ASEAN nations are busy carving their own mark globally by achieving new milestones with each passing day. A new report by the World Economic Forum outlines ASEAN’s potential to become a $2 trillion-worth digital economy, as frameworks to bolster smooth digital data are underway within the ASEAN regional realm.
Also Read: ASEAN: 5 Nations at Risk as US Dollar Weakens
ASEAN Headed To Become A $2 Trillion Digital Economy
In its recent report, WEF shared how ASEAN nations and their collaborative efforts to harmonize data protection regulations can ensure a smooth outflow of data. When implemented in the realm of trading and commercialization, these frameworks can usher in new opportunities for the nations, helping them secure renewed foreign investment and attention.
Building Strong Digital Ties
The report suggests ways to secure a robust digital economic structure and ways for ASEAN to build strong digital ties with other nations. WEF outlined the critical ways through which ASEAN can achieve digital economic prowess. This development compels ASEAN nations to implement ethical and responsible AI systems and facilitate a free cross-border data flow to ensure hassle-free transactions.
“To fully harness these benefits, ASEAN countries must prioritize implementing ethical and responsible artificial intelligence. (AI) systems, facilitate free cross-border data flow and strengthen their cybersecurity capabilities and resilience. These steps are essential for the sustainable and secure development of digital infrastructure across the region.”
DEFA: A New Framework
The report later streamlines the element of DEFA. This new ASEAN digital economy framework agreement policy has been designed to facilitate the aforementioned developments in AI and data flow. Stressing how DEFA can help ASEAN bolster its trade proceedings, WEF shared that compliance is the key to establishing prosperity in the regional nations.
“The ultimate goal of DEFA is to unleash ASEAN’s full digital potential by aligning with international standards. Fostering collaboration between the public and private sectors, and improving digital infrastructure and governance.”
WEF: Ways To Unlock True Digital Power
Per the report, WEF adds that ASEAN can unlock a spectacular trillion-dollar digital status through skills and knowledge-based narratives. The nations can also contribute to endeavors such as startups and ventures to ensure growth and innovation in all aspects.
Networking and Collaboration
Similarly, networking and collaboration are critical roles for ASEAN to conquer. The nations can secure “international partnerships and market access through extensive cross-border collaborations,” ushering in new waves of change.
“The diaspora harbors a significant pool of professionals in tech, e-commerce, and digital entrepreneurship. ASEAN countries can establish programs for knowledge exchange, mentorship, and training. This will inject fresh ideas and best practices and bridge the digital skills gap within the region.”
Towards a $2 Trillion Digital Economy
Lastly, the report adds how ASEAN is inching towards claiming a $2 trillion digital economic status.
“To truly unlock the potential of the ten nation bloc digital economy. Engaging its talented and resource-abundant diaspora can act as a force multiplier. To ensure supporting a $2 trillion digital economy by 2030.”
Increased Foreign Investments Towards ASEAN: Will It Impact the US Dollar?
ASEAN has long been known for actively working towards curating a new currency system rivaling the US dollar. With WEF’s prediction about the ten-nation block unlocking a $2 trillion digital economy status, rumors of the US dollar being jeopardized are now spreading like wildfire across multiple domains.
Also Read: Shiba Inu: 2 Reasons To Buy The Current SHIB Dip
With the 10-nation pact securing its digital prowess, foreign investments and funding can pivot towards these nations. This development can help ASEAN secure a robust global standing.
This may significantly impact US dollar demand, which again may put significant stress on the USD’s valuation. If ASEAN manages to curate a currency system, it may usher in elements like low USD demand and valuation.