ASEAN Payment Connectivity Seen As Key To Boost MSME Growth, Regional Integration

KUALA LUMPUR, Oct 27 (Bernama) -- Closer digital payment connectivity across ASEAN is expected to unlock new growth opportunities for micro, small and medium enterprises (MSMEs) and strengthen the Southeast Asian region’s economic integration, according to DANA Indonesia Chief Executive Officer and Co-founder Vince Iswara.

He said regional payment links, including the use of a common quick response (QR) code standard and the upcoming Project Nexus, are set to expand cross-border transactions, making it easier for consumers and MSMEs to trade and travel across ASEAN.

DANA is a leading Indonesian financial technology (fintech) company that operates one of the country’s largest digital wallet platforms, with more than 200 million users nationwide.

“It is very important to highlight that the digital economy across ASEAN already stands at about US$1.2 trillion and that’s just from the ASEAN-6 countries, namely Indonesia, Malaysia, Singapore, Thailand, the Philippines and Vietnam. If we include the rest of ASEAN, it would be even larger, with far greater potential.

“The challenge is that without regional connectivity, every country still operates its own domestic system. We are unlocking national potential in areas like SMEs and retail markets, but it will be much stronger once we are fully interconnected across the region,” he explained.

Vince said this at the ASEAN Indo-Pacific Forum (AIPF), discussing Regional Cross-Border Sustainable Development through the ASEAN Common Carbon Framework (ACCF), ASEAN Power Grid and Cross-Border Payment, held on the sidelines of the 47th ASEAN Summit here today.

The session, moderated by Coordinating Vice Chairwoman for Human Development, Culture and Sustainable Development at Kadin Indonesia and ABAC Indonesia Council Member, Shinta W. Kamdani, also featured other distinguished panel members comprising Bursa Malaysia Chief Executive Officer and Deputy President of the Kuala Lumpur Business Club, Datuk Fad’l Mohamed and ASEAN Centre for Energy (ACE) Executive Director Datuk Abdul Razib Dawood.

Vince said interoperability between payment platforms will help unlock a market of over 700 million consumers, giving MSMEs direct access to buyers beyond their home country.

“MSMEs contribute between 40 and 60 per cent of gross domestic product (GDP) in most ASEAN economies and employ the majority of the workforce. Seamless payment systems are essential to integrate them into regional value chains,” he remarked.

Citing ASEAN tourism flows, Vince said 143 million people travelled within the region in 2024, with 44 per cent being intra-ASEAN travellers, showing the clear benefits of frictionless QR payments in local currencies.

He noted that digital payments are also more environmentally friendly compared with cash-based transactions, as they reduce the energy footprint and logistical waste associated with physical money handling.

However, Vince warned that deeper connectivity also requires stronger cybersecurity cooperation, as cross-border digital ecosystems are increasingly targeted by scams and fraud.

“By collaborating among central banks and fintech players, and by standardising security responses, ASEAN can protect its ecosystem and ensure inclusive, resilient growth,” he said.

The ASEAN regional payment connectivity initiative, launched in 2022, currently links QR systems among Indonesia, Malaysia, Thailand, Singapore and the Philippines, with expansion planned to other member states as well as partners such as Japan, Korea, India and China.

The initiative aligns with the ASEAN Digital Economy Framework Agreement (DEFA), targeted for conclusion in 2025, which aims to deepen regional digital integration and enhance cross-border trade, tourism and financial inclusion.

This year's AIPF edition runs concurrently with the 47th ASEAN Summit and related summits convene at the Kuala Lumpur Convention Centre (KLCC) from Oct 26 until tomorrow.

This event serves as a flagship platform for governments and the private sector to advance sustainable and inclusive growth across the Indo-Pacific region.

It focuses on three core themes, namely green transition, digital transformation and inclusive economic growth, in line with Malaysia’s 2025 ASEAN Chairmanship theme of ‘Inclusivity and Sustainability’.

-- BERNAMA