More ASEAN Cooperation Needed for Digital Economy
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More cooperation between ASEAN regulators is needed for the region to fully benefit from the growth of the digital economy. While technology is inherently borderless, the regulation governing it is not. This can create challenges for global businesses operating global technology estates, said John Hsu, APAC chief information officer for HSBC. The best way to manage this is by governments, regulatory authorities and businesses working together through regional cooperation.
Southeast Asia’s digital economy was valued at $31 billion in 2015 and is projected to reach $200 billion by 2025, according to research by Google and Temasek, but HSBC notes that there are still issues to be addressed during the growth process such as data localization, cloud computing, AI and cybersecurity.
In a speech at the ASEAN-EU Business Summit in Bangkok, the bank outlined four recommendations to build an effective relationship between stakeholders.
Firstly, create holistic regulations for all companies irrespective of business model. Secondly, build activity-based regimes and avoid two-tier regulatory regimes to prevent arbitrage.
Thirdly, the bank highlights the need to regionally implement various digital economy initiatives including the ICT Masterplan 2020, the DIFAP, and the «Framework on Digital Data Governance» in order to strengthen «credibility as a production base of choice for global businesses. Finally, it also recommends global coordination wherever possible.
Policymakers should consider how they can create a coordinated regulatory regime where all sizes and types of companies are able to innovate at pace and regulators have sufficient oversight and enforcement capabilities, Hsu added.
Questions & Answers
Q.What is the projected value of Southeast Asia's digital economy by 2025?
What is the projected value of Southeast Asia's digital economy by 2025?
Southeast Asia’s digital economy is projected to reach $200 billion by 2025. This figure comes from research conducted by Google and Temasek.
Q.Which specific issues does HSBC highlight as needing to be addressed during the digital economy's growth?
Which specific issues does HSBC highlight as needing to be addressed during the digital economy's growth?
HSBC notes that issues such as data localization, cloud computing, artificial intelligence, and cybersecurity still need to be addressed. These are concerns during the growth process of the digital economy.
Q.What are HSBC's four recommendations for building an effective relationship between digital economy stakeholders?
What are HSBC's four recommendations for building an effective relationship between digital economy stakeholders?
HSBC recommends creating holistic regulations, building activity-based regimes, regionally implementing digital initiatives like the ICT Masterplan 2020, and promoting global coordination. These suggestions aim to improve cooperation.
Q.Who suggested that regulators, governments and businesses need to work together to manage the challenges of digital regulation?
Who suggested that regulators, governments and businesses need to work together to manage the challenges of digital regulation?
John Hsu, APAC chief information officer for HSBC, suggested that managing regulatory challenges requires collaboration. He believes governments, regulatory authorities, and businesses should work together through regional cooperation.
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