ASEAN Targets $1 Trillion Digital Economy by 2030 as Content and Regional Rules Gain Momentum

A $1 trillion ambition takes shape in Johor Bahru

ASEAN is targeting a digital economy worth about US$1 trillion by 2030, up from roughly US$300 billion today, as its governments pursue common digital rules and its creative industries reach larger audiences. At the ASEAN Digital Content Summit 2025 in Johor Bahru, Malaysia's Deputy Digital Minister Datuk Wilson Ugak Kumbong pointed to a region of about 680 million people with the youth, talent and growing online market to become a global force in technology and creative content.

Southeast Asia generated about US$6 billion in gaming revenue in 2024, following the fastest growth path of any region. Animation studios are gaining international recognition, while Malaysia's selection to host SIGGRAPH Asia 2026, a major conference for computer graphics and interactive technologies, adds another platform for regional creators.

More than half of ASEAN's population is under 35, and the region has the world's third largest internet user base. The World Economic Forum estimates that around 125,000 people in ASEAN come online each day, expanding the audience for shopping, payments, entertainment and business services.

ASEAN's digital economy stretches from ride hailing and food delivery to cloud computing, data centers, mobile payments, animation and gaming. Its expansion depends on more than attracting customers: companies also need reliable electricity, skilled workers and rules that allow them to operate across national borders.

Governments have advanced the ASEAN Economic Community Blueprint 2025 and the Masterplan on ASEAN Connectivity 2025. Newer initiatives concentrate on payments across borders, shared data governance and cybersecurity. As of September 7, 2025, negotiations on the Digital Economy Framework Agreement, known as DEFA, are intended to conclude this year, making regional policy integration a central part of the growth agenda.

What is driving the growth forecast?

The Economic Research Institute for ASEAN and East Asia, or ERIA, cites annual expansion trends consistent with a digital economy reaching US$1 trillion by 2030. The World Economic Forum also projects that digitization could add about US$1 trillion to regional gross domestic product over the next decade. GDP measures the value of goods and services produced in an economy; the contribution to GDP and the projected size of the digital market describe different aspects of growth.

ASEAN already has well over 400 million digital consumers and more than 30 unicorn startups, indicating investor appetite for digital platforms capable of serving large markets. Growing smartphone use and wider adoption of online shopping and digital financial services are helping businesses reach those consumers.

Google, Temasek and Bain have projected that the gross merchandise value of e commerce will rise from US$112 billion in 2021 to US$186 billion in 2025. Gross merchandise value is the total value of goods sold through a market or platform. Those figures represent an increase of US$74 billion, or about 66 percent.

Digital payment transaction values could reach about US$2 trillion by 2030, supporting retail, travel, logistics and services for small businesses. Transaction value measures the money passing through payment systems, while the size of the digital economy measures the economic activity associated with digital businesses and services.

Creative production is growing alongside these markets. The global animation industry is valued at around US$400 billion, and ASEAN studios are taking a larger role in production, post production and visual effects. Rapid adoption of enterprise cloud services and the deployment of artificial intelligence also support the region's growth prospects.

Local stories find larger audiences

The three day ASEAN Digital Content Summit 2025 brought together global leaders in gaming, animation and immersive experiences alongside regional successes such as Malaysia's Ejen Ali and BoBoiBoy. Japanese animator Koji Morimoto was among the keynote speakers, reflecting growing artistic connections between ASEAN and the wider Asia Pacific content industry.

Wilson Ugak Kumbong, Malaysia's deputy digital minister, urged studios, governments and platforms to share their capabilities across borders:

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.

Recent releases give that ambition a commercial foundation. Ejen Ali The Movie 2 grossed more than RM50 million at home. Indonesia's Jumbo surpassed Moana 2 at the local box office, while Malaysia's Mechamato became the first ASEAN production to win the Tokyo Anime Fan Award.

Malaysia's creative industry generated RM87.25 billion in revenue and created more than 10,000 jobs between 2011 and 2023. The country's hosting of SIGGRAPH Asia 2026 is expected to draw more than 3,000 industry professionals, creating opportunities for local studios and students to learn from international participants.

Johor Chief Minister Datuk Onn Hafiz Ghazi highlighted the state's ambition to become a digital and creative hub, drawing on its existing infrastructure, proximity to Singapore and growing talent base. He described creative activity, also called the orange economy, as central to economic competitiveness:

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.

Local box office successes and international recognition are strengthening confidence among creators and showing changing audience habits. Training, joint productions and distribution investment can help studios pursue larger budgets and franchises that continue across multiple releases. More connected training programmes, predictable production incentives and easier cooperation across borders would support that work. ADCS and SIGGRAPH Asia provide meeting points for partnerships, investment and talent development.

DEFA aims to connect separate national markets

ASEAN members launched DEFA negotiations in 2023 with a target of concluding them in 2025. The proposed agreement would be the first legally binding digital economy agreement covering the entire region.

Its expected scope includes data flows across borders, digital trade rules, electronic transactions and signatures, digital identity, trusted artificial intelligence, open and secure payments, and cybersecurity cooperation. For a business serving several ASEAN countries, compatible systems could make it easier to accept payments, verify customers and complete transactions electronically.

Boston Consulting Group has assessed that a strong DEFA could add up to US$2 trillion to the regional digital economy by 2030 by reducing obstacles for businesses and making digital services work more smoothly across borders.

Satvinder Singh, ASEAN deputy secretary general for the ASEAN Economic Community, described the agreement's reach 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 said digital rules need to evolve quickly, with constant exchanges with industry helping keep provisions current as technology changes. He also called for partnerships to close capability gaps so that every member state can negotiate and implement commitments effectively. Regular private sector engagement would help maintain momentum and align priorities.

Skills and payments provide a foundation

The World Economic Forum's Digital ASEAN initiative has already developed work on a common regional data policy, digital skills training, electronic payment frameworks and shared cybersecurity approaches. These efforts provide practical foundations for the rules envisioned under DEFA.

The ASEAN Digital Skills Vision 2020 brought together commitments from more than 20 organisations to train tens of millions of people. Building digital skills involves preparing creators and engineers as well as helping small business owners manage online sales, payments and customer information.

The ASEAN e Payments Coalition and bilateral QR payment connections are helping payment systems work together. Interoperability means that different systems can communicate, allowing a payment to move between services rather than stopping at the edge of one platform or country.

The region's policy and industry timetable stretches across several years:

• 2021: E commerce gross merchandise value stood at US$112 billion, the starting point for the projection of US$186 billion in 2025.
• 2023: ASEAN launched DEFA negotiations.
• 2024: Southeast Asian gaming revenue reached about US$6 billion.
• 2025: ASEAN aims to conclude DEFA negotiations, while Johor Bahru hosts ADCS 2025.
• 2026: Malaysia will host SIGGRAPH Asia.
• 2030: ASEAN's digital economy is projected to reach about US$1 trillion, while regional digital payment transaction values could reach about US$2 trillion.

A completed agreement would still require countries to put their commitments into practice. Singh's call for stronger negotiating and implementation capabilities reflects the different starting points across ASEAN.

Who risks being left behind?

ERIA's work on an inclusive digital economy documents gaps between urban and rural users and between income groups. Many micro, small and medium enterprises face limited broadband choices, costly devices and cloud tools, and shortages of digital skills. Women also face barriers to accessing digital opportunities at the same rate as men.

Affordable, reliable broadband is the starting point for wider participation. Connections reaching homes and businesses, together with public internet facilities in underserved areas, can extend access beyond established urban markets.

Digital literacy programmes also need to move beyond basic device use. Online safety, the daily operation of a digital business and awareness of data protection all affect whether people can use services confidently.

Consumer protections, faster ways to seek help after fraud and consistent use of electronic receipts can strengthen trust in online transactions. Training commitments from companies and governments show how collective programmes can reach millions. Extending them to rural businesses and groups with fewer opportunities would help spread the benefits as larger platforms expand.

Different data rules raise the cost of expansion

ASEAN's shared ambitions coexist with different national approaches to data. Research from East Asia Forum highlights a widening divide: Singapore and the Philippines are opening data flows across borders, while Indonesia, Vietnam and Cambodia have adopted stricter data localization rules.

Data localization involves requirements to keep certain data within a country's borders. Those requirements affect where companies place servers, how they design their infrastructure and which markets they enter first. Investors weigh these choices when deciding where to commit capital.

The ASEAN Digital Integration Index also shows large differences in digital readiness. Singapore and Malaysia are ahead, while Cambodia, Laos and Myanmar are far behind. Businesses seeking customers across the region therefore face different levels of infrastructure, regulatory maturity and technical capacity.

Fragmented rules constrain investment within ASEAN and make regional expansion harder for smaller firms. Greater alignment under DEFA on data, payments and trust services could improve predictability and reduce compliance costs. Cooperation could also strengthen national capabilities in digital identity, cloud policy and payments across borders.

Data centers bring an electricity challenge

Data centers supply the computing capacity behind cloud services, digital platforms and artificial intelligence. Their expansion is reshaping Southeast Asia's energy planning because they require substantial electricity and water.

Energy think tank Ember estimates that, in extreme scenarios, data center power use in Malaysia could reach as much as 30 percent of national electricity demand by 2030. The Philippines could see emissions associated with data centers multiply many times over the decade without clean power.

The International Energy Agency expects electricity consumption by ASEAN data centers to nearly double by 2030. The Asia Pacific region is on course to host about a third of global data center capacity by 2028, with ASEAN accounting for a meaningful share.

Fossil fuel dependence would increase emissions as digital services expand. Major cloud providers and content platforms have made renewable energy commitments, but progress in Southeast Asia has been gradual where businesses have limited options for purchasing clean electricity.

Singapore, the region's largest data center hub, has tightened approvals for new capacity. That is directing growth toward Malaysia, Indonesia, Thailand and Vietnam, bringing investment opportunities alongside requirements for stronger electricity systems.

Direct power purchase agreements, which allow companies to buy electricity directly from producers, and green tariffs can expand access to renewable supply. Efficient facilities using solar and wind power can lower operating costs over time and meet the sustainability requirements of global clients. Access to clean power, straightforward permitting and robust transmission networks will help determine where new capacity goes as AI training and inference, the use of trained models, increase computing demand.

Malaysia builds on investment and creative production

Malaysia combines some of the region's highest internet and mobile adoption rates with a digital economy that contributes a sizable share of GDP. Its Digital Economy Blueprint places technology and innovation at the center of the country's growth model.

Inbound foreign investment reached RM170.4 billion in 2024. The United States, Germany, China and Singapore accounted for more than 70 percent of that total, while global cloud leaders have announced commitments worth billions of dollars to expand local infrastructure.

Malaysia's content industry provides another route to international markets. Studios behind Ejen Ali, BoBoiBoy and Mechamato are 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.

ADCS and the planned SIGGRAPH Asia gathering connect those ambitions: attracting infrastructure investment while giving local creators, students and companies more opportunities to work with international partners.

Vietnam links digitization with energy and innovation

Vietnam is forecast to lead GDP growth among the large Southeast Asian economies in 2025. Its National Strategy for Digital Economy and Digital Society seeks to accelerate digital adoption across sectors, with the digital economy expected to reach about US$52 billion in 2025.

Internet access is climbing toward four fifths of the population. Wider connectivity expands the potential market for digital services, while the government's recent Resolutions 57 and 68 aim to simplify regulation, scale local champions and improve infrastructure for innovation.

Vietnam also has substantial wind and solar potential and ranks near the top among developing countries for renewable energy investment. Its pursuit of digitization and sustainability connects two needs highlighted across ASEAN: more computing infrastructure and more clean electricity to supply it.

Vietnam, Thailand and Malaysia are also seeking to advance in semiconductor production beyond assembly, testing and packaging. As global supply chains adjust, ASEAN countries are offering incentives for chip investment involving more valuable stages of production. Cooperation on standards, workforce training and secure supply chains will be needed to turn that opportunity into lasting capability.

Singapore, Indonesia and the Philippines take different routes

Singapore remains a mature digital hub, supported by advanced regulation, strong financial services, deep skills and institutions grounded in the rule of law. It takes a more open approach to data flows across borders while balancing privacy and security.

The city state remains a center for cloud services and content delivery networks, which distribute digital material to users. Its stricter criteria for new data centers are sending some growth into neighboring markets, while its institutions retain an outsized role in regional standards and talent development.

Indonesia, ASEAN's largest economy, has produced multiple technology unicorns and developed substantial e commerce and financial technology markets. Its rules on data and content continue to evolve as the government balances security, privacy and growth.

The Philippines is experiencing rapid adoption of electronic wallets and digital banking. GCash and Maya enable payments for millions of users, while projections put the country's digital economy at about US$35 billion in 2025.

Philippine policy efforts focus on trust, consumer protection, skills and interoperability. These priorities connect household adoption with the wider goal of a regional digital marketplace: consumers need confidence in services, while businesses need systems that work together.

Three priorities for investors and creators

Policy integration is the first area to watch. DEFA milestones and national changes involving data protection, trusted AI, electronic signatures and interoperable payments will shape the cost and risk of operating across ASEAN. Negotiations are targeted to finish in 2025; the final provisions have not yet been settled.

Resilient infrastructure is the second priority. Data center construction will continue, but electricity constraints and sustainability requirements will affect locations and costs. Countries that improve access to renewable supply and adopt efficiency standards will be better placed to attract investment.

Talent and trust form the third priority. Creators, engineers and small business owners need training to turn connectivity into productive activity. Consumers need protection and clear ways to seek help when transactions go wrong.

Content producers have opportunities to develop franchises together as regional box office receipts and gaming engagement grow. Investors face different levels of regulatory maturity across ASEAN, supporting a portfolio approach that considers market demand, reliable rules and the supply of skilled workers. Sustained partnerships between governments and businesses will be needed to connect these opportunities with wider participation.

Key Points

• ASEAN's digital economy is projected to reach about US$1 trillion by 2030, up from roughly US$300 billion today.
• The region has about 680 million people, more than half under 35, and gains around 125,000 internet users daily.
• DEFA negotiations aim to conclude in 2025. Boston Consulting Group assesses that a strong agreement could add up to US$2 trillion to the regional digital economy by 2030.
• Southeast Asian gaming revenue reached about US$6 billion in 2024, while regional animation titles are winning audiences and awards.
• Malaysia will host SIGGRAPH Asia 2026, with more than 3,000 industry professionals expected.
• Unequal connectivity, skills shortages and differing national rules make digital expansion harder, particularly for smaller businesses.
• ASEAN data center electricity consumption is expected to nearly double by 2030, increasing demand for clean power and efficient facilities.
• Malaysia, Vietnam, Singapore, Indonesia, the Philippines and Thailand are pursuing distinct opportunities in infrastructure, content, digital finance and semiconductor production.
• Cybersecurity, consumer protection, training and compatible payment systems are central to wider participation.