Future-Ready Together: ASEAN’s Strategy for Inclusive AI and Digital Growth

Aug 15, 2025

Aug 15, 2025

Aug 15, 2025

Rifki Weno, Heikal Suhartono, Tania Heryanto, Rio Kiantara, Cania Adinda

Rifki Weno, Heikal Suhartono, Tania Heryanto, Rio Kiantara, Cania Adinda

Rifki Weno, Heikal Suhartono, Tania Heryanto, Rio Kiantara, Cania Adinda

Overview

Artificial intelligence (AI) is emerging as a defining force in ASEAN’s economic and social future, with the potential to transform industries, boost productivity, and strengthen regional competitiveness. By 2030, AI is expected to play a central role in shaping a digital economy worth USD 1 trillion. Yet, the region’s progress remains uneven, hampered by fragmented regulations, infrastructure gaps, inconsistent data governance, and a shortage of AI-ready talent.

H.E. Nezar Patria, Vice Minister of Communication & Digital Affairs of the Republic of Indonesia, describes AI as a “catalyst for transformation”, urging adaptive regulations that enable innovation while safeguarding rights. Fabian Bigar, Secretary-General of Malaysia’s Ministry of Digital, highlights cloud computing as a foundational enabler for AI-driven growth. H.E. Hj Hairul Mohd Daud Hj Abdul Karim, Deputy Permanent Secretary of Brunei Darussalam’s Ministry of Transport and Infocommunications, points to the need for long-term, strategic planning in data and AI. H.E. Dr. Kao Kim Hourn, Secretary-General of ASEAN, emphasises investing in ASEAN’s young population as the key to shaping AI responsibly.

This showcase explores six strategic shifts, from fragmented regulation to harmonized governance, and from principles to practice in ethics and inclusion, mapping how ASEAN can transform AI ambitions into a shared, impactful reality.


ASEAN’s AI and Digital Future: From Fragmentation to a Shared Vision

Across Southeast Asia, the promise of a $1 trillion digital economy by 2030 is more than a projection (WEF, 2023); it is a shared goal. AI, cloud computing, and next-generation connectivity are no longer niche technologies; they are the scaffolding for the region’s competitiveness, resilience, and inclusion. But to seize this opportunity, ASEAN must move together, transforming fragmented policies and uneven capacities into a coherent regional strategy.

H.E. Nezar Patria, Vice Minister of Communication & Digital Affairs of the Republic of Indonesia, captures the urgency, describing AI as a “catalyst for transformation” essential to Indonesia’s 8% growth target. His call for adaptive yet protective regulations reflects a broader ASEAN need: encouraging innovation while safeguarding rights. This is the first step in transitioning from fragmented regulation to harmonized governance, aligning standards, ethical frameworks, and cross-border rules to enable digital services to flow seamlessly across the region.

Infrastructure is the second pillar. Fabian Bigar, Secretary-General of Malaysia’s Ministry of Digital, explains that the National Cloud Computing Policy “sets the stage for a resilient, inclusive, and future-ready digital economy.” Scaling this vision across ASEAN means closing infrastructure gaps with scalable digital foundations, building 5G corridors, interoperable cloud systems, and AI-ready computing hubs that serve all member states, not just the largest economies.

Data is where ASEAN’s opportunities and risks converge. H.E. Hj Hairul Mohd Daud Hj Abdul Karim, Deputy Permanent Secretary of Brunei Darussalam’s Ministry of Transport and Infocommunications, outlines Brunei’s Data and AI Strategy as part of a long-term roadmap. The challenge for ASEAN is to move from patchy data practices to trusted data governance. South Korea’s Data Dam Project  (Appendix 1)offers a valuable model: consolidating public and private data into standardised, high-quality repositories while safeguarding security, privacy, and accessibility for innovation. A regional “Data Dam” could be ASEAN’s strategic backbone.

Technology, however, is only as powerful as the people shaping it. H.E. Dr. Kao Kim Hourn, Secretary-General of ASEAN, reminds us, “Building a future-ready ASEAN starts with investing in our young people.” With 60% of the population under 35, moving from talent deficit to digital workforce readiness is not optional; it is decisive. Initiatives like AI Ready ASEAN, which aims to reach 5.5 million learners, must be scaled to empower citizens as informed creators, not passive consumers.

ASEAN’s innovation landscape is rich with pilot projects and national showcases, each demonstrating the region’s creativity and drive. The next opportunity lies in connecting these initiatives, linking research hubs, startups, and digital sandboxes into a vibrant, cross-border ecosystem that accelerates collaboration and amplifies impact. South Korea’s approach, where government-led data platforms directly support SMEs, shows how integration can accelerate commercialization.

Ultimately, the promise of a digital ASEAN must be grounded in values. Patria’s (2025) warning about disinformation, algorithmic bias, and job disruption, combined with H.E. Kao Kim Hourn’s emphasis on “informed creators, innovators, and guardians”, frames the task ahead: moving from principles to practice in ethics and inclusion. Embedding these values into curricula, governance, and product design ensures that technology helps narrow divides rather than deepen them. The path forward is clear: harmonise governance, scale infrastructure, unify data, invest in talent, connect ecosystems, and live out ethical commitments. As H.E. Patria notes, with the spirit of gotong royong (cooperation), ASEAN can build a sovereign, inclusive, and equitable AI ecosystem, one that reflects both the diversity and unity of its member states.

 

References

Bigar, F. (2025, August 7). As a foundational enabler for AI and digital innovation, the NCCP sets the stage for a resilient, inclusive, and future-ready digital economy. In Malaysia, the cloud policy was discussed at the ASEAN AI Summit. Cloud Computing News. https://www.cloudcomputing-news.net/news/malaysia-to-launch-cloud-policy-at-asean-ai-summit/

Chadha, S. (2023, December 12). How Southeast Asia can become a $1 trillion digital economy. World Economic Forum. Retrieved from https://www.weforum.org/stories/2023/12/how-southeast-asia-can-become-trillion-digital-economy/

H.E. Dr. Kao Kim Hourn, Secretary-General of ASEAN. (August 12, 2025). Keynote remarks at the 2nd Regional Policy Convening of AI Ready ASEAN. Kuala Lumpur, Malaysia. https://asean.org

Hj Hairul Mohd Daud Hj Abdul Karim. (June 24, 2025). Brunei is in the process of preparing a Data and AI Strategy as part of a larger initiative — a national roadmap that defines our long-term approach to artificial intelligence. AI will be central to the next Digital Master Plan. The Scoop. https://thescoop.co/2025/06/24/ai-will-be-central-to-next-digital-master-plan/

Ministry of Communication and Digital Affairs, Republic of Indonesia, British Embassy Jakarta, & Think Policy. (2025). Co-creating Indonesia’s AI future through meaningful policy dialogues: Six stories and one vision for innovative and competitive Indonesia (F. Marliasari & W. Tjhi, Advisors; P. Dwicahya & F. Andriana, Persons in charge; H. Hanif et al., Research and writing team).

 

Appendix

Appendix 1. South Korea’s Data Dam Project

Figure 1.  AI Readiness Matrix across Southeast Asian countries

Source: KoreaTechToday, (2021)


South Korea’s Data Dam Project, led by the Ministry of Science and ICT, is a national strategy aimed at powering trustworthy AI and boosting economic growth. With KRW 499.1 billion invested in 2020, it collects, standardizes, and utilizes data from the public and private sectors, creating AI training datasets, providing AI vouchers, and building big data platforms and centers. ASEAN could adapt this into a Regional Data Dam, pooling high-quality datasets across member states. Shared standards, interoperable platforms, and AI innovation grants could accelerate cross-border research, strengthen data trust, and fuel AI-driven industries, turning fragmented resources into a unifying engine for regional innovation.

Share your policy suggestions or connect with us today. Let's Collaborate Together

Share your policy suggestions or connect with us today. Let's Collaborate Together

Share your policy suggestions or connect with us today. Let's Collaborate Together

ASEAN Business Advisory Council

70A Jalan Sisingamangaraja
Jakarta 12110

Copyright © ASEAN-BAC 2024. All rights reserved.

ASEAN Business Advisory Council

70A Jalan Sisingamangaraja
Jakarta 12110

Copyright © ASEAN-BAC 2024. All rights reserved.

ASEAN Business
Advisory Council

70A Jalan Sisingamangaraja
Jakarta 12110

Copyright © ASEAN-BAC 2024. All rights reserved.