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Moody’s Corporation (MCO) Bernstein 42nd Annual Strategic Decisions Conference May 28, 2026 4:30 PM EDT

Company Participants

Robert Fauber – President, CEO & Director

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Conference Call Participants

Chinedu Bolu – Autonomous Research US LP

Presentation

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Chinedu Bolu
Autonomous Research US LP

Good afternoon, everyone, and thanks for being at this far to the last the day. Very, very pleased to have our next slide side chat Moody’s Corporation. Pleased to welcome back again once again, Moody’s President and CEO, Rob Fauber. Rob, thank you very much for coming back to the conference. And thank you today. I know you’ve been in meetings all day, so I appreciate you making it all the way here.

Robert Fauber
President, CEO & Director

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Christian, first of all, thanks. I’ve been in a windowless room in the basement all day. So it’s great to be above ground. But I did get the 4:00 slot. So I know we’ve got to be exciting here. But I just want to say thanks. This is a really high-quality conference and some great investor discussions. So thanks for inviting us.

Question-and-Answer Session

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Chinedu Bolu
Autonomous Research US LP

Good stuff. No better place to start than AI strategy. How did I know that was going to be the first question. I would say is from my observation, your AI offering is involved. It’s gone from stand-alone assistant tool. Now you’re doing more MCP based API models, more integrating into developer workflows like Microsoft 365. Maybe talk us through what you see as the evolution of your thinking around AI, what did you learn from what you’ve done so far? And then sort of what’s the next step from what ties in Moody’s Woods Intelligence?

Robert Fauber
President, CEO & Director

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Yes. So Christian, over the last, let’s call it, 8 years or

TUCSON, Ariz. — Nearly four months after Nancy Guthrie vanished from her Catalina Foothills home, investigators are confronting fresh questions about the motive behind what they believe was her abduction, as new public analysis highlights more than $1 million in untouched cash and challenges the assumption of a straightforward ransom plot.

The 84-year-old mother of NBC “Today” show co-anchor Savannah Guthrie was last seen on January 31, 2026. She was reported missing the following day. Blood evidence believed to be hers and a removed doorbell camera fueled immediate concerns of foul play. As of May 27, marking the 118th day since her disappearance, no arrests have been made and her whereabouts remain unknown.

A new public theory introduced this week by former law enforcement officer Charles Brewer has shifted some focus away from the celebrity-adjacent ransom narrative that dominated early speculation. In a 21-minute YouTube video posted on May 24, Brewer questioned whether financial gain was ever the primary driver.

“If this truly was a celebrity-targeted kidnapping connected directly to Savannah Guthrie, why has there been no meaningful ransom communication?” Brewer asked in the video. He pointed to reports that substantial cash remained untouched and that the few ransom-style messages reportedly made little sense. “Why leave over a million dollars untouched?” he continued. “Why create ransom-style messages that reportedly make little sense? Why no sustained negotiations or proof of life, no sophisticated extortion strategy?”

Brewer suggested the behavior surrounding the case appeared “chaotic, disconnected, even emotionally driven, or possibly connected to something far more personal than the public originally believed.” He was careful not to directly accuse any family members, instead raising the possibility of someone in the family’s broader circle — a friend, associate or acquaintance — potentially being involved.

Pima County Sheriff Chris Nanos has acknowledged progress in the investigation but has not publicly endorsed Brewer’s theory. In recent comments, Nanos expressed confidence that the case was advancing. When asked by reporters whether authorities were getting closer to a resolution, he replied simply, “We are.”

FBI and Local Police Tensions

The case has also exposed underlying tensions between local authorities and the FBI over early evidence handling. In a May 5 podcast interview, FBI Director Kash Patel stated that the bureau was “kept out” of the first four days of the investigation. He suggested that sending DNA evidence to a private laboratory in Florida rather than the FBI’s facility in Quantico may have slowed progress.

Sheriff Nanos responded in a written statement, insisting the FBI was promptly notified and that coordination began without delay. He defended the decision to use a private lab based on operational needs and noted ongoing collaboration with the FBI’s Quantico facility.

Forensic analysis of mixed DNA recovered from the scene continues. Detectives maintain that a masked man captured on Nancy Guthrie’s Nest doorbell camera was responsible for the abduction.

Online Speculation and Family Strain

The high-profile nature of the case, tied to Savannah Guthrie’s national television role, has fueled intense online interest. Amateur investigators and true-crime content creators have scrutinized family members, including daughter Annie and son-in-law Tommaso Cioni, sometimes crossing into harassment.

Sheriff Nanos has pushed back against such activity. “We appreciate their concern, and we all want to find Nancy — but this work is best left to professionals,” he told The New York Times.

Brewer’s video reflects growing frustration with the lack of public breakthroughs. While his claims remain unverified by law enforcement, they have resonated with some observers who question the ransom motive after more than 100 days without clear demands or proof-of-life communications.

Savannah Guthrie has continued balancing her professional duties with private advocacy for her mother. The family has offered a $1 million reward for information leading to Nancy Guthrie’s safe return, in addition to the FBI’s $50,000 reward.

Investigation Challenges

The prolonged search has tested resources and patience. Volunteers have assisted in organized efforts, including the recent discovery of clothing possibly linked to Nancy Guthrie along Highway 79. Forensic testing on that item and other evidence remains ongoing.

Pima County authorities have received thousands of tips. While many have been ruled out, officials say active leads persist. The mixed DNA sample is considered particularly important, though processing delays have frustrated some observers.

The case highlights broader challenges in missing persons investigations involving elderly victims. Rapid response is critical, yet initial evidence can sometimes lead investigations in multiple directions before a clearer picture emerges.

Community and National Attention

Tucson-area residents have expressed continued concern and solidarity. Local organizations have offered support resources for the family and community members affected by the prolonged uncertainty.

Nationally, the case has maintained visibility due to Savannah Guthrie’s public platform. Her occasional on-air appeals and social media messages have kept attention focused on the need for information.

As the investigation moves largely behind the scenes, authorities continue urging anyone with relevant details to come forward. Tips can be submitted to the FBI at 1-800-CALL-FBI or the Pima County Sheriff’s Department at 520-351-4900.

Nancy Guthrie’s disappearance has become one of the most closely watched missing persons cases of 2026. The combination of an elderly victim, a prominent family member, and the absence of quick resolution has created a vacuum filled by both professional investigators and public speculation.

While Brewer’s theory introduces new questions about motive, official efforts remain centered on forensic evidence, digital analysis, and traditional detective work. The untouched cash, if confirmed, does add a puzzling element that investigators must now reconcile with other findings.

For the Guthrie family, the wait continues. Savannah and her siblings have asked for privacy while expressing gratitude for ongoing public support and prayers. Their hope for Nancy’s safe return remains, even as the investigation explores increasingly complex possibilities.

The coming weeks may bring further forensic results or new tips spurred by sustained media coverage. Until then, the search for Nancy Guthrie stands as both a personal family ordeal and a public mystery that continues to unfold in Tucson and beyond.

NEW YORK — The Dow Jones Industrial Average dropped 241.85 points, or 0.48 percent, to close at 50,402.43 on Thursday, as renewed U.S.-Iran military exchanges and persistent inflation concerns linked to elevated oil prices weighed on investor sentiment and pushed bond yields higher.

The blue-chip index opened lower and remained under pressure throughout the session, reflecting broader risk-off sentiment across global markets. The S&P 500 and Nasdaq Composite also finished in negative territory, though losses were more moderate as technology shares showed some resilience.

Trading volume was above average as participants reacted to fresh developments in the Middle East and mixed signals from upcoming economic data. The decline extends a pattern of choppy trading seen throughout May, with the Dow giving back some of its earlier 2026 gains amid uncertainty over Federal Reserve policy and global growth prospects.

Key Factors Driving the Sell-Off

Analysts pointed to escalating geopolitical risks as the primary catalyst. Reports of U.S. strikes near the Strait of Hormuz and Iranian retaliation heightened fears of potential disruptions to global energy supplies. Oil prices rose more than 2 percent, with West Texas Intermediate crude climbing above $90 per barrel, adding to inflationary pressures.

Higher energy costs have complicated the Federal Reserve’s path toward easing monetary policy. With consumer prices showing stickiness and the labor market remaining stable, expectations for aggressive rate cuts have diminished. This dynamic supported higher Treasury yields, which rose across the curve and put pressure on rate-sensitive sectors.

The 10-year Treasury yield climbed toward 4.4 percent, increasing borrowing costs for businesses and consumers. Mortgage rates recently hit a nine-month high, further weighing on housing-related stocks and consumer confidence.

Sector Performance Breakdown

Energy stocks were among the few bright spots, benefiting from higher crude prices. However, financials, industrials and consumer discretionary names led the declines. Banks faced pressure from the rise in long-term yields, while industrial companies with global supply chains expressed caution over potential shipping disruptions.

Technology shares provided some defensive support, with several large-cap names holding relatively steady amid broader weakness. Investors rotated toward perceived safe havens within the market, though overall risk appetite remained subdued.

Smaller companies on the Russell 2000 index underperformed the major benchmarks, highlighting selective pressure on domestically focused businesses amid economic uncertainty.

Broader Market and Economic Context

The Dow’s performance mirrored moves in other major indices. European markets closed mostly lower, while Asian markets had opened mixed earlier in the session. U.S. futures pointed to continued caution heading into Friday’s trading.

Recent economic data has painted a mixed picture. While job growth has held up, inflation readings have been hotter than expected, partly due to energy costs tied to Middle East developments. The Federal Reserve’s new leadership under Chair Kevin Warsh faces the challenge of balancing growth risks with price stability.

Corporate earnings season has delivered mixed results. Several major companies have issued cautious guidance citing higher input costs and softer consumer demand in certain segments. However, sectors exposed to AI infrastructure and defense spending have shown resilience.

Technical and Sentiment Analysis

From a technical perspective, the Dow broke below a recent support level around 50,600, potentially targeting the 50,000 psychological mark if selling momentum persists. Volatility measures edged higher but remained below levels seen during previous geopolitical flare-ups.

Investor sentiment has shifted toward caution. Fund managers report trimming exposure to cyclical sectors while maintaining positions in high-quality defensive names and companies with strong pricing power. Retail investor participation remained active but tilted defensive.

Outlook for U.S. Equities

Market strategists expect continued volatility in the near term. Key upcoming data releases, including employment figures and inflation updates, will help shape expectations for Federal Reserve policy. Any signs of de-escalation in the Middle East could support a rebound in risk assets.

Longer-term, analysts remain constructive on U.S. equities due to strong corporate fundamentals, technological innovation and resilient consumer spending. However, external shocks from geopolitics and commodity cycles are likely to remain dominant themes.

Investment professionals advise diversification and a focus on companies with robust balance sheets. While near-term challenges persist, attractive valuations in certain sectors may emerge for long-term portfolios.

The current environment underscores the interconnected nature of global markets. Developments in distant regions continue to influence trading floors in New York, highlighting the challenges facing multinational corporations.

As the trading week progressed, attention turned toward U.S. economic releases and overnight news flow from diplomatic channels. The Dow’s moderate decline reflects a market balancing geopolitical risks against underlying economic resilience.

Analysts will continue monitoring oil prices, currency movements and central bank communications for directional cues. While the index faces near-term pressure, its long-term appeal as a barometer of U.S. corporate strength remains intact for many investors.

Thursday’s 0.48 percent drop ranks as a moderate session rather than an extreme move. However, it contributes to a pattern of heightened sensitivity to international events seen throughout 2026.

Market participants will watch closely for signs of stabilization in energy prices and progress on international diplomatic fronts. Until clearer direction emerges, volatility is expected to remain a feature of equity trading.

The Dow’s performance highlights the delicate balance investors must strike between opportunity and risk in an uncertain global environment. As summer approaches, attention will shift toward corporate earnings, policy decisions and any resolution of current geopolitical tensions.

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Verisk Analytics, Inc. (VRSK) Bernstein 42nd Annual Strategic Decisions Conference May 28, 2026 2:30 PM EDT

Company Participants

Lee Shavel – CEO, President & Director

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Conference Call Participants

Kelsey Zhu – Autonomous Research US LP

Presentation

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Kelsey Zhu
Autonomous Research US LP

Good afternoon, everyone. Thanks so much for joining us today. My name is Kelsey Zhu. I’m the information services analyst at Autonomous. With me on stage today, I’m very pleased to welcome Lee Shavel, the CEO of Verisk. Thanks so much for joining us today. Lee. Really appreciate it.

Lee Shavel
CEO, President & Director

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Thanks for having us, Kelsey. It’s great to be here.

Question-and-Answer Session

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Kelsey Zhu
Autonomous Research US LP

So AI has probably been the hottest topic within the information services sector this year, and I think that’s a good place to start. And I know Lee, you recently launched your MCP server. So maybe talk us through a little bit more about the rationale behind that launch. What data is included in the MCP server? How do you protect your data? How do you protect your customers’ data and the pricing and the target audience for this MCP?

Lee Shavel
CEO, President & Director

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So we’re just going to dive right in. So let me start, and I will get to that. Kelsey has shared that we may have some generalists in the room. And so I just want to provide a very brief overview. Verisk started out as a utility to the U.S. property and casualty insurance industry. And we were there to serve a role in collecting data, collecting regulatory filings, managing those on the part of the industry. And it gave us access to an extraordinary wealth of data, particularly loss costs and the ability to standardize forms that enabled us to help the industry understand loss experience across individual product

So here we are again at the Reagan Library, Simi Valley, California. It is a fabulous, fabulous place.

Meanwhile, my first job in politics was the deputy budget director for the Gipper. And to be honest, what I learned during that time in his first term, I’m not sure my political and economic views have really changed much over the past 46 years. 

President Reagan believed in peace through strength. Trump believes in peace through strength. Reagan believed in low taxes to promote growth. Trump believes in low taxes to promote growth. 

They were both staunch advocates of a very light government regulatory touch on the economy, and both men were against unfair trading practices that damaged working Americans. 

Here’s Reagan on peace through strength, in October 1980: “Peace is made by the fact of strength, economic, military and strategic. We must build peace upon strength. There is no other way.”

Wait a minute. There’s even more. Here’s Reagan on trust but verify, in 1987, in remarks with Mikhail Gorbachev:

“We have listened to the wisdom in an old Russian maxim. And I’m sure you’re familiar with it, Mr. General Secretary, though my pronunciation may give you difficulty. The maxim is: Dovorey no provorey — trust, but verify.” 

Gorbachev replied: “You repeat that at every meeting,” which met with laughter. “I like it,” Reagan replied. 

I like it, too. I like it very much. Now, four or five decades later, I also worked for President Trump in his first term as one of his economic advisers. So feature what Mr. Trump said on Iran yesterday, on this whole trust but verify saga.

A reporter asked: “Mr. President, how would you characterize the current state of the talks with Iran? I guess if it were a football field, what yard line would you be on?” 

Mr. Trump replied:  “Well, I think we’re doing very well. They are starting to give us the things that they have to give us, and if they do, that’s great. And if they won’t, then the man on my left is going to finish him off.”

That being War Secretary Pete Hegseth on his left, I’d say that’s a pretty good version of, trust, but verify. Anyway, the ceasefire news today just seems to me to be an extension of Trumpian diplomacy, as Reagan also believed in diplomacy. 

Yet as Reagan would never give in to Gorbachev on producing space based defense in those days called Star Wars, Mr. Trump will never give in to the radical Iranian Islamic regime regarding an end to nuclear weaponry of all kinds and an end to state sponsored terrorism and justice. 

Reagan would never make a bad deal. So also, I believe Mr. Trump will never make a bad deal. So on taxes and economic growth and an end to nuclear terrorism, the two men nearly 40 years apart, faced similar challenges, and both emphasized the need to trust but verify.

WASHINGTON — A former senior CIA official has been arrested and charged with stealing more than $40 million in gold bars from the spy agency and concealing them in his Virginia home, federal prosecutors said Thursday in a case that has raised serious questions about internal controls and background vetting at one of the nation’s most sensitive institutions.

David J. Rush, described in court documents as a former Senior Executive Service employee with top-secret clearance, faces charges of theft of public funds. Authorities say he also falsified his educational and military background, including claiming degrees he never earned and receiving nearly $77,000 in improper military leave pay after his honorable discharge from the Navy in 2015.

The FBI executed a search warrant at Rush’s residence on May 18 and seized approximately 303 gold bars, each weighing about one kilogram, along with roughly $2 million in cash and 35 luxury watches, many of them Rolex brand. The estimated value of the gold alone exceeds $40 million based on current market prices.

Rush allegedly made multiple requests for gold and foreign currency between November and March, claiming the funds were needed for “work-related expenses,” according to an FBI affidavit filed in U.S. District Court for the Eastern District of Virginia. A subsequent search of his government office found only a portion of the requested currency, prompting the agency to realize large amounts were missing.

CIA and FBI officials issued a joint statement confirming the arrest on May 19 following an internal CIA investigation. “After a CIA internal investigation identified potential violations of the law, CIA Director John Ratcliffe referred the information to the FBI for a law enforcement investigation,” the statement said. “The FBI is working closely with our partners at the CIA and the Department of Justice as we continue to investigate this matter fully.”

Rush’s attorney, Jessica N. Carmichael, declined to comment on the allegations. Rush waived his right to a preliminary hearing and is being held by the U.S. Marshals Service. A detention hearing is scheduled for June 5.

Questions Over Background Checks and Oversight

The case has sparked concern about how Rush was able to rise to a senior position within the CIA while allegedly falsifying key parts of his background. According to the affidavit, Rush claimed a bachelor’s degree from Clemson University and a master’s from Rensselaer Polytechnic Institute. FBI investigators found no record of him attending either institution. He also falsely claimed to be a U.S. Navy pilot.

The incident has prompted internal reviews at the agency regarding vetting procedures for employees handling sensitive assets. A former U.S. official familiar with the matter said Rush worked in the CIA’s Directorate of Science and Technology, which develops advanced tools for espionage operations. That directorate often deals with classified budgets and equipment that require strict oversight.

The scale of the alleged theft — involving hundreds of kilograms of physical gold — has surprised even seasoned intelligence veterans. Gold bars are sometimes used in covert operations for their portability and universal value, but strict accounting protocols are supposed to prevent misuse.

Broader Implications for Intelligence Community

The arrest comes at a sensitive time for the U.S. intelligence community, which has faced increased scrutiny over security and financial controls. The case highlights vulnerabilities in how agencies manage high-value assets, particularly those intended for classified operations where transparency is limited for national security reasons.

Experts say the episode could lead to tighter oversight of discretionary funds and physical assets across the intelligence community. Congressional intelligence committees are expected to seek briefings on the matter in coming weeks.

The CIA has not commented on specific internal controls related to Rush but emphasized in its joint statement with the FBI that it takes such allegations seriously and acts swiftly when potential violations are identified.

Rush’s Career and Alleged Deception

Rush joined the CIA around 2009 and rose through the ranks to a senior executive position. The affidavit alleges he continued claiming active military reserve status long after his 2015 discharge, allowing him to receive improper compensation.

The combination of alleged financial theft and background falsification paints a picture of long-term deception. Prosecutors say Rush’s actions compromised not only agency resources but also the trust essential to intelligence work.

The case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of Virginia, a jurisdiction that frequently handles national security matters due to its proximity to Washington and the Pentagon.

Public and Expert Reaction

News of the arrest has drawn widespread attention, with some commentators expressing shock that such a large-scale theft could occur within the CIA. Others have pointed to the case as evidence of the need for stronger whistleblower protections and internal auditing mechanisms.

Intelligence community veterans stressed that while this appears to be an isolated incident, it underscores the importance of rigorous, ongoing vetting for personnel with access to sensitive materials and funds.

The gold bars and luxury items seized suggest a level of personal enrichment that stands in stark contrast to the agency’s mission. The presence of Rolex watches adds a particularly conspicuous element to the allegations.

As the case proceeds, prosecutors will likely seek to trace any additional assets or expenditures by Rush that could indicate how the stolen funds were used. Defense attorneys may challenge the handling of evidence or question the agency’s internal processes.

For now, the arrest represents a significant embarrassment for the CIA at a time when the agency is navigating complex global challenges. The swift referral to the FBI and public acknowledgment of the investigation signal an effort to demonstrate accountability.

The incident is expected to fuel broader discussions about transparency and oversight within U.S. intelligence agencies. While much of their work must remain classified, cases involving potential criminal conduct often require a balance between secrecy and public trust.

Rush’s next court appearance on June 5 will provide additional details as the legal process unfolds. Authorities have not released a full timeline of when the alleged thefts occurred or how long the scheme may have gone undetected.

The case serves as a reminder of the human element in even the most sophisticated security organizations. As investigations continue, both the CIA and Congress will likely examine what systemic changes might prevent similar breaches in the future.

ASEAN is transforming from a digital consumer to a digital infrastructure hub, crucial for AI and compute ecosystems. Geopolitical shifts and rising demand for data centers drive regional competitiveness, with significant foreign investments.

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ASEAN at an AI Inflection Point

ASEAN is navigating a significant transition from being a region of digital consumption to one of digital infrastructure formation. As global supply chains reconfigure, the ASEAN-6 economies are positioning themselves as critical nodes in the global artificial intelligence (AI) and compute ecosystem. This shift is driven by the recognition of computing infrastructure not merely as a utility, but as a strategic asset essential for national competitiveness and economic resilience.

The region’s evolution is occurring against a backdrop of geopolitical diversification, often described as the China Plus One strategy, where multinational enterprises seek to diversify their production and digital footprints.

Consequently, ASEAN is witnessing a structural reconfiguration where data centres, semiconductor manufacturing, and connectivity networks are converging to form a regional digital backbone. This infrastructure is foundational to the region’s digital economy, which is projected to reach $2 trillion by 2030, supported by frameworks such as the ASEAN Digital Economy Framework Agreement (DEFA). The trajectory suggests a move toward deeper integration into global value chains, specifically in high-value segments like semiconductor packaging and hyperscale data processing.

The Surge in Compute Demand

Demand for compute capacity within ASEAN is being driven by a confluence of enterprise modernization, public sector digitalization, and the proliferation of latency-sensitive applications, such as real-time AI inference, online gaming, and digital payments and financial trading. 

Enterprise adoption of AI is accelerating, with businesses increasingly migrating workloads to the cloud to leverage data analytics and generative AI capabilities.

The consumption patterns are distinct across the region. In financial hubs like Singapore, demand is characterized by high-performance computing required for fintech and advanced AI modeling. In emerging digital markets like Indonesia, Vietnam and Philipines, demand is propelled by consumer internet usage, e-commerce platforms, and a young demographic driving data generation. Furthermore, the rollout of 5G networks across the region is catalyzing the need for edge computing to support Internet of Things (IoT) applications and real-time processing.

Public sector initiatives are also significant demand drivers. Governments are digitizing services, as seen in Singapore’s Smart Nation initiatives and Indonesia’s 100 Smart Cities program, necessitating robust domestic compute capabilities. Consequently, the region is facing a requirement to expand data centre capacity significantly. The Asia-Pacific (APAC) region is projected to account for 34% of global operational capacity for data centres by 2028, with ASEAN contributing 51% of the pipeline in key APAC markets.

Data Centres as Strategic Infrastructure

The six largest ASEAN economies – Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam – are rapidly positioning themselves as the next global hubs for data centre development, with power demand for data centres set to quadruple from 2.6 GW to 10.7 GW between 2025 and 2035, accounting for 3-4% of peak demand by 2035.

The deployment of data centres across ASEAN-6 reflects a divergence in strategy and resource availability.

Singapore remains the region’s primary hub, hosting significant capacity. However, land and energy constraints have led to a more selective approval process for new facilities, emphasizing high energy efficiency and sustainability standards.

This constraint in Singapore has generated spillover effects, benefiting neighboring markets. Malaysia, particularly the Johor region, has emerged as a major beneficiary, attracting hyperscale investments due to its proximity to Singapore and lower land and power costs. Malaysia has the biggest data centre project pipeline in Southeast Asia, accounting for 3.4 GW, or 60%, of all proposed projects across the region.

Indonesia continues to expand its capacity, primarily in Greater Jakarta and Batam, with a focus on serving its massive domestic market.

Thailand has seen a marked increase in investment activity. The Board of Investment (BOI) reported a 67% surge in investment applications in 2025, largely driven by data centre and cloud service projects valued at approximately US$ 24 billion.

The Philippines is also pursuing hyperscale ambitions, though it faces challenges regarding high electricity costs and grid reliability issues.

Vietnam is experiencing growth driven by data localization regulations, though it must navigate infrastructure upgrades to support larger facilities. While the country presently has the smallest projected data centre capacity in the region, it has set an ambitious target to place among the top 50 globally in the ICT Development Index and to become the third-largest digital economy in ASEAN by 2030.

Hyperscalers Major Contributors to FDI in ASEAN

Chart 2: ASEAN – Top five industries by announced greenfield investment, 2023 and 2024 (Billions of dollars)

Source: ASEAN Investment Report 2025

According to analysis in the ASEAN Investment Report 2025, announced greenfield investment in electronics and electrical equipment increased by 15% to US$31 billion, reflecting sustained momentum in semiconductors and printed circuit boards.

Meanwhile, greenfield investment in the information and communication sector rose 43% to US$30 billion, driven by accelerating demand for data centres, cloud infrastructure, data processing, and broader digital activities.

Foreign Direct Investment (FDI) in digital infrastructure has surged, with global hyperscalers establishing cloud regions to secure market share and comply with data sovereignty requirements. Amazon Web Services (AWS), Google, and Microsoft have committed multi-billion-dollar investments across Thailand, Malaysia, and Indonesia. For instance, AWS launched a region in Malaysia in 2024 with a substantial investment pledge, and Google launched a new cloud region in Thailand, a key milestone in their $1 billion investment in the country’s digital infrastructure.

As latency becomes a critical performance metric for AI and IoT applications, infrastructure is also moving closer to the user. Edge computing is gaining traction, particularly in archipelagic markets like Indonesia and the Philippines where centralized data centres cannot efficiently serve all remote populations.

The expansion of 5G networks across the region is a primary driver, necessitating localized data centres to handle the influx of mobile data traffic and enable real-time processing. Telcos are playing a pivotal role here; for example, SK Telecom has partnered to develop AI data centres in the region, starting with Vietnam, signaling a convergence of telecommunications and compute infrastructure.

Semiconductor Manufacturing Accelerates

The symbiotic relationship between compute infrastructure and semiconductor manufacturing is becoming a central theme in ASEAN industrial policy.

Malaysia, already a global hub for semiconductor packaging and testing, has introduced a National Semiconductor Strategy to move up the value chain into integrated circuit design and advanced packaging. This aligns with the friendshoring trend, where global firms diversify supply chains to politically stable regions.

Vietnam is aggressively pursuing semiconductor capability, aiming to train 50,000 engineers by 2030 and attracting investments from major players for packaging and testing facilities, such as Intel, Samsung, and Amkor.

Singapore continues to lead in advanced manufacturing and wafer fabrication, serving as a high-value anchor for the region’s semiconductor ecosystem. The city-state currently accounts for 5% of global wafer fabrication capacity, 20% of semiconductor equipment production, and 10% of total semiconductor output.

Indonesia primarily participates in the back end (assembly, testing, and packaging) and materials segments of the semiconductor global value chain. The country hosts back-end manufacturing facilities for several major Integrated Device Manufacturers (IDMs). Companies with an IDM presence in Indonesia include Infineon Technologies, Renesas, Rohm, Sanken Electric, and Toshiba.

The Philippines and Thailand are also integrated into this hardware supply chain, primarily in assembly and testing. The region’s collective capacity is vital for the AI hardware supply chain, as AI applications drive demand for specialized chips and high-performance computing hardware. This integration allows ASEAN to function not just as a user of compute power, but as a critical producer of the underlying hardware.

The Role of Software Ecosystems & Sovereign AI 

While infrastructure creates the foundation, the software ecosystem defines utilization. Singapore has advanced its National AI Strategy 2.0, focusing on becoming a global centre for responsible AI thought leadership and deployment. Indonesia has also articulated a National AI Strategy to guide adoption in healthcare and bureaucracy.

The startup ecosystem is responding to these signals. In 2024, Singapore hosted approximately 44% of the region’s Generative AI startups, according to a survey of 250 GenAI-native startups surveyed by GenAI Fund, followed by Vietnam at 27%, indicating a concentration of development talent. However, a talent gap persists. While infrastructure can be built relatively quickly, the human capital required to develop and manage AI systems is slower to accumulate.

The ASEAN Responsible AI Roadmap attempts to address governance and skills at a regional level, promoting ethical standards and harmonized regulations to foster a trusted environment for AI development.

Singapore

NAIS 2.0: S$1B investment for AI computing & talent; “AI for the Public Good” focus
Model AI Governance Framework & AI Verify: responsible AI testing toolkit

Green Computing Funding Initiative: S$30M for energy-efficient software R&D
RIE 2025 Plan: S$13.6B (2021–2025) for semiconductor R&D and innovation
Manufacturing 2030: embeds semiconductor plans for high-value manufacturing
Green Data Centre Roadmap: DC-CFA process; targets PUE ≤1.3 and green energy
Digital Connectivity Blueprint: sustainable growth standards; aims to double submarine cable landings 

Malaysia

AI Untuk Rakyat: national program to increase AI literacy among citizens
NIMP 2030: focuses on tech adoption and digitalization across industries

Malaysia National AI Office (NAIO): aims to accelerate the nation’s AI adoption, promote innovation, and ensure the ethical development of AI.
National Semiconductor Strategy (NSS): RM25B (~US$ 5.3B) fiscal support; three-phase plan: Building Foundations → Moving to the Frontier → Innovating at the Frontier
Golden Pass: specialized tax incentives for front-end manufacturing and IC design
Digital Ecosystem Acceleration (DESAC): incentive scheme for data centres adopting green technology
Green Lane Pathway (TNB): expedited electricity supply; reduces power infrastructure lead times

Vietnam

National Digital Transformation Programme: targets top 50 ICT ranking by 2030; drives demand for compute and AI infrastructure
National Strategy (Decision No. 1018/QD-TTg): 2030–2050 roadmap using “C = SET + 1” formula(Chips, Specialized, Electronics, Talent, +Vietnam)
Law on Digital Technology Industry (eff. 2026): preferential CIT rates (10% for 15 yrs; up to 37 yrs for large projects); land rent exemptions

Investment Support Fund (Decree 182/2024): cash grants; up to 50% of R&D costs covered
100% Foreign Ownership: Law on Telecommunications 2023 allows full foreign ownership in data centre services
National Digital Transformation Programme: targets top 50 ICT, driving compute infrastructure demand 

Thailand

AI for All Thais: initiative to train 1 million citizens in AI skills
Digital Technology Foresight 2035: addresses blockchain, AI, and data privacy trends
National Semiconductor Board (est. 2025): chaired by Prime Minister; steers national strategy
BOI Advanced Electronics Incentives: 10-yr tax exemption for front-end wafer fab; 8-yr for advanced IC & PCB machinery
BOI Incentive Schemes (revised 2025): tiered structure: High-Efficiency DCs (8-yr CIT exemption);
Other DCs (5-yr); criteria based on PUE and water usage

Indonesia

National AI Strategy 2020–2045: guides public service digitization and regulatory frameworks
Making Indonesia 4.0: prioritizes AI, automation, and IoT in manufacturing
Downstreaming Industry Strategy (2023–2040): domestic processing of silica & nickel to support semiconductor, EV battery, and solar panel manufacturing
Special Economic Zones (SEZs): e.g. Nongsa Digital Park: up to 20-yr tax holidays, 100% foreign ownership, streamlined permitting for data centres and cloud

Philippines

National AI Strategy Roadmap 2.0: positions country as centre of excellence in AI R&D
Center for AI Research (CAIR): new institution supporting the AI Strategy
Green Lanes (Executive Order): expedited permits and licenses for strategic semiconductor investments
CREATE MORE Bill: enhanced incentives addressing power costs for energy-intensive industries

Administrative Order No. 31: advisory council to enhance global competitiveness of the semiconductor industry
Strategic Investment Priority Plan (SIPP): classifies data centres as strategic investments eligible for tax incentives
Digital Cities 2025: expands digital infrastructure and IT-BPM capacity beyond Metro Manila

Regionally, the ASEAN Digital Economy Framework Agreement (DEFA) aims to harmonize digital trade rules, potentially doubling the regional digital economy by 2030 by reducing fragmentation and facilitating cross-border data flows.

Structural Constraints & Risks

Despite the capital inflows, structural constraints pose significant risks to the realization of ASEAN’s digital backbone. Power availability is the most acute constraint. The energy intensity of AI workloads threatens to overwhelm grid capacity in specific locales. For instance, data centre power demand in Malaysia is expected to rise sharply, potentially straining national power reserves if grid upgrades do not keep pace.

Sustainability is a collateral risk. The cooling requirements for data centres place pressure on water resources, and the carbon footprint of expanded compute capacity challenges national decarbonization goals. Regulatory fragmentation remains a hurdle; disparate data privacy laws and localization requirements across the ten member states create compliance costs that can deter regional scaling.

Furthermore, the talent war is intensifying. A shortage of skilled engineers and AI specialists is evident across Vietnam, Thailand, and Indonesia, potentially creating a ceiling on how fast the digital economy can expand. There is also a risk of infrastructure overbuild in specific sub-markets if speculative investments outpace actual tenant demand, a phenomenon observed in previous infrastructure cycles.

Conclusion: Building a Regional Digital Backbone

ASEAN-6 is transitioning from a digital consumption market to a strategic production hub for the global AI economy. Supply chain diversification and enterprise demand have attracted large-scale investments from hyperscalers and semiconductor firms, positioning the region as a key node in global digital infrastructure.

Growth is complementary, not uniform. Singapore anchors high-value R&D, financing, and chip design, while Malaysia, Vietnam, and Thailand scale packaging, testing, and hyperscale data hosting. This division of labor enables ASEAN to offer an integrated, end-to-end digital supply chain.

However, there are structural constraints. AI-driven energy demand is pressuring grids and decarbonization targets, requiring accelerated renewable deployment and grid upgrades. At the same time, engineering talent shortages remain a binding bottleneck.

ASEAN’s long-term competitiveness will hinge on aligning national industrial strategies with regional integration. As initiatives like the ASEAN Digital Economy Framework Agreement (DEFA) progress, regulatory harmonization and infrastructure interoperability will determine whether the region evolves into a cohesive and resilient digital ecosystem.

Source : AI & Compute Infrastructure: Building ASEAN’s Digital Backbone

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​The S&P 500 and the Nasdaq posted record closing highs on Thursday after news reports said the U.S. and Iran had reached a draft agreement to extend their ceasefire for 60 days, while investors also digested key inflation data.

The news was first reported by Axios, which said that negotiations ‌on Iran’s nuclear program ⁠would ⁠be held during the truce period, but that the plan still needed the approval of President Donald Trump.

“Traders are on a hair trigger with the back-and-forth ​on deal news, and have been leaning long to avoid getting trampled by a better-than-expected outcome. The harder part is that the inflationary forces ​may not abate as fast as markets want,” said Jamie Cox, managing partner at Harris Financial Group. Economic data showed U.S. inflation increased at its fastest pace in three years in April, driven by higher energy prices amid the Iran war. Meanwhile, U.S. ​GDP for the first quarter was revised lower to a 1.6% annualized increase, ⁠with momentum expected ‌to slow this quarter.

According to preliminary data, the S&P 500 gained 43.50 points, or 0.58%, to ​end at 7,563.71 ​points, while the Nasdaq Composite gained 239.79 points, or 0.91%, to 26,917.47. The Dow Jones Industrial Average ⁠rose 24.11 points, or 0.04%, to 50,666.29. The S&P 500 healthcare index posted strong ​gains. Eli Lilly advanced after CVS Health said it would restore the drugmaker’s weight-loss injection, ​Zepbound, to its coverage and add its newly approved obesity pill Foundayo.

Tech shares also moved higher. Microsoft gained after news website the Information reported that the company would release a new coding model next week.

Marvell Technology rose after UBS raised its target price to $230 from $195.
The company’s shares have more than doubled so far this year.Snowflake shares soared after the data analytics firm lifted its annual product revenue forecast and announced a five-year AI infrastructure deal worth $6 billion with Amazon Web Services.

Peers Datadog and MongoDB also ‌climbed.

Renewed confidence in AI and earnings growth momentum have underscored the recent rally despite the Middle East tensions, which have increased inflationary expectations.

“Markets continue to look through these risks because the global economy and ​corporate earnings remain ​relatively resilient,” said Jitania Kandhari, deputy CIO, ⁠solutions and multi-assets, at Morgan Stanley Investment Management.

“Geopolitical instability could ultimately accelerate spending in areas tied to AI, including cybersecurity, defense technology, energy infrastructure and supply-chain resiliency, reinforcing the long-term investment case.”

While the S&P 500 is trading at roughly 21 to ​22 times forward earnings versus a trailing 10-year average of 19.7 times, investors are less concerned because earnings expectations are rising faster than stock prices, Kandhari said. Among other movers, Dollar Tree climbed after the discount retailer lifted its full-year profit forecast, while Best Buy also rose after the electronics vendor forecast second-quarter sales above estimates. Drone companies rose after the Wall Street Journal reported that the Trump administration was in talks to fund drone firms. Shares of Unusual Machines surged.