# How ASEAN is fostering trust in its digital economy

- Link: https://www.thailand-business-news.com/asean/122033-how-asean-is-fostering-trust-in-its-digital-economy
- Published: 2024-01-13T12:43:13+07:00
- Author: The World Economic Forum

The Association of Southeast Asian Nations (ASEAN) is aiming to develop a strong
digital economy worth $1 trillion by 2030.

However, challenges such as socio-economic differences and regulatory regimes need
to be addressed. The ASEAN Digital Economy Framework Agreement offers a blueprint
for harmonizing digitalization across member states.

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 * The ASEAN region has the potential to grow its digital economy from $300 billion
   to almost $1 trillion by 2030, driven by its young and increasingly online population.
 * The ASEAN Digital Economy Framework Agreement offers a blueprint for harmonizing
   digital integration among member states at different stages of development, addressing
   challenges such as socio-economic differences and regulatory regimes.
 * By creating an inclusive and sustainable digital economy, ASEAN can empower micro,
   small, and medium-sized enterprises, generate quality employment, and strengthen
   economic competitiveness and resilience for its citizens.

It focuses on topics like digital trade, cybersecurity, digital payments, and artificial
intelligence. The agreement aims to create an inclusive and sustainable digital 
economy that empowers small businesses, develops digital skills, and generates employment
opportunities.

ASEAN is one of the world’s fastest-growing regions, with average [real gross domestic product growth forecast](https://www.oecd-ilibrary.org/sites/5facd760-en/index.html?itemId=/content/component/5facd760-en)
to reach 4.6% in 2023 and 4.8% in 2024. By 2030, it is expected to be the fourth-
largest economy in the world. This dynamism is driven by a population of [700 million](https://asean.org/wp-content/uploads/2022/12/investment-report-2023.pdf),
composed of young, educated, increasingly online individuals and a growing middle
class.

The World Economic Forum is supporting this initiative through the ASEAN Digital
Economy Agreement Leadership project. The goal is to build trust and collaboration
among ASEAN member states to create a unified digital economy.

Many people in the region, particularly the youth, have changed the way they consume
information, purchase goods and services, utilize financial services, and interact
with the government by integrating digital technologies into their daily lives.

Positively, governments region-wide have recognized the importance of harnessing
the ongoing digital transformation for good and deployed policies to foster a thriving
regional digital economy.

Early progress is heartening. Countries at the subregional level have already collaborated
to facilitate digital technologies for [cross-border payments](https://www.weforum.org/agenda/2023/11/asean-instant-cross-border-payments-paynow-promptpay/).
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.

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[Source link ](https://www.weforum.org/agenda/2024/01/asean-building-trust-digital-economy/?rand=55375)