As ASEAN’s newest member, Timor-Leste’s digital economy is rapidly building momentum in its digital economy, opening up opportunities to bridge remaining development gaps. As of late 2025, around 40% of the population were online. Connectivity is expected to improve following the licensing of lower-cost, higher-speed satellite internet services in December 2024, alongside planned investments under the Timor Digital 2032 strategy, including the development of a submarine internet cable to strengthen the country’s digital infrastructure.
Key barriers persist alongside this progress: limited digital infrastructure, evolving regulatory frameworks, relatively low digital literacy and the growing need for AI governance continue to shape Timor-Leste’s digital transformation journey. At the same time, emerging risks, including cybersecurity threats, scams and fraud, data protection and workforce readiness further underscore the need for coordinated policy action and cross-sector collaboration.
ASEAN accession presents a unique opportunity to accelerate reforms, strengthen regional integration and build an inclusive digital economy. Recognising both the opportunities and challenges ahead, the Tech for Good Institute (TFGI) organised a roundtable discussion, in partnership with the Mata Dalan Institute – Strategic and International Studies (MDI-SIS). The engagement aimed to deepen TFGI’s understanding of Timor-Leste’s digital economy priorities on the ground, reaffirming TFGI’s commitment to supporting digital development across all Southeast Asian countries.
Participants & Moderators
- Norberto Belo, Trade Investment
- Ezaquiel Babo, Trade Investment
- Aderito Martins, Alfandega – Custom Authority
- Zeca Amaral, Alfandega – Custom Authority
- Eusebio Goveia, TIC Timor – Tecnologia Informasaun e Comunicasaun Timor – Leste
- Joaquin Dos Peis Martins, BNCTL – Timor Leste National Commerce Bank
- Fernando Anuno, Universidade Nacional Timor Lorosa’e (UNTL)
- Mario Guteres, CCITL The Chamber of Commerce of Timor-Leste
- Veronica L.G.Maia, Coffee Atsabe – Youth Entrepreneur
- Xisto Goncalves, MDI-SIS
- Estevanus Coli, MDI-SIS
- Koko Valentin, MDI-SIS
- Herminia Jesus Pinto, MDI-SIS
- Adilson Costa, MDI-SIS
- Arifah Sharifuddin, TFGI
- Regina Ng, TFGI
Key takeaways
1. Digital transformation must start with institutional readiness and human capital
A consistent message throughout the discussion was that digital transformation is about creating the conditions for technology to deliver meaningful economic and social value. Participants noted that the shift from manual to digital systems has been slowed down by organisational culture and capacity gaps, compounded by technical constraints. They further highlight that supporting the public sector officers through change management is just as vital as technology investment. Participants also stressed the need to strengthen digital skills and improve data management capabilities to support evidence-based policymaking and future workforce development. Equally important is investing in human capital by equipping the public sector, businesses and citizens with the digital skills needed to adopt new technologies confidently and effectively. These findings align closely with the World Bank’s 2026 Timor-Leste Economic Report, which frames ASEAN membership as a platform to accelerate Timor-Leste’s transition towards an economy driven by a skilled workforce, stronger institutions and a productive private sector.
2. Infrastructure and digital trust remain the most significant barriers to an inclusive digital economy
Across sectors, stakeholders pointed to affordable, reliable internet connectivity as the most immediate challenge. Despite the licensing of lower-cost, higher-speed satellite internet services in December 2024, high internet costs continue to limit the adoption of digital services by small and medium enterprises (SME), while unreliable electricity supply and limited infrastructure discourage investment. Beyond utility and connectivity, participants emphasised on the necessity to build public trust in digital systems. There has been growth in ongoing e-banking investment however, many citizens still rely on cash due to the lack of confidence in using digital financial services. The participants urged for stronger cybersecurity measures, data protection frameworks and public awareness, which are essential to building trust and to protect citizens from online scams and fraud. The discussion made clear that infrastructure improvements alone will not drive adoption, because trust in digital institutions and services must be built in parallel.
3. ASEAN integration provides Timor-Leste with a unique opportunity to leapfrog digital development through regional collaboration
Timor-Leste has the opportunity to accelerate its transformation by leveraging ASEAN cooperation. Participants highlighted ongoing progress towards implementing the National Single Window, preparations for the ASEAN Single Window and greater collaboration with neighbouring countries on customs modernisation and digital trade facilitation. This perspective is consistent with ASEAN’s broader digital agenda, including the ASEAN Digital Economy Framework Agreement (DEFA), which seeks to harmonise digital trade rules and unlock a regional digital economy projected to reach US$2 trillion by 2030. Other participants noted that ASEAN provides more than a policy benchmark. By offering opportunities for technical cooperation, knowledge exchange and capacity building, it allows Timor-Leste to leverage strategic, geopolitical and institutional advantages for its long-term development. At the same time, stakeholders recognised that regional integration will require stronger domestic foundations, including updated regulations, interoperable digital systems and closer collaboration between government, businesses, financial institutions, universities and civil society. Timor-Leste’s participation in these regional initiatives provides a valuable opportunity to build an inclusive, resilient and future-ready digital economy alongside its ASEAN neighbours.
4. Digital transformation should support inclusive and sustainable national development
Participants highlighted that digital transformation is a tool for progress, not an end goal in itself. Digitalisation was consistently framed as a means to expand opportunities for SMEs, improve financial inclusion, promote local products through digital platforms, strengthen research and data systems and diversify the economy. The participants further emphasised the need to align digitalisation with environmental sustainability, through energy-efficient technologies and responsible digital infrastructure.
In conclusion, Timor-Leste’s digital transformation will depend not only on institutional readiness and public trust, but also on connectivity and infrastructure. ASEAN membership adds a further dimension to this equation, offering both a policy benchmark and a platform for regional cooperation, knowledge exchange and capacity building that can help accelerate reforms and shore up domestic foundations. The ASEAN integration serves as a catalyst and a test for Timor-Leste’s readiness to translate these foundations into results. The success will be measured not just by technology adoption alone, but also by its contribution to a more inclusive, resilient and sustainable economy.
