Asia TMT Bulletin – February 2026

As we welcome the Year of the Horse, the regulatory momentum across the region shows no sign of slowing down. China has offered clarity on AI accountability with its first court ruling on generative AI "hallucination" liability, whilst Singapore has provided the world's first governance framework for agentic AI.

Expectations are increasing in Hong Kong as the Critical Infrastructure Ordinance imposes obligations on CI Operators and a new Practice Guide for cloud technology users is released. In the UAE, new child digital safety protections have come into force, whilst active enforcement in the region also continues, with Singapore's PDPC issuing penalties – an important reminder that regulators continue to monitor compliance closely.

Data Privacy

Singapore: Bill passed to allow government sharing of data outside public sector

The amendments to the Public Sector (Governance) Act allow data to be shared with external partners that public sector agencies work with for community services delivery, subject to there being a legitimate purpose, authorisation from the Minister and contractual agreements.

Cybersecurity

Hong Kong: Code of Practice published for new Critical Infrastructure (“CI”) Ordinance

Following the enactment of the CI Ordinance on 1 January 2026, a Code of Practice has been published detailing how Critical Computer Systems are designated and the obligations of a CI Operator.

Thailand: Proposed measures on prevention of technology‑related crime in social media

The Electronic Transactions Development Agency has launched a public consultation on a proposed regulation that would require social media service providers to comply with additional measures to prevent technology‑related offences. 

Digital Platform Services

UAE: new child digital safety law enacted 

The UAE’s Federal Decree-Law No.26 of 2025, in force from 1 January 2026, introduces comprehensive child digital safety protections. It requires digital platforms and internet service providers to implement privacy-by-default settings, enhanced age verification and content filtering, and content impact classifications. 

Australia: New smart-TV prominence rules introduced

Australia has introduced prominence regulations requiring smart TV manufacturers to pre-install and display free-to-air apps on TV home screens. Breaches attract civil penalties of up to 10,000 penalty units (currently AUD$3.3 million) or 2% of annual turnover, signalling wider regional regulation of platform-discoverability.

Artificial Intelligence

China: First court ruling on generative AI “hallucination” liability

A recent judgment by the Hangzhou Internet Court held that AI-generated “promises” do not create legally binding representations, applying fault-based principles to AI-generated “hallucinations” rather than the strict liability that attaches to products.

Singapore: World-first governance framework for agentic AI launched

The Infocomm Media Development Authority’s framework sets out four key areas of focus for enterprises to manage the risks of agentic AI, including assessing risks up-front, ensuring human accountability and oversight, technical controls throughout deployment, and enabling end-user responsibility.

Digital Transformation

Vietnam: Consultation on draft law on technology transfers

On 20 January 2026, the Ministry of Science and Technology issued a draft decree for public consultation on the amended Law on Technology Transfer. It details guidance on, among others, valuation of transferred technologies, procedures for registration, and financial incentives for technology transfer activities. 

UAE: Abu Dhabi Centre for Frontier Technologies launched

The Technology Innovation Institute and World Economic Forum have launched a new centre to advance research in quantum computing, robotics, propulsion, space systems and AI, fostering global collaboration to translate frontier technologies into responsible, real-world deployment positioning Abu Dhabi as a global innovation and technology governance hub.

Australia: Australia streamlines data centre approvals amid increased investment activity

The Australian Government plans to streamline data centre approvals, as the OECD warns that rising energy demand could threaten Australia's net-zero trajectory. This follows its AUD $7 billion infrastructure deal to support AI development and coincides with the finalisation of new national data centre principles setting out clear sustainability and renewable energy benchmarks.

Digital Economy

Hong Kong: HKMA releases Practice Guide on Cloud Adoption

The HKMA has published a new ‘Practice Guide on Cloud Adoption’, superseding the 2022 guidance with high-level principles and good industry practices to help authorised institutions harness cloud technology. The guidance covers issues including governance and oversight, risk assessment and due diligence of cloud vendors, and ongoing monitoring. 

Recent Sanctions

Singapore: Personal Data Protection Commission imposes financial penalties on four organisations

The penalties were for breaches of data protection obligations ranging from failure to implement adequate patch management processes to using outdated or unsupported software. In one decision, the organisation had inadequate internal data handling policies and failed to appoint a data protection officer.