ASEAN Economic Community’s Deputy SecGen on achieving an inclusive digital economy

ASEAN is set to become the world’s fourth-largest economy by 2030.  

This growth has been powered by the digitalisation of almost every sector of the economy, with the region hosting the world’s fastest growing internet market, with 125,000 new users coming online every day. 

This pace of digitalisation is expected to unlock at least US$1 trillion (S$1.3 trillion) in additional growth for the regional gross domestic product (GDP) by 2030, according to the initial projections. 

ASEAN Economic Community (AEC)’s Deputy Secretary General, Satvinder Singh, notes that while technology, especially artificial intelligence (AI), is the main growth engine, it is ultimately an “enabler.”  

Speaking to GovInsider, he notes that the real power lies in how the services sectors use it to accelerate growth in Southeast Asia. 

The AEC is the ASEAN Secretariat body that oversees the realisation of the region’s economic integration and development.

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Digitalisation of the trade sector as priority 

Singh highlights trade as a sector ripe for digital transformation that could yield significant positive ripple effects. 

“After [the] energy [sector], the biggest decarbonisation project is trade. A lot of trade today is still paper-based,” he notes.  

Singh describes the trade sector as “ASEAN’s lifeblood” given the economic value it brings for the region, which is around US$3.5 trillion (S$4.5 trillion) out of ASEAN’s total GDP of US$3.8 trillion (S$4.9 trillion). 

According to him, one of AEC’s “biggest projects” is to use AI to transform the sector, and to move from analogue to digital. 

ASEAN’s Digital Economy Framework Agreement (DEFA) encourages member states to embrace the UNCITRAL Model Law on e-commerce, which ensures that digital documents have the same legal standing as their physical counterparts. 

Singh says that implementing standards like this are among the key steps “to allow digital trade to truly happen”. 

AI and sustainability not separate issues 

Singh asserts that sustainability and digitalisation go hand-in-hand. 

The new ASEAN 2045 vision calls for the “mainstreaming climate-responsive elements and policies in all dimensions”.  

“To achieve sustainability [goals] like decarbonisation, our dependence on the new technologies and AI are going to be critical."

Singh argues that decarbonisation and digitalisation are inseparable efforts, seeing technology as the essential tool to achieve these policy goals.  

Under current paper-based systems, “sometimes the big ships laden with goods arrive in the ports earlier than the paper documents.”  

This costly delay stalls the supply chain and prevents traders from accessing their associated funds.  

Digital trade would eliminate this bottleneck, cut costs and minimise paper use. 

Despite these systemic challenges, Singh conveys a positive outlook on ASEAN’s progress in digital transformation and the potential contribution of AI. 

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The role of DPI in digital economy 

The other key step to power the growth of the digital economy was to establish a robust digital public infrastructure (DPI), says Singh. 

“You cannot have a digital economy if you have no digital identity,” he notes. This means that both individuals and businesses require digital IDs to participate effectively in the economy. 

Recognising this necessity, ASEAN is closely monitoring digital ID systems used globally to determine the most effective regional approach. 

“We are watching all these [DPI] elements and putting into foundation some of these important pieces of efforts on the ground, so that we can then move towards our dream of moving away from the paper-based value chain to a truly digital trade value chain,” he explains. 

The other pillar of DPI is digital payments, which is also another critical aspect of digital trade.  

Singh highlights connecting the cross-border payment networks among the 11 ASEAN countries as another priority step. 

Singh shares that seven countries have already established interoperability of their digital payment systems, with three more in the pipeline and expected to finalise by end of 2026. 

A robust DPI could help Southeast Asia become a leader in digital trade and ultimately establishing a digital economy that benefits every country. 

Toward inclusive growth 

“Under our new ASEAN Vision 2045, we are working hard to ensure that we embrace economic growth not just for the sake of it, but to make it inclusive so that every citizen benefits,” says Singh.  

This shift toward more inclusive growth is evident in the new vision's targets, which now measure factors previously excluded, including GINI coefficient which measures inequality, percentage of women in the economy, carbon footprints, among others. 

“It’s a different prospect today, when we’re looking at digital transformation and our future, we are doing it consciously by taking a step back and making sure that it’s good for us.” 

The ASEAN 2045 Strategic Plan comprises six goals to enable an economic community that is action-oriented, sustainable, innovative, adaptable, resilient, and inclusive.  

Singh emphasises on the last goal in driving inclusive, people-centred growth.  

“The last thing that we want to see is all these new technologies coming in and then suddenly we have no jobs for our people, leaving our people disenfranchised. That’s something that we cannot accept,” says Singh.  

Singh believes Southeast Asia has positive potential for inclusive growth, largely due to its young demographic. Over 60 percent of the total population falls into this category, and they are notably “very keen to move along with change and technologies.” 

The Google’s e-Conomy SEA report shows that Southeast Asian businesses are showing great potential to leverage AI and emerging technologies most profitably.  

“That, for me, is a testimony that the region has the culture to deal with digital transformation and to deal with change positively, and I’m very proud of that,” he says. 

Frameworks that guide progress 

Singh views the recently announced ASEAN AI Safety Network (ASEAN AI Safe) as a critical strategic step aimed at deepening cooperation, building capacity, and harmonising AI safety standards across the region. 

He shares the hope that the ASEAN AI Safe, once fully operational, will function as a key mechanism to expand the region's voice in the realm of global AI governance. 

According to Singh, such initiatives leverage the unique aspects of the ASEAN bloc by taking on the domestic realities of each member country, balancing priorities, and improving regional readiness.  

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He’s hopeful that ASEAN can inspire other countries in the Global South undergoing digital transformation and developing their AI safety frameworks. 

“Our lessons are going to be much more useful for the developing world, versus what the West is doing, because more developed societies have different priorities, and different challenges from us in the Global South,” he notes. 

GovInsider previously covered how developing Southeast Asian countries are adopting smart follower strategies by learning from early adopters in the region for more effective deployments. 

“I think our focus is about harnessing the value coming out from the deployment of AI solutions and ensuring that we generate wealth and quality of life for our people,” says Singh.