The Vienna Institute for Global Studies (VIGS) hosted a panel discussion titled “Southeast Asia as the New Digital Chessboard in the Age of AI,” moderated by Marlies Eder of Die Presse. The event examined how Southeast Asia is positioning itself at the crossroads of digital transformation, artificial intelligence, and intensifying strategic rivalry between the United States and China.

Bringing together leading voices from ASEAN, Malaysia, Vietnam, and Europe, the discussion offered in-depth perspectives on how a fast-growing region of nearly 700 million people is navigating geopolitical competition while advancing its own digital and technological ambitions.

The panel featured:

• Dr. Amirudin Abdul Wahab (Malaysia) – Executive Board Member, POLCYB; Vice President for Development, Global POLCYB
• Mr. Hazremi Hamid (Malaysia) – Senior Officer for Digital Economy at the ASEAN Secretariat, Indonesia
• Dr. Alfred Gerstl (Austria) – President of the Central European Institute of Asian Studies (CEIAS)
• Dr. Le Hong Hiep (Vietnam) – Senior Fellow and Coordinator of the Vietnam Studies Programme at the ISEAS–Yusof Ishak Institute, Singapor

During the opening remarks, Prof. Dr. Zoltan Acs, Director of VIGS, started the discussion within the broader context of rapid technological acceleration and its impact on institutions and governance. He emphasized that technological change is advancing faster than societies and political systems are structurally prepared to manage. In his view, innovation is outpacing institutional adaptation, placing increasing pressure on systems at both national and international levels. He therefore underscored the need for structured, evidence-based dialogue to better anticipate and navigate emerging challenges.

Mr. Hazremi Hamid provided an overview of ASEAN’s digital transformation agenda, highlighting the region’s scale and strategic potential. With over 690 million citizens and a combined GDP of approximately USD 3.9 trillion, ASEAN is positioning itself as one of the world’s most dynamic digital markets. Central to this ambition is the ASEAN Digital Economy Framework Agreement (DEFA), a binding regional initiative designed to deepen integration in areas such as digital trade, cross-border data flows, digital payments, cybersecurity, and cooperation on emerging technologies, including artificial intelligence.

He further explained ASEAN’s principle-based and market-driven approach to AI governance. The ASEAN Guide on AI Governance and Ethics sets out core principles such as fairness, transparency, accountability, robust data governance, and human-centric oversight, while deliberately avoiding strict alignment with any single global regulatory model. In the context of intensifying global rivalry, ASEAN seeks alignment without uniformity, aiming to remain open to diverse partners while safeguarding regional autonomy. As Hamid emphasised, “If we allow ASEAN’s digital economy to grow naturally, it will reach one trillion dollars by 2030. But with an effective DEFA, it could double to two trillion.”

Dr. Le Hong Hiep examined how intensifying US–China competition is reshaping Southeast Asia’s geopolitical and geo-economic landscape. He pointed to rising tensions in the South China Sea, particularly between China and the Philippines, as well as the broader risk of escalation involving the United States. Beyond security concerns, he highlighted the increasing use of economic tools such as tariffs and export controls, which expose highly trade-dependent Southeast Asian economies to external pressures.

Given ASEAN’s deep economic interdependence with both Washington and Beijing, maintaining strategic autonomy has become increasingly difficult. Using Vietnam as an illustrative case, he described the careful balancing act of strengthening ties with both powers while diversifying partnerships, including with the European Union, to reduce strategic vulnerability. He concluded that enhancing domestic resilience and economic capacity is essential if Southeast Asian states are to improve their bargaining power in what is likely to be a prolonged era of great-power rivalry.

Dr. Alfred Gerstl examined Southeast Asia’s response to intensifying great power rivalry, noting that governments in the region prioritise strategic autonomy over alignment with either the United States or China. He described ASEAN countries as pursuing a pragmatic strategy aimed at benefiting from multiple partnerships while preserving flexibility.

Turning to the European dimension, he observed that although China is ASEAN’s largest trading partner, EU and US investments in the region remain substantial. Through initiatives such as the EU’s Global Gateway, regulatory cooperation, and capacity-building programmes, Europe can contribute to digital infrastructure, education, and governance frameworks. Gerstl argued that Europe has the potential to position itself as a standards-based and reliable strategic partner. At the same time, he suggested that Southeast Asia offers valuable lessons for Europe on navigating major power competition while safeguarding national interests.

Focusing on cybersecurity and digital sovereignty, Dr. Amirudin Abdul Wahab addressed the practical challenges of securing digital infrastructure in an increasingly multipolar technological landscape. He explained that countries such as Malaysia adopt a non-aligned and pragmatic approach, working with both Chinese and Western technology providers while conducting independent security testing and technical assessments. This diversification, including in critical areas such as 5G infrastructure, is paired with regulatory oversight to mitigate risks such as backdoors, cyber threats, and foreign interference.

Ensuring digital sovereignty and national security, he argued, requires continuous evaluation rather than reliance on vendor assurances. At the same time, he highlighted Malaysia’s ambition to become an AI-driven nation, supported by high connectivity rates, strong digital infrastructure, and coordinated national initiatives.

Throughout the discussion, the panellists highlighted ASEAN’s demographic advantage, particularly its predominantly young and digitally connected population, while acknowledging uneven development levels among member states. Capacity building, regulatory harmonisation, and deeper regional coordination were identified as essential conditions for sustaining inclusive and resilient growth.

The discussion concluded with an interactive question and answer session, addressing AI governance models, regulatory tradeoffs between innovation and oversight, cybersecurity standards, and the evolving future of EU–ASEAN cooperation.