Free and Open Indo-Pacific Strategy Spurs Growth in Southeast Asia’s Tech and Talent Sectors

Johor:Nairobi In August 2016, the Free and Open Indo-Pacific (FOIP) strategy was unveiled by then Japanese Prime Minister Shinzo Abe during the 6th Tokyo International Conference on African Development (TICAD VI) in Nairobi, Kenya. Over the past decade, the strategy has gained significant traction in the United States and Europe.

According to Philippines News agency, the FOIP strategy emphasizes respect for freedom, openness, diversity, inclusiveness, and the rule of law. Recently, the focus has shifted towards collaboration with partners, including the Association of Southeast Asian Nations (ASEAN), to foster regional prosperity through technological cooperation and workforce development in sectors like digital technology and semiconductors.

Southeast Asia, previously recognized for low labor costs, is emerging as a new hub for artificial intelligence (AI) and semiconductor industries, driven by a trend towards 'de-risking'—reducing dependence on China by reorganizing supply chains. Johor, Malaysia, has become a leading data center hub, attracting global companies such as Microsoft Corp., Nvidia Corp., and NTT Data Japan Corp. The region's growth is linked to Singapore's developments, where data center approvals were suspended in 2019 due to environmental concerns.

Johor offers advantages over Singapore, such as abundant land, lower costs, and political stability, appealing to companies establishing operations. NTT Data's large-scale data center campus in Johor, with a planned power capacity of 290 megawatts, underscores this trend, with operations expected to begin in April 2027.

Vietnam is also attracting digital investment, with Intel Corp. and Samsung Electronics Co. expanding semiconductor operations. Japan supports Vietnam's industrial upgrading by developing semiconductor talent, aiming to train 50,000 professionals by 2030. Vietnam Japan University's program, supported by the Japan International Cooperation Agency (JICA), plays a vital role in this initiative.

The development of talent and mutual understanding through educational programs and experience-sharing is expected to strengthen networks across Southeast Asia, facilitating the growth of the semiconductor industry and enhancing regional collaboration.