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AI-Pac is Flint’s digest providing our take on the major developments in Asia-Pacific AI policy and regulation. In a fast-moving environment, this newsletter is designed to help you stay on top of the regulatory agenda and to consider what it means for your business. Please see here for our first eight blogs, spanning 2024. In each update, we set out:
January and February 2025 were critical months for AI technology and policy globally, as the emergence of DeepSeek in China challenged deeply held assumptions about the US’s competitive edge on AI, while providing encouragement to governments across Asia-Pacific that it will be possible to develop powerful models domestically. DeepSeek also turbocharged different countries’ pursuit of geopolitical advantage on AI and contributed to the fracturing of multilateral consensus at the AI Action Summit in Paris, with the US and UK refusing to sign the final declaration. Focusing on APAC, specifically, key developments included:
If you would like to discuss how AI policy and regulation in Asia-Pacific will impact on your business, please get in touch with the team here.
On 20 January, Chinese researchers at DeepSeek released a high-performance large language model at a fraction of OpenAI’s costs. Its rapid success –despite US export controls– drew international attention and raised fresh questions about America's competitive edge in AI. In China, DeepSeek’s rise was celebrated as a major milestone for domestic innovation, fueling optimism among Chinese AI startups eager to build on this momentum.
Relatedly, President Xi Jinping held a rare high-profile meeting with technology leaders, including Alibaba founder Jack Ma, signalling a recalibration of China’s approach to the private sector after years of regulatory crackdowns. The message was clear: China is determined to achieve AI supremacy and now recognises that private enterprises are essential to these ambitions.
Meanwhile, Hong Kong is accelerating its AI push as it plays a growing role in China’s drive for AI self-reliance and leadership. In its 26 February budget, the government designated AI as a "core industry" for economic transformation, pledging HK$1 billion to establish an AI Research and Development Institute aimed at accelerating industrial AI applications.
As US-China competition over AI intensifies, global priorities are shifting from regulation to innovation and growth. This was evident at the recent French AI Action Summit, where discussions centred on AI opportunities rather than governance. For businesses, this presents a critical window to engage APAC policymakers on AI adoption and the growing risks of falling behind in the AI race. However, businesses should be mindful that APAC governments’ concerns over responsibility and consumer trust have not disappeared just because the US government has shifted its posture.
While global priorities shift toward AI innovation, Singapore and Japan are charting a middle path between the US government’s deregulatory pivot and broader concerns about AI risks. Their approaches remain light-touch but actively address key concerns shared by many governments in the region, positioning them as potential models for APAC and beyond.
On 11 February, Singapore unveiled three new AI safety initiatives at the AI Action Summit, reinforcing its commitment to enhancing AI safety through rigorous testing and global collaboration rather than regulation. Speaking on the sidelines, the Minister for Digital Development and Information stressed the need to balance AI’s potential with safeguards – offering a stark contrast to US Vice President Vance’s singular focus on growth.
Japan is also charting a middle ground. On 28 February, the government introduced a bill allowing authorities to publicly disclose companies using AI for human rights abuses or malicious activities, reflecting its effort to proactively manage AI risks. However, unlike Korea’s AI Basic Act, which establishes a tiered, risk-based framework similar to the EU’s AI Act, Japan’s bill does not introduce risk tiers or specific obligations. Businesses are only required to “cooperate” with government policies and investigations, with no penalties for non-compliance—underscoring Japan’s preference for a light-touch approach to AI regulation.
It remains to be seen whether Singapore and Japan’s model could emerge as a compelling alternative between the US’ deregulation approach and Europe’s stricter, compliance-driven frameworks. Businesses should closely monitor how APAC countries position themselves in the global AI landscape, as key players like Singapore and Japan take on a more proactive role in shaping AI governance while others pull back.
India and Korea are rapidly advancing their AI capabilities, with a dual focus on strengthening sovereignty while deepening international collaboration. On 4 February, Indian IT Minister, Ashwini Vaishnaw, announced plans to provide 18,000 high-end GPU-based computing facilities for AI development, alongside efforts to build a homegrown generative AI model. In Korea, a Presidential AI Committee meeting outlined a project to develop a world-class large language model (LLM). This came just days after the government committed to acquiring 10,000 high-performance GPUs to accelerate the rollout of services at the country’s national AI computing centre.
While both countries are making significant strides to enhance their domestic AI capabilities, they are also deepening global cooperation in AI. India is set to host the next Global AI Summit and launched the TRUST initiative with the U.S. (Transforming the Relationship Utilizing Strategic Technology), signalling a clear intent to collaborate on AI infrastructure through the U.S.-India Roadmap on Accelerating AI Infrastructure. Likewise, Korea’s AI Safety Institute continues to work with counterparts in Singapore, Japan, and the UK —conducting joint assessments of AI models from Google and Mistral AI to evaluate vulnerabilities related to linguistic and cultural differences.
This dual strategy reflects the tension between leveraging global AI cooperation to accelerate AI development while simultaneously building resilience against external dependencies. Both Korea and India remain wary about broader uncertainties tied to the second Trump presidency, a concern widely shared across the region. Consequently, while cooperation remains robust in the short term, there is a parallel momentum to strengthen AI sovereignty as a safeguard against future restrictions or policy shifts. For US businesses, this shifting landscape could make it more challenging to maintain the same level of market access if policy focuses more aggressively on strengthening domestic champions.
Indonesia is making moves to establish itself as a key AI player in the Global South. On 24 February, President Prabowo announced the launch of Indonesia's sovereign wealth fund, Daya Anagata Nusantara (Danantara). With an initial $900 billion portfolio, the fund will focus on strategic sectors, including AI and data centres. The following day, Deputy Minister of Communication and Digital Affairs, Nezar Patria, expressed support for developing an Indonesian generative AI model akin to DeepSeek, and stressed the importance of nurturing local digital talent.
On AI governance, Indonesia is positioning itself as a leading voice for the Global South. At the sidelines of the AI Action Summit, the country offered to host the next AI Global South Forum organised by UNESCO. Meanwhile, the Minister of Communication and Digital Affairs Meutya Hafid called for greater inclusivity in AI governance, advocating for developing nations to play a more prominent role in shaping global AI governance.
Whether Indonesia can establish itself as a significant AI governance voice in the Global South remains to be seen, particularly as other contenders, such as India, seek to expand their regional influence. However, this momentum presents a valuable opportunity for businesses to engage with Southeast Asia’s largest market as it accelerates its AI agenda. A compelling narrative on how the business is strengthening Indonesia’s AI ecosystem through investments in infrastructure, workforce development, or in enabling AI adoption will build credibility with Indonesian policymakers.
This blog was written by Ethan Teo, Ewan Lusty and David Skelton, with the input of Flint’s Senior Adviser network based across Asia-Pacific. Ethan, Ewan and David are all based in Singapore. Ethan previously worked at Singapore’s Smart Nation Group under the Prime Minister’s Office and interned with the public affairs and trust & safety teams of Grab, Twitter, and Carousell. Ewan has been supporting Flint clients on a range of digital policy issues for five years, prior to which he advised UK government ministers on online safety regulation. David spent seven years at Google, most recently working within the Global Strategy and Innovation team, as well as leading Google’s Policy Planning team within Asia Pacific.