
Lee Kuan Yew School of Public Policy Releases Strategic Roadmap for ASEAN's 5G-AI Transformation
ASEAN faces a critical window of opportunity. The research shows 5G alone is projected to contribute US$130 billion to Asia Pacific's economy by 2030. However, adoption remains uneven across the region — ranging from 48.3% penetration in Singapore to less than 1% in several ASEAN member states. Without coordinated action, these disparities risk deepening digital divides and weakening regional competitiveness. ASEAN may be left behind as other regions accelerate their digital transformation.
'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. The window for establishing regional leadership in intelligent connectivity is rapidly closing,' said Professor Vu Minh Khuong from LKYSPP. 'Our report provides ASEAN policymakers with a blueprint to navigate the complex intersection of 5G and AI integration, and now policymakers must act decisively. Coordinated strategies that can accelerate regional leadership in intelligent connectivity must be established to help the region move beyond incremental improvements toward transformative digital leadership.'
The LKYSPP study, drawing from extensive stakeholder interviews and survey responses from over 400 professionals across eight ASEAN countries, identifies ten critical imperatives for accelerating 5G-AI transformation, beginning with establishing coordinated digital leadership to address fragmentation that is currently slowing regional progress. ASEAN governments should treat 5G as a strategic AI enabler — not merely a telecom upgrade — while addressing the widening skills gaps that are impeding enterprise adoption across the region.
To secure ASEAN's digital future, the report recommends implementing five strategic priorities:
1. Establishing national 5G-AI development strategies with clear 2025-2030 roadmaps;
2. Creating empowered coordination agencies in ASEAN member countries;
3. Deploying forward-looking spectrum policies that promote accessibility and innovation;
4. Fostering vibrant AI-driven ecosystems through public-private collaboration; and
5. Implementing robust monitoring frameworks to track progress and enable course corrections.
The LKYSPP report emphasises that enterprise adoption should be prioritised as the primary driver of 5G's economic impact. Looking across the region, there is much potential and notable examples of success: Singapore's 5G-powered smart ports have achieved 50% latency reduction, Thailand has deployed AI-enhanced disaster management systems, and Malaysia's wholesale network model has reached 82% population coverage. These examples illustrate the potential for transformative impacts when coordinated strategies are effectively implemented.
According to the LKYSPP research report, private 5G networks are essential for Industry 4.0 transformation, while Fixed Wireless Access offers a compelling solution for bridging connectivity gaps in underserved areas. The report also positions current 5G deployment as critical infrastructure for 6G evolution expected by 2030, making today's strategic decisions particularly important for future competitiveness.
Looking ahead, the study envisions ASEAN leading a 5G-AI powered future where enterprises scale globally through intelligent manufacturing, farmers optimise yields using AI-driven analytics, and students in remote areas access immersive education platforms. Realizing this vision requires bold coordinated action, strategic coordination and planning, and sustained commitment to digital transformation.
The comprehensive 148-page report and executive summary are now available for download. The findings serve as both a strategic guide for policymakers and a call to action for regional institutions to seize the 5G-AI moment and shape a digitally empowered future for ASEAN's 700 million citizens.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Star
20 minutes ago
- The Star
Data centres continue to be key growth driver
HLIB Research said it foresees a DC award cycle in the second half. PETALING JAYA: The construction sector appears to be on a growth trajectory and share prices are catching up, according to Hong Leong Investment Bank (HLIB) Research. The key drivers of the growth story came from data centres (DCs) and public sector related jobs such as roads, railways and water, said the research house. 'The robust figure in the first half of the year reinforces the growth path for contracts in 2025, extending the order book expansion trajectory. 'In our view, with the sizeable data centre tenders set for awards in the second half, there is potential to match decade high flows last achieved in 2016,' it said. 'Domestic contract awards in the second quarter of the year came in at RM11.2bil, bringing the total sum in the first half to RM27.5bil, increasing by 33%. 'This is the fifth consecutive quarter of double digit contract value awarded,' HLIB Research added, noting that order books are poised to expand. The research house noted this being the fifth consecutive quarter of double digit contract value awarded which had expanded in the billions. 'In our view, with sizeable DC tenders set for awards in the second half, there is potential to match decade high flows last achieved in 2016,' it said. 'We are foreseeing a DC award cycle in the second half, to be driven by multiple award decisions for DC tenders placed in the first half of this year – this includes multiple multi-billion ringgit tenders for one US based hyperscaler,' it added. In the DC segment, HLIB Research noted that bigger projects are better for companies such as Gamuda Bhd , Sunway Construction Group Bhd and IJM Corp Bhd , given their competitive advantages such as balance sheet strength, track record and integrated structure. 'While news of potential artificial intelligence chip curb is concerning, in our view, Malaysian contractors are reliant on US and or Western-based hyperscaler names for sizeable DC jobs, thus mitigating uncertainties to a certain extent, in our view. 'DCs aside, the second half could see more action coming from the New Pantai Expressway extension, Penang Light Rail Transit (subcontracts and systems package) while sizeable road projects in Sabah and Sarawak may materialise,' it said. 'As for the commercial segment (including residential projects sitting on commercial plots), lack of clarity on sales and services tax treatment could weigh on the pipeline in the third quarter of the year,' HLIB Research added. The research house had an 'overweight' rating with its top pick being Gamuda – a 'buy' with a target price of RM5.70. It said contractors in the sector could broadly add to their order book from the DC segment as well as from infrastructure projects, while valuations at current levels provide room for upside.


The Star
an hour ago
- The Star
FBM KLCI ends higher as risk appetite returns
SPI Asset Management's Stephen Innes said the FBM KLCI traded firmer, buoyed by hopes that the worst of the tariff storm may be behind. KUALA LUMPUR: Bursa Malaysia finished at its intraday high for the second straight session yesterday, driven by global optimism and the latest round of government fiscal aid that led investors to be back in the local market. At 5pm, the FBM KLCI gained 10.53 points, or 0.69%, to close at an intraday high of 1,540.32, compared to Wednesday's close of 1,529.79. The index opened 1.26 points higher at 1,531.05 and moved between 1,529.71 and 1,540.32 throughout the trading session. Gainers led losers in the broader market 502 to 474, with 496 counters unchanged, 1,044 untraded and seven suspended. Turnover, however, slipped to 2.97 billion shares worth RM2.3bil from 3.27 billion shares worth RM2.26bil on Wednesday. SPI Asset Management managing partner Stephen Innes said the FBM KLCI traded firmer, buoyed by hopes that the worst of the tariff storm may be behind as the US-Japan deal, inked at 15%, has the market betting that other trading partners, including Malaysia, could secure similar outcomes, potentially keeping tariffs below the 20% mark. 'That shift in expectations is stoking risk appetite across Asia. Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim's announcement of RM100 cash handouts for all adult Malaysians and targeted fuel price relief adds a dose of local stimulus, reinforcing the bid on domestic equities. 'Boosted by global optimism and the government fiscal aid, investors are back in force,' he told Bernama. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said a sharp surge in the final hour of trading lifted the composite index, suggesting renewed investor confidence and short-term accumulation ahead of key global macroeconomic events. 'Market sentiment was buoyed by the government's latest fiscal stimulus announcements, which provided a supportive backdrop for risk assets. 'Notably, foreign funds turned net buyers for the day, signalling a shift in sentiment likely driven by the perceived credibility and market-friendly orientation of the new fiscal measures,' he said. Mohd Sedek elaborated that among FBM KLCI constituents, petrochemical stocks led the gains, reflecting sector-specific optimism amid improved global demand signals and positive developments in trade negotiations. The Industrial Products and Services Index extended its winning streak, underpinned by expectations tied to the recent US-Japan trade agreement, which was viewed by markets as a favourable benchmark for regional trade realignments.


Malaysia Sun
4 hours ago
- Malaysia Sun
$10mn of USAID contraceptives to be burned in France media
The shipment destined for poor nations ended up stuck in Europe due to the shutdown of the agency A $10 million shipment of US-funded contraceptives will be incinerated in France, after Washington rejected offers to send the supplies to poorer nations, Reuters reported on Wednesday. The stockpile - made up of birth control pills and implants - has been stuck in Belgium since early 2025, when President Donald Trump shut down USAID and froze foreign aid programs. The supplies were originally meant for distribution in developing countries. A State Department spokesperson confirmed the destruction plan, saying the disposal will cost around $167,000 and take place at a medical waste facility in France. The contraceptives are being stored in the city of Geel and will require dozens of truckloads and at least two weeks to move, sources told Reuters. Belgian authorities have attempted to prevent the destruction of the supplies yet ultimately failed to do so, having exhausted "all possible options to prevent the destruction, including temporary relocation." "Despite these efforts, and with full respect for our partners, no viable alternative could be secured. Nevertheless, Belgium continues to actively seek solutions to avoid this regrettable outcome," the country's Foreign Ministry said in a statement, adding that "sexual and reproductive health must not be subject to ideological constraints." Human rights groups that attempted to buy the supplies from Washington have also suggested the impending destruction is being driven by "ideological" motives rather than a desire to cut costs. Sarah Shaw, Associate Director of Advocacy at MSI Reproductive Choices, told Reuters the NGO approached Washington with an offer to pay for repackaging of the supplies without USAID branding and for shipment to their destinations, but the proposal was declined. "MSI offered to pay for repackaging, shipping, and import duties, but they were not open to that... We were told that the US government would only sell the supplies at the full market value," said Shaw. "This is clearly not about saving money. It feels more like an ideological assault on reproductive rights, and one that is already harming women," she added. The UN sexual and reproductive health agency, UNFPA, also reportedly offered to buy the shipment. The talks ultimately broke down, partially due to a lack of response from the US government, a source with direct knowledge told Reuters. (