World Economic Forum predicts $2 trillion digital economy for ASEAN by 2030

The World Economic Forum (WEF) says data standards, ethical AI and diaspora are the keys to the future digital economy of countries in the Association of Southeast Asian Nations (ASEAN). In an article published in late June, the WEF argues that a collaborative effort to harmonize data protection regulations and create a regional framework for cross-border data flows will enable more efficient trade and attract foreign investment to the ASEAN region – especially if the diaspora can be leveraged for international activation.

Regulation and standardization needed to ensure cross-border data flow

“To unlock its potential and navigate the complexities of the digital age,” the WEF says, “the ASEAN region needs a multi-pronged approach that prioritizes responsible innovation, seamless data flow, robust cybersecurity and strategic engagement with its diaspora communities.’” It notes that the “highly anticipated ASEAN Digital Economy Framework Agreement (DEFA) is expected to help ASEAN achieve these goals.”

AI is lauded as a tool that could bring benefits to sectors such as healthcare, agriculture and finance – but also flagged as a threat if left to police itself. “Unregulated AI systems can exacerbate social inequalities, infringe on privacy rights and even perpetuate biases,” says the WEF.

ASEAN countries, it says, “must establish a robust framework for ethical AI, ensuring that AI development and deployment are aligned with the principles of fairness, transparency and accountability.” This will build public trust and encourage responsible innovation that prioritizes human rights and benefits. In order to realize this, there must be functional, effective and coordinated enforcement mechanisms.

Coordination is also needed on standardizing data governance. “Free cross-border data flow enables seamless trade and commerce but data localization and regulatory fragmentation hinder this process,” says the WEF. “ASEAN countries should harmonize data protection regulations and establish a regional framework that allows free data flow while ensuring privacy and security.” DEFA, it notes, addresses much of this.

“The ultimate goal of DEFA is to unleash ASEAN’s full digital potential by aligning with international standards, fostering collaboration between public and private sectors and improving digital infrastructure and governance,” says WEF. Once again, enforcement is required to ensure compliance.

As for the diaspora, the WEF says it “can act as a force multiplier to support a $2 trillion digital economy” in ASEAN by 2030, by leveraging skills and knowledge transfer, and networks connected to investment and funding. Furthermore, “engaging with the ASEAN diaspora can boost technical capabilities and foster innovation” that will strengthen ASEAN’s overall digital public infrastructure.

In Indonesia, digital payments to reach US$760 billion by 2030

Indonesia is among ASEAN nations who have agreed to develop DEFA to “advance digitalization and interoperability.”

According to Asia Today, rapid growth in Indonesia’s digital economy saw it place 45th in the World Digital Competitiveness Ranking in 2023, and the country continues to lead ASEAN nations in several categories of digitization. It accounts for about 40 percent of e-commerce market share in ASEAN.

President Joko “Jokowi” Widodo predicts the country’s digital economic opportunities will grow fourfold by 2030, reaching a value of US$360 billion. He also says digital payments will reach US$760 billion in the same timeframe.

He nods at Indonesia’s 64 million micro, small and medium enterprises (MSMEs), which will “boost the growth of our digital economy and digital payments.” As such, “digital transformation must be inclusive, it must be fair. Communities on the outskirts, lower economic strata, micro-economies, MSMEs, all must have the same access and opportunities.”

Jokowi also emphasizes the need for robust consumer protections given relatively low levels of financial literacy, leaving consumers and their data vulnerable to fraud. “Consumer data safety must be ensured,” he says in a government release. “Do not let vulnerable groups be at a disadvantage.”

Vietnam issues 115,000 ID cards, plans overseas networking database

In Ho Chi Minh City, plans to build a database that can connect Vietnamese who live in foreign countries underlines the belief in the importance of diaspora identified by WEF. Saigon Giai Phong News reports that the network would be intended to promote “timely support for immigration procedures, repatriation, confirmation of Vietnamese origin, and regular administrative procedures related to residency.”

An event was held in Ho Chi Minh City to allow “the overseas Vietnamese community to participate in research and contribute constructive opinions to the plan for building a database of overseas Vietnamese.”

A separate report notes Vietnam’s success in issuing ID cards in the month since a new ID law came into effect. It says the HCMC Department of Public Security has received nearly 115,000 ID card applications. About 86,000 of those were from citizens over 14 years of age.

NEC’s face biometrics have been critical in the development of what a company video calls “a digitally advanced Vietnam.”

“Our automated biometric identification system has played a crucial role in updating the Vietnam National ID system,” says the video. “Since its launch in 2021, over 84 million chip-based digital ID cards have been issued to eligible Vietnamese citizens offering a streamlined method for citizens to verify their identities easily.”

The company says its biometric systems can “play a pivotal role in supporting our customers’ sustainable journey and digital transformation” and provide a “common key for various institutions to realize a seamless and secure world.”

Twenty million sign up for Thailand digital ID in 48 hours

Thailand is also seeing enthusiastic uptake of its digital ID program. Thailand Business News reports that the government’s Digital Wallet Initiative clocked 20 million registrations within 48 hours of launch.

“The Thang Rath app, developed by the Commerce Ministry, has efficiently handled high traffic volumes and is integrated with the national Thai ID system for a smooth user experience,” says the piece. Regardless, some question the wallet system’s management. “Concerns about the execution of the initiative remain, leading to calls for thorough legislative scrutiny of the supplementary budget bill essential for financing the upcoming funds disbursement in December.”

Malaysia enables access to single login system via mobile app

In Malaysia, residents can now register for the government’s single login system through the MyDigital ID mobile app, eliminating the need to visit physical registration kiosks. FMT reports that “the system has been integrated with the road transport department’s MyJPJ app, and several other government applications such as the Human Resources Management Information System, MySejahtera, and the MyGov portal.” And there are plans to add more government services to the one login system.

Mirza Noor, head of the government-owned agency, says MyDigital ID users are protected from online fraud and identity theft due to the MyDigital ID certificate being linked to the user’s personal device upon successful registration. Noor also says the organization does not store any biometric data collected from users.

To date, more than 600,000 Malaysians have registered with MyDigital ID.

Bernama notes that Digital Minister Gobind Singh Deo recently raised the need for amendments to the 2010 Personal Data Protection Act, citing technological advancements and an increasing reliance on digital platforms. He says the ministry is drafting a new act related to data sharing in the public sector.

Philippines will fine those who refuse to accept digital ID

An article published by the Tech For Good Institute (TGFI) summarizes insights from a seminar titled “Enabling an Inclusive, Innovative, and Investible Philippine Digital Economy: Opportunities and Challenges.” The piece argues for the need to develop “‘fit-for-purpose’ policies that are responsive, respect local norms and effectively blend regional experience with local expertise.”

“Like its ASEAN neighbors, the Philippines is eager to capitalize on the opportunities presented by the rapidly evolving landscape of innovation and the digital economy,” says the piece. “Each country possesses a unique identity and governance style shaped by its stage of development, culture, and structural framework.” Individual nations can develop bespoke rules alongside digital ID best practices, “adapting them to local needs and settings rather than simply replicating them from neighboring countries.”

Key takeaways from the analysis include the need to stage policy-focused local sandboxes that “provide a venue to test and validate policies in a controlled setting.” Infrastructure is needed to fill gaps that threaten to widen the so-called digital divide. Education and skills development are needed to capitalize on the country’s young population, which averages 25 years.

Finally, it is necessary to implement and practice collaborative governance and co-regulation; “in the digital realm, platform players are tasked as co-creators in formulating relevant regulations to guide and safeguard the industry.”

The Philippines is taking to heart the WEF’s note on the need for strong enforcement in order to maintain compliance. The Daily Tribune reports that the Philippine Statistics Authority has warned establishments failing to recognize the National ID will face a penalty of P500,000 (~US$865).

Article Topics

ASEAN  |  digital ID  |  digital wallets  |  INA Pass  |  Indonesia  |  Malaysia  |  MyDigital ID  |  NEC APAC  |  PhilID  |  Philippines  |  ThaID  |  Thailand  |  Vietnam  |  VNeID  |  World Economic Forum