Event Highlights

Strengthening ASEAN-Japan: A Strategic Partnership for the Future

On October 24, 2024, the Tech For Good Institute participated in a webinar organised by the S. Rajaratnam School of International Studies (RSIS) which explored ASEAN-Japan Cooperation. Our Programme Manager, Keith Detros, participated in the panel ‘Advancing the ASEAN-Japan Comprehensive Strategic Partnership in the Face of Geopolitical Challenges’, where he shared about ASEAN’s digital economy and potential areas for collaboration for ASEAN and Japan.

In September 2023, the Association of Southeast Asian Nations (ASEAN) and Japan agreed to establish a Comprehensive Strategic Partnership (CSP), indicating a broadening collaboration across economic, political, and security domains as both parties affirmed commitments to cooperation. This commitment was strengthened at the 18th ASEAN-Japan Joint Cooperation Committee Meeting held in June 2024, further cementing their intention to advance ASEAN-Japan dialogue and collaboration.

This growing cooperation reflects ASEAN’s positive favourable outlook of relations with Japan. According to ISEAS – Yusof Ishak Institute’s ‘The State of Southeast Asia 2024 Survey Report’, Japan remains the most trusted major power by ASEAN member states with an overall trust level of 58.9%. Of these respondents, 36.5% of respondents regard Japan as a responsible stakeholder which ‘respects and champions international law’, and 27.7% of respondents believed that Japan possesses ‘vast economic resources’, demonstrating ASEAN’s eagerness for a robust economic and strategic partnership with Japan.

The positive perception of Japan stems from multiple reasons — economically, Japan is one of the largest contributors to Southeast Asia’s (SEA) Official Development Assistance (ODA), with Japan being the single largest provider of ODA to the region between 2015 to 2021. As such aid drives economic expansion through fostering technological transformation, creating jobs, and strengthening industrial capacities across the region, ASEAN’s trust perceptions of Japan increased from 2023. According to the panel, Japan’s ability to understand and respect diverse perspectives within ASEAN, prioritising listening, collaboration, and cooperation, as demonstrated in Japan’s Free and Open Indo-Pacific Strategy (FOIP), resonates with the region, further contributing to ASEAN’s high trust in Japan.

In light of commitment from both Japan and ASEAN to further enhance cooperation, the Tech For Good Institute participated in a panel organised by the S. Rajaratnam School of International Studies (RSIS) to explore potential areas of partnership.

Moderator and Panellists

Kaewkamol Pitakdumrongkit, Senior Fellow and Head of Centre for Multilateralism Studies, S. Rajaratnam School of International Studies (RSIS)
Mie Oba, Professor, Kanagawa University
Joanne Lin, Co-Coordinator and Lead Researcher, ISEAS — Yusof Ishak Institute
Keith Detros, Programme Manager, Tech For Good Institute

Key Takeaways:

1. Japan’s growing role as a strategic partner

Japan is increasingly emerging as a crucial strategic partner to ASEAN. As noted in the State of Southeast Asia 2024 Survey, Japan is second in preference only to the European Union (EU) by ASEAN countries as a partner to hedge against the uncertainties of the US-China strategic rivalry. Japan is also strengthening its security initiatives in ASEAN including increased engagement in maritime security within SEA, evidenced by new joint capacity-building efforts and defence equipment assistance through its Overseas Security Assistance (OSA) framework. The establishment of the Japan-ASEAN Ministerial Initiative for Enhanced Defence Cooperation (JASMINE) also aims to elevate defence cooperation by focusing on areas like air domain awareness and cybersecurity. Additionally, the first trilateral summit with the US and the Philippines further underscores Japan’s deepening strategic alignment in the region, highlighting the importance of open communication and collaboration to foster greater trust and effectively manage regional security challenges.

2. ASEAN’s growing digital economy as a key opportunity for cooperation

Southeast Asia is rapidly advancing in digitalisation, driven by increased internet penetration—71% of the population is online—and a mobile-first culture, where mobile devices account for nearly two-thirds of web traffic. This shift allows businesses and individuals to bypass traditional banking, with digital financial services filling significant gaps for small enterprises. This is crucial for the 71 million micro, small, and medium enterprises (MSMEs) in ASEAN that would be able to reach new markets due to digital solutions.

This rapid growth in the ASEAN digital economy is a key opportunity for ASEAN-Japan partnership. Part of the Comprehensive Partnership Agreement is a pillar on Partners for Co-creation of Economy and Society of the Future. To further strengthen relations, Japan and ASEAN can work together to shape key pillars of the digital economy such that interoperability allows for seamless digital trade, cross-border payments, and digital transactions. With cross-border e-payments solutions, one positive outcome is that ASEAN tourists can effortlessly make purchases in Japan using their mobile wallets or credit cards, eliminating the need for currency exchange and allowing for a seamless shopping experience. This is especially salient as Japan is a top choice for ASEAN travellers, with 27.8% of respondents of ‘The State of Southeast Asia 2023 Survey Report’ selecting it as their favourite destination.

3. Actionable areas of digital economy cooperation between Japan and ASEAN

The panel also highlighted key opportunities for ASEAN and Japan to enhance collaboration in the digital economy. Strengthening cross-border data flows emerged as a top priority. This is vital for seamless trade and communication in today’s interconnected world. Establishing secure data-sharing frameworks can build trust among businesses and consumers, driving economic growth. Another significant point discussed was the potential for collaboration on digital identity systems. Developing interoperable digital identity solutions can improve security and accessibility, enabling smoother cross-border transactions. This is particularly beneficial for MSMEs in ASEAN, allowing them to access essential services more effectively.

Japan’s expertise in artificial intelligence and cybersecurity is also a valuable asset. It can significantly enhance ASEAN’s digital infrastructure development, exemplified by Japan’s recent announcement to collaborate with ASEAN in training 100,000 highly skilled digital professionals in artificial intelligence and semiconductors over the next five years. Together, these regions can create innovative solutions that promote financial inclusion and regional resilience. By focusing on these areas, ASEAN and Japan can model successful regional integration, paving the way for a more connected and prosperous future.