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Borderless Business: Intra-ASEAN Corridor Opening doors to diverse opportunities
Contents: Overview of the Intra-ASEAN Corridor: Opening New Doors 3 Our Growth Watchlist: Key Sectors Driving the Future of the Intra-ASEAN Corridor 9 Acting with Impact: Five Focus Areas for ASEAN Companies to Drive Resilient Growth Within the Region 20
Overview of the Intra-ASEAN Corridor: Opening New Doors in ASEAN
Overview of the Intra-ASEAN Corridor
ASEAN’s rising middle class and increasingly been strong over the past 50 years, economic
well-educated workforce, coupled with its progress has not been homogeneous across
supply of natural resources, rapid urbanisation, member countries. Moving forward, however,
and growing infrastructure spend provides a the region cannot rely on the same growth
strong foundation for future growth. Not only drivers to guide its future trajectory. Despite
is ASEAN highly connected through free-trade growth prospects remaining positive, weaker
agreements with major global trading partners economic recovery is expected on the back
such as the US, China and Europe but there is of increasing COVID-19 cases and renewed
also significant focus on intra-ASEAN trade and lockdowns, with IMF having lowered their
investments – opening doors to new growth forecast from 5.2 per cent growth in 2021 to 4.9
opportunities for companies in the region. per cent for five ASEAN countries (Indonesia,
Malaysia, the Philippines, Thailand and
Borderless Business: Intra-ASEAN corridor is Vietnam). ASEAN respondents to our survey
a strategic point-of-view, commissioned by confirm this, with 75 per cent considering the
Standard Chartered and prepared by PwC, COVID-19 pandemic among the top 3 risks for
which explores key sectors of opportunity and their business in the region.
focus areas for ASEAN-based companies to
further their growth within the region. ASEAN ASEAN’s enhanced integration and cooperation
offers a myriad of opportunities for local thus comes at a time where fundamental
and international players in areas such as shifts and disruptions on a global scale have
healthcare and consumer goods, construction, intensified the need to deepen connectivity and
real estate, and renewable energy, given its pursue more sustainable growth.1
favourable demographics, rapid urbanisation
and drive towards sustainability. With Industry Increased intra-regional
4.0 under way, ASEAN’s rapid digitalisation also
provides grounds for growth in manufacturing
cooperation and connectivity
and digital technology. expected to boost regional
This point-of-view elaborates on a number of
growth
key initiatives companies should consider, to With the aim of driving cohesive growth and
ensure that they are well-positioned to seize further regional cooperation within ASEAN,
such opportunities on their path to resilient the bloc established the ASEAN Community
growth. These include diversifying supply agenda in 2015, incorporating blueprints for
chains, digitalising for impact, leveraging regional integration in political, economic and
local partnerships, incorporating sustainability socio-cultural aspects. Under the auspices of
as part of growth targets, and establishing this agenda, the ASEAN Economic Community
adequate governance frameworks to mitigate (AEC) Blueprint 2015 has been successful in
potential risks in a post-COVID-19 world. We facilitating and liberalising trade among
also incorporate insights collated via a survey of ASEAN economies. As a result, economic
senior-level executives from ASEAN companies exchanges among ASEAN members have
that are currently engaged in cross-border grown. Between 2015 and 2019, intra-ASEAN
activities within the region.a total trade in goods increased by 4.3 per cent
CAGR from USD535.4 billion to USD632.6 billion.
ASEAN’s growth trajectory In 2020, due to COVID-19 disruptions, total
remains strong but requires intra-ASEAN trade in goods stood at about
USD565.9 billion (and CAGR for the period 2015
some recalibration to 2020 was 1.4 per cent). The AEC Blueprint
2025 seeks to build on the AEC Blueprint 2015
ASEAN’s remarkable growth in the past
and bring ASEAN economies even closer
decades has brought it on track to becoming
through further reduced tariffs, harmonised
the world’s fourth largest single market by 2030.
capital market regulatory frameworks and
However, while the region’s track record has
platforms, greater labour mobility, improved
a Survey commissioned by Standard Chartered in April 2021 and completed by senior executives from 83 companies based in ASEAN
and focusing on the Intra–ASEAN corridor
Borderless Business: Intra-ASEAN Corridor 4
Overview of the Intra-ASEAN Corridor
consumer and intellectual property (IP) global foreign direct investment (FDI) inflow
rights protection, inclusive development and to ASEAN (~35 per cent increase from USD118
enhanced connectivity. billion in 2015 to USD159 billion in 2019). In
addition, intra-ASEAN FDI is also significant
Moreover, we see ASEAN playing a bigger role with a 13.8 per cent share of total FDI.
in the global production value chain, in view
of its heightened connectivity with five major Figure 2: Intra-ASEAN FDI inflow by source
trading partners – including China, Japan, New country
Zealand, Australia and South Korea – via the
USD billion
Regional Comprehensive Economic Partnership
(RCEP), once it is ratified. RCEP is expected to 30
connect about a third of the world’s population 25.9
25.0 24.2
25
and output; and could potentially add USD209 20.8 22.0
billion to world incomes and USD500 billion to 20
world trade by 2030. According to the ASEAN
Secretariat, RCEP will simplify and streamline 15
the rules and procedures for trade and
investment currently codified in bilateral FTAs, 10
thereby reducing trade inefficiencies. It would
5
also lower trade barriers and improve market
access for companies, enhance transparency 0
in trade and investment, as well as facilitate 2015 2016 2017 2018 2019
Singapore Thailand Malaysia
greater inclusion of ASEAN-based companies Indonesia Vietnam Others
to global and regional supply chains. Notably,
Source: ASEANStats
83 per cent of our survey respondents indicated
that they plan to increase their company’s Within ASEAN, Singapore is a major hub for
investments in ASEAN over the next 3-5 years by investments, being the largest source for
at least 25 per cent, once RCEP is ratified.2 intra-ASEAN FDI and accounting for a majority
share in 2019. In addition, Singapore is a target
market for investments as well and in this
Figure 1: Intra-ASEAN total trade in goods regard, 80 per cent of our survey respondents
USD billion selected Singapore as the country offering the
best expansion opportunities within ASEAN,
700
followed by Thailand at 60 per cent and
: 1.4%
CAGR
Vietnam at 59 per cent. Furthermore, over 85
600
per cent of survey respondents foresee at least
500 a 10 per cent growth in sales or production in
400 ASEAN over the next 12 months.3
644.65 632.60
300 589.12 565.89
535.38 517.95
200
100
0
2015 2016 2017 2018 2019 2020
Source: ASEANStats
Increased intra-regional connectivity through
the flow of capital, integration of production
networks, and vertical or horizontal integration
of supply chains is likely to strengthen ASEAN’s
burgeoning role in global supply chains.
Furthermore, ASEAN’s diverse industrial
landscape also lends itself to be an attractive
location for companies to establish a hub
for the region. This optimism is manifested in
Borderless Business: Intra-ASEAN Corridor 5
Overview of the Intra-ASEAN Corridor
Figure 3: Key drivers for focus on ASEAN and major economies offering expansion
opportunities
Access to the large and growing ASEAN consumer market
Access to a global market (from ASEAN), enabled by a network of FTAs
Presence of a mature and reliable supplier base
Note: Survey questions asked: ‘What are the key drivers for your focus on ASEAN?’ and ‘Which of these major economies within ASEAN
do you think offers the best expansion (sales / production) opportunities for your company?’
For Key Drivers - values indicated refer to the % of survey respondents who included the driver as one of the top 3 ranked choices
Source: Standard Chartered Survey, 2021
Rapid population growth, In addition, with 100 million people region-wide
expected to migrate from the countryside to
urbanisation and digitalisation cities between 2015 and 2030, demand for
expected to give rise to new improved infrastructure will grow significantly.
The Master Plan on ASEAN Connectivity
consumer markets (MPAC) 2025 outlines a roadmap for enhancing
ASEAN’s growing population, coupled the region’s infrastructure, including smart
with rapid urbanisation and digitalisation, city development, physical and institutional
is expected to generate new market connectivity, and people-to-people linkages,
opportunities. The World Economic Forum which are foundational to achieving a fully
anticipates that over the next decade, integrated ASEAN Community.
emerging ASEANb will drive 98 per cent of the
Part of ASEAN’s envisioned integration also
increase in the region’s working population,
involves strengthening the region’s digital
estimated to reach 40 million by 2030. With
connectivity. The gross merchandise value of
this, higher consumption levels are expected
ASEAN’s internet economy was USD100 billion
especially in Indonesia, Vietnam and the
in 2020 and is set to surpass USD300 billion by
Philippines. As per our survey, 69 per cent of
2025. To capitalise on this potential, member
respondents are focusing on ASEAN to gain
states signed the ASEAN Agreement on
access to the large and growing consumer
e-commerce in 2018 in hopes that facilitating
market, and close to 50 per cent cite the
more cross-border e-commerce transactions
availability of an abundant and skilled
would drive further regional growth.4
workforce as a key driver.c
b Indonesia, Malaysia, the Philippines, Thailand and Vietnam
c Value indicated refers to the % of survey respondents who included the driver as one of the top 3 ranked choices
Borderless Business: Intra-ASEAN Corridor 6
Overview of the Intra-ASEAN Corridor
Renewed focus on sustainability Despite such initiatives growing in
prominence, ASEAN has not kept pace with
set to create significant other regions in terms of green economy
opportunities vis-à-vis ASEAN’s initiatives. This suggests that there remain
significant untapped growth opportunities.
infrastructure development Recently, ASEAN has seen a stronger push for
Sustainable financing and infrastructure sustainable products from local governments,
will be key to supporting ASEAN’s growth rising corporate and investor awareness,
moving forward. ASEAN’s transformation and growing consumer preferences. This
towards a greener economy offers economic is reflected in our survey, with over 50 per
opportunities in areas such as energy and cent of respondents indicating that driving
resources, food systems, industries and sustainability and ESG will be a key focus area
logistics, cities, healthcare and education, for their organisations.d
and green financing. Initiatives such as the
Similarly, a recent research report – ‘Carbon
ASEAN Smart Cities Network (ASCN) embody
Dated: The net-zero supply chain revolution’
the bloc’s ambition to build future-ready and
by Standard Chartered – revealed that 78 per
resilient cities across the region. Moreover, it is
cent of multinationals (MNCs) will remove
estimated that every USD1 million invested in
suppliers that endanger their carbon transition
renewable technologies or energy efficiency
plan by 2025. The study also reveals that
could stimulate nearly thrice as much job
MNCs’ focus on tackling supply chain emissions
growth as compared to spending on fossil
could create a USD1.6 trillion opportunity for
fuels. If leveraged fully, USD172 billion worth
the net-zero club: those businesses reducing
of capital expenditure could create 30 million
emissions in line with MNC net-zero plans. This
jobs in ASEAN by 2030.
represents a major opportunity for net-zero-
focused suppliers across the 12 key emerging
and fast-growing markets in the study,
including Singapore, Malaysia and Indonesia.5
d Value indicated refers to the % of survey respondents who included the key focus area as one of the top 3 ranked choices
Borderless Business: Intra-ASEAN Corridor 7
Overview of the Europe-ASEAN Corridor
Intra-ASEAN Corridor
“ASEAN is core to Standard Chartered’s business strategy. As the only international bank with
a full presence in all 10 markets in the region, we believe we play a critical role in enabling our
clients to seamlessly trade and invest across the 10-nation bloc. The findings of this report
clearly validate the trends we are observing among our clients and we continue to invest in our
capabilities to meet their evolving needs.”
Heidi Toribio
Regional Co-Head, Client Coverage, Asia,
Corporate, Commercial and Institutional Banking
Standard Chartered
“ASEAN corporates’ strong appetite to leverage Singapore for expansion within the region
underscores the city-state’s unique position as the gateway to ASEAN. We have seen clients
from countries, such as Indonesia, Malaysia, the Philippines and Thailand, increasingly access
the deep and liquid financial markets in Singapore. Importantly, ASEAN’s growth prospects
remain promising, with the markets offering opportunities from healthcare and consumer
goods to construction and real estate as well as renewable energy. As the go-to bank in
ASEAN, Standard Chartered is committed to provide on-the-ground advisory and innovative
financial solutions to help these businesses succeed in the long term.”
Patrick Lee
Cluster CEO, Singapore and ASEAN Markets
(Malaysia, Vietnam, Thailand & Rep Offices)
Standard Chartered
“The potential for intra-ASEAN trade is enormous. Not only are the 10 member countries
located within close geographical proximity, they are also enjoying rising income levels and
rapid adoption of technology by consumers as well as businesses. In particular, Indonesia offers
abundant opportunities through its young population, growing middle class, and booming
digital economy. The regulatory reforms driven by the Indonesian government are also
expected to stimulate domestic and foreign investment. Similarly, Brunei and the Philippines
have much to offer, and are already actively engaging in intra-ASEAN trade. As the oldest
international bank in Indonesia as well as the Philippines, and a leading global bank in Brunei,
Standard Chartered is well positioned to marry deep local insights with product expertise to
help ASEAN corporates trade, invest, and grow.”
Andrew Chia
Cluster CEO, Indonesia and ASEAN Markets
(Australia, Brunei & the Philippines)
Standard Chartered
Borderless
Borderless
Business:
Business:
Europe-ASEAN
Intra-ASEAN Corridor 8
Our Growth Watchlist: Key Sectors Driving the Future of the Intra-ASEAN Corridor
Our Growth Watchlist
ASEAN’s increased physical and digital The region’s expanding middle class, ageing
connectivity through regional initiatives, population, and rising consumption levels
alongside favourable demographics and will bolster growth in the food and beverage
rapid urbanisation, is likely to generate and healthcare sectors. ASEAN’s growing
growth opportunities in several sectors, population density will also give rise to
highlighted below. The region’s maturing infrastructure needs, boosting demand for
manufacturing capabilities offer the potential construction, real estate and more sustainable
for companies to set up regional production sources of energy.
networks, especially in the automotive sector.
Figure 4: Key sectors in ASEAN-6 (by contribution to national GDP), 2020
Note: Trade includes wholesale and retail trade
Source: ASEANStats
1. Growing demand for Going forward, as ASEAN member states
(AMS) focus on expanding universal healthcare
healthcare services post- and dealing with rising health concerns amidst
COVID-19 and increasing focus COVID-19, this trend is forecasted to accelerate
at 8.3 per cent CAGR across the region from
on healthtech to propel growth 2020 to 2025.
in ASEAN
ASEAN’s demographics, accompanied by an
increased government focus on healthcare, has
brought healthcare spending in ASEAN from
USD99.2 billion in 2014 to USD124.3 billion in
2019 at a rate of 4.6 per cent CAGR.
Borderless Business: Intra-ASEAN Corridor 10Our Growth Watchlist
Figure 5: Healthcare spending in ASEAN-6
USD billion CAGR: 8.5% CAGR by Country
Malaysia
200 190.7 7.2%
175.5 21.0
165.0 Vietnam
19.9
150.9 18.7 23.3 7.6%
150 139.0 21.7
17.1
126.6 20.2 26.3 Singapore
15.9
19.1 24.4 8.2%
14.8 17.7 22.6
16.2 20.8 30.8
100 19.5 26.1 28.0
17.7 24.3
22.4 33.8
19.5 28.6 30.8
Thailand
26.1
24.0 8.7%
50 22.3
50.8 55.5
48.9
39.5 43.5 Indonesia
36.0 9.1%
0
2020 2021 2022 2023 2024 2025
Indonesia Thailand Singapore Vietnam Malaysia
Source: Fitch Solutions
ASEAN’s diverse healthcare industry is healthcare industry by facilitating cross-border
home to a number of production hubs – with trade of such products.
pharmaceutical products being the focus
in Singapore, Indonesia and Vietnam; and In addition to the established pharmaceuticals
medical devices in Malaysia and Thailand. and medical devices industry, the healthtech
Additionally, Singapore, Malaysia and Thailand boom has drawn out new segments of growth
are regional market leaders in medical tourism in areas such as telehealth, digital therapeutics,
and are implementing measures to reboot the and remote patient monitoring and analysis.
industry post-COVID-19. Initiatives such as the Local start-ups have received funding from
ASEAN Medical Device Directive, which aims other countries in the region and are looking to
to harmonise the medical device regulatory expand beyond their home markets.6
framework across the region, are expected to
drive even deeper linkages among AMS in the
Government focus on healthcare development and expansion of healthtech to be a vehicle for growth
in key ASEAN markets
Indonesia Thailand Philippines
Indonesia has relaxed restrictions on Thailand has selected healthcare as one The Philippines has plans to establish
foreign investment in the pharmaceutical of its 10 priority industries, as part of its Special Economic Zones (SEZs) for the
sector. Under its New Investment List goal of becoming a regional life sciences pharmaceutical industry to spur medical
(March 2021), foreign companies can centre. It has also granted incentives to research, manufacturing, and tourism
have up to 100 per cent ownership in the pharmaceutical investors and designed in the country. The first SEZ was opened
manufacture and wholesale of finished a regulatory framework to support R&D at the First Bulacan Business Park in
and raw pharmaceutical products. within the country. To access the large Malolos City in February 2021. Singapore’s
Notably, Jakarta-based healthtech healthcare market, Singapore-based Clearbridge Health expanded into
platform, Halodoc, managed to raise telehealth start-up, Doctor Anywhere, the Philippine market in 2018 with the
funding from Singapore firms such as launched a Virtual COVID-19 clinic in acquisition of Marzan Healthcare to
Singtel Innov8, Temasek Holdings, and partnership with Samitivej hospital, True expand its market reach in this high
Openspace Ventures. Digital Group, and AIA Thailand. growth market.
Source: SSEK, Fitch Solutions, Crunchbase, Doctor Anywhere, Philippines News Agency, Clearbridge Health
Borderless Business: Intra-ASEAN Corridor 11Our Growth Watchlist
2. Regional trade ties and when it comes to automotive manufacturing.
For instance, Thailand is known for being an
the emergence of the Electric automotive assembly hub, while Vietnam
Vehicles segment to strengthen contributes to the manufacture of automotive
parts. Strengthened trade linkages across the
the automotive sector in ASEAN region through initiatives such as the ASEAN
post-COVID-19 Economic Community (AEC) and the ASEAN
Free Trade Area (AFTA) can be leveraged
Improving consumer sentiment and economic to create an integrated production cluster
recovery post COVID-19 are expected to boost to boost the region’s ambitions of becoming
demand in ASEAN’s automotive market, with an automotive production and export hub.
vehicle sales projected to grow at a CAGR In addition, automotive manufacturers
of 9 per cent and production at a CAGR of based in ASEAN can capitalise on the added
6.6 per cent from 2020 to 2025. The region’s connectivity RCEP brings to explore export
automotive hubs – Thailand, Indonesia, opportunities with ASEAN’s major trading
Vietnam and Malaysia – have diverse yet partners under the agreement.
complementary comparative advantages
Figure 6: Vehicle production in ASEAN
CAGR: 6.6% CAGR by Country
3.91
4.00
3.72 0.11
3.57
3.39 0.11
0.10 0.32 Vietnam
3.50 3.17 0.09 0.29
0.08 0.22 0.26 7.6%
2.83 0.56
3.00 0.18 0.55
0.07 0.54
0.17 0.53 Malaysia
0.52 8.2%
2.50 1.02
0.49 0.91 0.98
0.86
2.00 0.79 Indonesia
9.5%
0.69
1.50
1.81 1.89 Thailand
1.70 1.76 8.7%
1.00 1.61
1.43
0.50
0.00
2020 2021 2022 2023 2024 2025
Thailand Indonesia Malaysia Vietnam
Source: Fitch Solutions
ASEAN’s growing population has intensified its
energy needs, which, in conjunction with the
rise of global carbon emissions, have spurred
demand for more sustainable transportation in
the form of Electric Vehicles (EVs). Governments
are prioritising this segment to drive the next
phase of growth within the industry with
incentives being provided for manufacturing
and adoption of EVs. Additionally, as countries
in ASEAN target the building of smart cities,
they are looking to develop capabilities in
autonomous driving technology. Singapore
is the regional leader in this aspect and has
already begun tests for driverless vehicles.
Recently, Malaysia and Vietnam are also
making headway in this area.7
Borderless Business: Intra-ASEAN Corridor 12Our Growth Watchlist
EVs a potential focus, with major ASEAN production hubs offering incentives to attract investments
Thailand Indonesia
Growth in Thailand’s established automotive industry is Government policies will encourage the next phase of growth in
expected to be supported by industrial policies and government ASEAN’s largest automotive market through measures, such as
incentive schemes to drive demand, such as trimming of easing vehicle loan requirements, suspension of a luxury vehicle
excise taxes for local EV manufacturing to increase OEM tax and incentives for EV uptake. Growing foreign investment
manufacturing activity. In 2016, Siam Motors set up a joint for production of lithium batteries in Indonesia is expected to
venture with JWD Infologics to provide integrated logistics position the country as a regional hub for battery production for
services for the automotive industry across ASEAN. EVs.
Malaysia Vietnam
Malaysia’s National Automotive Policy 2020 has been designed Vietnam’s government is supporting the fast-growing local
to spur growth in emerging areas such as EVs, Next Generation vehicle production industry through initiatives such as removal
Vehicle (NxGV), and Industry 4.0. There are also efforts to boost of import tariffs for auto parts and accessories to improve the
the domestic industry through the Energy Efficient Vehicles industry’s competitiveness. In 2018, Thailand’s AAPICO Hitech
Programme, which provides support for the local assembly established a JV with Vinfast for production of body-in-white
of hybrid EVs. In 2018, Malaysia signed a JV with Indonesia to parts in Vietnam.
develop the region’s first locally produced car brand.
Source: ASEAN Briefing, Automotive Logistics, Fitch Solutions, Malaysia Ministry of International Trade and Industry, Straits Times, Hanoi
Times, AAPICO
Autonomous Vehicle Test Centre in Singapore minimises risks of driverless
vehicles through rigorous testing
Background Initiative Control Industry adoption
Nanyang Technological The CETRAN AV Test Centre supports In terms of funding,
University (NTU) teamed autonomous vehicle (AV) trials with a testing the government has
up with the Land regime to assess the safety and readiness awarded funding for
Transport Authority of any AVs for Singapore’s public roads. AV trials to a number
(LTA) and Jurong Town Currently, all testing requires a qualified of organisations, such
Corporation (JTC) to onboard safety driver who will be able to take as NuTonomy (for its
opened CETRAN (Centre control of the vehicle in an emergency, hold robo-taxi service in
of Excellence for Testing third-party liability insurance, and share data Singapore), Singapore
& Research of AVs) in from the trials with LTA. This structure gives Technologies and NTU-
Singapore in 2017. assurance to the public relative to safety and Volvo (for the world’s first
provides a structure for the regulator to learn full-size, autonomous
about the technology and build effective electric bus).
long-term regulation.
Source: Economic Development Board
Borderless Business: Intra-ASEAN Corridor 13Our Growth Watchlist
3. Post-COVID-19 economic liberalisation. Moreover, the sector has also
received FDI worth USD56.3 billion between
recovery and easing FDI 2015 and 2019, of which 23.2 per cent was
restrictions expected to boost intra-regional. As ASEAN emerges from the
COVID-19-induced economic slump, the region’s
development of ASEAN’s construction industry is expected to restart
construction and real estate its growth trajectory once economic activities
industry resume. In this regard, the construction industry
(for residential and non-residential buildings)
The real estate sector in ASEAN has witnessed is expected to grow at a CAGR of 11.9 per cent
considerable growth in recent years, from USD105.5 billion in 2020 to USD184.9
supported by growing urbanisation and trade billion in 2025.
Figure 7: Value of residential and non-residential construction industry in ASEAN-6
CAGR: 11.9% CAGR by Country
USD billion
Malaysia
200.0 184.9 9.0%
167.9 11.4
157.2 10.9 12.2 Singapore
8.9%
10.2 11.4 13.8
150.0 139.3
10.6 12.8 21
122.5 9.2
9.8 12 19.1
Thailand
105.5 8.5 17.4
8.9%
9.2 11.1 35.5
7.3 15.9 31.7
100.0 8.3 10.3 28.9 Vietnam
9.6 14.3 8.3%
26.1
12.6 21.9
16.3 91
50.0 78.1 82.1
67.1
58.4
51.4 Indonesia
12.1%
0.0
2020 2021 2022 2023 2024 2025
Indonesia Vietnam Thailand Singapore Malaysia
Source: Fitch Solutions
Demand in the construction sector is Things (IoT) to manage this complexity. BIM
expected to be driven by overall infrastructure was adopted by Singapore in 2010, leading
development, as well as rising income and to increased productivity in the industry; and
consumption levels. Moreover, government it is starting to be adopted by other ASEAN
efforts to attract foreign investment vis-à-vis countries. For example, Vietnam approved a
reforms are expected to further propel growth 2017-2021 roadmap for implementation of BIM
in this sector. As projects in ASEAN grow larger for construction and operation management
in size and increasingly complex, companies will in 2016. Adoption of such innovations to drive
need to look at digital solutions such as Building efficiency and productivity is expected to shape
Information Modelling (BIM) and Internet of the future of ASEAN’s construction industry.8
Investment-friendly policies to drive growth across real estate segments in key markets across ASEAN
Indonesia Philippines Vietnam
The Indonesian government has pushed Although the Philippines has historically In addition to Vietnam’s 2015 Law on
through various reforms, such as the had restrictive regulations on foreign Housing that eases restrictions on
Omnibus bill (passed in 2020) to ease ownership, the recent establishment of foreign ownership on residential housing,
foreign investment and ownership in the REIT market is expected to facilitate Vietnam’s recent Law on Investment
the real estate sector. In 2020, Alpha more real estate investment in the 2020 seeks to attract further foreign
Investment Partners, a subsidiary of country. Singapore-based CapitaLand’s investment by easing restrictions across
Singapore’s Keppel Capital Holdings, business unit, The Ascott Ltd, partnered sectors. In April 2021, Thailand-based
partnered with Indonesia’s Mega with Cebu Landmasters in 2018 with the retail and shopping mall operator,
Manunggal Property and Manulife aim to manage 1600 units by 2022 as Central, announced a USD1.1 billion
Financial Corporation to launch a part of CapitaLand’s effort to expand the investment to expand across 55 cities in
USD200 million logistics property hospitality portfolio of their real estate Vietnam.
venture in Indonesia. business.
Source: Fitch Solutions, Oxford Business Group, Mondaq, Keppel Corporation, The Manila Times, Nikkei Asia, Capitaland, DFDL, Allen &
Gledhill, Vietnam Investment Review
Borderless Business: Intra-ASEAN Corridor 14Our Growth Watchlist
4. Growing urbanisation and a 4.9 per cent CAGR growth from 2014 to
2019 as a result of increasing urbanisation
rising incomes to drive demand and a growing middle class with higher
for Food and Beverage products consumption power. In addition, ASEAN’s
market potential has attracted increased
in ASEAN investments in manufacturing, including from
Household spending on food and beverage international players, buoyed by the region’s
(F&B) in ASEAN is expected to further improving business environment, relatively low
accelerate from 2020 to 2025 with a manufacturing costs, and maturing logistics
projected CAGR of 7.3 per cent, following infrastructure.
Figure 8: Household spending on food and beverage products in ASEAN-6
USD billion CAGR: 7.3% CAGR by Country
800.0 760.1 Singapore
12.4 2.8%
701.2 49.3
700.0 665.1 11.9
11.4 45.2 83.3
608.3 41.5
Vietnam
567.7 10.9 77.5 7.7%
600.0 9.9 38.6
535 10.8 71.5 103.1
35.1 64.3
34 97.2 Malaysia
500.0 57.4 93.3
53.8 88.3 9.1%
84.6 152.1
400.0 82.1 132.7 139.6
126 Thailand
107 119.5 4.7%
300.0
360
200.0 314.6 329.7
261.2 280.1
247.3
100.0 Indonesia
7.8%
0.0
2020 2021 2022 2023 2024 2025
Indonesia Thailand Malaysia Vietnam Singapore
Note: Data includes household spending on food, alcoholic beverages and non-alcoholic beverages
Source: Fitch Solutions
As consumers across ASEAN become more food. There is also an increased demand for
health conscious and proactive about their alternative protein and plant-based products,
physical and mental well-being, there is a as a result of more consumers adopting
growing demand for products in the ‘better flexitarian diets. In Thailand, demand for plant-
for you’ segment. For instance, as per the based meat is forecasted to increase by 200 per
World Economic Forum report titled ‘Future of cent over the next five years. From a distribution
Consumption in Fast Growth Consumer Markets perspective, F&B companies looking to expand
ASEAN 2020’, in Indonesia, 75 per cent of the in ASEAN should pay attention to e-commerce
urban population aims to eat a healthier diet, as a significant channel for sales, as a result
while in Vietnam, 90 per cent of consumers of the increasing digital adoption across the
say they are willing to pay more for healthy region.9
Borderless Business: Intra-ASEAN Corridor 15Our Growth Watchlist
Business-friendly incentives and growing market driving intra-ASEAN expansion in F&B industry
Indonesia Philippines Thailand
Foreign players looking to enter Regulations such as the CREATE Act and Thailand is well-known for its food
Indonesia’s F&B market need to be investment programmes like ‘Make It processing industry and is looking to enter
cognisant of the country’s 2019 Halal Happen in the Philippines’ have been the next phase of growth through its high-
Product law, which requires consumer designed to make the country’s business tech Eastern Economic Corridor (EEC).
products to be halal certified. This law environment friendlier for foreign The country has tried to position itself as a
underpins the country’s goal to be a manufacturers. In 2019, Indonesia-based Food Innovation Hub for future advances
global hub for halal manufacturing, Mayora Indah announced plans to invest in food technology. Jakarta-based, fully-
providing manufacturers setting up USD80 million over 5 years to produce tech enabled coffee chain Flash Coffee,
production here with further growth coffee mixes in the Philippines to expand opened its first Thailand location in 2020
opportunities. In 2017, Singapore-based its market share in the country’s booming and has launched over 25 more outlets in
Delfi partnered with Japan-based Yuraku coffee market. the country since.
Confectionery to produce and market
Delfi’s chocolates in the country.
Source: ASEAN Briefing, Confectionary, Philippine News Agency, Nikkei Asia, Asia Pacific Food Industry, Nestlé, Minime Insights
5. Renewable energy generation consumption, with its electricity consumption
being among the fastest growing in the world
will play a prominent role in at a CAGR of ~6 per cent over the past 20 years.
ASEAN’s quest to meet its In 2020, ASEAN’s electricity consumption was
994 terawatt-hours (TWh) and is projected to
growing energy needs reach 1,287 terawatt-hours by 2025. To meet
Energy is at the forefront of the vision for the these energy needs in a sustainable manner, the
ASEAN Economic Community and has been ASEAN Plan for Energy Cooperation 2016-2025
identified as an integral part of creating an (APAEC), endorsed in 2014, has set a target to
integrated, well-connected, and resilient ASEAN. increase ASEAN’s renewable energy component
The region has seen increased development to 23 per cent of ASEAN’s energy mix by 2025.
in terms of urbanisation and growing
Figure 9: Renewable energy generation in ASEAN
TWh
TWH CAGR: 4.8%
271
262.5
300 254.1
244.1
232
213.9 CAGR by Segment
200
Hydropower
3.8%
204.5
200.2
150 195.6
190
182.2 Geothermal
3.9%
169.7
100
Solar
15.9%
30.2 31.2
50
28.0 29.4
25.7 27.5
Wind
18.4 20.4 23.1
11.1 13.9 16.1 10.4%
7.5
7.59 9.2
.2 10.0 10.7 11.5 12.3
0
2020 2021 2022 2023 2024 2025
Wind Solar Geothermal Hydropower
Source: Fitch Solutions
Borderless Business: Intra-ASEAN Corridor 16Our Growth Watchlist
Energy generated from renewable sources projected CAGR of 15.9 percent and is already
(excluding biomass and waste) was 214 TWh garnering investments from across ASEAN.
in 2020 and is expected to grow to 271 TWh by Thailand is the regional leader for energy
2025 at a CAGR of 4.8 per cent. Looking ahead, generation in the two fastest growing segments
this trend is expected to bring forth a spectrum – solar and wind – with 10.53 TWh generated in
of opportunities for regional cooperation 2020, which is expected to grow to 16.88 TWh
through APAEC Programme Areas such as by 2025. Vietnam is another significant market
‘ASEAN Power Grid’ and ‘Renewable Energy’, expected to see maximum growth in these
requiring new investments to increase installed segments, growing from 2.83 TWh in 2020 to
power capacity in the renewable sector. Within a projected 10.35 TWh in 2025, with a CAGR of
renewables, solar energy is expected to be 29.6 per cent.10
a significant growth segment, growing at a
Borderless Business: Intra-ASEAN Corridor 17Our Growth Watchlist
Solar energy is leading the region’s renewable energy development, supported by key government policies
Thailand Vietnam Philippines
Solar energy is an important growth Solar and wind energy are key growth There is increased focus on solar energy
segment for Thailand as it looks to areas for Vietnam’s renewable energy generation in the Philippines as per the
expand renewable energy generated industry. The government is encouraging country’s ‘Energy Plan 2040’. Additionally,
by the country, incentivised through development in the offshore wind sector geothermal energy (currently accounting
initiatives such as the Energy Ministry’s as a part of Vietnam’s National Energy for 70 per cent of renewable power
Solar Rooftop Scheme. In 2019, Singapore- Development Strategy. In April 2020, generated in the country), which
based Cleantech Solar was commissioned Thailand-based Super Energy Corporation previously did not allow foreign entities to
to install and operate solar rooftop announced an investment of USD457 hold a majority stake, will now allow 100
systems across 19 Tesco Lotus stores in million into four solar plants in Vietnam per cent foreign investment, paving the
Thailand. with a combined capacity of 750 MW. way for further development. Singapore-
based WEnergy Global announced an
investment of USD20 million into four
energy projects in the Philippines.
Source: Fitch Solutions, Cleantech Solar, Super Group, Vietnam Investment Review, WEnergy Global
Several companies, including Singapore’s WEnergy Global, form
partnership to finance renewable energy projects in ASEAN
Background Looking Ahead
Singapore’s WEnergy Global, CleanGrid Partners aims to build and manage a portfolio of
Greenway Grid Global (an invest- electrification projects valued at about USD100 million in the next
ment company with Japan’s TEPCO few years. WEnergy Global has already set the stage by initiating a
PowerGrid Corp as a major share- microgrid project in Palawan, the Philippines. This would be the largest
holder), and IMCG Partners have microgrid solar power plant in the Philippines that will generate 1.3
come together to form a USD60 megawatts of clean renewable energy and reduce the country’s diesel
million Singapore-based investment consumption; as well as provide power to over 600 customers – homes,
entity called CleanGrid Partners, businesses, and hotels.
which will finance and operate
renewable energy projects across Several other projects in the Philippines, Indonesia, and Myanmar are
ASEAN. also in the pipeline.
Source: Company websites
6. High digital adoption driving has had tremendous success in recent years
with regional leaders such as Lazada, Shopee
growth of e-commerce and and Tokopedia emerging across services such
digital platform services as online retail, online travel, online media,
transport and food. This trend was accelerated
Home to over 400 million internet users, last year as a result of COVID-19, leading to
the ASEAN market poses a plethora of a significant gross merchandise value (GMV)
opportunities within the digital ecosystem. The of USD104 billion in 2020 that is forecasted
region’s swift digitalisation has given way for to grow at a CAGR of 24 per cent to USD309
growth of digital services across sectors such as billion by 2025.
e-commerce and cloud services. E-commerce
Borderless Business: Intra-ASEAN Corridor 18Our Growth Watchlist
Figure 10: E-commerce GMV in ASEAN-6
USD billion
Source: Google & Temasek, e-Conomy SEA, 2020
In 2020, ASEAN launched the ‘Go Digital Indonesia also enhancing their capabilities. As
ASEAN’ initiative in partnership with The Asia the ASEAN Digital Master Plan 2025 prioritises
Foundation and Google to support MSMEs development of digital infrastructure in the
(Micro, Small and Medium Enterprises) in the region, expansion across the region is expected
region to take advantage of this looming to become more accessible for companies in
opportunity through upskilling them in digital the digital space.11
tools and technologies and providing grants.
With companies in ASEAN gaining greater
digital maturity in the forthcoming years,
digital platforms and cloud-based services for
enterprises such as data analytics, artificial
intelligence, machine learning and IoT will have
greater expansion opportunities. As a result of
this trend, Southeast Asia is projected to be the
world’s fastest growing region for data centres.
Currently, Singapore is the regional leader
for data centre supply, with Malaysia and
Favourable government policies encouraging investments in e-commerce
Indonesia Thailand Vietnam
To attract technology-related investment, Growth of e-commerce in the country The government’s National E-commerce
the government has established friendly has been driven by the government’s Development Plan 2021-2025, focused
FDI policies and now allows 100 per National E-commerce Strategy (2017- on boosting e-commerce adoption,
cent foreign ownership of e-commerce 2022) and initiatives, such as the envisages that 55 per cent of the
businesses in the country. In 2020, PromptPay E-payment service, making it population will shop online by 2025 with
Singapore-based Grab invested USD100 an attractive destination for investment. average annual online spending per
million in Indonesia-based e-wallet Indonesia-based Gojek launched a new consumer rising to USD600 by 2025,
company LinkAja and inaugurated a Tech app for Thailand in 2020 to gain a greater up from USD202 in 2018. In 2019, Grab
Centre to test tools and technology for the foothold in the market. announced plans to invest USD500
MSMEs market in the country. million over 5 years in Vietnam to spur
development of the country’s digital
economy.
Source: Fintech News Singapore, Nikkei Asia, Grab
Borderless Business: Intra-ASEAN Corridor 19Acting with Impact: Five Focus Areas for ASEAN Companies to Drive Resilient Growth Within the Region
Five Focus Areas
Navigating ASEAN’s fast-evolving and diverse companies are also focused on executing
landscape requires companies to focus on a digital programmes with a view to enhance
few critical areas to achieve success. Figure cyber resilience, and gradually incorporating
11 (below) illustrates the key focus areas that sustainability and ESG principles into
ASEAN-native companies are prioritising to their business practices. Finally, in view of
stay competitive and drive resilient growth. fundamental shifts on the global stage,
These include forging key partnerships with companies are also diversifying their supply
local stakeholders and reinforcing governance chains across ASEAN to guard against
and risk management frameworks. Given anticipated disruptions.
ASEAN’s rapid digitalisation and urbanisation,
Figure 11: Key focus areas to drive resilient growth in ASEAN
Note: Survey question asked: ‘What are the key initiatives / focus areas for your organisation to drive resilient and rebalanced growth in
ASEAN? Please select the relevant options and rank them in order of importance, 1 being the most important.’
Values indicated above refer to the % of survey respondents who included the initiative as one of the top 3 ranked choices
Source: Standard Chartered Survey, 2021
Borderless Business: Intra-ASEAN Corridor 21Five Focus Areas
1. ASEAN offers ideal conditions Diversification needs a holistic approach
for diversified supply chain
Despite advantages brought about by
networks ASEAN’s diverse manufacturing ecosystem,
With the Fourth Industrial Revolution well diversity can also create challenges for
under way, ASEAN’s manufacturing landscape companies looking to operate across the
is experiencing fundamental disruption. Its region. When assessing how to optimise
supplier and production landscape is maturing, production footprints, companies must go
with advancing manufacturing processes beyond basic due diligence or a cost focus
and increasing productivity on the back of and closely evaluate risks – geopolitical,
automation initiatives. ASEAN members with regulatory, business, environmental, etc. –
significant manufacturing capabilities have particular to each market. Even with efforts
potential productivity gains of around USD216 to integrate and streamline standards
to 627 billion. Figure 11 shows that 35 per cent across ASEAN members, each country still
of our survey respondents are keen to build has its own modus operandi, which incom-
production capacity in new locations in ASEAN. ing investors should become familiar with
to avoid any pitfalls when diversifying their
However, digital adoption across ASEAN’s supply chains.
manufacturing landscape is not homogenous.
While more mature manufacturing bases
such as Thailand and Malaysia are focusing
on high-tech manufacturing, middle-income
markets like Vietnam are building capacity in
more labour-intensive production and focusing
on expanding their network of industrial parks
to create manufacturing hubs. Companies
should leverage ASEAN’s manufacturing
diversity to build production networks that are
well-diversified and therefore more resilient in
weathering future disruption.
Borderless Business: Intra-ASEAN Corridor 22Five Focus Areas
operations
build an intra-regional operations network.
Thailand Vietnam
• Manufacturing industry share of • Manufacturing industry share of
GDP (2020): 27.93% GDP (2020): 16.30%
• Strong manufacturing base, well- • Geographical pr
developed infrastructure, and relatively lower labour costs
• Focus on labo
especially for automotives manufacturing in sectors such
as garments and footwear, and
Malaysia automotive clusters
• Manufacturing industry share of • Incr
GDP (2020): 20.45% electronics assembly
• Low
machinery and parts
• Manufacturing industry share of
• Industry 4.0 to drive growth in GDP (2020): 18.45%
sectors such as electrical and • High energy productivity and
electronics, chemicals and
climbing up the value chain slowly.
chemical products, and machinery
However, low-tech manufacturing
and equipment in F&B and textiles continue
to dominate
Singapore
• Growth in high-tech segments
• Manufacturing industry share of such as chemicals and electronics
GDP (2020): 20.25% supported by government
• Robo
manufacturing, advanced
Indonesia
• Manufacturing industry share of
• Strong and diverse manufacturing GDP (2020): 20.67%
• Emerging technology value
for sectors such as aerospace, chains, has the comparative
advantage to advance itself
as a technology hub, especially
in EV manufacturing
Potential high-growth manufacturing sectors
Automotive Chemicals Robotics and AI Food and Electronics
beverage
Textiles and
sciences footwear
News Asia, Insights Solutions Global
With ASEAN members fast evolving in terms At the same time, manufacturers would benefit
from having a presence in other locations
hubs are emerging across the region. For
example, Vietnam is focusing on developing wish to carry out R&D or Sales & Marketing
tech and automotive clusters in the North of
Vietnam or Indonesia; and assemble products
to lure in advanced manufacturers. Targeting in more advanced manufacturing hubs such as
the further development of production hubs
to shorten supply chains, effectively reducing
when responding to demand.
Borderless Business: Intra-ASEAN Corridor 23Five Focus Areas
B. Broadening supply bases by leveraging MPAC 2025 focuses on improving the logistics
ASEAN’s growing connectivity network among ASEAN countries by removing
trade barriers and cross-border obstacles,
To build resilience against uncertainties, ASEAN
allowing for more seamless logistics in moving
manufacturers should focus on addressing
materials and finished products around the
their most pressing vulnerabilities: supply chain
region.
disruptions and materials and component
sourcing. By concentrating manufacturing Companies operating in this corridor can
within at least one or two of ASEAN’s capitalise on initiatives such as the ASEAN
production hubs, manufacturers would be Single Window, single shipping and aviation
able to benefit from tapping into a network of markets, and the ASEAN Database on Trade
regional suppliers, which would allow them to Routes, and Framework for Enhancing Supply
maintain a broad, and therefore more resilient, Chain Efficiency, to realign their footprint in
supply base. However, a notable 66 per cent of ways that can further reduce production costs
respondents currently see building relationships and strengthen supply chain resilience against
with suppliers and adapting supply chain global disruptions. Moreover, the ASEAN
logistics as a significant challenge in the next Customs Transit System (ACTS), implemented
6-12 months.e across six ASEAN countries - Cambodia, Laos,
Malaysia, Singapore, Thailand and Vietnam -
Despite challenges, the increasing maturity of
can help companies reduce the time and cost,
suppliers across the region, as well as ASEAN’s
as well as improve the tracking and movement
growing connectivity via the AEC and AFTA, will
of goods by land, regionally. In the pilot phase,
facilitate the development of regional value
DHL Global Forwarding Singapore successfully
chains and diversified supply chains. This will,
carried out cross-border transit operations from
in turn, allow for a more reliable flow of goods
Singapore to Thailand through Malaysia in
and services and reduce the cost of expanding
October 2020 capitalising on the ACTS.12
into new markets within the region. In addition,
Vinfast works with Thailand’s Aapico Hitech and international
partners to prioritise localisation and build manufacturing
capabilities in Hai Phong
1 2
Background Impact
To achieve its localisation ratio of 60 per The JV between Vinfast and its Thai
cent, Vinfast worked with international partner shows the corporation's
suppliers to set up factories for parts and commitment to increase the localisation
components in its complex in Hai Phong, rate of its products. This JV would also be
Vietnam. the largest project ever undertaken by
Aapico and facilitated the latter’s entry
In June 2018, Vinfast signed a into Vietnam’s automotive market.
Memorandum of Understanding (MoU) for
a joint venture (JV) with Aapico Hitech, one
of Thailand’s leading auto parts manu-
facturers, to build a press shop in Vinfast’s
Supplier Park in Hai Phong to supply Body
in White (BIW) parts for Vinfast products.
“With this partnership, we believe that there will be more domestic and foreign companies
joining the Vietnamese automotive supplier industry. This is an important step in creating a
synchronous ecosystem for the Vietnamese automobile manufacturing industry.”
Nguyen Viet Quang, Vice President and CEO of Vingroup
e Value indicated refers to the % of survey respondents who included the significant challenge as one of the top 3 ranked choices
Borderless Business: Intra-ASEAN Corridor 24Five Focus Areas
2. ASEAN’s focus on digital A. Capitalise on digital business models to
capture new growth opportunities
advancement expected to
Disruptive technologies shift the value pools in
pave the way for companies to existing value chains. As a result, these shifts
strengthen digital capabilities generate new opportunities for both new and
and cyber resilience existing players. However, critical to companies’
continued growth in the region will be their
The digital economy can be a powerful enabler ability to capture these opportunities. To do
to help ASEAN transit into the more dynamic, so, companies must rethink their current ways
networked and innovative region that the AEC of working and drive digital transformation
envisages. Disruptive technologies – particularly across their business. From our survey, 52 per
big data, cloud technology, IoT, the automation cent of respondents indicated that they plan to
of knowledge work and the Social-Mobile- execute digital transformation programmes to
Analytics-Cloud (SMAC) – could unleash some drive resilient growth in the region.f
USD220 to 625 billion in annual economic
impact in ASEAN by 2030. As ASEAN’s growing consumer market demands
faster flows of goods and customer response
The MPAC 2025, acknowledging the potential times, companies should capitalise on Industry
of digital technology, has thus identified digital 4.0 innovations to redesign and improve their
innovation as another pillar for driving further manufacturing processes, reducing their time-
connectivity and inclusive growth in ASEAN. to-market and raising productivity. Notably,
Although communications and trade have HP Singapore had begun adopting digital
been growing exponentially across borders and solutions to increase productivity even before
devices, digital advancement has not been the pandemic hit. The company shifted from
uniform across all communities in the region. a labour-intensive, reactive, and manual work
Therefore, digital innovation could help bridge to highly digitised, automated work. This
this divide. freed up considerable task responsibilities,
offering employees the opportunity and time
ASEAN governments are adopting a series to learn new skills. Through a combination of
of programmes to stimulate companies to university partnerships and targeted training
strengthen their digital capabilities. Although programmes, HP upskilled its operators to
COVID-19 delayed the region-wide 5G rollout, technical specialists, and trained their technical
Thailand is now taking the lead to promote specialists to become engineers. As a result,
5G adoption across ASEAN, and this will likely the company reported a 70 per cent increase in
contribute to companies’ digital advancement productivity and quality, and a 20 per cent drop
across the region. At the national level, in manufacturing costs.
Malaysia has launched its digital economic
roadmap, MyDigital, which identifies cloud Moreover, digital technologies can help
technology, 5G, and cybersecurity as key areas companies gain better visibility of their supply
for Malaysia’s digital development. Similarly, chains across multiple territories and facilitate
Singapore has identified a series of Strategic cross-functional integration; therefore, also
National Projects, which includes streamlining enabling companies to transition from a
online processes for businesses via its national single production site to a series of regionally
project, GoBusiness.13 connected production networks.14
f Value indicated refers to the % of survey respondents who included the initiative as one of the top 3 ranked choices
Borderless Business: Intra-ASEAN Corridor 25Five Focus Areas
Role of financial partners
With on-the-ground knowledge, financial partners can help businesses simplify processes
and navigate regulatory complexities. Financial partners can also offer digital tools to
streamline and aggregate payment methods, with minimal need for technological know-how,
investment or operating requirements, which provides a more seamless experience overall.
Standard Chartered’s digital solutions include online, last mile and in-store, and invoice collections,
multi-channel payment links and instant payments, among others, which are available across multiple
ASEAN countries
Multi-Channel Payment Links Online Collections Last Mile and In-Store Collections
• Due to COVID-19, the Hindu • DHL had to rethink their cash • A leading consumer electronics,
Endowments Board (HEB) in payment ecosystem to minimise IT and furniture retailer wanted
Singapore wanted a “light paper-based processes and to provide an additional payment
touch” online collections facilitate payments in local option – instant payment at
solution without the hassle of currencies across different checkout, in addition to payments
managing a website, app or markets. by credit card or cash.
POS (point-of-sale) terminals.
• Standard Chartered partnered • Standard Chartered collaborated
• With Standard Chartered’s with DHL to co-create an online with the retail client to integrate
payment link feature – collections solution that would their POS terminal with the bank’s
Straight2Bank Pay – HEB could allow DHL’s customers across Asia Straight2Bank Pay platform to
collect payments via e-mail, to make online payments via the generate dynamic instant payment
SMS, digital invoice or social DHL portal using local payments, QR codes.
media (WhatsApp), providing bank transfers, e-Wallets and
operational efficiency and a cards; as well as a QR code • Shoppers can scan the QR code
seamless experience for both generation app to generate using their smart phone and
the client and its devotees. dynamic QR codes for accepting authorise contactless payment via
payments for shipments at DHL’s their mobile banking app.
service points in Singapore.
B. Prepare to address potential risks Figure 13: ASEAN initiatives to bolster
associated with varying data protection regional digital connectivity
regulations ASEAN Framework
on Digital Data Governance
Although digitalisation across ASEAN has not Dec
2018 Aims to engender trust in the collection
been uniform, the region is gradually working of data and its use by businesses, and to
towards that goal through multiple initiatives. encourage the innovation and adoption of
(see Figure 13). The ASEAN ICT Master Plan digital solutions in ASEAN.
2020 (AIM 2020) articulates the bloc’s ambition
ASEAN International
to establish an ICT single market, as part of Mobile Roaming Framework
achieving an integrated ASEAN Community, Nov
Seeks to promote transparent and
and underscores the role of ICT as a ‘horizontal 2017 affordable international mobile data
enabler of all sectors’ in the region. roaming services in ASEAN.
Complementary to ASEAN’s digital integration ASEAN Framework
efforts, the MPAC 2025 also seeks to improve on Personal Data Protection
Nov
open data use and digital data management Aims to strengthen ASEAN cooperation in
2016
in the region by establishing an ASEAN open personal data protection through domestic
laws and regulations, spanning topics
data network and digital data governance such as: consent, notification and purpose;
framework, respectively. Currently, digital accuracy of personal data; security
capabilities and data governance regimes safeguards; transfers to another country or
territory; retention (of data);
differ significantly across ASEAN member and accountability
states. National authorities place different Source: ASEAN Digital Master Plan 2025, ASEAN Framework on
Digital Data Governance
Borderless Business: Intra-ASEAN Corridor 26You can also read
