Teo said at the Asia Economic Summit in Jakarta, Indonesia, on Wednesday that expanding the adoption of AI across the Southeast Asian business community will be one of Singapore's top priorities when it assumes the ASEAN Chairmanship in 2027.

Singapore aims to strengthen connectivity among SMEs, governments and workers across ASEAN to accelerate AI deployment, improve productivity and enhance the region's digital competitiveness, she noted.

The city-state was named the richest country in Asia and sixth in the world in the 2026 Prosperity Index released by insurance comparison platform HelloSafe, which builds the index from five indicators drawn from the IMF, the World Bank, the UNDP and the OECD: GDP per capita in purchasing power parity, gross national income per capita, the Human Development Index, the Gini measure of income inequality, and the relative poverty rate.

Iconic Merlion statue with Singapore skyline. Photo from Pexels

Teo also cautioned against a narrow interpretation of "AI sovereignty", noting that it will be unrealistic for most countries to seek ownership of every layer of the AI ecosystem, from chips and models to data and applications.

Instead, countries should focus on ensuring they can govern AI effectively, make their own choices about technology partners and build strong domestic AI ecosystems, she said.

She added that Singapore will be investing more in shared digital resources for the region, including language models, governance toolkits and programmes aimed at building AI capabilities.

According to the official, ASEAN is well positioned to expand AI adoption thanks to the region’s growing digital infrastructure, a digitally connected population and increasing efforts by governments and businesses to equip workers with AI-related skills.

Citing statistics, Teo said Southeast Asia's digital economy is expected to exceed 300 billion USD in 2025, while the region's data centre capacity is expected to more than triple between 2025 and 2030. She stressed that AI infrastructure extends beyond fibre-optic networks and computing power to include software platforms and policy frameworks that make AI more accessible and practical for businesses.

Looking ahead to Singapore's ASEAN Chairmanship in 2027, Teo said the country will prioritise mechanisms to facilitate cross-border data sharing and promote greater convergence in AI governance across the region.

She said ASEAN's strength lies not in uniformity but in its ability to bring together diverse economies to seize opportunities created by digital transformation and the rapid advancement of AI.