Data framework necessary towards greater Asean

SINGAPORE (Dec 2): There is a need to shift focus to data flow across Asean to how to ensure its secure and effective implementation across the region, highlights Singapore’s Minister for Digital Development and Information, Josephine Teo.

She provided key insights into the future of digital cooperation between Singapore and its regional partners, particularly Malaysia, during a recent fireside chat with Malaysian journalists during a visit to her Ministry recently.

Speaking on the prospect of building Digital Corridors and the proposed Johor-Singapore Special Economic Zone (JS-SEZ), Teo underscored the fundamental openness already present in the region, while highlighting the critical need for enterprises to fully embrace the digital revolution.

A primary focus of regional digital policy is the facilitation of cross-border data transfer without compromising security or regulatory integrity. Teo confirmed that both Singapore and Malaysia maintain an open approach to the free exchange of digital products and services.

“There is no prohibition for companies to offer their products and services in Singapore… There is openness in Asean, and businesses have not raised this as a problem,” she said during the meet.

A significant hurdle in regional data exchange is the variation in national data protection laws. However, Teo noted that Asean has proactively addressed this through a data management framework.

“The framework acknowledges that while data protection laws may be at “different stages of maturity,” this divergence should not block data exchange between contracting parties.

“The key principle is that the exchange “does not erode obligations when it crosses jurisdictions.” Governments set the framework, but the security obligation rests with the originating entity.

“For example, an entity in Singapore bound by the Personal Data Protection Act (PDPA) must impose equivalent protection obligations on a receiving partner in another jurisdiction contractually. If the partner fails to comply, the Singapore entity can be held accountable by the government and can also pursue legal recourse against their partner.

“Ultimately, the decision on what commercial data to share remains with the data owners (enterprises), while governments focus on setting a robust, legally binding framework to clarify the obligations of both the transmitting and receiving parties.”

While policymakers are successfully building the digital infrastructure and regulatory frameworks, Teo pointed out that the more significant challenge lies in driving widespread digital adoption among businesses and the workforce.

She affirmed that the introduction of new technology, such as Artificial Intelligence (AI), must move beyond simple, tactical use cases to fundamentally transform business operations.

“AI could be used to improve workplace productivity, such as to summarise documents and to transcribe a discussion. But the real value of the technology is when the business model and the key processes are re-examined.”

To illustrate the long-term nature of this shift, she drew an analogy to the industrial revolution: “The use of electricity in factories did not become widespread for decades after it was discovered. Organisations had existing ways of producing their goods and services, which were quite embedded until they were prepared to change them out.”

“Similarly, organisations must go through a gradual process of acclimatisation with AI, starting at a basic level before advancing to deeper integration. The more that we can exchange notes on the adoption of AI and other digital technologies, the more all of Asean will benefit.”