Singapore to push for wider regional AI adoption, cross-border data flows as ASEAN chair

JAKARTA – Helping more businesses across South-east Asia adopt artificial intelligence will be a major priority for Singapore when it assumes the ASEAN chairmanship in 2027, as governments across the region race to harness the technology.

Speaking at the Asia Economic Summit in Jakarta on June 17, Minister for Digital Development and Information Josephine Teo said Singapore would build on efforts by the Philippines, the current ASEAN chair, to encourage greater AI adoption among micro, small and medium-sized enterprises (SMEs).

“Next year, Singapore will assume the ASEAN chair,” Teo said. “We will bring more SMEs, workers and governments together to use AI better,” she added.

Teo also cautioned against what she described as a narrow interpretation of “AI sovereignty”, arguing that it would be unrealistic for most countries to seek ownership of every layer of the AI ecosystem, from chips and models to data and applications.

Instead, countries should focus on ensuring they can govern AI effectively, make their own choices about technology partners and build strong domestic AI ecosystems, she said.

Singapore will be investing more in shared digital resources for the region, including language models, governance toolkits and programmes aimed at building AI capabilities, she added.

ASEAN is well positioned to expand AI adoption, according to Teo, who cited the region’s growing digital infrastructure, a digitally connected population and increasing efforts by governments and businesses to equip workers with AI-related skills.

South-east Asia is widely seen as one of the world’s fastest-growing digital markets. Its digital economy is expected to surpass US$300 billion (S$385 billion) in 2025, driven by rapid growth in e-commerce and AI adoption, an annual report released in November by Google, Temasek and Bain & Company said.

Teo noted that data centre capacity across the region is expected to more than triple between 2025 and 2030, while undersea cable networks are expanding rapidly.

But infrastructure is not just about cables and computing power, she added. It also includes the software and policy frameworks that make AI accessible and useful.

Teo gave the example of SEA-LION, or Southeast Asian Languages in One Network, an open-source large language model developed in Singapore and trained on South-east Asian languages. 

The model has been downloaded more than 200,000 times and is used by companies across the region to build AI applications.

Teo emphasised the importance of policies that support the responsible use of data, describing it as the “lifeblood” of AI.

To train reliable AI models, businesses need access to quality data and an environment that allows data to move across borders, she said.

This is especially important for companies operating in multiple countries that need a complete view of their customers and supply chains.

While restrictions may be necessary to protect personal information and national security, overly burdensome rules can hinder innovation and make it harder for smaller firms to expand, she said.

“Collectively, we should help these small companies to thrive and to scale, whether they are in Jakarta, Bandung, Hanoi, or Bangkok,” said Teo.

She pointed to the proposed Digital Economy Framework Agreement (DEFA), an ASEAN initiative aimed at establishing common rules for digital trade and supporting trusted cross-border data flows. 

The pact is expected to be signed in November after negotiations concluded in May and member states complete legal scrubbing.

Looking ahead to Singapore’s ASEAN chairmanship, Teo said the Republic would work to deepen cross-border data flow mechanisms and align AI governance approaches across the region.

ASEAN can achieve much more if it moves ahead in step with one another, and Teo said this is embodied in Indonesia’s national creed of “Bhinneka Tunggal Ika” or unity in diversity.

“This is not just Singapore’s agenda. It is ASEAN’s agenda. ASEAN’s strength has never been about being the same. It has always been about working together, despite being different,” she said.

The Asia Economic Summit was organised by Tech in Asia and supported by SPH Media titles, the Chinese news daily Lianhe Zaobao and The Business Times.

Teo later took part in a panel discussion with Indonesian Minister of Communications and Digital Affairs Meutya Hafid, which was moderated by Tech in Asia overall lead and editor-in-chief Terence Lee.

When asked how DEFA would affect businesses operating across the region, both ministers said common rules would make it easier for companies to operate and invest across ASEAN.

Meutya said technology companies face the challenge of navigating different regulations and requirements across ASEAN’s 11 member states.

While the region is diverse, a common framework would help attract long-term investment and make it easier for companies to scale across multiple markets.

“We are close to each other, but we are different from each other. We have cultures that have different strengths and weaknesses, opportunities and challenges that are different. So… by having a framework, I think it’ll be easier to invite investments,” she said.

Teo compared DEFA to air services agreements that allow flights to operate between countries.

While governments could agree on broad principles for cross-border data flows, she said the more difficult task was ensuring that the technical systems and regulations underpinning those flows could work together despite different national laws.

“The fact that we can all fly comfortably from one place to the next without problems is not because there weren’t interoperability issues. It’s because the interoperability issues were settled,” she said.