The Johor-Singapore Special Economic Zone (JS-SEZ) will not benefit only Johor Bahru but also other districts like Kluang, said the state’s Menteri Besar Onn Hafiz Ghazi.

He stated that the rapid and ongoing developments indicate that the zone will boost all 10 districts of the state.

“Do not think that the benefits of the JS-SEZ will only be concentrated in the Johor Bahru area. All 10 districts in Johor stand to benefit... because of all the ongoing developments taking place throughout the state, such as transportation infrastructure, housing projects and tourism,” he noted at a community event in Renggam on July 6.

He said a double-track rail system, expected to be fully operational by end 2025, and Johor Bahru-Singapore Rapid Transit System Link, projected to begin running on Jan 1, 2027, would shorten travel time.

He pointed out that the completion of the projects could help elevate places like Layang-Layang, Renggam and Kluang into satellite towns of Johor Bahru.

Source: The Straits Times (Johor-Singapore Special Economic Zone set to transform all 10 Johor districts, says Menteri Besar | The Straits Times)

6 Jul 2025

The Agency for Science, Technology and Research (A*Star) and German industrial manufacturer Siemens signed a memorandum of understanding (MOU) on Friday (Jul 4) to jointly develop smart and sustainable manufacturing solutions for companies in Singapore and the broader Asean region.

The collaboration seeks to address key industrial challenges by enabling faster access to advanced artificial intelligence (AI) and automation expertise, while promoting manufacturing processes that align with international sustainability standards.

A key component of the partnership is the Smart and Sustainable Advanced Manufacturing (SSAM) Catalyst, an innovation sandbox hosted at A*Star’s Advanced Remanufacturing and Technology Centre (ARTC).

Siemens is the first technology partner to join the SSAM Catalyst, contributing a portfolio of automation, electrification, industrial software and AI solutions.

These capabilities span the entire product lifecycle – from design and engineering to manufacturing and operations – offering manufacturers a platform to test and refine technologies in sectors such as aerospace, fast-moving consumer goods, biomedical and semiconductor equipment manufacturing.

The ARTC seeks to establish an innovation ecosystem involving technology providers, solution integrators, and end-users to jointly develop solutions for practical application. Leveraging its capabilities in manufacturing processes, smart manufacturing, sustainability analytics, precision imaging and autonomous systems, it provides support to companies looking to adapt their operations amid changing industry conditions.

Paving the way for more sustainable manufacturing

Beyond the SSAM Catalyst, A*Star’s Institute of Sustainability for Chemicals, Energy and Environment and Siemens are collaborating on research projects targeting decarbonisation in the chemicals and energy sectors.

The collaboration also involves exploring the use of Siemens’ Digital Twin technology, which allows chemical engineers to simulate and optimise chemical processes and design production facilities.

This technology aims to support better integration of engineering and operations in manufacturing plants, potentially helping companies manage plant design complexity and shorten construction schedules.

“Together with Siemens, we are developing solutions that will accelerate digital transformation and support decarbonisation efforts across the region. This multi-faceted collaboration looks to strengthen Singapore’s position as a regional hub for smart and sustainable manufacturing in Asean,” said Professor Lim Keng Hui, assistant chief executive of A*Star’s science and engineering research council.

Source: The Business Times (A*Star, Siemens launch manufacturing R&D collaboration in Asean - The Business Times)

In an era marked by multipolarity, supply chain disruptions, geopolitical conflicts and growing protectionism, it is a pivotal time to strive towards creating regional industrial champions and advancing Asean-led development to deepen intra-bloc integration.

Such sentiments were shared by panellists on Thursday (Jul 3) at the Asean Conference, during a ministerial dialogue titled “Asean integration in the multipolar world” with Singapore Deputy Prime Minister Gan Kim Yong.

The day-long event at the Resorts World Convention Centre was organised by the Singapore Business Federation (SBF), alongside founding partners UOB, RSM Singapore and Rajah & Tann.

The panel featured Malaysian Deputy Minister of Investment, Trade and Industry Liew Chin Tong, and Indonesian Deputy Minister for Investment Cooperation at the Ministry of Investment and Downstream Industry Tirta Nugraha Mursitama.

The hour-long session was moderated by SBF chief executive officer Kok Ping Soon, and explored how each country interprets the mandate of an integrated Asean and their plans to deliver on this.

Noting that now is a difficult but interesting time for Asean, Liew posed the question: “Do we still rely on a foreign direct investment-driven economic growth model or an export-led industrialisation model where we export to the US – or do we start thinking about growing Asean companies?”

The bloc has to start thinking about growing regional giants and creating its own technologies – with that, he said, intra-Asean cooperation, integration and trade will not be too difficult because member states will have to work with one another.

On the way forward, Prof Tirta said: “My optimistic way of thinking is that if we are internally strong as Asean... we can create the idea of not state-led development but Asean-led development.”

The Indonesian minister called for stronger cooperation and communication between business and government leaders.

Bilateral and regional complementarity

On recent news of Vietnam’s trade agreement with the US that supposedly culminated in a lower-than-promised 20 per cent levy, SBF’s Kok noted that the world’s largest economy is “obviously pursuing a divide-and-conquer strategy”.

On whether that weakens Asean centrality, DPM Gan, who is also minister for trade and industry, contended that, at the end of the day, tariffs have to be negotiated bilaterally.

Nonetheless, Asean member states have made a commitment to honour agreements signed with one another, so as to ensure intra-bloc trade remains rules-based, he continued.

“Even while we negotiate with the US separately and bilaterally, at the same time, at the back of our minds, we remain committed to Asean cooperation and integration,” he said.

His sentiments were echoed by SBF chairman Teo Siong Seng, who highlighted the importance of Asean’s collective response in his welcome remarks.

Known in the shipping circles as SS Teo, the executive chairman of home-grown carrier Pacific International Lines said: “At the enterprise level, many companies initially adopted a wait-and-see stance, viewing themselves as price takers or downstream in the supply chain, or assuming the tariffs were just a scare tactic.”

But it has become clear that action must be taken, he continued.

In an environment characterised by trade realignment and uncertainty around capital flows brought about by a shift in US trade policy, Teo noted: “Asean’s collective response will be crucial (and) we are already seeing our community step up.”

UOB deputy chairman and CEO Wee Ee Cheong highlighted in his opening address the opportunities from the rapidly expanding digital economy, and new investments in climate and sustainability.

Artificial intelligence and environmental, social and governance factors are now central to government and business trends, added Wee, who urged small and medium-sized enterprises to adapt their business models to compete and thrive.

“Let us all work together to build (an) inclusive Asean, where every business – big or small – has a stake in our shared success,” he said.

Deepening cooperation

The conference also saw UOB ink five memorandums of understanding with government agencies and leading industry players across Asean and China.

The agreement between the lender and Enterprise Singapore saw both parties pledging to encourage partnerships between local enterprises and foreign companies seeking to expand in the region.

A second deal, with the Federation of Malaysian Manufacturing and Singapore Manufacturing Federation, is aimed at facilitating business opportunities in the region.

The third pact was between UOB Hong Kong and the Hong Kong Trade Development Council, and is aimed at establishing a framework of cooperation to strengthen regional ties and promote sustainable growth.

The fourth agreement was signed by UOB China and ZGC International. It will see UOB China providing complementary financial services and empowering the cross-border development of companies in ZGC industrial parks.

The final memorandum, which was between UOB, J-Will Corporation and Hildrics Capital, is aimed at the joint development of business opportunities and supporting Japanese companies entering the Asean market.

Noting that the region remains an attractive destination for businesses despite global tensions, Wee said: “As opportunities arise from the rewiring of global supply chains, trade flows within Asean and between China and Asean are expected to increase.”

Source: The Business Times (Ripe time to grow regional industrial giants, work towards Asean-led development: panellists - The Business Times)

South-east Asian neighbours Singapore and Cambodia intend to continue advancing shared interests in renewable energy trade, high-quality carbon markets, agri-trade and bolstering Asean centrality.

Singapore Prime Minister Lawrence Wong made this point on Wednesday (Jul 2), in a toast at the Peace Palace in Phnom Penh, at an official lunch hosted by his Cambodian counterpart, Hun Manet.

The Singapore leader was on a one-day trip to the kingdom.

His visit came amid escalating tensions between neighbours Cambodia and Thailand, but was consistent with a customary series of introductory visits he has made across South-east Asian capitals – a tradition followed by previous prime ministers. 

Cambodia is his eighth stop.

The tour took him to Brunei and Malaysia in June 2024, Laos in October, Indonesia and Thailand the following month, Vietnam in March 2025, and the Philippines three months after that.

A statement by Singapore’s foreign ministry noted that PM Wong “expressed concern in relation to recent developments on the Cambodia-Thailand border” in his meetings with the kingdom’s leaders.

He “encouraged both sides to resolve the matter peacefully and amicably, in line with the spirit of Asean solidarity”.

The Singapore leader “expressed hope that both sides will de-escalate tensions, engage constructively and reach an amicable solution that upholds international law and the broader stability of the region”, said the post-visit statement.

He had made the same point in his toast at the lunch in the palace, where he said: “In this uncertain global environment, it is more important than ever for Asean to stay cohesive, uphold open channels of dialogue, and work together to resolve our differences peacefully.

“Only then can we preserve our relevance, and continue advancing the region’s collective interests.”

Both leaders discussed several priority areas of cooperation, including the import of low-carbon electricity from Cambodia to Singapore.

An implementation agreement on carbon credits is also in the works.

PM Wong said: “This will mobilise financing for clean-energy projects, uplift rural communities and improve livelihoods, while enabling both our countries to hit our net-zero goals.”

On agri-trade cooperation, he noted that Cambodia stands as a key agricultural exporter, while Singapore imports almost everything its people eat.

The Republic is also keen to diversify its sources of food imports, so closer collaboration will be “mutually beneficial”, he said.

Long friendship

Noting that both nations commemorate six decades of diplomatic ties this year, PM Wong pointed out that Cambodia was among the first countries to recognise Singapore’s sovereignty.

The kingdom was in turn one of five countries where the Republic first opened its overseas missions.

The Singapore leader said: “Our ties (were) built on the strong foundation laid by then prime minister Lee Kuan Yew and His Majesty, King-Father Norodom Sihanouk. It is a foundation of mutual respect, trust and friendship that continues to guide our relationship today.”

Presently, Singapore stands as one of Cambodia’s largest investors and trading partners, added PM Wong.

Latest figures put Singapore as Cambodia’s third-largest foreign investor last year, with bilateral trade growing 7.1 per cent year on year to S$4.83 billion.

These investments sweep across the real estate, energy, trading and distribution, agribusiness, food, consumer, education and finance sectors.

PM Wong described both countries as “steadfast partners” in human development.

Nearly 19,000 Cambodian officials have visited Singapore for training programmes in public health, digital governance and public administration.

Today, Cambodia has an “ambitious” strategy to achieve high-income status by 2050, having made “remarkable strides” in its transformation from a post-conflict society to a rapidly developing nation, said PM Wong.

“Singapore will continue to walk alongside Cambodia in this development journey.”

The day’s happenings

Following a ceremonial welcome on Wednesday, the countries’ premiers held a bilateral meeting at the Peace Palace in Phnom Penh.

Hun Manet, the eldest son of long-time ruler Hun Sen, made his first visit to Singapore as Cambodia’s prime minister in June 2024. He took office in August 2023.

PM Wong also called on Senate President Hun Sen at the Senate House.

Source: The Business Times (Singapore, Cambodia solidify joint efforts in energy, climate finance, agri-trade - The Business Times)

Bilateral relations between Singapore and Indonesia are in “excellent shape”, and both countries seek to “chart even stronger ties in this new era of cooperation”, said Prime Minister Lawrence Wong on Monday (Jun 16).

He was speaking at a joint press conference with Indonesia’s President Prabowo Subianto, who was in Singapore for his first state visit and to attend the eighth Singapore-Indonesia Leaders’ Retreat.

PM Wong noted ongoing collaborations in areas ranging from defence to trade and investment.

For instance, he highlighted the expanded framework agreements – on defence, airspace management, and law enforcement – which entered into force on Mar 21 last year.

Their successful implementation is “a testament to Singapore and Indonesia’s ability to work through complicated issues with respect and trust”, he said.

In a Facebook post, Singapore’s Ministry of Defence highlighted the Joint Update on Defence Cooperation (JUDC) signed during the retreat by Defence Minister Chan Chun Sing and his Indonesian counterpart, Sjafrie Sjamsoeddin, who is also a retired lieutenant-general. 

The JUDC reviews bilateral defence engagements and outlines new and enhanced areas of collaboration.

The two countries’ defence cooperation agreement has “unlocked new opportunities” for their armed forces to train and work together, the Ministry of Foreign Affairs (MFA) said in a statement.

It also noted that the first case under the Treaty for the Extradition of Fugitives is now before the Singapore courts, with both countries’ legal agencies working closely to ensure due process.

At the meeting, the leaders also discussed how to enhance bilateral cooperation in areas such as the green economy, which PM Wong described as a “promising new area”.

“We know that climate change will have an outsized impact on small island and archipelagic states like ours,” he said. “But we can turn our vulnerabilities into opportunities.”

On Friday, Singapore and Indonesia inked three memorandums of understanding on cross-border electricity trade, carbon capture and storage, and a sustainable industrial zone.

These were followed by a milestone ceremony on Monday to mark both countries’ shared commitment to implementing the projects, for sustainable economic development and decarbonisation.

The leaders of the two nations also expressed confidence in these agreements helping to unlock the region’s green potential and serving as a key building block for the Asean Energy Grid, MFA said.

Confidence and closer ties

Singapore has been Indonesia’s top source of foreign investment for more than a decade, accounting for over a third of all realised foreign investment into Indonesia last year, noted PM Wong. 

“This reflects the confidence we have in Indonesia’s economy and its potential and strength.”

On Sunday, the countries inked two commercial arrangements during the 15th Singapore-Indonesia Six Bilateral Economic Working Groups Ministerial Meeting. One was between Sembcorp Industries and Batamraya Sukses Perkasa, a subsidiary of property developer Panbil Group.

Late last year, the Monetary Authority of Singapore and Bank Indonesia renewed a bilateral financial arrangement to strengthen financial cooperation – for three years, rather than the usual annual renewal.

The longer renewal period, said PM Wong, reflects “our shared commitment to preserving monetary and financial stability amid global economic uncertainty”.

Food is another area of cooperation, with the two countries signing an MOU on Monday on food safety and agricultural technology. 

Food security is a key priority for Indonesia and Singapore, and their support in this area includes a Young Farmers Development Programme to exchange best practices on agritech solutions, said PM Wong. The initiative aims to boost productivity, nutrition and food resilience in both countries, according to MFA.

He also underscored the importance of people-to-people exchanges, including cross-border internship opportunities. MFA said the Youth Mobility Programme will facilitate internships for 300 tertiary students each year, and connectivity will be further boosted by new direct flights from Singapore to Padang and Kertajati in Indonesia.

“Copying with pride”

In his speech, President Prabowo said: “It is in Indonesia’s strategic political design to foster the best cooperation and collaboration with Singapore.”

He noted that Indonesia has been adopting some of Singapore’s best practices – a move he described as “copy with pride” – such as its public housing model and state investor Temasek, with the latter inspiring Indonesia’s new sovereign wealth fund Danantara.

Prabowo also expressed interest in deepening collaboration in healthcare and manpower, inviting Singapore to support Indonesia’s plans to expand its network of medical and nursing colleges. 

There can also be greater cooperation in the placement of skilled Indonesian caregivers in Singapore, he added. 

On connectivity, Indonesia is committed to restoring or even surpassing pre-pandemic traffic levels, with Prabowo having instructed ministries to enhance direct foreign airline access to more Indonesian airports.

On Asean and the world

Both leaders also touched on regional and global developments.

PM Wong said that as founding members of Asean, Singapore and Indonesia will continue working closely with fellow member states to strengthen the region and uphold a rules-based multilateral system. 

He also affirmed Singapore’s support for Indonesia’s bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

Prabowo expressed concern over the situations in Gaza and the Israel–Iran conflict, stressing the need for peaceful solutions, negotiations, and an immediate ceasefire.

On Myanmar, both leaders agreed on the importance of engagement and pursuing a peaceful resolution.

“Both (Singapore and Indonesia) have succeeded in maintaining a zone of regional peace, prosperity, and mutual support,” said Prabowo. 

“I am very confident that our bilateral relationship will continue to grow from strength to strength, with more trust and confidence in each other, as the years will prove.”

Source: The Business Times (Bilateral ties in ‘excellent shape’ as Singapore, Indonesia expand cooperation - The Business Times)

Local businesses looking to tap opportunities in the Johor-Singapore Special Economic Zone (JS-SEZ) can look forward to quicker bank account openings, green-lane financing, halal advisory services, and more.

The Singapore Chinese Chamber of Commerce & Industry (SCCCI) and Maybank Singapore on Thursday (Jul 17) inked a pact to promote economic development, investment and trade – with the massive 3,571-square-kilometre zone as a strategic focal point.

Some 5,000 SCCCI corporate members can benefit from capacity-building programmes in the areas of sustainability, halal advisory and financial services, aided by Maybank’s dedicated JS-SEZ desk, a joint media release indicated.

Additionally, the bank will offer tailored solutions such as green-lane financing, trade finance, cash management as well as environmental, social and governance-linked products.

The two parties will also collaborate on initiatives such as meetings, visits, conferences, workshops and networking events.

The memorandum of understanding was signed at the SCCCI-Maybank Mid-Year Business Forum: Outlook 2025, held at the business chamber’s auditorium.

Speaking in Mandarin at the event, Minister of State for Trade and Industry Gan Siow Huang urged businesses to explore beyond traditional markets and better understand emerging ones – across regions such as South-east Asia and Africa – to find new growth areas.

SCCCI president Kho Choon Keng said: “In the face of an increasingly complex and rapidly changing business landscape, strong financial capabilities and deep regional insight are critical.”

Noting the bank’s dual-market advantage in Singapore and Malaysia, Maybank Singapore chief executive Alvin Lee reaffirmed the group’s commitment to supporting businesses with banking solutions while identifying “twinning opportunities for expansion” into the JS-SEZ.

With South-east Asia poised to become the world’s fourth-largest economy by 2030, the region offers significant growth opportunities, with Malaysia positioning itself as a key investment hub for Singaporean businesses due to its diversified economy, SCCCI and Maybank said in the joint statement.

Source: The Business Times (Maybank, SCCCI join forces to power up Johor-Singapore SEZ  - The Business Times)

The U.S. and China are usually top of mind when it comes to artificial intelligence and generative AI. But Southeast Asia’s small businesses have huge potential that shouldn’t be ignored, experts say.

In fact, it’s a matter of survival, according to Jochen Wirtz, a professor of marketing at the National University of Singapore Business School, who said those that fall behind will be “moved into a franchise business or will be pushed out of the market by bigger players who do it.”

“Either you grow and adopt, or you die,” he added.

AI and genAI will contribute about $120 billion to the region’s gross domestic product by 2027, Boston Consulting Group projected in an April report titled “Unlocking Southeast Asia’s AI Potential,” which cited the technology’s potential to “redefine business processes and unlock new revenue streams.” And Google’s e-Conomy SEA 2024 report found that Singapore, the Philippines and Malaysia are ranked among the top 10 globally for AI-related searches and demand, indicating “curiosity” and an “active interest” within the region.

Youth is an advantage. Among surveyed countries in the Asia-Pacific, Vietnam, Malaysia and the Philippines have the highest percentage of business owners or leaders under 40 years of age, according to CPA Australia’s Small Business Survey 2024-25.  

For countries such as Vietnam, “the future is bright because ... it’s a very young population, is a very internet-savvy population,” said Soumik Parida, associate program manager of the professional communication program at RMIT University Vietnam’s School of Communication and Design. “They are starting to have a global voice and they’re very easy to adapt any new technology,” he added.

Here’s how some of the region’s businesses are using it to stay on top of the competition — as well as the opportunities and roadblocks they face.

Most popular use cases

Customer service is the leading use case in Southeast Asian e-commerce, followed by marketing and advertising, according to a joint report by Lazada and Kantar about AI adoption trends in the six largest economies in Southeast Asia. Also known as the ASEAN-6, they comprise Singapore, Malaysia, Vietnam, Indonesia, the Philippines and Thailand.

A McKinsey survey released in March revealed a similar trend: Companies have adopted genAI for marketing and sales, with tech companies leading the charge. It also showed that most adopters are using the technology to generate text, with 63% of surveyed companies reporting that they do so.

GenAI presents a unique boon for a region as linguistically diverse as Southeast Asia: Aside from writing personalized marketing messages, it can also translate promotional texts into different languages.

For example, Lita Global, an Indonesia-based social media platform for gamers, is benefiting a lot from that. Since integrating OpenAI’s models in the second half of last year, it said, it has been able to host almost twice as many online gaming events monthly, thanks to greater efficiency.

That’s a big boost for its business, since every event can raise weekly revenues by an average of 20%, the company said. 

With genAI, employees can quickly translate announcements about events from English to Southeast Asian languages, such as Vietnamese and Thai, to reach more users in the region. And that frees them up — time originally used for writing, translating and formatting promotional text can now be used for organizing more revenue-generating events, according to Lita Global.

The company also uses genAI in its chat function to recommend responses to users. Lita Global is a social platform where users can hire other gamers to play with them online.

Gamers for hire typically chat with users before an order is placed for a gaming session. But that can be difficult when demand for gamers is high and gamers for hire are busy with other matches. Gamers for hire who use the AI-recommended responses have seen a 10% to 20% uptick in orders, said Lita Global’s CEO Yihao Zhang.

“So we’re using AI to really help them to improve their efficiency, to help them to be more available to the users,” Zhang said.

Another way Southeast Asian MSMEs (micro, small and medium enterprises) can use genAI in marketing is through AI livestreaming. Google’s SEA e-Conomy report noted that live shopping has become more popular in the region. Live shopping, or livestreaming, usually involves a host showcasing the products for sale. Not only does this include clothing try-ons, but shoppers can also ask questions in the comments section, which are answered in real time.

While livestreams are traditionally hosted by humans in studios, MSMEs may lack the funds or technical know-how to execute regular livestreams to boost sales. AI livestreaming can open doors to new opportunities for sellers, said Jensen Wu, CEO of TopviewAI.

TopviewAI says on its website that its AI livestreaming services can cost around $1 per minute. Instead of spending on studio rental, samples of the merchandise and labor of human hosts, companies can have one person monitor the livestream, Wu said. That helps lower costs while boosting sales, making for a “pretty good” return on investment, he added.

The problem of costs

The efficiency boost doesn’t come cheap, however.                             

That’s why small businesses are limited to adopting AI on a small scale for now. Using AI chatbots for relatively simple tasks, for example, can reduce labor costs as subscriptions for such services tend to be inexpensive. On top of that, with a variety of third-party tools available on the market, business owners can also have their pick, according to RMIT Vietnam’s Parida.

Small businesses in the fashion, and food and beverage industries in Vietnam, for example, have begun using chatbots to manage inquiries and orders, Parida said.

“Anything beyond that requires a lot of expense” he said.

While larger companies can hire software companies to develop sophisticated systems customized to a business’ needs, it’s a luxury not many can afford.

Even companies that have the expertise to integrate AI themselves pay a premium to do so.

Lita Global, for example, spends about $2,000 on AI every month, part of which goes to purchasing tokens for OpenAI’s application programming interface (API). APIs allow companies to build upon OpenAI’s models, instead of requiring companies to build the AI model from scratch.

However, as AI improves, the cost to use it is expected to drop. Research and advisory firm Gartner predicted in February that by 2027, the average prices of application programming interfaces for genAI will fall to less than 1% of the current average price for the same technology.

That could mean even greater affordability for smaller businesses adopting AI for their businesses.

Outlook for the region

In emerging markets such as those in Southeast Asia where labor costs are low, companies may feel less motivated to boost efficiency through adoption of technology. But technology can provide “much better [outcomes]” for existing business practices, said NUS Business School’s Wirtz. AI is just another way to adopt technology.

He compared it to the popularization of e-hailing services, which reduced the risk of tourists getting scammed by taxi drivers in foreign countries, as e-hailing apps could estimate the price of a journey.

And with a tech-savvy population of entrepreneurs in economies such as Vietnam, where labor costs are low, the excitement to adopt AI remains high, according to Parida.

“It’s a very hungry young people,” he said.

Source: CNBC (Southeast Asian small businesses using AI to stay competitive)

Published 25 Jun 2025

Solar and wind energy are expected to power up 30% of Southeast Asia’s data centres in 2030, without the need to rely on battery storage.

According to energy think tank Ember, six major economies in the region —Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam—are emerging as global data centre hotspots, with 2.9 gigawatts of new capacity currently in the pipeline.

Malaysia is projected to see the fastest growth in data centre electricity use, with demand expected to rise to 68 terawatt-hours (TWh) in 2030 from 9 TWh in 2024.

Emissions from Malaysia’s data centres could increase sevenfold, reaching 40 MtCO2e by 2030, the highest in the region. The Philippines is projected to see a rise of up to 14 times in emissions, whilst Indonesia’s could quadruple.

Ember said that there is a need for “the right mix of policy support, market access and infrastructure planning” to power data centre growth without driving up emissions.

“Prioritising solar and wind power, as well as energy efficiency, supported by strong policies, a national framework for data centres and collaboration, would help ensure data centres drive sustainable digital growth rather than deepen reliance on fossil fuels,” said Shabrina Nadhila, Electricity Policy Analyst for Southeast Asia at Ember.

Whilst large tech companies rely on power purchase agreements (PPAs) to secure clean electricity, smaller operators need better access to flexible options like virtual PPAs and green tariffs. These can also support storage, helping manage the variability of renewables.

“National frameworks, stronger collaboration and better transparency are critical to ensuring that ASEAN’s digital growth also drives progress,” Nadhila said.

Source: Asian Business Review (Solar and wind seen to energise 30% of ASEAN’s data centres in 2030 | Asian Business Review)

Asean must double down on economic integration so that it can better withstand growing global headwinds, including rising protectionism and geopolitical uncertainty, said Singapore’s Foreign Minister Vivian Balakrishnan on July 11.

Speaking to Singapore media after the 58th Asean Foreign Ministers’ Meeting in Kuala Lumpur, Dr Balakrishnan said the grouping’s response to recent developments, including new tariff announcements from the US, must be to press ahead with internal reforms and strengthen ties with external partners.

“Remember, our overall vision ultimately is to make Asean a single production zone, a single investment zone. And that means bringing down barriers, not just tariff barriers but non-tariff barriers as well,” he said.

Dr Balakrishnan noted that the overall tone of the week-long meetings that he had with Asean as well as its key partners was “sober”, shaped by multiple crises worldwide.

He pointed to the wars going on in Europe and the Middle East, and highlighted how the US tariff announcements had occurred “rapid-fire”.

US President Donald Trump had from July 8 started announcing levies of between 25 per cent and 40 per cent on eight of the 10 Asean nations, which are slated to take effect in August.

Singapore and Vietnam, however, have yet to receive any formal notification from the White House.

Dr Balakrishnan stressed that in talks with the US, he had always underlined that trade is strategic to Asean, and the flow of trade and investments is a key strategic focus for all governments in the region.

In terms of how the grouping is responding to what is happening to global trade as a result of the US tariffs, he said the Asean ministers have decided that the grouping will have to coordinate both foreign affairs and trade and economic development far more closely at the Asean level.

He said Asean will need to adjust how it operates, including how meetings are structured, to ensure that its foreign policy and economic agendas are better aligned.

But the most effective way the region can respond is to double down on its own integration, stressed Dr Balakrishnan, as that is under Asean’s control.

He gave examples of how the grouping must make sure that it removes every tariff and non-tariff barrier, and optimises its competitive position.

“That’s a path of no regret. And I would say the urgency and the salience of doing it now is so much more obvious,” he said.

Dr Balakrishnan also touched on recent developments in cross-border infrastructure, noting that projects such as the 

Johor-Singapore Special Economic Zone and the upcoming Rapid Transit System Link 

between Malaysia and Singapore could serve as models for wider regional cooperation.

“There are complementary strengths of both Johor and Singapore, and to the extent that we can bring these strengths together, we make ourselves more competitive,” he said.

He added that people “beyond” the two areas are observing the special economic zone project with interest.

The minister added that the region is also exploring how trilateral cooperation between Singapore, Malaysia and Indonesia could be scaled up, in line with the longstanding “Sijori” concept – a reference to Singapore, Johor and the Riau Islands.

The Sijori growth triangle was established in 1994 between the three countries – Indonesia, Malaysia and Singapore – to bolster economic links between them.

“We are also now looking for opportunities in which the three countries – Indonesia, Singapore and Malaysia – can do more in a synergistic and complementary way,” he said.

Singapore is pushing for greater connectivity within Asean in both figurative and literal terms, said Dr Balakrishnan. He cited the Asean Power Grid, which seeks to connect the region’s electricity networks and support the transition to sustainable energy.

The project has attracted strong interest from Asean’s external partners, including those with experience in clean energy and infrastructure, he added.

Other ongoing initiatives include the Asean Digital Economy Framework Agreement, which aims to enable seamless digital transactions, data flows and e-payments across borders.

The agreement was introduced in 2023 to boost the growth of digital trade and services in the region. Studies suggest it could double the projected value of Asean’s digital economy from US$1 trillion (S$1.3 trillion) to US$2 trillion by 2030.

But digital expansion also brings risks, and Dr Balakrishnan acknowledged how scams have become a problem, noting that people as far away as the US and Europe have fallen prey to some of them.

Some of these operations originate from within Asean, and there is a collective commitment by the grouping to try to root out these activities and deal with the criminal syndicates behind them.

Dr Balakrishnan also highlighted efforts to expand Asean’s network of external economic ties, pointing out that free trade agreements with Australia and New Zealand have already been upgraded.

Negotiations with China are near completion, and work with South Korea is expected to start soon.

These are efforts that Asean has made to expand its existing channels of trade and increase its resilience, which Dr Balakrishnan said was in line with Prime Minister Lawrence Wong’s recent comments about the grouping.

In a video message delivered on July 5, the Singapore Prime Minister urged the grouping to be bolder. He said Asean must become a more seamless and competitive single market if it wants to stay relevant in a changing global economy.

“Prime Minister Wong’s call for reform and that sense of urgency was very timely. People recognised that, and it gives an additional push to all these efforts at accelerating integration and expanding the network of ties with our Asean external partners,” said Dr Balakrishnan.

Source: The Straits Times (Asean must double down on economic integration to withstand external pressures: Vivian Balakrishnan | The Straits Times)

Published 11 Jul 2025