TL;DR: Southeast Asia's AI sector hit $4B+ in 2024 and growing fast. Singapore leads funding (92%), but Vietnam and Indonesia offer better value for hiring AI talent.
AI-related investments made up 32% of all private funding raised in Southeast Asia in H1 2025. More than 680 AI startups raised over $2.3 billion in the year to June. This region is becoming a serious player in the global AI landscape.
We have helped dozens of startups build AI teams across the region. In this guide, we share what we know about the ecosystem. Where the money flows. Where the talent is. And what it actually costs to build an AI company here.
What’s your AI hiring priority?
Select your situation below.
You’re watching every dollar. Vietnam and Indonesia offer AI engineers at $35K-45K versus Singapore‘s $80K-150K. That’s 60% savings without compromising quality. Your funding runway just doubled. Compare Vietnam AI rates →
You need the best, not the cheapest. Singapore hosts 1,100+ AI startups and $8.4B in funding. Your team will work alongside fintech and healthcare innovators who’ve already scaled. Worth the premium. Hire Singapore AI engineers →
You’re building models, not just integrating APIs. Southeast Asia’s AI sector hit $4B+ in 2024, with 680+ startups needing exactly what you need: ML engineers who ship. We’ve placed dozens. Find AI/ML developers →
You raised funds and need to hire 5-10 engineers this quarter. EOR lets you onboard across Vietnam, Indonesia, and Philippines in weeks, not months. No entity setup. Full compliance handled. Get EOR pricing →
Southeast Asia AI Ecosystem at a Glance
| Country | AI Startup Count | Total AI Funding | Key Sectors | AI Engineer Salary Range |
|---|---|---|---|---|
| Singapore | 1,100+ | $8.4 billion | Fintech, Healthcare, Logistics | $80,000-150,000 |
| Indonesia | 200+ | $1.9 billion | E-commerce, Logistics, Banking | $35,000-45,000 |
| Vietnam | 150+ | $95 million | Healthcare, Education, SaaS | $30,000-35,000 |
| Thailand | 100+ | $150 million | Agriculture, Tourism, Finance | $35,000-40,000 |
| Malaysia | 80+ | $120 million | Manufacturing, Finance, Healthcare | $40,000-50,000 |
According to Source of Asia, the AI sector was valued at more than $4 billion in 2024. It is expected to grow more than four times by 2033. AI alone is projected to add $1 trillion to regional GDP by 2030.
Singapore:
Singapore dominates. It captured 92% of Southeast Asia’s total startup funding in H1 2025. Around 75% of all AI venture capital in the region is concentrated here. That is $8.4 billion compared to $1.9 billion in Indonesia and $95 million in Vietnam.
Why Singapore Leads
- Government support: National AI Strategy 2.0 focuses on finance, healthcare, and logistics.
- Research institutions: NUS, NTU, and A*STAR produce strong AI talent.
- Global presence: OpenAI, Google, and NVIDIA have regional centers here.
- Regulatory clarity: Clear frameworks for AI deployment in regulated industries.
According to Google, 44% of Southeast Asia’s traditional AI startups originate in Singapore. First-mover advantage and government incentives created a strong foundation.
The Cost Factor
Singapore has a catch. AI services command premium pricing. Engineering hours cost $80-150. That is close to US rates. For early-stage startups, this can burn through runway quickly.
We worked with a Singapore-based AI startup last year. They raised a $2 million seed round. With local hiring costs, they could afford four engineers. They asked us to help them build a team in Vietnam instead. They hired eight engineers for the same budget.
Vietnam:
Vietnam is emerging fast. The country has clear goals to reach the global top 50 in AI by 2030. According to SmartDev, major companies like NVIDIA, Qualcomm, and Samsung are investing in R&D facilities here.
Vietnam’s Advantages
- Cost: AI engineers earn $30,000-35,000 annually. That is 60-80% lower than Silicon Valley.
- Talent pipeline: Strong STEM education produces 50,000+ IT graduates yearly.
- Growing ecosystem: Over 3,000 tech startups make it Asia’s third-largest startup hub.
- Global investment: NVIDIA, Qualcomm, and Samsung have R&D centers.
Key AI startups include VinAI (computer vision and NLP), Trusting Social (credit scoring), and Doctor Anywhere (healthcare AI). These companies prove that serious AI work can happen here.
What We See on the Ground
Vietnamese developer salaries are projected to increase 10-20% annually through 2030. The window for cost arbitrage is closing. Companies establishing partnerships now lock in cost structures before market escalation.
We placed an ML engineer at a US fintech company last year. He had five years of experience with TensorFlow and PyTorch. His salary was $28,000. In the US, similar talent costs $150,000+. The company was very happy with his work.
Indonesia:
Indonesia has the largest tech talent pool in Southeast Asia. But it lacks the formalized AI training infrastructure of Singapore. This is changing. The Stranas KA roadmap emphasizes AI in health, education, public services, food security, and mobility.
Indonesia’s AI Landscape
| Role | Annual Salary (IDR) | Annual Salary (USD) |
|---|---|---|
| ML Engineer | 200-500 million | $12,500-31,000 |
| Data Scientist | 180-450 million | $11,000-28,000 |
| AI Architect | 350-700 million | $22,000-44,000 |
Key AI startups include Nodeflux (computer vision for security), Kata.ai (conversational AI), and various divisions within GoTo. East Ventures and other local VCs actively support the ecosystem.
Indonesia’s AI integration push is projected to add $366 billion to GDP by 2030. This created strong demand for data scientists and ML engineers. The talent exists. But salaries are rising as demand increases.
Funding Trends: What Changed in 2025-2026
The funding landscape shifted dramatically. According to Oblique Asia, late-stage deals surged 140% while seed funding halved. Investors now prioritize profitability and capital efficiency.
Key Funding Statistics
- Southeast Asia startup funding hit $2 billion in H1 2025, up 7% year-over-year.
- AI startups saw 217% growth in funding.
- Seed-stage funding fell 72% to $110 million in the first nine months of 2025.
- Singapore captured 92% of regional funding.
- Indonesia’s share dropped to just 8% of regional funding.
Globally, AI captured roughly half of all venture funding in 2025. But capital is concentrated. Around ten companies raised nearly 80% of total AI funding through mega-rounds exceeding $500 million. Smaller startups must be more capital efficient.
What This Means for Founders
Raising seed funding is harder than before. Investors want to see traction before writing checks. This makes capital efficiency critical. Building teams in lower-cost locations like Vietnam or Indonesia gives you more runway to prove your model.
One founder we work with raised $500,000 pre-seed. She built her entire AI team (four engineers) in Vietnam. That gave her 18 months of runway. Her competitor raised $1 million but hired in Singapore. They had similar runway because their costs were higher.
AI Sectors Driving Growth
Over 90% of AI startups in the region focus on three sectors. Fintech, healthcare, and SaaS. These align with immediate market needs.
Fintech
Fintech remains the top sector. McKinsey reports that AI applications in credit scoring, fraud detection, and personalization are most common. Companies like Grab Financial, GXS Bank, and Kredivo use AI heavily.
We helped a fintech startup hire a fraud detection team. They needed engineers with experience in real-time ML systems. We found three candidates in Vietnam with relevant experience at local banks. The team was operational within two months.
Healthcare
Healthcare AI saw 391% funding growth in Vietnam in 2023. Applications include diagnostics, drug discovery, and patient engagement. Doctor Anywhere and Halodoc are regional leaders.
SaaS and Enterprise AI
SaaS companies experienced 262% expansion. Most focus on automation and productivity tools. The shift to remote work accelerated adoption of AI-powered enterprise software.
Hiring AI Talent in Southeast Asia
Here is what we learned from placing hundreds of AI professionals across the region.
Salary Comparison by Country
| Country | Junior ML Engineer | Senior ML Engineer | AI Architect |
|---|---|---|---|
| Singapore | $60,000-80,000 | $100,000-150,000 | $150,000-200,000 |
| Vietnam | $15,000-20,000 | $25,000-35,000 | $40,000-55,000 |
| Indonesia | $12,000-18,000 | $25,000-40,000 | $40,000-60,000 |
| Philippines | $12,000-16,000 | $22,000-32,000 | $35,000-50,000 |
| Malaysia | $20,000-28,000 | $35,000-50,000 | $50,000-70,000 |
Salaries in Vietnam, Philippines, and Indonesia grew 18-21% in 2025. This is fast. But they still offer 60-70% savings compared to Silicon Valley. According to our Asia Tech Salary Index, this gap will narrow over the next five years.
Where to Hire What
- Singapore: AI researchers, senior architects, client-facing roles. Premium talent for premium prices.
- Vietnam: ML engineers, backend developers, data engineers. Strong technical skills at lower cost.
- Indonesia: Data scientists, ML engineers, especially those with local market knowledge.
- Philippines: Data annotation, AI support roles, English-fluent technical staff.
Challenges and Risks
The ecosystem is growing but not without problems.
Talent Competition
Top AI founders still gravitate toward the US market. Valuations often outpace revenue growth. This creates challenges for investors and makes hiring senior talent harder.
Infrastructure Gaps
Indonesia has the largest talent pool but lacks formalized AI training infrastructure. Vietnam is improving fast but still behind Singapore in research output. These gaps affect the depth of available talent.
Regulatory Uncertainty
AI regulations vary by country. Singapore has clear frameworks. Other countries are still developing theirs. This creates compliance complexity for regional deployments.
Government Initiatives Shaping the Ecosystem
Each country has different approaches to AI development.
| Country | Key Initiative | Focus Areas |
|---|---|---|
| Singapore | National AI Strategy 2.0 | Finance, Healthcare, Logistics |
| Vietnam | National AI Strategy to 2030 | Top 50 global ranking, R&D investment |
| Indonesia | Stranas KA Roadmap | Health, Education, Public Services |
| Thailand | Thailand 4.0 | Smart Agriculture, Tourism, Industry |
| Malaysia | National AI Roadmap | Manufacturing, Finance, Government |
According to Wilson Center, governments are actively competing for AI investment. Vietnam and Malaysia are attracting R&D investments and cloud facilities from global tech companies.
Outlook for 2026 and Beyond
Several trends will shape the ecosystem in the coming years.
More Geographic Diversification
October 2025 funding rounds showed growing activity in Indonesia, Vietnam, and Philippines. Investors are looking beyond Singapore for opportunities. This will create more local ecosystems.
Rising Talent Costs
Salaries will keep rising. Companies that establish teams now get better rates than those entering later. The cost arbitrage window is closing in Vietnam and Indonesia.
Focus on Profitability
Investors want capital-efficient companies. This favors startups that can build strong teams at lower costs. Remote hiring from Vietnam, Indonesia, or Philippines becomes a competitive advantage.
GenAI Adoption
Large language models and generative AI are creating new opportunities. Regional startups are building localized AI applications. Language-specific models for Thai, Vietnamese, and Bahasa are emerging.
Practical Advice for AI Startups
Based on our work with AI companies across the region, here is what we recommend.
For Fundraising
- Show capital efficiency. Investors want to see you can do more with less.
- Consider Singapore for incorporation. It has the best access to VC funding.
- Build traction before raising. Seed funding is harder to get than before.
For Hiring
- Hire senior leadership in Singapore. Build engineering teams in Vietnam or Indonesia.
- Start relationships now. Good talent is getting more expensive every year.
- Use EOR services to hire in multiple countries without setting up entities.
For Product
- Focus on fintech, healthcare, or SaaS. These sectors attract the most investment.
- Solve local problems. Regional market knowledge is a competitive advantage.
- Consider B2B first. Enterprise customers provide more predictable revenue.
Conclusion
Southeast Asia’s AI ecosystem is maturing fast. Singapore leads in funding and research. Vietnam and Indonesia offer strong talent at lower costs. The region is projected to add $1 trillion in GDP from AI by 2030.
For startups, the opportunity is clear. Build in Singapore for funding access. Hire in Vietnam or Indonesia for cost efficiency. Focus on fintech, healthcare, or SaaS for the best chances of investment.
The talent cost window is closing. Companies that build teams now will have an advantage over those who wait. We have seen this pattern before in software outsourcing. Early movers got the best deals.
Hire vetted remote AI developers with Second Talent to build your team in Southeast Asia at competitive rates.
