Southeast Asia ‘has not really moved up the value chain’ and risks missing the AI boom, says Standard Chartered’s chief ASEAN economist

(Credit: COURTESY OF STANDARD CHARTERED)

Economies like South Korea, Japan, and Taiwan are cementing their position as the hardware engines behind the AI boom. Southeast Asia, on the other hand, is playing catch-up.

“Despite all the talk about FDI, Southeast Asia has not really moved up the value chain,” Edward Lee, Standard Chartered’s chief economist and head of FX for ASEAN and South Asia, tells Fortune. Southeast Asia contributes just 6% of global intermediate manufacturing, compared with 15% for China.