First, I would like to express my sincere appreciation to the organizers of the World  Internet  of  Things  Convention  2024  for  inviting  inviting  me  to  share  my perspectives on this dynamic field. This event offers a remarkable platform for us to explore the transformative power of technology and its role in shaping our future.

The theme of today’s convention, “Opening Up a New Era of the Intelligently Interconnected  Digital  Economy”,  resonates  deeply  as   it   reflects  our  collective ambition to lead the way in Industry 4.0. With the rapid adoption of the Internet of Things (IoT), artificial intelligence (AI), and big data analytics, we are witnessing a profound  transformation  across  industries.  These  technologies  not  only  drive productivity but also pave the way for new, innovative business models, helping us advance toward economic prosperity and sustainable development.

Ladies and Gentlemen,

ASEAN clearly recognises the transformative power of digital technologies and embraces it as a new driver for growth. With over 480 million active internet users , 80% of whom are digital consumers, the ASEAN Digital Economy is on track to achieve USD1 trillion by 2030.

To further this momentum, ASEAN is working towards concluding the ASEAN Digital Economy Framework Agreement (DEFA) by 2025, which is expected to unlock the regional digital economy by up to USD2 trillion by 2030 . At the heart of this ambition is the drive for enhanced regional integration, which enables businesses to operate seamlessly and provides consumers with efficient and secure digital services. This is facilitated by the implementation of key strategic initiatives in digital trade, e-commerce, e-payment, digital identity, cybersecurity, and the governance of emerging technologies.

With the evolving demand for the connectivity and integration of devices and networks, the IoT technology is experiencing a rapid growth across diverse sectors and play a pivotal role in shaping future technological advancements. The IoT global market is expected to grow to USD2.4 trillion by 2027. In ASEAN, the industrial IoT market has emerged as a beacon of technological advancement and economic growth. It is projected to soar to a remarkable valuation of USD6.87 billion by 2030, boasting an impressive Compound Annual Growth Rate (CAGR) of 19.1% from 2023-2030.

This surge is propelled by a confluence of factors, including robust investments in Industry 4.0 technologies, concerted government initiatives to drive industrial automation, and an imperative to enhance productivity and efficiency across sectors. A key contributor to this growth is the strong economic relationship between ASEAN and China, with both regions being each other’s largest trading partners and significant sources of investment. In 2023, Foreign Direct Investment (FDI) from China to ASEAN reached USD17.3 billion, up from USD14.5 billion in 2022. Notably, the Information and Communication Technology (ICT) sector accounted for 1.05% of this investment, indicating considerable potential for further cooperation on digital technologies within our economic partnership.

At the same time, ASEAN and China are actively working to upgrade the ASEAN- China Free Trade Area (ACFTA 3.0). This marks the second enhancement of the ACFTA, transforming it into a modern and comprehensive agreement that addresses key megatrends of our time, especially the shift towards digital economy and sustainability.

Ladies and Gentlemen,

In recent years, China has invested heavily in IoT infrastructure, facilitating widespread deployment across various sectors, including manufacturing, agriculture, healthcare, and smart cities. Government initiatives, such as the “ Made in China 2025” plan, aim to integrate IoT with advanced manufacturing and promote innovation. Additionally, China's vast market size and robust technological capabilities have fostered a thriving IoT industry and spearheaded the development of IoT platforms and applications. As a result, China is not only enhancing its domestic capabilities but also increasingly influencing global IoT standards and practices.

While emerging technologies such as IoT and AI offer tremendous potential for ASEAN and China, they also present significant challenges. Issues such as data leaks, cybersecurity threats, varying levels of readiness, regulatory gaps among ASEAN Member States, and the need for increased investment in digital infrastructure and human capital development hinder ASEAN’s ability to fully leverage the benefits of regional digital integration and connectivity.

In light of these challenges, I would like to propose several collaborative approaches to support our collective efforts in this endeavour.

First, robust data governance and the responsible use of emerging technologies are essential for the large-scale deployment of IoT. To this end, ASEAN has adopted the ASEAN Framework on Digital Data Governance, which provides a common regulatory framework to facilitate cross-border digital data flows for economic growth while safeguarding individual privacy, commercial rights, and data sovereignty. Key initiatives under this framework include the ASEAN Model Contractual Clauses (MCC) and the ASEAN Data Management Framework, designed to establish a comprehensive data management structure within ASEAN businesses.

Additionally, ASEAN is currently developing the Operational Framework for the ASEAN Certification for Cross-Border Data Flows, targeted for endorsement by January 2025. This initiative aims to maximize the free flow of data within ASEAN while ensuring that transferred data receives the necessary protection.

Second, to ensure that AI serves the interests of both individuals and businesses, it is crucial to establish effective regulations. Achieving this goal will require stronger collaboration and global solutions. In this context, the 4th ASEAN Digital Ministers’ Meeting in February 2024 endorsed the ASEAN Guide on Artificial Intelligence (AI) Governance and Ethics. This guide outlines ASEAN’s approach to regulating and leveraging AI technologies, including practical use cases for trustworthy AI to support their responsible deployment in the region. As ASEAN’s first coordinated effort in AI governance, this guide is among the world’s first regional frameworks that adopt a market-driven approach, balancing the advantages of AI with its associated risks.

Last but not least, the role of public-private partnerships in enhancing digital connectivity cannot be overstated. These partnerships are vital for sustaining economic progress, fostering regional connectivity, and improving living standards through the adoption of digital technologies and innovation. Therefore, I warmly welcome the participation of the business community at this Convention. Your expertise, experience, and practical insights are invaluable contributions to creating an environment that supports digital transformation and emerging technologies, including the Internet of Things.

Ladies and gentlemen,

Looking ahead, the continued integration of digital technologies is expected to further reshape the regional economy, unlocking new opportunities for entrepreneurship and job creation, enhancing access to services, and ultimately improving the quality of life for citizens across the region. The evolution of digital infrastructure will also play a crucial role in bridging the digital divide, ensuring that all communities can participate in and benefit from the digital economy.

I look forward towards productive discussions at this Convention that can accelerate the digital transformation process and strengthen our digital cooperation to thrive together in the shared future of a digital era.

Thank you very much.