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***Riding the digital wave as member states journey to unify economy*** ASEAN’s outlook is of oneness – one vision, one identity and one community. But it is a vision that the turbulence caused by the Industrial Revolution 4.0, rapid digital transformation and challenging geopolitics and economics is shaking. This thought was penned by the World Economic Forum Regional Head for the Asia-Pacific region Joo-Ok Lee in his Op-Ed titled *How ASEAN is building trust in its digital economy, *published as part of the World Economic Forum Annual Meeting 2024 discussions. Lee emphasised the crucial role of fostering trust among ASEAN member states (AMS) through effective policy tools and a shared vision. This trust-building process is deemed essential for the region’s advancement and the realisation of its goal to create a community of opportunities for all. “One such huge opportunity is its digital economy, which it is estimated will grow from its current size of approximately USD300 billion to almost USD1 trillion by 2030,” said the author. ASEAN stands out as one of the globe’s most rapidly expanding regions, with an anticipated average real GDP growth of 4.6 per cent in 2023 and 4.8 per cent in 2024. By 2030, it is poised to become the world’s fourth-largest economy. This growth is fuelled by a population of 700 million, characterised by youth, education, increasing digital connectivity, and a burgeoning middle class. The integration of digital technologies into daily life has significantly altered how people, particularly the youth, in the region consume information, make purchases, access financial services, and engage with the government. Encouragingly, governments across the region have acknowledged the transformative potential of digital technologies and have implemented policies to cultivate a flourishing digital economy on a regional scale. However, challenges persist, including socio-economic disparities, varying levels of development, and divergent regulatory frameworks. Lee went on to say that common policy tools, regulation and legislation are key means to address these challenges, and among these is the ASEAN Digital Masterplan 2025 and the Bandar Seri Begawan Roadmap (BSBR). “The masterplan is designed to provide a vision of what ASEAN’s digital society and economy will look like, while the roadmap offers a plan for the region’s digital transformation agenda to accelerate its digital economy integration through the adoption of the ASEAN Digital Economy Framework Agreement (DEFA).” With its established vision and strategy, the ASEAN DEFA holds the potential to revolutionise the region. As the world’s first comprehensive digital economy agreement spanning the entire region, it could serve as a model for achieving harmonisation among nations at varying stages of digital integration. This unique agreement enables ASEAN to tailor its approach to suit all member states, accommodating diverse levels of socio-economic development, rather than relying on models from other parts of the world. Key negotiation topics include digital trade, cross-border e-commerce, cybersecurity, online safety, digital ID, digital payments, data flows, competition policy, digital skills, talent mobility, and emerging areas like artificial intelligence. Recognising the significant economic potential within the digital economy, AMS view digital transformation as a fundamental strategy for fostering economic growth and prosperity. Through active participation in DEFA negotiations, AMS aim to establish trust among businesses and investors, fostering an inclusive and sustainable ASEAN digital economy. This engagement lays the foundation for economic development, job creation, and investment opportunities. An inclusive approach to planning the ASEAN DEFA is envisioned to create an environment that empowers and connects micro, small, and medium-sized enterprises (MSMEs) to regional and global markets. It aims to facilitate digital skills development, generate quality employment (particularly for women, youth, and rural communities), and enhance both collective and individual economic competitiveness and resilience. “Early progress is heartening. Countries at the sub-regional level already collaborate to facilitate the use of digital technologies for cross-border payments. “Thailand and Singapore have been at the forefront of this; their PromptPay and PayNow systems enable instant, low-cost mobile transfers using just a recipient’s phone number,” added the author. He said that this shows what is possible, and as ASEAN embarks on negotiating the ASEAN DEFA, it is important that an inclusive process of consultations is used to ensure everyone’s voice is heard. This will help build trust in the process of building an inclusive and sustainable ASEAN digital economy. To facilitate these advancements, the World Economic Forum, in collaboration with the ASEAN-Korea Cooperation Fund, has initiated the ASEAN Digital Economy Agreement Leadership (ASEAN DEAL) project – an initiative that aims to assist AMS in addressing preparedness, overcoming challenges, and capitalising on the benefits of digital economy agreements. The project achieves these objectives through various means, including capacity building activities, an online repository of digital economy agreements, and annual business surveys and dialogues on digital economy topics. Furthermore, it incorporates inputs from diverse stakeholders such as academia, civil society, the private sector, and other regions that have successfully implemented digital policies. Establishing a robust integrated digital economy is crucial for enabling ASEAN to compete more effectively in the global arena and providing increased opportunities for its citizens. The pursuit of a region-wide digital economy framework necessitates collaboration but promises to cultivate higher levels of trust. If successful, it will contribute significantly to the overarching goal of a stronger, unified ASEAN. – Izah Azahari ![](https://media.everythingbrunei.com/public/f2YzsopCOO-hzagC4M5md-ZOoT4MJvYWZgegryUpFm5.jpeg) An aerial view of Bandar Seri Begawan. PHOTO: BP STOCK PHOTO

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