A new study warns that Southeast Asian nations risk being left behind in the global digital race, potentially forfeiting a US$130 billion economic opportunity unless they take coordinated and decisive action to harness 5G and artificial intelligence.
The report, published Tuesday by the Lee Kuan Yew School of Public Policy (LKYSPP), outlines a strategic roadmap for the region but cautions that the window for establishing leadership in the next wave of technological innovation is “rapidly closing.”
Research from the “Leveraging 5G to Accelerate AI-Driven Transformation in ASEAN” study reveals a stark digital divide across the region. While 5G technology is projected to add US$130 billion to the Asia-Pacific economy by 2030, adoption rates within the Association of Southeast Asian Nations (ASEAN) are dangerously uneven. Singapore leads with 48.3% penetration, while in several other member states, it remains below 1%.
“The convergence of 5G and AI represents the infrastructure of innovation, powering smart manufacturing, precision agriculture, and autonomous mobility. But ASEAN cannot afford to wait,” said Professor Vu Minh Khuong of LKYSPP, one of the report’s authors. “Our report provides ASEAN policymakers with a blueprint… now policymakers must act decisively.”
Drawing on interviews and surveys with over 400 professionals across eight ASEAN countries, the study identifies fragmented leadership and a widening skills gap as primary obstacles. It urges governments to treat 5G not merely as a telecommunications upgrade, but as a strategic enabler for an AI-powered future.
To counter these challenges, the LKYSPP researchers have put forward five key priorities, including the establishment of national 5G-AI strategies with clear roadmaps for 2025-2030 and the creation of empowered agencies to coordinate implementation.
The report highlights existing pockets of success as models for the region. Singapore’s 5G-powered smart ports have cut latency by 50%, Thailand is using AI to enhance its disaster management systems, and a national wholesale network in Malaysia has already achieved 82% population coverage. These cases, the report argues, demonstrate the transformative potential of well-executed strategies.
Researchers also emphasized the critical role of the private sector, noting that private 5G networks are essential for the “Industry 4.0” transformation of manufacturing and that Fixed Wireless Access can help bridge connectivity gaps in rural and underserved areas.
Ultimately, the study positions today’s investment in 5G as the foundational infrastructure for the 6G evolution expected by 2030, framing the current moment as a critical juncture for ASEAN’s long-term competitiveness and the digital future of its 700 million citizens.
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