card debt.

Buying consumer goods with debt can be a good financial decision or a bad financial decision. That’s basically what the US is doing when it runs a trade deficit with other countries.

It’s also worth mentioning that just like a credit card borrower, the US might never fully pay its foreign loans back. If the US experiences a burst of unexpectedly&nbsp, high inflation, the US bonds that China and Canada hold will be devalued. 3&nbsp, That’s basically like a partial debt default. Or, if someday an irresponsible US leader comes along and defaults on the debt, China and Canada will see some of the value of their Treasury bonds evaporate into thin air.

So when the US runs a trade deficit with other countries, those other countries are taking a risk. They’re basically giving us a credit card that we can use to buy stuff that they make. There’s always the possibility that we might just declare bankruptcy and never pay them back.

So you could say that in a sense, countries that run trade deficits are more short-term focused, or less patient, than countries that run trade surpluses. Nations don’t really have motivations and personalities like that, but it’s not a terrible way to think about it.

Do trade deficits deindustrialize America?

The final question here is whether importing stuff from other countries causes America to make less stuff. Maybe if you buy some tomatoes with your credit card, it’ll mean you grow fewer tomatoes in your own garden as a result. And then when it comes time to pay back the credit card debt, you might have forgotten how to grow tomatoes. That’s basically what deindustrialization is. 4

Obviously, there are some cases where a trade deficit doesn’t cause deindustrialization. For example, in the case of South Korea in the 1980s and 1990s, we saw that trade deficits helped to&nbsp, industrialize&nbsp, the country and ramp up manufacturing. Something similar probably happened to the US in the 1990s.

But OK, we’re not talking about those historical cases, right? We’re talking about the trade deficits that the US has run in the last 25 years, mostly with China but also with a bunch of other countries. Those trade deficits were&nbsp, mostly&nbsp, America borrowing to consume, not to invest. The question is whether they resulted in America losing its manufacturing industries.

The answer, at least with regards to China, is “yes”. Autor et al. ( 2013 ) &nbsp, famously find that “import competition ]from China ] explains one-quarter of the contemporaneous aggregate decline in US manufacturing employment]between 1990 and 2007 ]” .&nbsp, Bloom et al. ( 2024 ) &nbsp, find that Chinese import competition caused a big reallocation from manufacturing to service jobs on the West Coast and in big cities, but in the Midwest it mostly just caused wage declines and job losses. And&nbsp, Acemoglu et al. ( 2014 ) &nbsp, write:

In this paper, we explore the contribution of the swift rise of import competition from China to sluggish U. S. employment growth. We find that the increase in US imports from China, which accelerated after 2000, was &nbsp, a major force behind recent reductions in US manufacturing employment&nbsp, and that, through input-output linkages and other general equilibrium effects, it appears to have significantly suppressed overall US job growth…Our central estimates suggest net job losses of 2.0 to 2.4 million stemming from the rise in import competition from China over the period 1999 to 2011. ]emphasis mine ]

You can just kind of eyeball this by looking at the raw data. Until 2001, when China joined the WTO and started exporting tons of cheap stuff to America, US manufacturing employment had held up pretty well over the years ( despite falling as a percentage of the total ). In the 2000s — the decade of the big Chinese import surge — it just fell off a cliff:

It’s worth noting that it wasn’t &nbsp, the trade deficit per se&nbsp, that caused these job losses. Even if trade between the US and China had been balanced, Chinese import competition would probably have cost some US manufacturing workers their jobs, because A) some of the US exports would have been services instead of manufactured goods, and B) the US probably would have exported more capital-intensive goods, thus shifting away from the labor-intensive goods that China was good at making back in the 2000s.

But yes, the US trade deficit with China was huge, and caused significant deindustrialization. And the continued US trade deficit with China might be holding back US reindustrialization, both through import competition, and through China crowding US companies out of export markets.

So if you think manufacturing is important above and beyond its contribution to GDP ( as I do ), then the trade deficit with China is probably an important thing to address. But that doesn’t mean Trump’s tariffs are the right way to address it. I know that this is repeating stuff I’ve written in a lot of other posts, but this really bears repeating.

First of all, by making imported components more expensive, Trump’s tariffs are weakening US manufacturers — that’s why&nbsp, auto workers&nbsp, and&nbsp, steelworkers&nbsp, in the US are being laid off right now and why measures of manufacturing activity and sentiment are all&nbsp, heading down. Second of all, Trump’s tariffs will ultimately reduce America ‘s&nbsp, exports, not just its imports, both through exchange rate shifts, and through retaliation by other countries. That will hurt American manufacturing.

Tariffs on China might have been one part of a bigger strategy to improve America’s competitiveness in manufacturing. But broad tariffs on all of America’s trading partners, like the ones Trump just rolled out, are highly likely to accelerate America’s deindustrialization— even if they also reduce trade deficits. Ultimately, what’s important for the US isn’t to reduce imports — it’s to increase exports. Trump’s tariffs will only hurt that goal.

Notes

1 In practice, no one actually barters when they trade — no one actually trades books for washing machines. But when two countries have &nbsp, balanced trade, it means that they pay each other in currency that gets quickly used to buy some real good or service.

Ruimin gives you a washing machine, you swap some dollars to another Chinese guy for some yuan, you give the yuan to Ruimin, he uses the yuan to pay his doctor to treat his bad back, the doctor swaps the yuan for dollars, and then the doctor uses those dollars to buy 50 books from some other guy in America. That’s how balanced trade actually works.

2 It actually includes a few other things, but let’s keep it simple.

3 This is because the principal and interest on those bonds is specified in&nbsp, US dollars, and inflation makes a US dollar worth much less in terms of real physical goods and services.

4 This could matter because A) you might need to grow your own tomatoes for a food fight, or B) forgetting how to grow your own tomatoes might make it harder to pay back your debt in the future. OK, so it’s not a great metaphor.

This article was first published on Noah Smith’s Noahpinion&nbsp, Substack and is republished with kind permission. Become a Noahopinion&nbsp, subscriber&nbsp, here.

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Trump’s 25% auto tariffs: Price cuts and ‘safe mode’ – how Southeast Asia players might ride out turbulence

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Both Malaysia and Indonesia have much thinner vehicle business links with the US, with the countries ‘ full vehicle parts exports to the US worth US$ 86.3 million and US$ 73.8 million both in 2023, according to the UN trade figures.

While not all South Asian countries does face serious economic impacts following the introduction of the new tariffs, the ripple effects may mean their mechanical industries will face fresh market dynamics.

For example, Archanun feels that North Vietnamese carmakers- considered comparatively smaller global players that also produce most of their cars directly- will try to “divert” their car sales from the US to countries like Thailand.

” That seems to be in line with what we observed in Thailand, where Asian carmakers like Kia or Hyundai are participating in a price war intensively”, he said, noting that sticker rates on some models were slashed by roughly 25 per cent.

It is worth noting that ahead of the tax date, Hyundai had announced it had spend US$ 21 billion in the US by building a new metal plant in Louisiana. Whether that move reaped any concessions with the Trump administration is unclear.

Likewise, larger Original Equipment Manufacturers ( OEM)- global carmakers such as Toyota that Southeast Asian countries largely serve as local parts suppliers- will also be looking for alternative opportunities given that their vehicles are likely to be priced out of the US market, Patarapong said.

The solution may end up largely being within Southeast Asia itself, he suggested, contending that the impact of trade barriers to the US could in time be supplemented by a rise in intra-ASEAN trade, coupled with more investments within the broader ASEAN 6 group, which includes China, Japan, South Korea, Australia, New Zealand and India.

” I think ( the industry in Southeast Asia ) can weather the storm to some extent”, he said. ” In the long term, we think it may not be so bad”.

He expected more investment from countries such as China in the regional automotive industry because it wants” to rely more on the regional value chain rather than the US market”.

” For Japan, I think they will not withdraw their investments very easily, because right now they need to make sure that their investment is something controllable and ASEAN is like a backyard of Japan.

” You can also see more and more investment by the Korean automotive sector in ASEAN too, especially Vietnam and Indonesia. That’s going to increase over time, “he said.

Hyundai has invested US$ 415 million in Vietnam and employs about 2, 300 people, with annual revenues of around US$ 2.6 billion.

International businesses serving the auto industry with presence in Southeast Asia, like Desoutter Industrial Tools, are already trying to chart a course where they no longer have dependence on the American market.

But they are” hesitating” about where and when to invest given the pace and unpredictability of Trump’s policy-making, according to Glenn Heed, the global business manager for the motor vehicle industry at Desoutter, which provides automotive assembly tools and process control technologies to major carmakers around the world. It has operations in Thailand, Malaysia, Indonesia and Vietnam.

” The economy is breaking or slowing down just because of the uncertainty,” Heed said”. Of course, I’m worried. But this affects everyone. It’s how agile you are. What kind of decisions are you taking? I do think it’ll be like this for a long time, so we are trying to change the way we see the world, “he said.

Importantly, he sees the” possibility to increase partnerships with neighbours and other parts of the world”, and drive the rise of” local for local “production. &nbsp,

” Over a long time, I think it could be a positive thing for the rest of the world. ” &nbsp, &nbsp,

But Archanun cautioned that a self-serving strategy in Southeast Asia alone could not fill the gap for companies losing out on American business. &nbsp,

He forecasted that demand for durable goods like vehicles would drop in the months to come given the broader economic shocks expected following the tariffs introduced to countries all around the world.

That could lead to strong competition among automakers facing constrained consumer demand in this region.

” The cake will be smaller. They will have to fight very fiercely in this market, “he said.

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Malaysia strengthens tech ties at LEAP 2025 in Saudi Arabia

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  • MDEC leads online growth in Riyadh
  • Malaysian Professional Council – Riyadh launched to improve relations

Attendees at the Feb 10 Malaysian-Saudi networking dinner jointly organised by MDEC and the Malaysian Professional Council – Riyadh.

The Malaysia Digital Economy Corporation ( MDEC ) successfully spearheaded Malaysia’s presence at LEAP 2025, a global technology conference held in Riyadh, Saudi Arabia from Feb 9 to 12. This proposal reinforced Malaysia’s part in Saudi Arabia’s modern transition and opened new avenues for cross-border partnerships and digital business investments.

Over the course of four days, the Malay group, comprising technology firms and business leaders, engaged in extensive firm matching sessions, discussions, and studied relationship opportunities within Saudi Arabia’s expanding technology ecosystem. With a focus on AI, big data analytics ( BDA ), smart cities, fintech, cybersecurity, and semiconductor solutions, Malaysian companies garnered significant interest from Saudi industry leaders keen to explore collaborative opportunities.

The Indonesian group consisted of:

  • Vulsan X
  • Pimato Group
  • Consurv Technic
  • TellUS Report
  • Airupthere Technologies
  • GITP Asia

Each brought cutting-edge options, contributing to meaningful discussions on the future of AI, automation, and online network within Saudi Arabia’s Vision 2030 model.

A spotlight of the vision was a networking breakfast held. Jointly organized by MDEC and the newly minted Malaysian Professional Council – Riyadh ( MPCR ), the event provided an invaluable platform for fostering relationships between Malaysian and Saudi tech leaders. The breakfast facilitated discussions on investment opportunities, business development methods, and joint ventures aimed at strengthening diplomatic ties in the modern economy.

Strengthening diplomatic technical assistance

The invitation-only meal, attended by Indonesian executives and Royal organization leaders, underscored Malaysia’s devotion to deepening its modern footprint in the Middle East. Indonesian visitors included:

  • Ahmad Zakri, Chief Executive Officer, Edgenta Arabia Limited
  • Ahmad Fazril Fauzi, Chief Financial Officer, UEM Edgenta Bhd
  • Eddie Razak, TellUS Report
  • Raffles Chan, Founder, GITP Asia
  • Haekal Talib, An-Nahdah Capital Partners

The night served as an opening for MPCR, an program designed to integrate and support Indonesian professionals in Saudi Arabia. With MPCR acting as a bridge for knowledge exchange and business development, the council hopes to play a pivotal role in facilitating cross-border trade and investment in the digital and tech sectors.

 

Local partnerships and market accessibility

Haekal, who has successfully established partnerships with two Saudi nationals, highlighting the ease of collaboration and the favorable environment for foreign businesses looking to enter the market.

” The Saudi business landscape is incredibly welcoming to foreign partners where Saudi funding is aplenty, especially those bringing innovative ideas and solutions. Within a short period, I was able to connect with two Saudi partners who share my vision for growth and expansion. The regulatory framework and government initiatives make it easier than ever to establish partnerships and go to market with the right ideas”, said Haekal.

He emphasized that Saudi Arabia’s push for digital transformation aligns well with Malaysia’s expertise, and the synergies between the two Muslim nations provide a solid foundation for future collaborations. ” It’s an exciting time for businesses looking to enter this market. The demand for technology-driven solutions is immense, and Malaysia is well-positioned to contribute”.

MoU to enhance Malaysia-Kingdom of Saudi Arabia tech collaboration

MDEC and the Federation of Saudi Chambers ( FSC ) signed an MoU with MDEC represented by Nizam Rosli, Global Alliance, Digital Exports, with Abdulghani Al Rumaih, Chairman, Saudi Regional Council for South East Asia, representing FSC. The MoU is seen as a commitment to foster business expansion, digital trade and investment between tech companies in both nations.

The MoU paves the way for structured business matching, networking, ecosystem development, and joint promotional efforts to accelerate digital growth across both nations.

Nizam outlined the key expectations and objectives. ” MDEC and the Federation of Saudi Chambers of Commerce ( FSCC ) will undertake a range of collaborative activities with the goal of uplifting trade and investment opportunities for tech companies in both markets. This includes fostering innovation pipelines through public and private ecosystem builders, providing platforms for knowledge exchange, and facilitating participation in business events such as networking sessions, dialogues, conferences, exhibitions, and workshops”.
Arabic Generative AI by MOZN.ai on display at LEAP 2025.

Immersing in the MENA tech ecosystem

Beyond formal business engagements, the Malaysian delegation actively participated in LEAP Nights, exclusive networking receptions that connected global tech leaders with Saudi stakeholders. Notably, attendees experienced the vibrant energy of Riyadh’s evolving tech landscape at events hosted by 500 MENA, KAUST Innovation, and Endeavor Saudi Arabia, further strengthening ties with regional venture capitalists, ecosystem builders, and tech innovators during Riyadh’s cold winter nights.

With the Kingdom of Saudi Arabia’s ambitions to grow into a global tech player, Malaysia’s proactive engagement at LEAP 2025 underscores its readiness to contribute to and benefit from the region’s digital transformation. The collaborations forged during this mission mark the beginning of an exciting chapter for Malaysia’s digital economy expansion in the Middle East.

As MDEC and Malaysian tech companies continue their efforts in Saudi Arabia, the prospects of enhanced digital trade, investment, and knowledge exchange signal a promising future for both nations in the global digital economy.

Malaysia-Saudi trade overview

In 2023, total trade between Malaysia and Saudi Arabia was valued at approximately US$ 11.54 billion ( RM51.27 billion ). Key sectors contributing include:

    Oil &amp, Gas: Saudi Arabia exported US$ 7.24 billion worth of crude petroleum and US$ 1.22 billion in refined petroleum to Malaysia.

  • Plastics and Chemicals: Ethylene polymers and other chemical products accounted for US$ 252 million.
  • Agriculture: Malaysia exported US$ 494 million worth of palm oil to Saudi Arabia.
  • Digital and Electronics: Electrical and electronic products were key contributors to Malaysia’s exports.
  • Hospitality and Services: Tourism, particularly related to Hajj and Umrah, plays a role in bilateral trade, though specific service trade figures are limited.

]RM1 = US$ 0.225 ]

Muhammad Adrian Wong is a Contributing Editor to Digital News Asia. He attended LEAP 2025 on his own diem.

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