Technology market scan
A quarterly snapshot of policy, market and infrastructure developments shaping the technology landscape across Asia-Pacific economies.
Australia
Renewables near 50% of national grid
Australia's Minister for Climate Change and Energy Chris Bowen confirmed in January 2026 that renewable energy sources — solar, wind, and storage — accounted for 49.9 per cent of electricity generated across the National Electricity Market in the December 2025 quarter, while Western Australia exceeded 50 per cent for the first time. Wholesale electricity prices in the National Electricity Market fell by nearly half compared to the same quarter a year earlier, driven by record renewable and storage output, a near-tripling of battery discharge, and a 27 per cent decline in gas generation to its lowest level in 25 years. By January 2026, more than 200,000 households had installed batteries under the government's Cheaper Home Batteries Program, well ahead of original projections, prompting the government to increase the program's total funding to A$7.2 billion. Close to 7 GW of renewable generation capacity was added to the grid during 2025, keeping Australia on track toward its target of 82 per cent renewable electricity by 2030.
China
Law amended to embed AI governance
Landmark amendments to China's Cybersecurity Law, which came into force on 1 January 2026, introduced the country's first national-level legal provisions dedicated to artificial intelligence governance. The revised law commits the government to strengthening AI ethics regulation, enhancing risk assessment frameworks, and supporting innovation through the development of training data resources. Concurrently, updated Patent Examination Guidelines effective from the same date established clearer standards for protecting innovations in AI and big data, requiring patent specifications to fully describe model architectures and training processes. New certification measures for cross-border data transfers also took effect, setting eligibility thresholds and requiring certification by qualified institutions.
Japan
Japan's Act on the Development of Marine Renewable Energy Power Generation Facilities — amending the Act on Promoting the Utilization of Sea Areas — was scheduled to enter into force on 1 April 2026, enabling the installation of offshore wind power plants in Japan's exclusive economic zone (EEZ) for the first time. Previously, offshore wind development was confined to territorial waters managed by prefectural governments; the amendment extends development rights to the nationally managed EEZ, substantially increasing the available marine area for renewable energy projects. In parallel, participation in Japan's Green Transformation Emissions Trading System (GX-ETS) became mandatory from 1 April 2026 for companies emitting more than 100,000 tons of CO₂ annually, following the Diet's passage of an amendment to the GX Promotion Act in May 2025. The Japanese government targets 10 GW of offshore wind capacity by 2030 and 30–45 GW by 2040 as part of its carbon neutrality strategy for 2050.
India
Union Budget boosts semiconductor and cloud infrastructure
India's Union Budget 2026–27, presented on 1 February 2026 by Finance Minister Nirmala Sitharaman, outlined a major package to strengthen the country's digital technology ecosystem. Key announcements included the launch of India Semiconductor Mission 2.0, enhanced allocations under the Electronics Components Manufacturing Scheme, and a tax holiday until 2047 for eligible foreign cloud service providers operating through India-based data centr infrastructure. The tax incentive is intended to attract large-scale AI data centr investment, complementing global trends in which data centrs accounted for more than onefifth of global greenfield project values in 2025. The budget also backed the Animation, Visual Effects, Gaming and Comics (AVGC) sector through dedicated labs in 15,000 secondary schools and 500 colleges. Duties cut on solar and battery manufacturing inputs Alongside its semiconductor and cloud provisions, India's Union Budget 2026–27 announced targeted customs duty reforms to strengthen the country's clean energy manufacturing base. The government extended basic customs duty exemptions on capital goods required for lithium-ion cell production for battery energy storage systems (BESS) and for processing critical minerals. It also removed the 7.5 per cent basic customs duty on sodium antimonate, a key input for solar glass manufacturing. Separately, the budget allocated ₹600 crore for the Green Energy Corridor to develop 6,000 kilometers of intra-state transmission, improving renewable energy evacuation infrastructure. India's installed renewable energy capacity reached 266.7 GW as of February 2026, with solar capacity having crossed 140 GW in January, making the country the fourthlargest renewable energy market globally.
Indonesia
Indonesia announced that it would begin deactivating social media accounts belonging to users under 16 years of age from 28 March 2026, invoking a declared 'digital emergency' linked to children's exposure to harmful online content. The Ministry of Communications and Digital Affairs also consulted on draft implementing rules for the regulation governing electronic systems, addressing age verification and parental consent requirements for digital services. Indonesia's move follows similar legislative trajectories in Malaysia and Singapore, raising the prospect of coordinated ASEAN-wide age-assurance frameworks for online platforms.
Republic of Korea
The Republic of Korea's Framework Act on Artificial Intelligence Industry Promotion and Trust Building entered into force on 22 January 2026, making the country the first in Asia-Pacific to enact comprehensive national AI legislation. The Act establishes a risk-based regulatory framework that distinguishes between ordinary AI systems and 'high-impact' AI systems deployed in critical sectors such as healthcare, finance, and public administration. Organizations deploying high-impact AI must implement disclosure obligations, establish human oversight mechanisms, monitor bias, and appoint local representatives for regulatory communication. The government also launched a Digital Asset Task Force to begin working on legislation governing KRW-linked stablecoins.
Malaysia
Social media restrictions for minors
Following the entry into force of its Online Safety Act 2025, Malaysia signaled plans in early 2026 to enforce a social media ban for children under 16 years of age. The government framed the policy around systemic risk management, shifting responsibility onto platforms to identify and address priority harms such as online scams and child sexual abuse material. Malaysia also continues to develop its 13th Malaysia Plan (2026–2031), which is themed 'Redesigning Development' and sets targets to elevate economic complexity through digitalization and AI, with the overarching goal of achieving developed-country status by 2030.
Philippines
Chairmanship to advance regional AI framework
As 2026 ASEAN Chair under the theme 'Navigating Our Future, Together', the Philippines signaled its intention to present an AI regulatory framework to ASEAN member states during the year. Informed by draft legislation under consideration in the Philippine Congress, the proposed framework aims to govern the development, deployment, and oversight of AI systems with a focus on deepfake regulation, algorithmic transparency, and platform accountability. Philippine officials indicated that the framework could position the country as among the first Southeast Asian nations with a binding legal structure for AI governance, attracting business process outsourcing investment and digital partnerships.
Singapore
First hydrogen-compatible power plant
Keppel, a Singapore-based firm active in new energy technologies, announced in January 2026 that it was scheduled to launch Singapore's first hydrogen-compatible power plant in the first half of 2026. The announcement reflected Singapore's broader strategy to diversify its energy mix toward low-carbon sources and strengthen energy security. Singapore's Monetary Authority (MAS) also continued to advance the Financing Asia's Transition Partnership (FAST-P) in 2026, deploying blended finance into green and sustainable infrastructure projects across the region. The MAS additionally issued a consultation on proposed AI risk management guidelines for financial institutions, with a feedback deadline of 31 January 2026, as part of its ongoing work on responsible technology governance in the financial sector.
Thailand
DPPA pilot launched for data centers
Thai regulators launched a 2 GW Direct Power Purchase Agreement (DPPA) pilot in January 2026, specifically designed to allow data center operators to procure renewable electricity directly from generators, bypassing the standard grid supply. The initiative responds to the rapidly growing power demands of AI-driven data center expansion across Southeast Asia and provides operators with a mechanism to meet Scope 2 emissions commitments. The pilot is expected to function as a catalyst for broader renewable energy market liberalization in Thailand. Thailand's digital economy was separately projected to grow by 4.2 per cent in 2026, approximately double the rate of national GDP growth, driven by technology investment, data center expansion, and AI adoption across the economy.
Viet Nam
Digital Technology Industry Law
Viet Nam's Law on Digital Technology Industry (Law No. 71/2025/QH15), adopted by the National Assembly on 14 June 2025 with near-unanimous support, entered into force on 1 January 2026. The law, the first of its kind globally to be dedicated exclusively to the digital technology industry, provides a comprehensive legal framework covering artificial intelligence, semiconductor production, digital assets, and digital technology zones. Enterprises operating in designated sectors—including AI, chip design, and software—qualify for special investment incentives including reduced corporate income tax, land-use preferences, and access to government procurement. High-quality digital technology professionals are exempt from personal income tax for the first five years of employment, and foreign experts may obtain five-year visas without work permits. The accompanying Decree 353/2025/NĐ-CP provides detailed implementation rules across the sector.
Regional
Asia-Pacific renewable energy outlook
Asia-Pacific countries are on course to expand their total renewable energy capacity significantly in 2026, maintaining energy transition momentum despite headwinds from geopolitical tensions and inflationary pressures. Industry analysts noted in January 2026 that the commercial logic for the energy transition remained robust, with renewable power maintaining a substantial price advantage over conventional energy sources even without subsidy support in several markets. Solar and wind energy are projected to account for more than 80 per cent of new capacity additions across the region, while Direct Power Purchase Agreements and corporate Power Purchase Agreements are expanding to meet growing demand from data centers and technology sector consumers. The region is home to two of the world's largest greenhouse gas emitters — China and India — both of which are backed by supportive government policies and investment frameworks that are expected to sustain the pace of clean energy deployment through the period.