In the face of a rapidly closed window, ASEAN countries are establishing leadership in the next wave of digital transformation, threatening to unevenly adoption of 5G and artificial intelligence (AI) and deepen digital divisions and weaken regional competitiveness, the report warns.
According to a report by the National University of Singapore, Lee Quang E Public Policy (LKYSPP), 5G technology alone is projected to add $130 billion to the Asia-Pacific economy by 2030.
However, ASEAN's 5G penetration rates vary widely, ranging from 48.3% in Singapore to less than 1% in some other member countries. In 2024, the total in the Southeast Asia and Oceania region was only 9.4% of penetration, which was quite behind India, Nepal and Bhutan. The report predicts the gap will expand by 2030, with Southeast Asia and Oceania achieving penetration of 51.5% compared to 74% in India, Nepal and Bhutan.
Without coordinated policies and investment, the huge gap in digital readiness across the block will deepen the digital market and delay innovation and adoption of AI.
“The convergence of 5G and AI represents the infrastructure of innovation and promotes smart manufacturing, precision agriculture and autonomous mobility. However, ASEAN noted Professor Vu Minh Khuong of LKYSPP, who wrote the report. “Our report provides ASEAN policymakers with a blueprint to navigate the complex intersection of 5G and AI integration, and policymakers now have to act decisively.”
The report recommended that the ASEAN government establish a national 5G-AI development strategy with a clear roadmap. Create a coordinating body to oversee policy and investment. Develop spectrum policies that drive accessibility and innovation. Cultivate an AI-led ecosystem through public-private partnerships. Set the CLEAR Key Performance Indicator (KPI) to track your progress.
It also calls for the government to treat 5G as a strategic enabler of AI, rather than as a telecommunications upgrade. This shift in thinking is important to drive recruitment of companies identified as the main driver of 5G's economic impact ahead of consumer-driven growth.
Pocket of Progress
Despite the warning, the report highlighted the remarkable success that serves as a model for the region. Singapore is leading the block as the only member to achieve widespread 5G standalone (SA) network coverage, enabling advanced applications such as smart ports, where 5G reduces latency in autoguiding vehicles by 50%.
Malaysia's single wholesale network model managed by Digital Nasional Berhad (DNB) shows that an alternative path has been successful to accelerate infrastructure deployment, achieving a population range of 82.4%. Meanwhile, Thailand has deployed AI-enhanced disaster management systems, rapidly expanding fixed wireless access (FWA) and bridging digital disparities in regions where textile infrastructure is limited.
The study also highlighted the importance of private 5G networks in supporting industry 4.0 conversions, enabling safe, low-latency applications in smart factories, logistics hubs and other industrial environments. Furthermore, current investment in 5G infrastructure will pave the way for 6G networks, which are expected to emerge by 2030.
“Imagine ASEAN leading the world that drives 5G, no longer in the future, where enterprises scale globally through intelligent manufacturing, with remote students accessing immersive, AI-powered education,” the report's executive summary states. “To realize this vision, ASEAN needs to act with bold leadership, strategic foresight and unified resolve.”
