Liew: telcos should invest in off-site renewable energy projects and advocate for cleaner national grids.
WHILE Asean has made strides in digital inclusion and environmental, social and governance (ESG) adoption, deep-rooted disparities continue to hinder equitable progress.
With a population exceeding 690 million in 2023 – about 8.5% of the global total – South-East Asia is home to a young and increasingly connected demographic. Youth aged 15 to 35 make up nearly 32% of the region.
According to the Asean Youth Development Index by the Asean Secretariat, the region’s youth population will peak by 2038 – making the years ahead critical for digital transformation.
Internet penetration reached 70% in 2023, but connectivity remains uneven.
UCSI University Malaysia associate professor of finance Liew Chee Yoong says Asean presents a “dynamic yet uneven landscape” in terms of digital inclusion and ESG practices.
“Urban centres in Singapore, Malaysia and Thailand boast advanced connectivity,” the research fellow at the Centre for Market Education notes.
“However, rural regions in Cambodia, Myanmar and Indonesia continue to grapple with limited access to affordable Internet, inadequate digital literacy and a lack of localised content.”
He adds that gender and age gaps persist, often leaving women and older adults behind.
To address these divides, Liew says telecommunications companies (telcos) play a pivotal role.
“Affordability remains a critical barrier,” he says, suggesting subsidised data plans, device financing and public wi-fi schemes as ways to democratise access.
“Expanding infrastructure through cost-effective solutions like LTE and 5G networks and satellite technology could extend coverage to remote areas.”
On the ESG front, Liew says the telco sector faces “multifaceted challenges”.
Liew: telcos should invest inoff-site renewable energyprojects and advocate forcleaner national grids.
“Environmentally, the sector’s reliance on energy-intensive data centres and fossil fuel-powered networks contributes significantly to carbon emissions,” he notes.
E-waste management is also a concern, he says, with many countries relying on informal recycling channels that pose health and environmental risks.
Socially, Liew says telcos must tackle the digital divide while upholding data privacy and ethical supply chains, especially in mineral sourcing.
He notes that governance challenges include “navigating fragmented regulations across Asean member states, combating corruption and strengthening data protection frameworks”.
Liew says regulatory complexity remains a hurdle, as firms must balance compliance with innovation. He opines that harmonising data privacy laws across the region could “reduce operational hurdles while building public trust”.
“Among these, however, transitioning to renewable energy and building sustainable e-waste systems stand out as urgent priorities.”
On this front, Liew says environmental efforts within the sector are progressing unevenly.
“Singaporean companies, supported by government incentives, lead in adopting renewable energy for data centres, such as solar-powered facilities.
“Conversely, firms in coal-dependent countries like Indonesia and Vietnam struggle to decarbonise due to grid limitations,” he explains.
To accelerate progress, Liew says telcos should invest in off-site renewable energy projects and advocate for cleaner national grids. “Embracing circular economy principles such as expanding e-waste recycling partnerships and designing modular, repairable devices would reduce environmental footprints,” he notes.
“Retrofitting legacy infrastructure with AI-driven energy management systems could also enhance efficiency, cutting costs and emissions simultaneously.”
On disclosures, he says ESG reporting across the region remains inconsistent.
Liew says firms in Singapore and Malaysia frequently align with global standards such as the Global Reporting Initiative and Task Force on Climate-related Financial Disclosures, offering detailed reports on emissions and social efforts.
However, he says many regional players still publish “vague or incomplete data, particularly on Scope 3 emissions, cybersecurity practices and measurable social outcomes”.
“Claims of ‘improving digital access’ often lack user metrics, undermining accountability,” he says.
To address the lack of transparency in disclosures, Liew proposes regional collaboration to develop standardised ESG frameworks, noting this would “ensure comparability and depth”.
He also calls for mandatory Scope 3 reporting, third-party audits and greater community input in social impact assessments to ensure initiatives “address real needs”.
“Transparency in data governance – such as detailing cybersecurity investments – would also build stakeholder confidence,” he says.
Ultimately, Liew believes Asean’s path to digital equity and sustainability depends on stronger collaboration between telcos, policymakers and civil society.
“By prioritising inclusive growth, environmental accountability and transparent reporting, the region’s technology sector can pave the way for a resilient and equitable digital future,” he concludes.
