Technology and innovation can help Southeast Asian economies to promote food security, green development and social equity, experts said at a regional forum held May 12 in Jakarta. Participants in the 2023 ASEAN Leadership and Partnership Forum also stressed the need for collaboration among various stakeholders across the region in addressing pressing issues. The two-day forum was held after the 42nd ASEAN summit at Labuan Bajo in eastern Indonesia. The forum’s theme, “ASEAN Matters — Centre of Growth, Opportunities & Prosperity”, was organized by the KSI Strategic Institute for Asia Pacific, the ASEAN Business Advisory Council, the Indonesian Chamber of Commerce & Industry (KADIN), the ASEAN Economic Club, and the Foreign Policy Community of Indonesia. It was supported by the Economic Club of Kuala Lumpur and the World Business Chamber. Indonesia’s Minister of Tourism and Creative Economy Sandiaga Uno said the creative industry not only contributes to regional GDP but also creates jobs. Uno, who delivered a special address, said that in Indonesia, digital transformation, along with financial assistance to improve information and communication technology infrastructure, have helped boost the creative industry. Education reforms have helped nurture creative talent. Albert Oung, executive council member and Green Economy chairperson of the UN Economic and Social Commission for Asia and the Pacific’s Sustainable Business Network, said innovative technological breakthroughs can help revitalize the ASEAN economy in the post-pandemic era. “What we need to do is pick the right projects with the right formula and make it ASEAN,” Oung said in an interview held on the sidelines of the forum. Ravindra Ngo, founder and CEO of Singapore-based think tank The Asian Network, said cooperation is one of the main themes of the forum. Ngo, who moderated the afternoon discussion on food security and climate sustainability, summed up one of the key points of the discussion: that stakeholders — including government, business and civil society — must collaborate to promote sustainable policies and practices to mitigate environmental risk and improve access for all. “The three Ps — people, planet and profit — are not enough. We need to add purpose — the purpose to make and contribute to a better world,” Ngo said. He said ASEAN also needs to use technologies and innovations, such as developing a climate-smart agriculture, that will help to make the shift towards agricultural and food systems that are “more resilient, sustainable and productive”. Gavin Chong, president and chief strategy officer of agribusiness firm Gokomodo Indonesia, said the agriculture industry needs long-term solutions. One way to promote a sustainable agriculture sector is to make farming profitable, which would encourage the younger generations to venture into farming. “How can we address that? Let's talk about prices on a monthly basis. Perhaps different associations representing various countries in ASEAN could have a dialogue on a monthly basis to talk about fertilizer prices as one example. Stay in touch on talking about price trends,” Chong said. Joseph D’ Cruz, CEO of the Roundtable on Sustainable Palm Oil, said discussions on agricultural sustainability must include diverse perspectives. In the case of the palm oil industry, D’ Cruz said that the challenge is how to build a sector that meets the demands of climate, sustainability and environmental preservation without sacrificing social development, livelihoods and providing a decent life for rural communities. He added that addressing these concerns also requires that addressing the challenge of providing food that is affordable and sustainable. “It's not an easy question to answer, but I think if we come back to the policy questions we're discussing around food security and climate change and where ASEAN goes in the future, recognizing the need to build a way to look at these realistically from a systems perspective is absolutely critical,” he said. Chhem Siriwat, an advisor for the Council for the Development of Cambodia, said in a panel discussion that digital transformation “is not just about technology, but it’s about change. It’s about a change in mindset, which will lead eventually to a change in behavior”. He said the three main pillars of digital transformation are culture, workforce and technology, and described his experience in helping to craft a national digital technology transformation roadmap for Cambodia. “We came up with three suggestions, the first being to appoint transformational leaders; to be a transformational leader, you have to be innovative, risk-taking,” he said. He added that it’s also important to invest in human resources and digital infrastructure. Yohanes Lukiman, chairperson of KADIN’s Permanente Committee for Asia Pacific, said digital transformation can also support small and medium-sized enterprises, especially those in the informal economy. Lukiman, who is also the board member of the ASEAN Business Advisory Council (ABAC), said ABAC is promoting the use of QR codes as an alternative payment system. “We know that there’s a huge informal economy in ASEAN and we also know that those in the informal economy can’t be paid by (conventional) digital means,” he said. The QR code program “will be a game changer in the digital economy,” Lukiman said. “An Indonesian tourist can go to Pattaya (in Thailand) and buy food from a roadside vendor using his Indonesian e-wallet. MSMEs (micro, small and medium-sized enterprises) in the informal economy can adopt this QR code,” he said.

Emerging as a new growth center of world economy, Southeast Asia has to enhance connectivity and joint action to overcome challenges including post-pandemic recovery, geopolitical tension, climate change and digital disruption, according to participants in a regional forum held on May 12. Arsjad Rasjid, chairperson of the Association of Southeast Asian Nations-Business Advisory Council (ASEAN-BAC), said the ASEAN economy has a “growing impact on global trade”. With a steady rise in GDP for the past few years, ASEAN is now the world's fifth largest economy and the fourth largest exporting region, Rasjid said in his welcome speech at the 2023 ASEAN Leadership and Partnership Forum being held in Jakarta. This has “major implications” on the future of investment inflows and resilience of the global supply chain. “ASEAN is no longer a regional power which sits on the sidelines of the global economy,” Rasjid said, alluding to this year’s theme of the ASEAN summit. ASEAN countries are “broadly regarded as the future base of global production and consumption, or as (the Indonesian) government has defined it, as a new epicenter of growth.” Indonesia is this year’s rotating chair of the regional bloc. The two-day forum is held after the 42nd ASEAN summit at Labuan Bajo in eastern Indonesia. The forum’s theme “ASEAN Matters — Centre of Growth, Opportunities & Prosperity”, was organized by the KSI Strategic Institute for Asia Pacific, ASEAN Business Advisory Council, Indonesian Chamber of Commerce & Industry (KADIN), ASEAN Economic Club, and Foreign Policy Community of Indonesia. It was supported by the Economic Club of Kuala Lumpur and the World Business Chamber. Rasjid, who also serves as KADIN’s chairman, said it is in the best interests of ASEAN to approach the future of its development with “a spirit of togetherness, togetherness and cooperation as a solid community”. Michael Yeoh, chairman of the forum and KSI’s president, said in his introductory speech that ASEAN, as an organization, can only remain relevant to the next generation if there is a “greater sense of purpose, a greater sense of belonging to ASEAN”. This is why people to people connectivity needs to be prioritized. He said this can be done through the conduct of more educational and youth exchanges among ASEAN members. Rasjid and Yeoh’s speeches was a prelude to the morning session which focused on ASEAN connectivity. ALSO READ: ASEAN leaders confident in region being 'epicentrum of growth' One of the panel discussants is Kirida Bhaopichitr, director of Economic Intelligence Service at the Thailand Development Research Institute (TDRI). Kirida said climate change, increasing US-China competition and how artificial intelligence is threatening job security are among the major challenges that the region has to overcome. She said connectivity and collaboration will help the region “survive through this perfect storm”. In dealing with geopolitical tension, for example, Kirida said ASEAN needs to focus on building a resilient supply chain in the region that will make ASEAN a “very attractive” investment destination. She also cited climate change, and how this is “not an individual country issue”. “When there’s forest fire in Indonesia, it affects all the way to Singapore (and) Thailand,” Kirida said, alluding to trans-boundary haze. “If we don’t collaborate to mitigate and adapt to climate change… I don't think we will survive very long.” Kirida said AI is “very disruptive… How can we improve our skills and our technology together in order to weather the storm? I don't think any one country can do that. We don't have enough resources. We just want to contribute more resources together. This kind of connectivity will make us go forward”. Kunihiko Hirabayashi, secretary general of the ASEAN-Japan Centre, said building trust, transparency and co-creation are key to “people-centered collaboration”. He said climate change and environmental degeneration, for example, can’t be resolved by a single country. But by working together, ASEAN and its partner countries can find an “actionable solution”. Lee Sheung Yuen, director general of the Hong Kong Economic and Trade Office in Jakarta, discussed the close relationship between the special administrative region and ASEAN, having been major trading partners for the last 12 years. Hong Kong and ASEAN also have an existing economic and technology cooperation program. Lee said Hong Kong hopes to contribute more in the partnership with ASEAN through its financial, professional services, logistics and transportation sectors. Delia Albert, former Philippine secretary of foreign affairs, has recalled an old report which stated that the concept of ASEAN as a community only exists among academics, journalists and those who participate in ASEAN-related activities. Albert said the idea of a “shared values toward a shared destiny remains to be a wish to be fulfilled. That is the greatest challenge that ASEAN faces”.

Hong Kong’s Finance Secretary Paul Chan Mo-po on Friday highlighted the importance of striking a balance between fintech innovation and risk mitigation in financial regulations to ensure a sustainable ecosystem. Chan delivered a speech on the second day of the annual Digital Economy Summit, which was organized by the Hong Kong Special Administrative Region government and Cyberport. “A healthy, sustainable ecosystem must have a strong immune system — that is, the ability to weed out the bad players, and insulate our financial system and stability from undue impact,” the finance chief noted. “The crux to this is whether we could apply balanced, proportionate regulation that will properly and adequately mitigate pertinent risks, while leaving sufficient room for innovative products and services to break new ground,” he added. Chan voiced confidence in the city's fintech sector, citing the significant surge in the number of fintech enterprises as proof of its growth. The number of fintech firms in the financial hub increased from 180 to more than 800 this year in five-year period, offering innovative services including mobile payments, cross-border transfers, virtual asset trading and blockchain. He said despite the COVID-19 pandemic, Hong Kong has continued to attract world-class talent and entrepreneurs to make the city their home, solidifying the city’s position as a “vibrant fintech ecosystem”. Chan said the proactive approach taken by the government and public sector to spur fintech development includes seed funding programs, investor matching, incubation, and professional support services for fintech startups. These efforts have created an environment in which fintech innovation can flourish, he added. The SAR government, in its 2023-24 Budget, allocated more than HK$700 million ($89.2 million) to accelerate the development of the digital economy, along with over HK$9 million for a series of international initiatives. The two-day summit, themed “Emerging with resilience: Fostering a smarter future”, aims to bring together entrepreneurs, policymakers, and academics worldwide to share their insights on topics such as smart cities, data innovation, fintech, Web3, artificial intelligence and big data, smart mobility, as well as new industrialization.

The Hong Kong Special Administrative Region is gearing up to embrace the digital economy with the support of national strategies and billions of dollars in funding, officials and technology pundits said on Thursday. Hong Kong Chief Executive John Lee Ka-chiu said during the opening ceremony of the Digital Economy Summit that “We are now to start a new chapter of the digital economy.” The two-day event, themed “Emerging with resilience: Fostering a smarter future”, aims to bring together entrepreneurs, policymakers, and academics worldwide to share their insights on topics such as smart cities, data innovation, fintech, Web3, artificial intelligence and big data, smart mobility, as well as new industrialization. Lee struck an optimistic tone about the city’s transition to a digital economy, citing its advantageous geographical location and support from national strategies. “Under the unique principle of ‘one country, two systems’, Hong Kong enjoys the unparalleled advantage of having the strong support of national strategies while being connected with the rest of the world,” Lee said. Lee also noted that the national 14th Five-Year Plan (2021-25) and the development of the Guangdong-Hong Kong-Macao Greater Bay Area are expected to elevate the city’s status as an international innovation hub. He said the widespread adoption of digital technologies had transformed traditional ways of conducting business during the COVID-19 pandemic. “From e-commerce and online education to remote work and smart city innovations, … the digital economy offers a way forward for businesses and individuals, providing opportunities for growth and proceeding in the face of uncertainties,” he said. The SAR government, in its 2023-24 Budget, allocated more than HK$700 million ($89.2 million) to accelerate the development of the digital economy, along with over HK$9 million for a series of international initiatives. Cao Shumin, deputy director of the Cyberspace Administration of China, said in his opening remarks that the digital economy has become an important engine for high-quality development with the advancement of the Greater Bay Area. She said Hong Kong needs to speed up construction of its data center and the intelligent transformation of traditional infrastructure, unleashing the commercial potential of data. “Hong Kong should fully leverage the advantages of the ‘one country, two systems’ principle” to help create an internationally competitive digital industry cluster for the Greater Bay Area, she added. Chen Dong, deputy director of the Liaison Office of the Central People’s Government in the Hong Kong Special Administrative Region, said Hong Kong demonstrated its potential for developing the digital economy with the establishment of the Institute of Web 3.0 Hong Kong, the opening of the first InnoEX, and the ongoing summit. What’s more, Hong Kong’s Top Talent Pass Scheme — offering fast-track employment visas for individuals with outstanding educational backgrounds, or those drawing high salaries — received approximately 5,800 global applications in the two weeks after its launch, highlighting the city’s appeal to international talent, he said. The annual summit was organized by the Hong Kong SAR government and Cyberport. Sun Dong, secretary for innovation, technology and industry; and Duncan Chiu, a lawmaker from the Information Technology functional constituency in the Legislative Council; attended the opening ceremony.

Hong Kong Chief Executive John Lee Ka-chiu struck an optimistic tone about the city's transition to a digital economy, citing its advantageous geographical location and support from national strategies. “We are now to start a new chapter of the digital economy,” the city’s leader said on Thursday during the opening ceremony of the two-day Digital Economy Summit. The financial hub is transforming in line with the central government's ambition to increase the nation's scientific and technological capabilities. Lee noted that President Xi Jinping emphasized the importance of innovation in the country's development strategy during last month's 14th National People's Congress in Beijing. “Under the unique principle of ‘one country, two systems’, Hong Kong enjoys the unparalleled advantage of having the strong support of national strategies while being connected with the rest of the world,” Lee said. He also noted that Hong Kong’s digital economy development is supported by the nation’s 14th Five-Year Plan (2021-25) and the development of the Guangdong-Hong Kong-Macao Greater Bay Area, which are expected to help the city become an international innovation center. Lee highlighted that the widespread adoption of digital technologies had transformed traditional ways of conducting business during the COVID-19 pandemic. “From e-commerce and online education to remote work and smart city innovations, … the digital economy offers a way forward for businesses and individuals, providing opportunities for growth and proceeding in the face of uncertainties,” he said. Lee noted the summit is the first in-person mega event in the field of innovation and technology organized by the local government since the financial hub reconnected to the world after the pandemic. The annual event, organized by the Hong Kong government and Cyberport, aims to bring together entrepreneurs, policymakers, and academics to share their insights on topics such as smart cities, data innovation, fintech, Web 3.0, artificial intelligence and big data, smart mobility, as well as new industrialization. Sun Dong, secretary for innovation, technology and industry; Cao Shumin, deputy director of the Cyberspace Administration of China; and Chen Dong, deputy director of the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region attended the kickoff ceremony.

Coinciding with the resumption of quarantine-free travel between Hong Kong and the Chinese mainland following three years of restrictions, the success of the 16th Asia Financial Forum marked a promising start to Hong Kong’s financial development in 2023, Hong Kong Trade Development Council’s Deputy Executive Director Patrick Lau Hui-ping said. “As the first major international event of the year, AFF brought together thousands of global business leaders, financial and wealth management experts, entrepreneurs, technology giants and economists, far exceeding our expectations,” Lau said. “It’s clear that everyone knows where the real financial opportunities are.” Organized by the Hong Kong Special Administrative Region government and the HKTDC, the AFF kicked off on Wednesday at the Hong Kong Convention and Exhibition Centre. The two-day event was held in physical format with digital extension. Following two years of being held virtually due to the COVID-19 pandemic, this was the first time that the forum had returned to physical format. The forum attracted more than 1,000 participants on the first day, including more than 100 global leaders and officials invited as speakers. “We are delighted to see the tremendous interest from financial and business leaders from around the world in joining the forum and enthusiastically participating in the discussions and activities,” Lau said. “The first day of the forum was a great success. It fully demonstrated the vitality of Hong Kong’s financial industry and reflected the potential of Hong Kong as an international financial center.” This year, more than 40 panel discussions and workshops were held to explore major global issues, such as environmental, social and governance, sustainable development, inclusive capital markets and family office challenges. The forum also featured investment project matching sessions to connect global investors and project owners in order to facilitate more concrete business cooperation. “The AFF has built an exchange platform full of opportunities for all the participants to have closer interaction and create more business opportunities, through which international participants are able to match more business partners in the Hong Kong ecosystem,” Lau said. “It once again showcased Hong Kong as a vibrant international financial and business hub.” Outside the two-way forum, a variety of exclusive travel, food and hotel discounts for overseas delegates were provided by the HKTDC, to enrich their stay in Hong Kong. Regarding the resumption of normal travel between Hong Kong and the Chinese mainland from Sunday, Lau expects to see more Hong Kong companies entering the Guangdong-Hong Kong-Macao Greater Bay Area market to deploy their business in the future. Following the resumption of the normal cross-boundary travel, more initiatives or activities will be introduced this year to help local companies expand in the mainland market, especially in the Greater Bay Area, he said. “Especially as this year coincides with the 10th anniversary of the Belt and Road Initiative, we expect to see closer ties between the two sides.” “The HKTDC will actively promote business cooperation between Hong Kong and the mainland, and leverage the city’s international advantages to serve the country and help mainland enterprises go global.”