ASEAN's role in global sustainable growth is and will be "significant" in the coming years, but the region needs to focus on its commitment to openness to trade and investment, sustainability and continual upgrading. through digitization. There is 'reason for optimism' despite the ever-present risk of new variants and more infections, because of Covid-19, to reset the global economy and society on the path towards global growth and sustainability.

As noted at the Standard Chartered ASEAN Business Forum 2021, companies in ASEAN that begin to tailor products and services to consumer preferences will increasingly reap the opportunities that sustainable investments can offers.

Standard Chartered Bank's Opportunities to 2030 report reveals for the first time the size of the nearly $10 trillion private sector investment opportunity that contributes to just three of the sustainability goals of the United Nations (SDGs), specifically SDG 6: Clean water and sanitation; SDG 7: Clean and affordable energy; and SDG 9: Industry, innovation and infrastructure. Specifically, the combined potential investment opportunity of the private sector in Indonesia by 2030 is estimated at $280 billion. With 100 million people across ASEAN expected to migrate from rural areas to cities between 2015 and 2030, the need for sustainable infrastructure, real estate and sustainable energy sources is increasing, and will increase significantly. Another big area of ​​focus is digitalisation, which drives even more innovation today.

With ASEAN forecasted to have a digital economy of at least $300 billion by 2025 - as estimated in the annual Southeast Asia e-Conomy report by Google, Temasek and Bain & Co, the digital economy will be the main growth area for the region. Currently, the fields of adoption of the digital economy are showing strength with "K-shaped" recovery, and sectors such as e-commerce, community transportation, food delivery, and grocery delivery are dominating. Anything that moves quickly to become more digitized, more accessible, and more inclusive will prevail.

Oliver Tonby, senior partner and core leader at McKinsey's digital competency center, echoed this view. If you look at the percentage of digital revenue captured by the top 10% of companies, in the telecommunications and media industry it is 95%; in the banking industry is 85%; and in retail 93%. So the companies that were ahead of the digital transformation before Covid are moving further much faster.

The promotion of ASEAN connectivity and how companies need to move from survival mode to growth mode in a digital way. In a world where Covid-19 has spurred digital evolution and faster innovation cycles, the rise of e-commerce is not due to a change in consumer behavior but to a change in consumer behavior. This is because companies are adopting digital reality at a much higher rate than in the past. When these two worlds meet - the digitally savvy consumer and the company adapting to the digital platform - the distinction between e-commerce and traditional commerce may soon disappear.

The commitment to openness to trade and investment both within ASEAN and with key partners has enabled the region to become more involved in cross-border business. While affected by the pandemic, trade and investment within the bloc continued to be solid last year. Notably, foreign direct investment (FDI) inflows into ASEAN reached a peak in 2019 of $182 billion, making ASEAN the largest FDI recipient  amongst developing countries.

The ASEAN Investment Report 2020-2021 of the ASEAN Secretariat said that due to Covid-19, FDI has decreased to 137 billion USD in 2020. But in terms of the share of global FDI figures, ASEAN has gone in the reverse of this trend, with the share of global FDI increasing from 11.9% in 2019 to 13.7% in 2020. Meanwhile, total intra-ASEAN trade in goods increased at a compound annual growth rate ( CAGR) was 4.3% for the period 2015 - 2019, from USD 535.4 billion to USD 632.6 billion.

In 2020, due to the disruption of Covid-19, the total intra-ASEAN trade in goods will reach approximately US$565.9 billion, at a CAGR for 2015-2020 of 1.4%. That is becoming a commonality now - especially last year, when borders were closed and export bans and controls were everywhere.

In a report on intra-ASEAN corridor opportunities, experts noted that ASEAN will play a larger role in the global manufacturing value chain based on increasing connectivity with its five major trading partners China, Japan, New Zealand, Australia and Korea. Moreover, 83% of surveyed businesses said they plan to increase their investments in ASEAN in the next 3-5 years by at least 25%, after the Regional Comprehensive Economic Partnership Agreement is implemented. Southeast Asia, along with the rest of the world, must think about how to restore its growth trajectory in a different way, both by leveraging new growth areas such as the digital economy and by ensuring that any any recovery is long-lasting and sustainable.

Currently, negotiations are ongoing on a framework for cross-border data flows, personal data and a protection framework. For example, last year, Singapore signed digital economy partnership agreements with Australia, New Zealand and Chile, among others.

Beyond the digital ecosystem, the harmonization of frameworks and policies could extend to other areas including Covid policy, vaccinations and travel arrangements. With supply chains already disrupted, there is much that can be done to overcome these constraints, whether through trade agreements or cooperation, or through the development of a good framework. within ASEAN, and when this bloc is both an export market and an important import market.