How ASEAN Economies Are Harnessing Open Data Transfer
Ensuring free and efficient data flows can profoundly affect economies, fostering innovation and cementing competitive advantage. A recent report paints a promising picture of the state of cross-border data flows in the ASEAN region, showcasing how some nations are taking proactive steps to harness the potential of the digital age.
The “Data Beyond Borders 3.0” report, released by Salesforce, delved into the state of G20 economies and their adaptability to cross-border data flows. The findings revealed that countries in the ASEAN region have made significant strides: Singapore continues to be a forerunner, maintaining its third place in the overall rankings, trailing only Japan and the U.K., while Indonesia has been noted for its commendable progress, jumping two spots since 2021 to now hold the 13th position among G20 economies.
This can be attributed to the robust open data transfer policies initiated by these nations. Singapore, for instance, has entered into Digital Economy Agreements with multiple countries, including Chile, New Zealand, South Korea, Australia, the E.U., and the U.K., all aiming to promote the free flow of data. Meanwhile, Indonesia has set a precedent by introducing its Data Protection Law in 2022, which clearly outlines the mechanisms for cross-border data transfers and the types of data allowed.
Furthermore, regional agreements like the ASEAN Digital Economy Framework Agreement (DEFA) and the Indo-Pacific Economic Framework for Prosperity (IPEF) are in the pipeline, set to further enhance data flow across borders.
Such endeavors have their advantages. Over the past decade, cross-border e-commerce witnessed an astounding 45-fold increase, touching an estimated worth of USD2.7 trillion in 2023. Data moving effortlessly across borders magnifies competition, catalyzes job creation and knowledge-sharing, and leaves a positive footprint on the overall economy.
“Cross-border data transfers drive economic success. In ASEAN, economies like Singapore are reaping the benefits with its strong cross-border data policies and conducive regulatory environment. It’s heartening to see nations like Indonesia evolving in this trajectory,” remarked Boon Poh Mok, director of government affairs and public policy for Salesforce Southeast Asia & Greater China.
The report suggests a series of policy recommendations for nations keen on enhancing their cross-border data transfers and tapping into the consequent economic growth. These include harmonizing privacy laws, expanding digital economy agreements, establishing trusted data-sharing frameworks, expediting the digitization of businesses and government services, and defining data sovereignty in a universally compatible manner.
Image credit: iStockphoto/Sitthiphong
