ASEAN plans to roll out digital business ID to boost cross‑border trade

The Association of Southeast Asian Nations (ASEAN) is preparing to roll out a regionwide digital business identity system aimed at transforming cross‑border trade, strengthening trust between companies and accelerating the region’s digital economy.

The initiative, known as the Unique Business Identification Number (UBIN), is expected to move into implementation following the adoption of its official roadmap, writes Dr Le Quang Lan, Director of Market Integration Directorate at the ASEAN Secretariat, for Bernama.

ASEAN Secretary-General Dr Kao Kim Hourn said digital interconnectedness is now essential economic infrastructure, and UBIN will help remove long‑standing barriers to doing business across the region.

The system will allow companies to be recognized and verified in real time across all ASEAN member states, enabling smoother trade and reducing administrative friction. ASEAN covers all 11 countries in Southeast Asia, comprising more than 600 million people and is projected to be the world’s fourth-largest economy by 2030 (more on that below).

Nadhir Ashafiq, co-founder of logistics platform The Lorry, said a unified digital business identity would simplify approvals, company setup and regulatory processes across ASEAN, particularly for younger and smaller firms seeking to expand regionally.

The UBIN initiative builds on ASEAN’s broader digital transformation agenda, including the ASEAN Digital Economy Framework Agreement (DEFA) launched in 2023. Supported by Australia through the Aus4ASEAN Futures Initiative, ASEAN has spent the past two years developing guidelines and technical standards for a regionally interoperable business ID system.

Under the UBIN framework, interoperability will be driven by five pillars: secure data exchange between business registries, decentralized verification technology, common governance structures, regulatory alignment, and capacity‑building programmes for member states. A study by Boston Consulting Group estimates that full implementation could unlock $110 billion to $300 billion in economic value — equivalent to up to a quarter of DEFA’s projected contribution to ASEAN’s digital economy.

ASEAN officials say the system is designed not only to boost efficiency but also to promote inclusive growth. Micro, small and medium enterprises (MSMEs) are a major fixture of commerce in ASEAN, accounting for around 45 percent of ASEAN’s GDP, but only 18 percent are exporting. But this backbone of ASEAN’s economy stands to benefit from simplified compliance and verification along with increased trust from foreign partners.

Women‑owned businesses, which are disproportionately affected by bureaucratic barriers and limited access to finance, are also expected to gain from improved visibility and credibility through a recognized digital business ID.

The implementation roadmap outlines five phases, from establishing governance structures to rolling out advanced use cases such as e‑contracts and secure digital document exchange. Early applications will include regionwide company search tools and standardized business information services, enabling firms to quickly verify potential partners.

In the long term, UBIN will support secure cross‑border exchange of digital documents such as invoices, trade licences and customs permits, which will reduce fraud risks and cut costs for MSMEs. Once fully implemented, UBIN is expected to serve as a regional trust anchor, enabling businesses of all sizes to operate more confidently and competitively across ASEAN.

WEF calls for regulatory alignment, cybersecurity

Southeast Asia enjoys demographic advantages and a dynamic business landscape. It has a young population, growing cities and economies. The World Economic Forum projects ASEAN to become the world’s fourth‑largest economy by 2030.

The region’s digital economy alone is expected to more than double to $560 billion, creating new jobs and innovation opportunities. But sustained success, the World Economic Forum argues, will require coordinated strategy, public‑private collaboration and a shared commitment to inclusive growth.

ASEAN’s youthful dynamism and desire to leapfrog older technologies confers advantages. Local innovation is accelerating, such as Malaysia’s YTL AI Labs developing ILMU, a Bahasa Malaysia large language model designed for use across business, education and government.

Further integration via harmonized regulations, reduced non‑tariff barriers and initiatives like the proposed ASEAN Business Entity could strengthen the region’s position as a global growth engine.

Supporting micro, small and medium-sized enterprises (MSMEs) is central to this vision. MSMEs make up more than 97 percent of ASEAN businesses and 85 percent of its workforce, yet many struggle to scale due to limited financing, mentorship and market access.

Without digital identities or credit histories, up to 60 percent report difficulty securing loans. New partnerships aim to close this gap. In 2024, the Mastercard Impact Fund committed $5 million to unlock up to $1 billion in Asian Development Bank financing for MSMEs, demonstrating how targeted private‑sector investment can catalyze broader credit access.

Digitalization offers another major opportunity. Digital payments in the region are expected to surpass $1 trillion this year, enabling MSMEs to reach more customers and stay competitive. Embracing QR codes, digital ID wallets and contactless payments could enable MSMEs to find more customers and boost sales.

But increased connectivity also heightens exposure to cyber threats. In this, biometrics and passkeys and digital identity could offer protections against fraud and scams — a trend playing out in the likes of Malaysia, Vietnam and Thailand.

The World Economic Forum and ASEAN‑Business Advisory Council argue that ASEAN can become a global model for resilient, inclusive and sustainable growth. They argue this requires businesses and governments to cooperate to strengthen the foundations of the digital economy.

By expanding access to capital, improving regulatory alignment and bolstering cybersecurity, the region can ensure economic competitiveness that endures.

Article Topics

ASEAN  |  biometrics  |  digital company ID  |  digital economy  |  digital identity  |  KYB  |  Southeast Asia  |  World Economic Forum