Mastering Southeast Asia's tech terrain: keys to success

Picture Southeast Asia, a dynamic mix of eleven countries, each eager and ready for technological transformation. An unexplored marketplace full of potential customers and partners waiting for the right solution. With the post-COVID digital push, the region is ripe for the technological expertise that Australian and Kiwi businesses can offer.

Consider Southeast Asian companies as evolving start-ups. They actively seek advanced digital solutions, streamlined operations, and innovation. In contrast, Australia and New Zealand resemble mature tech ventures with proven solutions. This dynamic sets the stage for a fruitful collaboration.

The opportunities lying ahead

• The rise of decentralised solutions: Cloud computing remains a pillar in Southeast Asia, but the region is witnessing a surge in interest in alternative, decentralised solutions like blockchain and edge computing. This opens doors for providers adept at navigating these new frontiers and assisting businesses in exploring hybrid or distributed cloud strategies. There is also a growing interest in Web3 technologies, and its potential for decentralised marketplaces and applications.
• AI & ML: The AI and ML focus has shifted from mere process automation to personalisation and hyper-targeting. Businesses seek solutions that leverage AI for customer experience optimisation, dynamic marketing campaigns, and even product development. Southeast is fertile ground for innovative AI solutions.
• Cybersecurity imperative: Data privacy regulations like Thailand's PDPA and Indonesia's PLPDP have intensified the cybersecurity spotlight. The demand goes beyond basic protection, with businesses seeking advanced threat detection, incident response expertise, and compliance guidance. Cybercrime continues to increase exponentially in the region and is one of the biggest headaches for local governments and Enterprises across Southeast Asia.
• Beyond data analytics: Data analytics is no longer just for data scientists. Democratisation tools and user-friendly interfaces are enabling wider adoption across business functions. The focus has shifted from simply collecting data to deriving actionable insights and integrating them into decision-making processes.
• Exploring immersive worlds with AR and VR:Augmented reality (AR) and virtual reality (VR) are no longer just for gaming and entertainment. Businesses across Southeast Asia are embracing their potential to enhance customer experiences through virtual showrooms, interactive product demonstrations, and immersive training simulations as well as improving employee productivity and collaboration through AR-assisted field maintenance, virtual meeting rooms, and remote assistance.

Southeast Asia has become a breeding ground for dynamic, high growth domestic companies, significantly contributing to the region's rapid economic expansion.

Among these “startups” are Grab from Singapore, a versatile SuperApp; Sea Group, known for its gaming and e-commerce platforms; and Gojek from Indonesia, another SuperApp offering a range of services including ride-hailing and on-demand options. Additionally, Indonesia's e-commerce giants Bukalapak and Tokopedia, the online travel agency Traveloka, as well as Singapore's Shopee and Lazada in the e-commerce sector, are making significant strides. Supporting this innovative landscape are stalwarts like DBS, OCBC, Standard Chartered Bank, UOB, Petronas, and Singapore Airlines. They all play a vital role in fostering the region's economic development and invest heavily in innovative technologies to fuel their global growth.

Yet, challenges exist

Acknowledging the potential hurdles is crucial:

• Cultural differences: Each country in Southeast Asia has its unique flavour, just like the diverse cities of Australia. It is crucial to understand and respect these differences – from decision-making processes to software preferences.
• Preference for in-house: It is common for businesses in this region to display a strong preference for a self-reliant, do-it-yourself approach, partly due to low labour costs. Therefore, it is crucial to demonstrate to these organisations that opting for pre-packaged, ready-made solutions that rivals custom-developed options.
• Emerging local players: There is a growing number of local tech providers offering affordable solutions. To compete, is essential to emphasise your quality and international pedigree. This also offers the potential for local partnerships in an increasingly local competitive landscape.
• Don’t just mimic Singapore: Using Singapore as the sole blueprint would be like assuming all Antipodean businesses run like those in Sydney. It is an incredibly diverse region so you must treat each country with the individual local knowledge and respect that you would expect from a vendor selling to you at home.
• Discussing labour costs: Selling on labour cost savings may not resonate in Southeast Asia where labour often comes cheap. It is important to also highlight other value areas that your advanced tech solutions can bring to the region.

Building local connections

Networking is key:

• Establish a presence: Whether it is an office or a partnership, having a foothold in the region matters. This can be local headcount of via a local sales agency, like Asia Market Entry, working on your behalf. Either way, having a physical presence, is essential to being successful here and show that you’re truly committed to the region.
• Empower local teams: When you have local representatives, back them up. Provide them with the tools and training they need, listen deeply to what they need to be successful in-market, and support them.
• Stay engaged: Regular in person catch-ups with buyers are crucial. Companies that keep their physical distance do not often win in Southeast Asia. The region is a relationship driven culture and unless you are here regularly, you will lose ay sales momentum you had and struggle to build local trust.
• Engage in the local culture and respect local custom: Attend events, understand the festivals, show interest in the country and try the food to build trust. You also need to be respectful to local religious customs when entertaining prospective clients and partners. For example, drinking alcohol in Malaysia and Indonesia is flat out illegal for many. Furthermore, marketing events that have food front and centre are usually a hit.

In summary, Southeast Asia represents a burgeoning market teeming with opportunities for client engagement and new partnerships. For Australian and New Zealand technology companies, this is a pivotal moment to enter the market. However, achieving success will depend on a deep comprehension of the regional nuances, establishing authentic relationships, and consistently providing substantial value.

The region is ready for significant growth over the next two decades, offering a landscape rich with untapped potential. It is still largely whitespace, so the time is now to get involved.

About the author

Steve Dawson moved to Singapore in 2012 where he was tasked with establishing the Asia Pacific operations of a technology company as the first employee in the region. After experiencing the difficulties of this process, he founded Asia Market Entry in 2016 with the goal of creating a company focused on helping international technology companies establish a sales presence in the Asia Pacific region and grow revenue in the region without having to set up locally themselves.