Singapore’s Keppel Corporation and Vietnam’s Sovico Group are in discussions to develop new submarine cables to enhance Southeast Asia’s digital infrastructure.

Sources indicate that this initiative responds to increasing demand for data services and AI technology in the region.

One proposal being considered involves a US$150 million submarine cable linking Vietnam and Singapore directly.

Submarine cables play a crucial role in global communication by transporting sensitive internet data.

The sector is affected by geopolitical tensions between the US and China, as both nations seek to secure infrastructure projects in Southeast Asia.