ASEAN targets 1 trillion dollar digital economy by 2030 as creative content and policy integration accelerate

A youthful, connected region races toward a bigger digital future

Across Southeast Asia, the digital economy is shifting from promise to scale. At the Asean Digital Content Summit 2025 in Johor Bahru, Malaysia’s Deputy Digital Minister Datuk Wilson Ugak Kumbong pointed to a clear trajectory: with a population of about 680 million, a fast expanding online audience, and a deep pool of young talent, Asean is positioned to become a global force in the digital and creative sectors. Multiple regional and international assessments now converge on a headline figure, projecting Asean’s digital economy to reach about US$1 trillion by 2030, up from roughly US$300 billion today. Content and services are central to this story. Southeast Asia generated about US$6 billion in gaming revenue in 2024, the fastest growth path of any region, and Asean’s animation studios are earning global recognition. Malaysia’s selection to host SIGGRAPH Asia 2026, a major conference for computer graphics and interactive technologies, underlines the region’s growing role as both producer and market for digital content and technology.

Momentum is rooted in demographics and connectivity. Over half the region’s people are under 35, and Asean represents the third largest internet user base in the world. The World Economic Forum estimates that around 125,000 people in Asean come online every day, which continually expands the market for e commerce, digital finance, online media, and enterprise software. Governments and industry are racing to keep pace. Asean has advanced collective strategies such as the AEC Blueprint 2025 and the Masterplan on Asean Connectivity 2025, while new initiatives focus on cross border payments, shared data governance, and cybersecurity. The digital economy is not a single industry. It spans everything from ride hailing and food delivery to cloud computing and data centers, and from mobile payments to the animation and gaming studios that increasingly define cultural exports from the region.

How fast is Asean’s digital economy growing?

Research from regional bodies and international organizations points to steady, compounding growth. The Economic Research Institute for Asean and East Asia cites annual expansion trends consistent with a pathway to US$1 trillion by 2030. The World Economic Forum projects that digitization could add about US$1 trillion to regional GDP over the next decade. Underneath the headline are surging digital consumers, rising smartphone use, and deepening adoption of e commerce and digital financial services. Asean’s base of digital consumers is now well beyond 400 million people, and the region counts more than 30 unicorn startups, a signal of investor appetite for scaled digital platforms.

E commerce remains a primary driver. Google, Temasek, and Bain have projected the sector’s gross merchandise value to grow from US$112 billion in 2021 to US$186 billion in 2025. Payments are moving in lockstep. Regional transaction values in digital payments could reach about US$2 trillion by 2030, which would support growth in retail, travel, logistics, and small business services. The creative economy is rising with it. The global animation industry is valued around US$400 billion, and Asean studios are increasingly part of the pipeline for production, post production, and visual effects. Gaming revenue across Southeast Asia hit about US$6 billion in 2024 and continues to expand. These trends, coupled with rapid enterprise cloud adoption and artificial intelligence deployment, anchor the case for sustained digital growth.

Creative content takes center stage

ADCS 2025 foregrounded how creative content now sits at the heart of Asean’s digital story. The three day summit gathered global leaders in gaming, animation, and immersive experiences alongside regional successes, including Malaysian favorites Ejen Ali and BoBoiBoy. Japanese animator Koji Morimoto was among the keynote speakers, underscoring growing artistic ties between Asean and the broader Asia Pacific content ecosystem. Malaysia, whose creative industry generated RM87.25 billion in revenue and created more than 10,000 jobs between 2011 and 2023, also announced it would host SIGGRAPH Asia 2026, drawing more than 3,000 industry professionals and accelerating knowledge transfer to local studios and students.

Deputy Digital Minister Datuk Wilson Ugak Kumbong used the ADCS stage to stress the power of collaboration across borders, studios, and platforms. He argued that the region’s youth, skills, and market demand can power a global leadership position for Asean content if countries share capabilities and build open networks for creators and investors.

Wilson Ugak Kumbong, Malaysia’s Deputy Digital Minister, told attendees: “Asean has the youth, talent, and market demand to lead the global creative economy. Collaboration is crucial. The region must unite by sharing talent, resources, and platforms to amplify our collective impact.”

The regional success stories keep coming. Ejen Ali The Movie 2 grossed more than RM50 million at home. Indonesia’s Jumbo topped Moana 2 at the local box office. Malaysia’s Mechamato became the first Asean production to win the Tokyo Anime Fan Award. These milestones show a shift in audience habits and confidence among local creators. They also make the case for investment in training, co production, and distribution. The creative economy, sometimes called the orange economy, fits squarely within national strategies to create high value jobs, expand exports, and develop cultural brands that travel.

That message was echoed by Johor’s chief minister, Datuk Onn Hafiz Ghazi, who highlighted the state’s ambition to become a digital and creative hub, citing existing infrastructure, proximity to Singapore, and a growing talent base.

Onn Hafiz Ghazi said at ADCS 2025: “Make no mistake, the orange economy and the digital and creative economy are powerful engines of growth. They are no longer at the margins but at the very heart of national competitiveness.”

Building on that momentum will require sustained public private partnership. More integrated training pipelines, predictable incentives for film and game production, and easier cross border collaboration can help Asean studios secure larger budgets and longer running franchises. Events like ADCS and SIGGRAPH Asia create the convening space needed to secure that next wave of deals and talent development.

Policies that could unlock the next trillion

Beyond creative content, the biggest tailwind may be policy integration. Asean members launched negotiations in 2023 on the Digital Economy Framework Agreement, or DEFA, with a target to conclude in 2025. It would be the first region wide, legally binding digital economy agreement. In scope, DEFA is expected to address cross border data flows, digital trade rules, electronic transactions and signatures, digital identity, trusted AI, open and secure payments, and cybersecurity cooperation. Boston Consulting Group has assessed that a strong DEFA could add up to US$2 trillion to the regional digital economy by 2030 by lowering friction for businesses and giving consumers seamless digital experiences across borders.

The World Economic Forum’s Digital Asean initiative already laid down key workstreams over recent years, from a common regional data policy to digital skills training, e payments frameworks, and shared cybersecurity approaches. The ASEAN Digital Skills Vision 2020 pooled commitments from more than 20 organizations to train tens of millions of people. A more interoperable e payments ecosystem is taking shape through the ASEAN e Payments Coalition and bilateral QR payment linkages. These efforts create the foundation for DEFA’s rules to work in practice.

Satvinder Singh, ASEAN Deputy Secretary General for the Asean Economic Community, underscored why the agreement matters for people and firms of all sizes.

Satvinder Singh said during an Asean dialogue on DEFA: “The DEFA has the potential to bring significant impact that touches the lives of investors, businesses, entrepreneurs, and consumers alike.”

Singh noted that the digital rulebook must evolve quickly and that constant exchanges with industry can keep provisions current as technology moves. He also called for partnerships to close capability gaps so each member state can negotiate and implement commitments effectively. Regular engagement with the private sector, he argued, will help sustain momentum and align priorities.

Bridging the digital divide

Rapid growth has not reached everyone equally. ERIA’s work on an inclusive digital economy documents real gaps between urban and rural users, and between different income groups. Many micro, small and medium enterprises still face limited broadband options, higher costs for devices and cloud tools, and a shortage of digital skills. Women continue to face barriers to accessing digital opportunities at the same rate as men. Without targeted policy and investment, these divides can widen even as market leaders scale up.

Practical steps can close the gap. Affordable, reliable broadband is the starting point, paired with local last mile access and public internet facilities in underserved areas. Digital literacy programs need to expand beyond basic skills to include online safety, small business digital operations, and data protection awareness. Trust frameworks matter for ordinary users. Clear consumer protections, quicker recourse for fraud, and consistent use of electronic receipts can build confidence in online transactions. The region has already shown how targeted training can work. Through collective initiatives, companies and governments have pledged to equip millions with digital skills. Scaling those efforts, particularly for rural MSMEs and underrepresented groups, will make the benefits of growth more widely shared.

Fragmented rules are holding back scale

Despite shared ambitions, Asean’s digital economy remains fragmented by policy differences. Research from East Asia Forum highlights a widening split in data governance among member states. Some economies, like Singapore and the Philippines, are opening up cross border data flows. Others have adopted stricter data localization rules, including Indonesia, Vietnam, and Cambodia. Investors weigh these differences when deciding where to put capital, how to architect data infrastructure, and which markets to prioritize. The ASEAN Digital Integration Index shows a wide spread in digital readiness, with Singapore and Malaysia ahead and Cambodia, Laos, and Myanmar far behind.

These gaps constrain intra Asean investment and make it harder for smaller firms to expand regionally. If DEFA can narrow differences in standards for data, payments, and trust services, it would improve predictability and lower compliance costs. Stronger cooperation can also help member states upgrade domestic capacity in areas like digital identities, cloud policy, and cross border payments, which are critical to regional scale.

Infrastructure, energy and the data center race

Data centers are the engine rooms of the digital economy, and their growth is reshaping energy planning across Southeast Asia. Analysis by energy think tank Ember shows how quickly demand is rising. In Malaysia, data center power use could reach as high as 30 percent of national demand by 2030 in extreme scenarios. The Philippines could see data center emissions multiply many times over the decade without clean power. The International Energy Agency expects data center electricity consumption in Asean to nearly double by 2030. The Asia Pacific region is on track to host about a third of global data center capacity by 2028, with Asean as a meaningful share.

The sustainability challenge is clear. Data centers consume large amounts of electricity and water. If grids remain dominated by fossil fuels, emissions rise sharply as digital services expand. Major cloud providers and content platforms are committing to renewable energy, but progress in Southeast Asia has been gradual where procurement options are limited. Singapore, the region’s largest hub, has tightened approvals for new capacity, directing growth into neighboring countries. That push is helping Malaysia, Indonesia, Thailand, and Vietnam attract new investment, but it also requires significant upgrades to power systems and more flexible rules for corporate renewable purchases, like direct power purchase agreements and green tariffs.

Green data centers are becoming a competitive advantage. Facilities that maximize energy efficiency and can source solar and wind power reduce operating costs over time and position hosts for global clients with strict sustainability requirements. Countries that provide access to clean power, streamlined permitting, and robust transmission will gain an edge as AI training and inference extend the computing footprint. Aligning digital growth with energy transition goals can keep the industry resilient while meeting climate commitments.

Country snapshots

Malaysia

Malaysia is emerging as a key hub for Asean’s digital future. The country has one of the region’s highest rates of internet and mobile adoption, and the digital economy contributes a sizable share of GDP. Investors are taking notice. Inbound foreign investment in 2024 reached RM170.4 billion, with the United States, Germany, China, and Singapore accounting for more than 70 percent. Global cloud leaders have announced multibillion dollar commitments to expand local infrastructure. Malaysia’s Digital Economy Blueprint centers technology and innovation in the country’s growth model. On the creative front, a pipeline of studios, from Ejen Ali and BoBoiBoy to Mechamato, is pairing local storytelling with global distribution. Johor, home to Iskandar Malaysia Studios and a growing cluster of game developers, is positioning itself as a bridge between Malaysia and the wider Asean content market.

Vietnam

Vietnam combines strong macro growth with a push on digitization and sustainability. Forecasts show Vietnam leading GDP growth among large Southeast Asian economies in 2025. The government’s National Strategy for Digital Economy and Digital Society seeks to accelerate adoption across sectors, with the digital economy expected to reach about US$52 billion by 2025. Internet access is climbing toward four fifths of the population. On the energy side, Vietnam has become a leader in wind and solar potential and ranks near the top among developing countries for renewables investment. The government’s recent Resolutions 57 and 68 aim to streamline regulation, scale local champions, and upgrade infrastructure for innovation.

Singapore

Singapore remains a mature digital hub with advanced regulatory frameworks, strong financial services, and deep skills. The city state has taken a more open approach to cross border data flows while balancing privacy and security. It remains a center for cloud and content delivery networks, even as stricter criteria for new data centers channel growth into neighboring markets. Singapore’s institutions and rule of law give it an outsized role in regional standard setting and talent development.

Indonesia and the Philippines

Indonesia, Asean’s largest economy, has produced multiple tech unicorns and a sizable e commerce and fintech market. Domestic rules on data and content are evolving as the government balances security, privacy, and growth. The Philippines is seeing rapid adoption of e wallets and digital banking, with platforms like GCash and Maya enabling payments for millions of users. Analysts project a digital economy of about US$35 billion by 2025. Policy efforts focus on building trust and consumer protection, closing skills gaps, and improving interoperability to take full advantage of a region wide digital marketplace.

Thailand and emerging sectors

Thailand, Vietnam, and Malaysia are seeking to move up the semiconductor value chain beyond assembly, testing, and packaging. As global supply chains adjust, Asean countries are offering incentives to attract higher value chip investments. Regional collaboration on standards, workforce training, and secure supply chains will be vital to convert this window into long term capability.

What investors and creators should watch

Three themes will guide the next stage of growth. First, policy integration. Watch for milestones in the DEFA negotiations and for national rule updates in areas like data protection, trusted AI, electronic signatures, and interoperable payments. Clarity here reduces risk for regional expansion. Second, resilient infrastructure. Data center buildout will continue, but power constraints and sustainability requirements will shape site selection and cost. Countries that unlock renewable supply pathways and efficiency standards will draw more of the next wave of investment. Third, talent and trust. Training for creators, engineers, and small business owners is the engine behind adoption. Trust frameworks that protect consumers and provide clear recourse will lift participation. For content producers and platforms, Asean’s rising box office numbers and gaming engagement present an opportunity to co develop franchises that travel across borders. For investors, mixed regulatory maturity across member states warrants a portfolio approach, leaning into markets that combine demand scale, reliable rules, and a pipeline of skilled workers.

Key Points

• Asean’s digital economy is projected to reach about US$1 trillion by 2030, up from roughly US$300 billion today.
• About 125,000 people in Asean come online each day, expanding demand for e commerce, payments, and media.
• DEFA talks aim to finish in 2025. A strong agreement could add up to US$2 trillion to the digital economy by 2030.
• Creative content is gaining ground, with Southeast Asia gaming revenue at about US$6 billion in 2024 and regional titles winning global awards.
• Policy fragmentation and a persistent digital divide slow intra Asean expansion for startups and MSMEs.
• Data center growth is rapid and power intensive, increasing the need for clean energy, efficiency, and flexible procurement.
• Malaysia is positioning as a digital hub, Vietnam leads on growth and dual transition, Singapore remains a mature hub, and Indonesia and the Philippines seek scale with regulatory upgrades.
• Cybersecurity, digital skills, and trusted consumer protections are central to sustaining user adoption and investor confidence.