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Defence Minister Mohamed Khaled Nordin said Oslo’s decision had moved beyond a procurement setback and raised wider questions about trust in global relations. He argued that rules and agreements lose credibility when advanced economies can withdraw from signed deals after payments, integration work and delivery schedules have already been set.

Kuala Lumpur is seeking more than RM1 billion in compensation after Norway revoked approvals linked to the Kongsberg Defence & Aerospace missile system intended for Royal Malaysian Navy littoral combat ships. Malaysia says it had paid about 95 per cent of the contract value before the reversal, which disrupted plans for weapons installation on ships already designed around the Norwegian system.

The dispute centres on the Naval Strike Missile, an anti-ship weapon produced by Kongsberg and selected under Malaysia’s long-delayed littoral combat ship programme. The original 2018 contract was valued at about €124 million and covered missiles for six vessels, while Malaysia has also referred to a second arrangement involving two additional naval platforms.

Norway has defended the decision as part of tightened export controls over sensitive defence technology. Its foreign ministry has said exports of some Norwegian-developed systems will be limited to allies and closest partners because of changes in the European and global security environment. Oslo has also said it values relations with Malaysia and wants continued dialogue, while Kongsberg has maintained that licensing decisions rest with Norwegian authorities.

Kuala Lumpur’s anger has deepened because the decision came after years of planning around the missile system. Officials say the financial claim includes direct payments and indirect costs, including work needed to remove or modify equipment already fitted to accommodate the system, integration of replacement weapons and retraining of personnel.

Prime Minister Anwar Ibrahim has called Norway’s action unilateral and unacceptable, warning that signed contracts cannot be treated as disposable commitments. He has said the move could damage confidence in European defence suppliers if commercial and strategic agreements can be reversed without adequate safeguards for the buyer.

Khaled’s remarks have widened the argument from a bilateral dispute to a broader critique of defence procurement norms. He said smaller countries must ask whether powerful states can invoke shifting policy considerations after contracts have been finalised, leaving customers to absorb operational, financial and strategic consequences.

Malaysia’s immediate concern is the impact on the littoral combat ship programme, one of the country’s most politically sensitive defence projects. The programme began in 2011 with an initial plan for six vessels at RM6 billion but became mired in delays, cost escalation and allegations of mismanagement. The government later revived the project after a review, reducing the number of vessels to five.

The first ship, originally expected earlier, is now due for delivery in December 2026. The absence of the missile system adds another layer of difficulty to a programme already under scrutiny, though the defence ministry has said construction will continue while alternative missile options are assessed.

Replacing the Naval Strike Missile is not a simple procurement switch. Any substitute must be compatible with the combat management system, launch architecture, ship design, maintenance regime and training pipeline. Defence analysts have warned that retrofitting could raise costs and extend integration timelines, especially when warship systems have been configured around a specific weapon package.

Malaysia is also weighing the diplomatic cost of the dispute. Norway is not among Malaysia’s largest defence partners, but the controversy could influence how Kuala Lumpur assesses future purchases from Europe and NATO-aligned suppliers. Khaled has indicated that trust, technology transfer and support for Malaysia’s self-reliance goals will carry greater weight in future procurement decisions.

The episode comes as Southeast Asian states are modernising naval capabilities amid busier sea lanes, contested maritime zones and growing demand for precision strike systems. Malaysia has sought to strengthen its maritime posture while avoiding alignment with any major bloc, making reliability of suppliers a central issue in long-term planning.

The Mach33: Physical AI Fashion Show, held on 28 May at Galaxy Robot Park in Gangdong District, was presented as more than a novelty catwalk. Galaxy Corporation framed the event as an experiment in coexistence, asking how people and robots might share cultural spaces rather than treating humanoids only as factory tools, laboratory platforms or service machines.

Each model appeared with a shorter humanoid counterpart, often wearing matching or complementary outfits. A tasselled blue Texan-style look, complete with a robot-sized cowboy hat, stood alongside retro silver outerwear, silky dresses fitted to rigid frames and space-age black trousers reminiscent of David Bowie’s 1970s stage style. The styling made the mechanical bodies appear less like exposed prototypes and more like performers entering a commercial entertainment format.

Galaxy Corporation founder and chief executive Choi Yong-ho said the company had realised that robots “need to wear clothes” and argued that robots, like people, should have distinct identities. The company designed the outfits and intends to launch them under the MACH 33 name by the end of the year, positioning robot fashion as a potential extension of its entertainment-technology business.

The event followed the opening phase of Galaxy Robot Park, a 16,500-square-metre venue in eastern Seoul designed around robot concerts, interactive shows, robotic portrait drawing, boxing-style demonstrations and visitor experiences. The park is part of Galaxy Corporation’s effort to create a new live-entertainment category built around “physical AI”, a term used to describe artificial intelligence moving from screens and software into embodied machines operating in shared human spaces.

Galaxy Corporation, known for managing cultural figures including G-Dragon, Taemin and actor Song Kang-ho, has been seeking to merge K-pop spectacle with robotics. Its robot performances have included choreographed dance routines, synchronised stage movement and plans for several shows a day. The company has said it wants to stage more than 1,000 robot performances annually and ultimately take robot-led shows beyond South Korea.

The robot models appeared to be Unitree G1 humanoids, a relatively low-cost platform made by Hangzhou-based Unitree Robotics. The G1 is widely used in demonstrations because of its compact size, balance control, range of motion and comparatively accessible pricing for developers and institutions. Its ability to walk, turn, gesture and respond to programmed choreography makes it suitable for controlled performances, though it remains far from a fully autonomous general-purpose worker.

The show also highlighted the gap between polished presentation and engineering reality. Humanoid robots are becoming more agile, but smooth movement in a runway setting still requires careful staging, reliable control systems and predictable conditions. Research into whole-body teleoperation, motion retargeting and autonomous loco-manipulation continues to point to unresolved challenges, including latency, balance recovery, hand dexterity, human-robot interaction and safe operation in crowded public spaces.

For South Korea’s entertainment sector, the Galaxy event fits a broader pattern of experimentation with virtual idols, AI-generated content, immersive fan platforms and digitally enhanced performances. K-pop’s visual emphasis makes it a natural testing ground for robotic spectacle, but the commercial test will be whether audiences view robot performers as compelling cultural products or as temporary curiosities.

Fashion offers Galaxy a softer route into that debate. Unlike industrial robotics, a runway show does not require humanoids to prove productivity. It asks whether machines can be styled, branded and given a visible role in popular culture. The clothes also conceal some of the awkwardness of exposed mechanical frames, making the robots appear less clinical and more theatrical.

The commercial stakes are growing. Forecasts for humanoid robotics vary widely, but major financial institutions and technology analysts expect the sector to expand sharply over the next two decades as costs fall and AI systems improve. Optimistic projections point to hundreds of millions, or even more than a billion, humanoids by 2050, though adoption is expected to move gradually as companies work through safety, reliability, regulation and public acceptance.

The Ministry of Energy and Mineral Resources is working with the Ministry of Agrarian Affairs and Spatial Planning, state electricity company PLN and other agencies to identify land, grid links and storage systems needed for the programme. About 24,000 hectares on Java Island have been earmarked for verification, with the authorities seeking to match project sites with transmission lines, PLN substations and battery storage capacity.

Deputy Energy and Mineral Resources Minister Yuliot Tanjung said the government’s first priority is to push ahead with an initial 17 GW phase, supported by around 33 GW of battery energy storage systems. The early phase is expected to test the country’s ability to turn a national target into bankable projects at scale, particularly in areas where land acquisition, grid connection and tariff design have slowed renewable energy investment.

The wider 100 GW plan is designed to reduce Indonesia’s reliance on diesel and gas-fired generation, particularly in regions where imported fuel and high operating costs have weighed on the state budget. Officials have estimated that converting fossil fuel-based generation to solar power combined with battery storage could cut electricity generation costs by up to Rp73.9 trillion, or about $4.18 billion, a year once implemented at scale.

The programme also reflects Jakarta’s attempt to close the gap between Indonesia’s large solar potential and its modest installed capacity. The country has abundant sunshine across its islands, yet solar has remained a small part of the electricity mix compared with coal, gas, hydro and geothermal power. Rooftop and utility-scale solar deployment has been constrained by regulatory uncertainty, procurement delays, grid limitations and the financial position of PLN.

Indonesia’s latest electricity supply plan for 2025-2034 calls for 69.5 GW of new generation capacity, with renewable energy making up a large share of future additions. Solar is expected to play a central role in that expansion, with PLN’s planning framework pointing to 17.1 GW of new solar capacity by 2034 alongside hydro, geothermal, wind and storage projects. The 100 GW programme goes beyond that planning baseline and signals a more aggressive policy push from President Prabowo Subianto’s administration.

A key feature of the solar strategy is its decentralised design. Earlier planning discussions have described a model that could combine large centralised solar plants with smaller village-level systems, many paired with batteries. Such an approach could help remote communities replace diesel generation, improve supply reliability and reduce exposure to fuel price volatility, while also creating demand for locally produced panels, batteries, inverters and grid equipment.

The proposed investment scale underlines the financing challenge. A $71.3 billion programme would require state support, PLN procurement commitments, private sector participation, concessional finance and possibly blended funding from climate-related investment platforms. Indonesia has already attracted international attention through its Just Energy Transition Partnership, but converting pledges into project-level funding has remained difficult, particularly because coal continues to dominate power generation and captive industrial power demand is rising.

Land availability will be another decisive issue. Java, the country’s most populous island and main electricity demand centre, offers stronger grid connectivity but also intense competition for land. The identification of 24,000 hectares is a first step rather than a final allocation, as each site must still pass verification covering ownership, spatial planning, environmental suitability and connection feasibility.

Grid readiness may prove equally important. Large volumes of intermittent solar power will require stronger transmission networks, flexible generation, storage systems and updated dispatch rules. Battery storage is central to the plan because solar output peaks during daylight hours while demand often rises in the evening. Without adequate storage and grid upgrades, high solar penetration could create curtailment risks and weaken project economics.

The programme could strengthen Indonesia’s industrial policy if it succeeds in building domestic solar manufacturing capacity. Officials have linked the plan to demand for locally produced panels, a move that could support factories, create jobs and reduce exposure to import barriers in global solar trade. The strategy comes as several countries seek to capture more of the clean energy supply chain, from polysilicon and wafers to modules and battery systems.

Indonesia’s energy transition remains complicated by its coal-heavy electricity system, long-term power purchase agreements and the need to provide affordable energy to households and industry. Coal plants still anchor baseload supply, while nickel processing and other industrial sectors have increased captive power demand. Those pressures make the solar programme both a climate policy instrument and an energy security strategy.

Work on floating solar projects, rooftop systems and village electrification schemes has already begun to build momentum. PLN’s Saguling floating solar project in West Java, scheduled for commercial operation in late 2026, is one of several projects intended to demonstrate technical and commercial viability. The larger 100 GW plan, however, will require faster procurement, clearer tariff rules and stronger coordination across ministries, PLN, regional governments and investors.

The unit sits under the president’s office and is evaluating AI start-ups globally, with long-serving executive Zhang Endong leading the effort. The move places investment activity closer to Sea’s top management at a time when the company is trying to convert its scale across Shopee, Garena and Monee into a stronger position in the next phase of consumer internet competition.

The new team is part of a wider internal reorganisation aimed at accelerating AI adoption across Sea’s businesses. Zhang is also involved in projects examining how the technology can be deployed inside the group, from product recommendations and seller tools to game development and financial services. A company spokesperson declined to comment on the investment unit.

The initiative follows a series of signals from chief executive Forrest Li that AI has become central to Sea’s long-term strategy. Li told investors last year that a trillion-dollar market capitalisation could be possible if the company doubled down on artificial intelligence and made the right calls. That ambition is now being tested against tougher operating conditions, heavier competition and investor scrutiny over margins.

Sea’s pivot comes as its core businesses remain sizeable but increasingly contested. Shopee continues to dominate e-commerce across South-east Asia, where price-led competition, live commerce, faster delivery expectations and merchant services have raised both growth potential and operating costs. Rivals including TikTok Shop, Lazada, Amazon and Rakuten are intensifying their own use of AI to personalise shopping, automate seller support and streamline logistics.

Artificial intelligence is already being built into Shopee’s customer and merchant systems. Its applications include recommendation engines, search improvements, advertising tools and seller assistance functions. The strategic logic is straightforward: more effective targeting can increase conversion, better seller tools can deepen merchant loyalty, and automated service functions can reduce costs across markets with different languages, payment habits and logistics infrastructure.

Sea has also expanded its partnership with Google to develop AI-powered tools across e-commerce and gaming. The companies are exploring an agentic shopping prototype for Shopee, designed to move beyond basic search and recommendation functions towards digital assistants capable of helping consumers complete tasks across the shopping journey. Garena is expected to use AI to improve game development productivity, an area where faster content cycles and lower development costs can carry significant commercial value.

Financial performance has given Sea room to invest, though not without pressure. First-quarter revenue rose 46.6 per cent year on year to US$7.1 billion, while gross profit increased 40.7 per cent to US$3.1 billion. Net income reached US$438.2 million, up 6.7 per cent, and adjusted EBITDA rose 9.3 per cent to US$1 billion. The figures showed continued momentum, but also reflected the cost of defending market share and expanding services.

Shopee delivered gross merchandise value of US$37.3 billion in the quarter, up 30.2 per cent from a year earlier, while gross orders climbed 29.3 per cent to 4 billion. Revenue from the e-commerce arm rose 45.1 per cent to US$5.1 billion, though adjusted EBITDA fell to US$223.2 million from US$264.4 million a year earlier, underlining the margin trade-off behind its expansion strategy.

Monee, Sea’s digital financial services unit, has become another pillar of growth. Revenue rose 57.8 per cent to US$1.2 billion, while consumer and small-business loans outstanding reached US$9.9 billion. Non-performing loans more than 90 days past due remained at 1.1 per cent, a key metric as the company expands credit services across emerging markets where risk controls are critical.

Garena, once Sea’s dominant profit engine, also showed stronger momentum. Bookings rose 20.1 per cent to US$931.4 million, while quarterly active users stood at 666.5 million. The unit remains anchored by Free Fire, but Sea’s AI push suggests management sees broader potential in development tools, content generation, player engagement and operational efficiency.

Sea’s AI Centre of Excellence in Singapore adds another layer to the strategy. The centre is intended to strengthen local AI capabilities, support enterprise adoption and develop talent in areas such as engineering, research and product development. Its launch aligns the company with Singapore’s broader ambition to become a regional AI hub and gives Sea a clearer institutional base for experimentation.

The investment team could give Sea access to external innovation at a time when start-ups are moving faster than large platforms in areas such as autonomous commerce, generative game design, fraud detection, credit scoring and AI-enabled logistics. The challenge will be distinguishing durable business models from inflated valuations in a crowded funding environment.

Investors will be watching whether Sea’s AI spending produces measurable gains in revenue growth, user engagement and margin improvement. The company has already shown that it can rebuild profitability after years of expansion-led losses. Its next test is whether AI can become more than an efficiency tool and help create the next major growth curve for one of South-east Asia’s most valuable technology groups.