FEBRUARY 13 — The launch of DeepSeek, a revolutionary AI platform designed with a low-cost, scalable model, is set to reshape the global AI industry. For South-east Asia, a region brimming with technological potential and a rapidly growing digital economy, DeepSeek’s arrival couldn’t be timelier. Deepseek is set to reshape the AI industry, bringing transformative changes that will particularly benefit small and medium-sized tech enterprises.
Benjamin Ho, assistant professor at Nanyang Technological University, notes that while China’s AI capabilities are attractive, South-east Asian countries will evaluate offerings based on commercial viability and national security considerations. Malaysia, with its strategic push for AI adoption, is likely to be a key beneficiary of DeepSeek’s expansion.
Lowering barriers to AI adoption
DeepSeek’s low-cost model addresses one of the most significant barriers to AI adoption in South-east Asia: affordability. By making advanced AI technologies accessible to small and medium-sized enterprises (SMEs) and startups, DeepSeek is poised to accelerate the region’s digital transformation. This has profound implications for South-east Asia’s tech ecosystem, which is already experiencing rapid growth driven by a young, tech-savvy population and increasing internet penetration.
South-east Asian firms often compete with larger Chinese and Western tech giants that have substantial AI resources. With Deepseek leveling the playing field, local companies can harness advanced AI capabilities at a fraction of the cost. This will allow regional tech firms to develop competitive products and services tailored to local market needs, potentially increasing their valuations and attractiveness to investors.
Lee Choon Wooi, Chief Executive Officer of Starbox Group Holdings Ltd, a Nasdaq listed company, welcomes the new change: “Deepseek’s low-cost model is really a game-changer. It allows many SMEs like ours to integrate AI-driven solutions and deploy cutting-edge AI models without excessive upfront costs. We will see many opportunities in the fields of AI-Driven Automation for Cost Reduction, Personalised Marketing & E-Commerce AI, AI-Powered Content Creation for Digital Businesses and AI Training & Reskilling Services etc.”
Key implications for South-east Asia’s AI industry
1. Empowering SMEs and startups
SMEs form the backbone of South-east Asia’s economy, contributing significantly to GDP and employment. However, many have struggled to adopt AI due to high costs and technical complexities. DeepSeek’s affordable model enables these businesses to leverage AI for process automation, customer insights, and product innovation, levelling the playing field and fostering competitiveness.
2. Driving sector-specific innovation
DeepSeek’s scalability and ease of use make it ideal for sector-specific applications. For instance:
- E-commerce: AI-powered recommendation engines and supply chain optimisation
- Fintech: Fraud detection and personalised financial services
- Healthcare: Telemedicine and diagnostic tools to improve access to quality care
- Agriculture: Predictive analytics for crop monitoring and yield optimisation
3. Strengthening regional collaboration
DeepSeek’s launch encourages cross-border collaboration within South-east Asia, enabling tech companies to share knowledge, resources, and best practices. This collaborative approach will enhance the region’s collective ability to compete on the global stage.
Identifying the incoming opportunities
For investors, the key to leveraging Deepseek’s impact lies in identifying companies that can effectively integrate AI into their business models. Some of the most promising areas include:
- AI-powered SaaS companies: Startups offering AI-driven business solutions, such as automated workflows and cybersecurity enhancements
- Digital banking and payment platforms: Companies leveraging AI to improve credit scoring, fraud prevention, and personalised financial products
- Smart manufacturing and robotics: AI-powered automation solutions that enhance operational efficiency in industrial sectors
Countries like Singapore, Malaysia and Indonesia, which already have thriving digital economies, stand to gain the most from Deepseek’s advancements, making them key targets for investment.
DeepSeek’s low-cost model addresses one of the most significant barriers to AI adoption in South-east Asia: affordability. — Reuters pic
Investment hotspots in South-east Asia
Elon Musk, CEO of Tesla and SpaceX, is very optimistic about South-east Asia market: “The AI revolution will be globally disruptive, and markets like South-east Asia have a unique advantage with their rapid digital adoption and willingness to embrace new technologies.”
Sundar Pichai, CEO of Alphabet echoes: “South-east Asia represents a key growth area for AI and cloud services. Our investment in AI R&D in Malaysia is a step toward ensuring that businesses in the region have access to the latest AI innovations to drive economic growth.”
Several public tech companies in South-east Asia are poised to benefit from Deepseek’s advancements. Investors should monitor these firms for AI-driven growth potential:
Starbox Group Holdings Ltd — A rising fintech and advertising company leveraging AI to optimise customer acquisition and digital marketing strategies.
Sea Limited — A leading digital entertainment, e-commerce, and fintech company operating in Indonesia, Vietnam, and beyond.
Grab Holdings — A major player in ride-hailing, food delivery, and financial services, increasingly incorporating AI-driven optimisation.
GoTo Group — Indonesia’s tech giant, formed through the merger of Gojek and Tokopedia, with investments in AI-powered logistics and fintech.
Bukalapak — An e-commerce platform leveraging AI for personalised recommendations and supply chain efficiencies.
Razer Inc — A gaming and fintech company that integrates AI in hardware, payments, and cloud services.
These companies, along with promising startups, stand to gain from AI innovations, making them attractive targets for investors.
Key takeaways
Deepseek’s arrival marks a pivotal moment for South-east Asia’s AI landscape. By democratising access to advanced AI technologies, DeepSeek is unlocking new opportunities for SMEs, startups, and tech companies across the region. For investors, this presents a golden opportunity to tap into South-east Asia’s growing tech ecosystem and capitalise on the transformative potential of AI.
As South-east Asia continues to rise as a global tech hub, companies that embrace DeepSeek and leverage its capabilities will be at the forefront of innovation. For those looking to invest in the future of technology, South-east Asia’s tech sector offers a compelling proposition — one that is poised for exponential growth in the years to come.
*This is the personal opinion of the writers or publication and does not necessarily represent the views of Malay Mail.
