With a youthful demographic, bustling urban hubs and rapidly expanding markets, South-east Asia is increasingly becoming a magnet for entrepreneurs and investors. By 2030, Asean is on track to rank as the fourth-largest economy in the world.
During that same period, the region’s digital sector is predicted to more than double in size, reaching an estimated US$560 billion (S$726 billion) and generating new jobs and innovation. Still, progress alone does not guarantee long-term success. In a landscape shaped by shifting geopolitics and evolving leadership, sustained growth depends on strategic planning, strong public-private partnerships and a shared regional goal.
One collective goal stands out: in a time defined by rapid technological change and economic transition, building a strong, inclusive foundation for growth is more important than ever.
For businesses to thrive over time, scale is essential. An economy that allows more people to participate, contribute and benefit creates the scale needed to support better jobs, groundbreaking ideas and global competitiveness. Inclusivity ensures growth that lasts – and growth that continues to reward future generations.
Innovation as a competitive advantage
South-east Asia, with its energetic and enterprising population, is uniquely positioned to showcase how inclusive growth can succeed. The region has a track record of skipping outdated systems and adopting modern solutions that meet current and future needs.
Malaysia offers a recent example: YTL AI Labs has created ILMU, a Malay-language large language model developed entirely within the country. It brings capabilities similar to ChatGPT to native Bahasa Malaysia speakers and has potential uses across education, government and business.
Further investment in regulatory alignment, lowering non-tariff barriers and boosting intra-regional trade could elevate Asean’s status as a powerhouse in the global economy. One promising step is the proposed Asean Business Entity recognition, which could make it easier for companies to expand regionally and drive economic vibrancy.
Expanding access to capital
While parts of the world are moving toward fragmentation, Asean stands to gain by doing the opposite – strengthening cooperation and jointly advancing initiatives that benefit all.
Micro, small and medium-sized enterprises (MSMEs) illustrate this potential clearly. They make up over 97 per cent of all businesses in the region, provide 85 per cent of jobs and form a major pillar of the economy – contributing around 40 per cent of GDP in Malaysia alone.
These enterprises also play a critical role in upward mobility and middle-class expansion. By 2035, most Asean countries are expected to have majority middle-class populations, reinforcing the positive cycle between MSME growth, employment and consumer spending.
However, many MSMEs lack what they need to scale – including funding, mentorship and networks. This is an area where private sector actors, in partnership with Asean bodies and governments, can create real change. Access to financing is especially crucial, yet without credit histories or digital identities, many MSMEs struggle to secure loans. Around 60 per cent report difficulties in obtaining funding.
To address this, the Mastercard Impact Fund committed US$5 million last year to unlock as much as US$1 billion in financing through the Asian Development Bank – showing how even modest private-sector investment can reduce risk and expand credit access.
Advancing digital growth while ensuring safety
The shift toward digitalisation brings significant potential. Digital payments in the region are set to surpass US$1 trillion this year. By accepting e-wallets, QR codes and contactless payments, MSMEs can broaden their customer reach, increase revenue, create jobs and remain competitive.
But increased connectivity also comes with cyber risks. Smaller businesses often lack the expertise or resources to protect themselves, even though they face threats similar to large corporations. Cybercriminals exploit weak points where digital systems fail to align, making shared responsibility essential. Governments and private organizations must work together to build secure digital ecosystems and equip MSMEs with the knowledge and tools to defend against cyber threats.
These goals are within reach – and initiatives led by Mastercard alongside the Asean-Business Advisory Council are already helping push the region toward a stronger digital and economic future.
Asean has the potential to become a key force shaping the global economy, steering development toward growth that is resilient, equitable and sustainable.
To realize this vision, the private sector must work hand in hand with government, championing economic inclusion and building an environment where every business can thrive. By moving together, we can create not just growth for today, but growth that lasts – growth that benefits all.
During that same period, the region’s digital sector is predicted to more than double in size, reaching an estimated US$560 billion (S$726 billion) and generating new jobs and innovation. Still, progress alone does not guarantee long-term success. In a landscape shaped by shifting geopolitics and evolving leadership, sustained growth depends on strategic planning, strong public-private partnerships and a shared regional goal.
One collective goal stands out: in a time defined by rapid technological change and economic transition, building a strong, inclusive foundation for growth is more important than ever.
For businesses to thrive over time, scale is essential. An economy that allows more people to participate, contribute and benefit creates the scale needed to support better jobs, groundbreaking ideas and global competitiveness. Inclusivity ensures growth that lasts – and growth that continues to reward future generations.
Innovation as a competitive advantage
South-east Asia, with its energetic and enterprising population, is uniquely positioned to showcase how inclusive growth can succeed. The region has a track record of skipping outdated systems and adopting modern solutions that meet current and future needs.
Malaysia offers a recent example: YTL AI Labs has created ILMU, a Malay-language large language model developed entirely within the country. It brings capabilities similar to ChatGPT to native Bahasa Malaysia speakers and has potential uses across education, government and business.
Further investment in regulatory alignment, lowering non-tariff barriers and boosting intra-regional trade could elevate Asean’s status as a powerhouse in the global economy. One promising step is the proposed Asean Business Entity recognition, which could make it easier for companies to expand regionally and drive economic vibrancy.
Expanding access to capital
While parts of the world are moving toward fragmentation, Asean stands to gain by doing the opposite – strengthening cooperation and jointly advancing initiatives that benefit all.
Micro, small and medium-sized enterprises (MSMEs) illustrate this potential clearly. They make up over 97 per cent of all businesses in the region, provide 85 per cent of jobs and form a major pillar of the economy – contributing around 40 per cent of GDP in Malaysia alone.
These enterprises also play a critical role in upward mobility and middle-class expansion. By 2035, most Asean countries are expected to have majority middle-class populations, reinforcing the positive cycle between MSME growth, employment and consumer spending.
However, many MSMEs lack what they need to scale – including funding, mentorship and networks. This is an area where private sector actors, in partnership with Asean bodies and governments, can create real change. Access to financing is especially crucial, yet without credit histories or digital identities, many MSMEs struggle to secure loans. Around 60 per cent report difficulties in obtaining funding.
To address this, the Mastercard Impact Fund committed US$5 million last year to unlock as much as US$1 billion in financing through the Asian Development Bank – showing how even modest private-sector investment can reduce risk and expand credit access.
Advancing digital growth while ensuring safety
The shift toward digitalisation brings significant potential. Digital payments in the region are set to surpass US$1 trillion this year. By accepting e-wallets, QR codes and contactless payments, MSMEs can broaden their customer reach, increase revenue, create jobs and remain competitive.
But increased connectivity also comes with cyber risks. Smaller businesses often lack the expertise or resources to protect themselves, even though they face threats similar to large corporations. Cybercriminals exploit weak points where digital systems fail to align, making shared responsibility essential. Governments and private organizations must work together to build secure digital ecosystems and equip MSMEs with the knowledge and tools to defend against cyber threats.
These goals are within reach – and initiatives led by Mastercard alongside the Asean-Business Advisory Council are already helping push the region toward a stronger digital and economic future.
Asean has the potential to become a key force shaping the global economy, steering development toward growth that is resilient, equitable and sustainable.
To realize this vision, the private sector must work hand in hand with government, championing economic inclusion and building an environment where every business can thrive. By moving together, we can create not just growth for today, but growth that lasts – growth that benefits all.