What ASEAN offers the world in the 'Intelligent Age'

Editor's note: Shaun Adam is the regional and global cooperation community lead at the World Economic Forum (WEF). Joo Ok Lee is the Asia-Pacific head of WEF. The article reflects the authors' views and not necessarily those of CGTN.

Three years ago, while the world grappled with COVID-19 pandemic, we highlighted the Association of Southeast Asian Nations' (ASEAN) potential for post-pandemic inclusive growth and prosperity.

Today, the global landscape has shifted significantly with the challenges of geopolitical tensions, climate change, a widening digital divide and rapidly advancing artificial intelligence (AI). 

Yet, ASEAN's resilience and promise remain steadfast.

ASEAN has consistently ranked among the top foreign direct investment recipients for three consecutive years, with the investment reaching a record $230 billion in 2023, defying a global decline.

Trade in ASEAN is projected to grow by $1.2 trillion over the next decade, with exports to surge by nearly 90 percent, compared to a global trade growth rate of less than 30 percent.

Macroeconomic trends reveal ASEAN's GDP rose to $3.8 trillion in 2023 from $2.5 trillion in 2015, while regional trade increased from $2.3 trillion to $3.5 trillion over the same period. These gains have significantly elevated per capita income.

Poised to become the world's fourth-largest economy by 2030, ASEAN leverages opportunities in the Intelligent Age, defined by AI, quantum computing and blockchain to transcend traditional growth models and foster inclusive prosperity.

However, success demands integrating digital, environmental, social and geopolitical intelligence. Given ASEAN's trajectory, we argue that the region is uniquely positioned to lead and serve as a model for navigating this transformation.

Leading in AI-driven transformation

ASEAN's progression into the Intelligent Age signifies a shift from its historical role as a fast follower to that of a global leader in innovation. AI and other advanced technologies give it a unique opportunity to design and implement tailored solutions that address its distinct socio-economic challenges.

Digital trade, encompassing e-commerce, digital services and data flows, is the engine of ASEAN's economic growth. The region's 460 million digital consumers and counting drive entrepreneurship, job creation and business opportunities.

The e-Conomy SEA 2024 report by Google, Temasek and Bain & Company highlighted ASEAN's digital economy achieving profitability, growing from $4 billion in 2022 to $11 billion in 2024.

This rapid growth reflects ASEAN's adaptability and capacity to turn innovation into tangible economic gains, with sectors like e-commerce, mobile gaming and generative AI reshaping its economy.

To sustain this momentum, ASEAN must prioritize ethical AI, cross-border data flows and cybersecurity. The anticipated ASEAN Digital Economy Framework Agreement, which is also supported by the WEF's ASEAN Digital Economy Agreement Leadership project and capacity-building initiatives, addresses these priorities.

Public-private collaboration is key to driving digital transformation while mitigating risks – a core focus of the WEF's Centre for the Fourth Industrial Revolution Network.

The region's progress boils down to the ASEAN Digital Integration Framework and national AI program, including Malaysia's National AI Office, Singapore's Smart Nation Initiative and Vietnam's Build for the AI Future Initiative among others which aim to foster innovation, AI adoption and digital connectivity.

ASEAN's digital economy is vital to its future but it requires responsible governance and forward-thinking policies for sustainable, inclusive growth.

Amplifying ASEAN's voice for climate and nature

ASEAN, occupying just three percent of the Earth, is home to four biodiversity hotspots, three mega-diverse countries and vital ecosystems supporting livelihoods and climate resilience. Its forests cover 47 percent of its land and the Coral Triangle, the world's marine biodiversity hub, hosts 30 percent of reefs and over 75 percent of known coral species.

However, the ASEAN Biodiversity Outlook 2023 highlighted severe threats, including plastic waste projected to outnumber marine life by 2050, with 99 percent of seabirds at risk of ingesting them.

ASEAN's response includes the ASEAN Centre for Biodiversity, the ASEAN Declaration on Plastic Circularity and the Global Plastic Action Partnership. These efforts integrate biodiversity into business priorities and tackle pollution collaboratively across nations.

Then, as the world's fourth-largest energy consumer, with fossil fuels representing 83 percent of its energy mix and clean energy investments only two percent of global spending, ASEAN must scale efforts to meet its various net-zero commitments.

Energy security and affordability remain top priorities among heightened geopolitical tensions while energy-related environmental issues are gaining urgency, including poor air quality. In 2023, 85 percent of Southeast Asia's population was exposed to polluted air, far exceeding the World Health Organization's recommended safe limits.

Advancing clean energy transitions requires national strategies, private sector support and international collaboration.

Initiatives such as Just Energy Transition Partnerships and Asia Zero Emission Community are crucial, alongside regional efforts to foster a more integrated and resilient energy framework including the Laos-Thailand-Malaysia-Singapore Power Integration Project.

The World Economic Forum supports these efforts through the ASEAN Leaders for Just Energy Transition initiative, promoting renewable energy and equitable access.World Economic Forum

Human progress in the intelligent age must align with environmental stewardship and sustainability. Advances in AI and big data can optimize resources, enhance climate resilience and enable ASEAN to integrate sustainability into development, fostering economic growth while preserving environmental integrity for future generations.

Navigating geo-economic complexities

ASEAN embodies "unity in diversity," prioritizing centrality, consensus and non-interference under its governance model. This approach has fostered regional stability and integration despite differences, proving vital during the pandemic with coordinated responses showcasing ASEAN's collaborative strength.

In the Intelligent Age, ASEAN's ability to navigate geopolitical complexities relies on balancing pragmatism with principled leadership. Through frameworks such as the ASEAN Outlook on the Indo-Pacific, it upholds diplomacy, multilateralism and a rules-based order.

Addressing challenges such as Myanmar's unrest, maritime disputes and China-US tensions demands commitment to dialogue and consensus. By leveraging economic influence and strategic partnerships, such as the Regional Comprehensive Economic Partnership, ASEAN can solidify its role as a stabilizing force in the global arena.

Thus, journeying toward the ASEAN Community Vision 2045, the region stands at the forefront of shaping the Intelligent Age and provides a compelling model for addressing complex global challenges in this transformative era. Under Malaysia's chairmanship in 2025, the focus on collective action, regional cohesion and forward-thinking strategies will be pivotal.

The World Economic Forum 2025 Annual Meeting in Davos, Switzerland, themed "Collaboration for the Intelligent Age," will convene over 60 heads of state and governments alongside 3,000 business leaders from the world's leading economies.

This important gathering will serve as a platform to explore critical global dimensions and with a historic lineup of ASEAN leaders actively contributing their priorities and vision for the region and beyond, ASEAN will be able to showcase its leadership role in the Intelligent Age.