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Policies to harness digital transformation for inclusive, sustainable dev’t pushed

Developing Asia can adopt integrated policies to harness digital transformation as digital technologies empower small and medium-sized enterprises (SMEs), offering significant opportunities to promote inclusion, resilience, and sustainability, according to a report by the Asian Development Bank (ADB). 

The report, Asian Development Policy Report 2025: Harnessing Digital Transformation for Good, said digital technologies enable SMEs by improving the delivery of key services such as finance, overcoming conventional barriers, and increasing resilience.

“For instance, financial technology and platforms improve SMEs’ access to finance and business networking. Digital payments, in particular, have gained significant penetration among underbanked groups. Around 66% of digital lending customers in Southeast Asia are unbanked or underbanked. Moreover, digital technologies expand SMEs’ access to both domestic and foreign markets, reduce transaction costs, and improve process efficiency,” it said.

The report said advances in digital technologies have the potential to promote inclusion in the region by removing constraints and fostering innovative and scaled solutions to facilitate entrepreneurship and business creation; and lower barriers and costs, enabling small firms to engage in trade and expand internationally.

These also offer opportunities to promote environmental sustainability in the region as inequality and vulnerability to extreme weather events remain key challenges for developing economies in Asia and the Pacific, it said.

“However, if not managed well, digital transformation could exacerbate inequality and compromise environmental sustainability. The realization of benefits from digital technologies depends on how effectively digital transformation is managed and governed,” it added.

To harness digital transformation for inclusive and sustainable development, the report said developing Asia can adopt integrated policies comprising three pillars –an overarching national digital strategy that integrates objectives for inclusion and sustainability, policy interventions aligned with inclusion and sustainability, and focus on engagement with a broad range of stakeholders.

“Currently, most regional economies view digital transformation and inclusive and sustainable development as separate priorities. A high-level national digital strategy can align and coordinate policy actions across ministries and agencies,” it said.

The policy interventions are policy tools addressing market and equity failures while incentivizing innovation to promote inclusion- and sustainability-friendly digital solutions, such as platforms, smart technology, and disaster risk management tools, it added.

The report cited examples of incentives to promote inclusion in developing Asia, including the Philippines which is its government’s provision of a free Wi-Fi access program for all, with a focus on geographically isolated and disadvantaged households.

Further, the report said collaborating with civil society and local communities can leverage their local knowledge and trust, which is needed to successfully roll out educational and training initiatives in targeted communities.

“Additionally, governments can engage in cross-border collaboration to harmonize international digital standards, encourage data flows, and support trade. They can also leverage financial and knowledge resources from international organizations,” it said.

“Regional economies need to consider economy-specific circumstances when prioritizing policy implementation. Policy choices can be guided by their relative levels of digitalization, inclusion, and sustainability,” it added.

PHILEXPORT News and Features
Published: May 16, 2025

Online tool helps MSMEs enhance digital skills, explore biz opportunities

Micro, small and medium enterprises (MSMEs) can access an online tool to help them identify gaps in digital adoption, enhance their digital skills and explore new business opportunities in ASEAN digital economy which is projected to grow significantly.   

The "Digital Readiness Assessment Tool", accessible through https://aseandigitalasessment.my.site.com/msmeportal/s/?language=en_US, supports firms in finding “insights” for the status of their digitalization.  

Companies will answer a set of questions for self-assessment which measures their business’ state of digitalization in four dimensions –technology, people, production, and process. This is in relation to the situation in other ASEAN countries.

The assessment results are used to introduce various support measures to MSMEs and information technology (IT) tools for their digitalization efforts to solve business issues. 

Four supporting information include enabler, IT service and solution, success case, and initiatives and support programs. 

The Digital Readiness Assessment Tool for MSMEs is an initiative of the ASEAN Secretariat, sponsored by the ASEAN Coordinating Committee on Micro, Small and Medium Enterprises (ACCMSME) and the ASEAN Connectivity Coordinating Committee, and supported by the Japan-ASEAN Integration Fund.

PHILEXPORT News and Features
Published: May 16, 2025

ASEAN-Canada FTA talks eyed for substantial conclusion this year

Negotiators are hoping to “substantially conclude” this year talks on the ASEAN-Canada Free Trade Agreement (ACAFTA), the signing of which is seen to improve companies’ access to the ASEAN and Canadian markets, said the Department of Trade and Industry (DTI).

As such, the DTI and Tariff Commission (TC) in a recent virtual public consultation called for position papers on the participation of the Philippines in the ongoing ACAFTA negotiations, which cover products under Chapters 1 to 97 of the ASEAN Harmonized Tariff Nomenclature.

Position papers with stakeholders’ comments and concerns will be accepted until May 14, 2025.

In her update at the consultation, Marie Sherylyn Aquia, director of DTI-Bureau of International Trade Relations, said negotiators are aiming to “substantially conclude the negotiations by 2025.”

However, she also admitted that “there are ongoing deliberations about whether an extension will be needed to resolve remaining issues and ensure a comprehensive agreement.”

This as “there has been no substantial conclusion on all the chapters of the agreement, with certain areas still requiring  further clarification and alignment among all the parties,” Aquia said.

She continued that there are three more rounds of negotiations in 2025 on market access offers on trade in goods, trade in services, and investments.

She said the market offers are expected to be presented by the second quarter of 2025, “which should allow both sides to propose tariff reductions, market openings and other trade benefits for key sectors.”

During this year, “negotiators are aiming to finalize all the key issues to bring the agreement closer to completion,” said Aquia.

“The progress has been slow but the momentum has been picking up. Hence there is a movement to soon exchange on the market access offers… as we substantially conclude the negotiations this year,” she stated.

Another speaker, Denise Cheska Enriquez, DTI chief for regional relations and arrangements, said that under the market access negotiations for trade in goods, the Philippines will be offering Canada elimination of tariffs, reduction of tariffs, and exclusion of tariffs.

On the other hand, the Philippines will request the elimination of tariffs and exclusion of tariffs, since these are the only kinds of offers Canada provides, Enriquez said.

Excluding tariffs means not applying a tariff on specific imports, while eliminating tariffs means removing tariffs entirely for a certain product or range of products. Exclusion focuses on specific exemptions, whereas elimination aims for broader trade liberalization.

Enriquez noted that there are 1,055 tariff lines of Philippine exports to Canada that are levied tariffs.

Nineteen areas are covered under the ACAFTA negotiations. These are trade in goods; trade remedies; sanitary and phytosanitary measures; telecommunications services; investment; intellectual property; competition; government procurement; standards, technical regulations and conformity assessment procedures; rules of origin; customs procedure and trade facilitation; trade in services; financial services; economic and technical cooperation; e-commerce; legal and institutional issues; micro, small and medium enterprises; good regulatory practices; and the newly added trade and sustainable development.

ASEAN and Canada expect that the successful conclusion of ACAFTA negotiations will strengthen ASEAN-Canada economic relations, connect ASEAN and Canada closer to the global value chains, and improve market access for both ASEAN and Canadian private sectors.

According to ASEAN Secretariat statistics, merchandise trade between ASEAN and Canada reached US$28.7 billion in 2023, while foreign direct investment inflow from Canada to ASEAN reached a total of $25.9 billion in the same year.

The top five ASEAN exporters to Canada in 2021 were Vietnam, Thailand, Malaysia, Indonesia, and Cambodia. The Philippines came in sixth.

The top exports from Philippines to Canada were insulated wire ($227M), gold ($185M), and integrated circuits ($138M). On the other hand, the top exports from Canada to Philippines were pig meat ($186M), wheat ($171M), and copper ore ($143M) based on statistics from tradingeconomics.com.

For the Philippines, it is hoped the ACAFTA will facilitate economic growth, attract more investments from Canada, improve Philippine share in Canadian import markets, and indefinitely maintain concessions received by the Philippines through Canada’s General Preferential Tariff scheme.

On expectations of facilitating economic growth, Aquia said: “Based on the results of the joint feasibility study, there will be an increase in Philippine GDP by 2.63% resulting from the improved market access in trade in goods, the reduction in the non-tariff measures, and improvements in trade facilitation.”

Enriquez said DTI is asking stakeholders for comments and inputs to this question: What are your trading interests and concerns in the area of trade in goods vis-à-vis Canada under an ASEAN-Canada FTA?

Position papers may be submitted until May 14 to the Tariff Commission at TC.Assist@mail.tariffcommission.gov.ph or Records@tariffcommission.gov.ph.

PHILEXPORT News and Features
Photo: Canva
Published: May 9, 2025

Increased usage of electronic bills of lading in global trade pushed

The full adoption of electronic bills of lading (eBLs) saves billions in direct costs and unlocks significant global trade growth but their use remains low, thus technical assistance and capacity building are important for developing countries to support their greater adoption, according to a paper by the International Trade Centre (ITC).

The paper, “Expediting Trade Through Electronic Bills of Lading”, cited earlier industry projections suggesting that full eBL adoption could yield $6.5 billion in direct cost savings and unlock $30 billion to $40 billion in global trade by streamlining processes and reducing delays.

The use of eBLs also improves operational efficiency while environmental benefits are equally compelling. Its adoption also mitigates critical vulnerabilities in traditional systems through enhanced security via digital signatures, encryption and audit trails, reducing risks of forgery, loss and tampering inherent in paper documents, it said.

“Despite many benefits attached to eBLs, their adoption remains low due to several challenges that need to be addressed. These include insufficient legal recognition and enforceability; lack of standardization and interoperability, authentication and data security; limited awareness and knowledge among businesses; and inadequate infrastructure and digital skills,” the paper said.

For eBLs to fully replicate the functions of their physical format, especially as a document of title, it said, their use must be recognized as such under the applicable laws of the relevant jurisdictions.

“A supportive policy environment is essential for eBLs to be adopted widely and successfully. Domestic requirements and legal foundations must be considered when adopting (United Nations Commission on International Trade Law’s [UNCITRAL]) MLETR (Model Law on Electronic Transferable Records),” it added.

The paper said numerous countries had adopted MLETR-compatible laws by 2024. The Philippines, Canada, Colombia and Germany based their laws on UNCITRAL texts.

A statute-based approach that governs eBL implementation, MLETR provides a legal framework for countries to incorporate into their domestic legislation a mechanism to recognize electronic transferable records.

Conversely, the contractual approach relies on agreements between parties using private platforms. While pragmatic, this method lacks universal recognition, binding only consenting parties, it said.

“While not prerequisites, having domestic legal and regulatory instruments — such as those for e-signatures, e-transactions, data protection and cybersecurity — can enhance the certainty and security of eBLs,” the paper said.

“The regulatory framework should be technology-neutral, allow for interoperable solutions, facilitate data submission to national trade windows and align with strategies for resilient cross-border supply chains, integrated with broader frameworks for international trade and trade financing,” it added.

The paper further said technical assistance and capacity building are also important for developing countries to support greater adoption of eBLs.

They can undertake regulatory assessments, such as UNCITRAL legal framework readiness assessment, to help governments and policymakers review existing legislation, identify gaps, and assess their needs for domestic reforms for the adoption of eBLs, it said.

Such initiatives could also include conducting private–public consultations to identify bottlenecks and formulate recommendations for regulatory reforms, providing policy advisory services on the review or drafting of domestic legislation to adopt MLETR-compliant legal texts, and encouraging collaboration on enhancing interconnection and interoperability of the platforms among the private sector players, it added.

Photo: Shipping and Maritime Law
Published: May 9, 2025

Nearly half of APAC firms plan to significantly raise digitalization spending in next 3 yrs

Almost half of companies in Asia-Pacific (APAC) plan to significantly increase their digital transformation spending over the next three years, which they look to help deliver a range of business functions and services, according to findings from the Reuters Plus APAC Survey 2024 and the Digital Transformation in Asia-Pacific report.

The survey, undertaken from December 2024 to January 2025 among over 2,200 business professionals across the region, revealed that despite challenges, Asia-Pacific organisations are not holding back on their digital transformation plans, with 49 percent of them expected to considerably raise spending on digitalization.

Another 41 percent of respondents said their spending would go up, albeit slightly, while 8 percent predicted no change.

Indonesia and Singapore top Asia-Pacific’s digital spend intention league.

The survey’s finding tallies with analyst forecasts for the region, with India-based Meticulous Research estimating the Asia-Pacific digital transformation market could see a compound annual growth rate of over 23 percent between 2025 and 2032, hitting almost $1.2 trillion in value within seven years.

The Digital Transformation in Asia-Pacific report found that only 53 percent of companies currently fully utilize their data, highlighting untapped potential. This gap is particularly pressing as the region’s economy is largely driven by small and medium enterprises (SMEs), which make up 98 percent of enterprises.

The Reuters Plus APAC Survey 2024 identified main barriers to the advancement of digital transformation in Asia-Pacific organizations, including lack of internal information technology (IT) personnel and knowledge resources, lack of budget, lack of reliable and cooperative vendors/consultants, and lack of compatibility with existing systems.

Asia-Pacific businesses are aware of the need for business transformation but still have some way to go in capturing the benefits of digitization, research shows.

“Asia-Pacific companies could use digital transformation, with or without AI (artificial intelligence), to unlock new sources of business value from information that is already present in paper documents and other media but is often hard to extract because of a lack of appropriate technological tools and processes,” the report said.

PHILEXPORT News and Features
Photo: Canva
Published: May 2, 2025

Exports surge 17.8% to reach 3-year high of $29.5bn in March

In March 2025, Thailand’s exports surged by 17.8% year-on-year, reaching a three-year high of USD 29.5 billion. This growth was driven largely by urgent orders from key trading partners like the US, China, and the EU, ahead of expected tariff increases by the US.

For the first quarter of 2025, Thai exports rose 15.2% compared to the same period last year, totaling USD 81.5 billion, with a trade surplus of USD 1.08 billion. Commerce Minister Phichai Naripatapan expressed optimism that exports would continue to grow in the second quarter, possibly exceeding the annual growth target of 2-3%.

However, Thailand faces challenges in ongoing trade negotiations with the United States. If a new agreement isn't reached before the July deadline, Thai exports could be hit by tariffs as high as 36%. The US recently requested more time to review key issues, delaying the talks.
The export boost in March is partly due to buyers accelerating orders to avoid future tariffs, especially from the US — Thailand’s largest export market, accounting for 18.3% of total exports. Exports to the US jumped 34.3%, and to China by 22.4% during the month.

Despite potential tariff risks, Thailand’s Commerce Ministry remains positive about the overall export outlook for 2025.

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DITP’s campaigns help generate nearly THB 37 billion in revenue for over 42,000 exporters

As of April 2025, the Department of International Trade Promotion (DITP) has successfully generated THB 36.92 billion in trade value through its export promotion campaigns, benefiting over 42,000 entrepreneurs. This achievement is part of DITP’s broader plan for the 2025 fiscal year, which includes 510 projects and more than 700 activities, aiming to reach THB 92.36 billion in trade value and support over 261,000 entrepreneurs.

Key Highlights:
  • Major Trade Fairs: Four significant international trade fairs—Bangkok Gems and Jewelry Fair, THAIFEX Horec Asia, STYLE Bangkok, and TAPA—collectively generated over THB 11.16 billion in trade value, aiding Thai SMEs in accessing global markets.
  • Additional Events: DITP also supported events like Bangkok Design Week, ADFEST, and Bangkok Rights Fair, contributing an extra THB 256 million in trade value.
  • Upcoming Events: Planned events for the remainder of the year include THAIFEX Anuga Asia 2025 (May 27–31), TILOG-Logistix (August), and the Bangkok Gems and Jewelry Fair (September). DITP also anticipates significant revenue from the Bangkok International Digital Content Festival, expecting contributions of no less than THB 50 billion.
  • Fruit Export Initiatives: As part of the Ministry of Commerce’s 2025 fruit management strategy, DITP has facilitated business matching events for fresh fruit and processed agricultural products, generating over USD 115.29 million (approximately THB 4.04 billion). Efforts include promoting Thai fruits in international markets and expanding export channels, particularly for durians.
  • Soft Power Promotion: DITP supports six of the 14 targeted creative industries—books, games, design, fashion, films, and TV/series—focusing on markets such as Japan, South Korea, China, and the U.S. From September 2024 to March 2025, these activities generated over THB 9.66 billion in trade value, benefiting 323 entrepreneurs.
  • Seminar on U.S. Tariffs: On April 25, DITP will host a seminar titled “Decoding Trump’s Tax Policy: Opportunities in the New Trade Era” in collaboration with the Thai Chamber of Commerce and the Federation of Thai Industries. The seminar aims to explore strategies for turning challenges posed by U.S. tariffs into opportunities for Thai exporters. 
Director-General Sunanta Kangvalkulkij emphasized DITP’s commitment to supporting Thai exporters through various initiatives, including international trade fairs, promotional campaigns, and strategic partnerships, to enhance Thailand’s presence in global markets.

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BOI boosts clean energy investment in Thailand to over THB560 billion in 10 years.

Over the past decade, the Thailand Board of Investment (BOI) has approved more than 2,900 clean energy projects, amounting to over 560 billion baht, positioning Thailand as a leading clean energy hub in ASEAN. These initiatives encompass waste-to-energy, solar, wind, biomass, and other renewable sources. Notably, 28 electric vehicle (EV) production projects by 22 companies have been approved, with a combined investment of approximately 78 billion baht and a production capacity exceeding 880,000 units.

Despite shifts in U.S. clean energy policies under President Donald Trump, major economies like the EU, UK, and China continue to prioritize clean energy. Trade mechanisms such as the Carbon Border Adjustment Mechanism (CBAM) are being implemented, necessitating close monitoring by Thailand. Analysts suggest that changes in U.S. policy may redirect over $500 billion in clean energy investments toward Asia, with countries like China, Japan, and South Korea rapidly developing renewable energy sources.

Thailand aims for carbon neutrality by 2050 and net-zero emissions by 2065. Under the Power Development Plan (PDP 2024), the country targets increasing clean energy's share to at least 50% of total electricity generation. Currently, clean energy accounts for 26% of Thailand's power capacity. According to the 2023 SDG Index, Thailand ranks 43rd globally and 1st in ASEAN for clean energy progress.

The BOI continues to promote clean energy projects, supporting a sustainable energy ecosystem and enhancing Thailand's competitiveness in the global market.

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Cambodia: NBC ink MoU for Japanese cross-border QR payments

The National Bank of Cambodia (NBC) and the Payments Japan Association (PJA) have signed a memorandum of understanding (MoU) to cooperate on cross-border QR code payments between Cambodian KHQR and Japanese JPQR, with the goal of establishing a framework for cross-border payments between the two countries.

According to an April 25 press release by the NBC, the MoU signing between was intended to facilitate easier and faster cross-border payments between Cambodia and Japan. This cooperation is divided into two phases: Cambodians using local banking apps will be able to scan JPQR codes for payments in Japan, and Japanese nationals will be able to scan KHQR codes for payments in Cambodia.

The NBC has selected ACLEDA Bank Plc. and SathapanaBank as liaison banks for cross-border payment connectivity with Japan. JPQR has chosen NETSTARS as the QR code payment operator on the Japanese side.

“This initiative will support and promote the digital payment ecosystem, enhance transaction security, and simplify cross-border payments, aiming to boost tourism and reduce the need for currency exchange during stays in Cambodia or Japan,” said the NBC release.

It also noted that large and small local merchants who accept KHQR payments in Cambodia or JPQR payments in Japan will benefit by offering more convenient payment options to customers. Furthermore, businesses will be able to manage their operations more efficiently, securely, quickly and cost-effectively.

Overall, cross-border payments will contribute to the growth of trade, investment and especially tourism, thereby supporting the economic development of both countries.

According to the NBC, the MoU is based on a broader national-level cooperation framework which was signed between the NBC and Japan’s Ministry of Economy, Trade, and Industry (METI) in December 2023, under the leadership of Cambodian Prime Minister Hun Manet and Japanese Prime Minister Fumio Kishida. The agreement outlines the collaboration on cross-border QR code payments between the two countries.

For full article, please read here

Source: The Phnom Penh Post

Thailand approves 200 billion baht of projects to expand Bangkok metro system, data-centre network

Thailand has approved a 200 billion baht (approximately 7.9 billion USD) investment plan to expand Bangkok’s mass transit system and data center network. The main project involves a 109 billion baht investment by Bangkok Expressway and Metro Plc (BEM) to extend the Orange Line, which will connect the western and eastern suburbs of Bangkok.

Additionally, three data center and cloud services projects have been approved, with the largest being a 72.7 billion baht plan by Chinese company Beijing Haoyang Cloud Data Technology to build a data center in Rayong province. These investments are expected to boost the country’s economic growth.

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Brunei economic growth forecast at 2.6pc in 2025, 2026: AMRO

BANDAR SERI BEGAWAN, Brunei (Bernama-Xinhua) – Brunei’s economic growth is forecast at 2.6 per cent in both 2025 and 2026, according to the ASEAN+3 Macroeconomic Research Office (AMRO), reported Xinhua.
 
The AMRO’s regional economic outlook published last week said Brunei’s economy experienced broad-based growth marking its strongest expansion in decades whereby real gross domestic product expanded by 4.2 per cent in 2024.

Activities in the upstream oil and gas sector recovered strongly, benefiting from the accelerated production from newly developed oil wells which came on stream earlier than expected in October 2023, the report said.
 
The completion of major post-pandemic rejuvenation works further supported growth in the sector, it added. Similarly, in the non-oil and gas sector, growth was driven by downstream activities, and continued expansion of the services sector.
 
The report also said structural transformation to achieve a more diversified inclusive economic structure remains a key long term challenge.

Source: Borneo Bulletin

Read the full article here




France-Brunei trade sees strong growth in 2024

France emerged as Brunei Darussalam’s 28th largest global supplier in 2024, with exports reaching EUR13.8 million – more than double the amount recorded in 2023, representing an increase of over 106 per cent. The growth was primarily driven by strong performances in wood products (26 per cent), industrial and agricultural machinery (22 per cent), and electronics (11 per cent).

On the other hand, Brunei’s exports to France amounted to EUR929, with agri-food products accounting for 55 per cent of total imports. France ranked Brunei as its 199th largest global supplier and the smallest in the region, below Laos. The import increase was supported by rising demand for agricultural goods and textiles.

The trade figures were shared by Financial Counsellor for ASEAN member countries at the Embassy of France in Singapore Raphael Badr during a talk titled ‘Dialogue: ASEAN…Brunei…France: Looping Brunei In’ hosted by the French Bruneian Business Association (FBBA) yesterday at Baiduri Community Centre. Honorary President of FBBA Musa bin Haji Adnin; President of FBBA Pierre Imhof; Ambassador of France to Brunei Darussalam and Patron of FBBA Eve Lubin; executive committee members; and guests were present at the event.

Source: Borneo Bulletin

Read the full article here


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