S2E65: Why Grab-type firms are the way for SE Asia to thrive in AI era

Mar 12, 2026

Dr Khor Hoe Ee, eminent economist and former AMRO chief economist, reflects on AI’s rapid rise and what it means for Southeast Asia. He explains why 2022 was a turning point and why regional “Grab-type” firms and localized AI apps could be the key. He outlines which services and countries are most exposed, how long adaptation might take, and policy options like reskilling and basic income.

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INSIGHT

AI Multiplies Cognitive Work Speed

AI multiplies cognitive labour speed, doing in minutes what used to take teams of researchers days or weeks.
Khor compares this to automation of manual labour: AI compresses data collection, synthesis and analysis into seconds.

ADVICE

Borrow Frontier Models And Build Local Apps

Do not try to compete with US and China on frontier AI; instead leverage accessible frontier models to build localised applications.
Khor cites Grab as a regional example that used mapping and local knowledge to win markets.

ANECDOTE

Grab Shows Local Apps Can Scale In AI Age

Grab built a huge regional business by combining existing tech with deep local knowledge to tailor ride‑hailing for Southeast Asia.
Khor uses Grab's ~$40 billion valuation as proof regional application firms can scale without owning infrastructure.

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How South-east Asia can navigate the age of AI and its impact on the economy and employment.

Synopsis: Every second Friday of the month, The Straits Times’ senior columnist Ravi Velloor distils 45 years of experience covering the Asian continent, with expert guests.

Artificial Intelligence is impacting the world at a pace far greater than that of previous general-purpose technologies, such as the steam engine, electricity, and computing.

As the world adjusts to the so-called Fourth Industrial Revolution, marked by tremendous advances in automation and robotics, it now faces the Fifth Industrial Revolution, the era of AI and its impressive ability to perform cognitive tasks normally performed by humans.

In this episode, host Ravi Velloor speaks with the eminent economist Dr Khor Hoe Ee, who witnessed the Latin American debt crisis and the Asian financial crisis.

Dr Khor, formerly Chief Economist at AMRO, has also seen how events like Covid-19 have had a major impact on the economy.

They discuss how the US and China dominate the AI space, the speed of disruption, which South-east Asian economies are most exposed and what firms in the region can do to cope with the impact of this new technology.

They also cover other topics, for instance: What happens to employment as we know it? Is there a threat of widespread deflation? Should we consider a universal basic income?

Highlights (click/tap above):

4:19 The Fifth Industrial Revolution of AI is like no other period in history

7:56 South-east Asia’s options when US, China lead in AI

11:34 Jobs at risk; from radiology to business process outsourcing

12:00 Prospects for Singapore, Indonesia, Philippines

16:52 Is there a case for Universal Basic Incomes with future disruption in the market?

18:41 Who’ll win the AI race and how the region should position itself

Read Ravi's columns: https://str.sg/3xRP

Follow Ravi on X: https://twitter.com/RaviVelloor

Host: Ravi Velloor (velloor@sph.com.sg)

Produced and edited by: Chen Junyi and Fa'izah Sani

Executive producer: Ernest Luis