The future growth of ASEAN’s economy heavily relies on its over 71 million micro, small, and medium-sized enterprises (MSMEs) effectively harnessing digital trade. With the region’s digital economy expected to reach $1 trillion by 2030, the success of this transformation depends on long-term collaboration between the public and private sectors.
Several public initiatives, such as the ASEAN Digital Economy Framework Agreement (DEFA) and the International Chamber of Commerce’s Digital Standards Initiative (DSI), have laid the groundwork for a more digitally integrated region. However, these initiatives alone are not enough. For real, sustainable change, a mindset shift is needed in how the public and private sectors collaborate to create a simpler, more cohesive ecosystem. This system must be inclusive, accessible to local MSMEs, and promote seamless intra-regional trade without sacrificing national sovereignty.
At a recent World Economic Forum panel in Bangkok, discussions centered on how to advance the goals of DEFA. A key takeaway was the consensus on the need for greater trust between the public and private sectors to expedite customs processing—a stage notorious for its complexity in cross-border trade. Teleport’s experience highlights the challenges, as customs clearance often involves hundreds of documents and can take three to four days.
To address these issues, the region must embrace a fully digital and paperless customs process. One solution proposed was a common data-sharing platform that facilitates seamless information exchange between customs bureaus, enabling efficient digital invoicing and documentation for e-commerce. Additionally, lowering taxation within ASEAN could make cross-border trade more accessible, as it’s currently cheaper to ship goods from China to Southeast Asia than within ASEAN countries.
ASEAN already has successful examples, such as Singapore and Thailand, which have digitized their customs processes, leading to more cost-effective and transparent transactions. The challenge now is for the rest of the region to adopt similar technologies and integrate them into a common platform, ensuring a smooth cross-border trade experience.
Over 80% of MSMEs believe digital platforms help them reach wider customer bases. In Southeast Asia, air transport is the fastest way for businesses to move goods, further unlocking economic opportunities for e-commerce, especially for small business owners.
As consumer expectations shift—with 75% of customers wanting their orders delivered in two days or less—speed and cost efficiency in cross-border trade are no longer luxuries but essential business requirements for growth. There is a clear incentive for ASEAN to create a better cross-border operating environment, enabling businesses to trade faster and more affordably, ensuring a level playing field.
ASEAN’s commitment to digital transformation requires a collective effort from all ecosystem players. The region’s economic growth will be significantly bolstered by well-integrated cross-border trade, improving connectivity, and better serving growing demand. A borderless era of economic growth awaits ASEAN, with the potential to serve global giants like China more effectively.
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