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ASEAN urged to seize 5G-AI opportunity
A report warns the region could miss out on economic opportunities as the growing digital divide between ASEAN member states threatens to undermine its competitiveness
ASEAN nations face a rapidly closing window to establish leadership in the next wave of digital transformation, with uneven adoption of 5G and artificial intelligence (AI) threatening to deepen digital divides and weaken the region’s competitiveness, a report has warned.
According to the report by the Lee Kuan Yew School of Public Policy (LKYSPP) at the National University of Singapore, 5G technology alone is projected to add $130bn to the Asia-Pacific economy by 2030.
However, 5G penetration rates across ASEAN vary widely, ranging from 48.3% in Singapore to less than 1% in several other member states. In 2024, the combined Southeast Asia and Oceania region had a 5G penetration of just 9.4%, lagging significantly behind India, Nepal and Bhutan, which collectively stood at 23.1%. The report forecasts that the gap is projected to widen by 2030, with Southeast Asia and Oceania achieving 51.5% penetration compared with 74% in India, Nepal and Bhutan.
The report warned that without coordinated policy and investment, the vast disparities in digital readiness across the bloc will deepen, fragmenting digital markets and slowing down innovation and AI adoption.
“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 from the LKYSPP, who authored the report. “Our report provides ASEAN policymakers with a blueprint to navigate the complex intersection of 5G and AI integration, and now policymakers must act decisively.”
The report recommended that ASEAN governments establish national 5G-AI development strategies with clear roadmaps; create coordination agencies to oversee policy and investment; deploy spectrum policies that promote accessibility and innovation; foster AI-driven ecosystems through public-private partnerships; and set clear key performance indicators (KPIs) to track progress.
It also called for governments to treat 5G as a strategic enabler for AI rather than just a telecommunications upgrade. This shift in mindset is crucial to drive enterprise adoption, which the study identified as the primary driver of 5G’s economic impact, ahead of consumer-led growth.
Pockets of progress
Despite the warnings, the report highlighted notable successes that serve as a model for the region. Singapore leads the bloc as the only member to have achieved widespread 5G standalone (SA) network coverage, enabling advanced applications such as smart ports, where 5G has delivered a 50% reduction in latency for automated guided vehicles.
Malaysia’s single wholesale network model, managed by Digital Nasional Berhad (DNB), has successfully achieved 82.4% population coverage, demonstrating a successful alternative path to accelerating infrastructure roll-out. Meanwhile, Thailand has deployed AI-enhanced disaster management systems and is rapidly expanding fixed wireless access (FWA) to bridge the digital divide in areas with limited fibre infrastructure.
The research also noted the importance of private 5G networks in supporting Industry 4.0 transformation, enabling secure, low-latency applications in smart factories, logistics hubs and other industrial environments. Furthermore, investments in current 5G infrastructure will pave the way for 6G networks, which are expected to emerge by 2030.
“It is no longer futuristic to imagine ASEAN leading a 5G-AI-powered world, where enterprises scale globally through intelligent manufacturing, and students in remote areas access immersive, AI-powered education,” the report’s executive summary noted. “Realising this vision requires ASEAN to act with bold leadership, strategic foresight and unified resolve.”
Read more about 5G and AI in APAC
- China’s WeRide launches Southeast Asia’s first fully driverless public bus service at Singapore’s Resorts World Sentosa, marking a significant step in Singapore’s push to integrate autonomous vehicles into its public transport network.
- Telcos from Singapore, Malaysia and Indonesia are moving beyond the 5G hype as they focus on driving enterprise 5G and AI adoption to drive value for customers.
- Indosat Ooredoo Hutchison announces landmark initiative to deploy an AI-based radio access network infrastructure across the country.
- Jio Platforms, AMD, Cisco and Nokia team up to develop an Open Telecom AI Platform aimed at improving the efficiency and security of telco networks through artificial intelligence and automation.
