As ASEAN accelerates its digital transformation, the region faces a critical challenge: a widening gap between industry demand for skilled digital professionals and the availability of talent.
This talent deficit threatens ASEAN’s ability to compete in the global digital economy.
In their policy brief, ‘Enhancing ASEAN’s Competitiveness: Strategies for Talent Mobility and Cooperation in the Digital Economy, Manager for Digital Innovation and Sustainable Economy’ at the Economic Research Institute for ASEAN and East Asia (ERIA) Mahirah Mahusin and ERIA Research Associate Hilmy Prilliadi highlighted the urgency of addressing this gap through targeted mobility policies and skills development initiatives.
GROWING DEMAND FOR DIGITAL TALENT
Digital transformation has reshaped ASEAN economies, yet the information and communication technology (ICT) sector struggled to generate significant employment.
Despite growing at an annual rate of over nine per cent for the past decade, the sector’s employment share remains below that of other Asia-Pacific regions. According to Mahusin and Prilliadi, “In Thailand, the digital services sector expanded by 37 per cent from 2010 to 2020, but digital workforce growth lagged at 26 per cent.”
Indonesia, meanwhile, faces a shortfall of nine million ICT workers by 2030.
The 2021 ASEAN Digital Integration Index identified digital skills and talent as “the weakest pillar of digital integration in the region”. Therefore, strengthening digital competencies – from foundational technical skills to complex ICT system management – and enhancing professional mobility within ASEAN are critical to closing workforce gaps.
TALENT MOBILITY: A KEY TO REGIONAL COMPETITIVENESS
Recognising the link between talent mobility, innovation, and entrepreneurship, several ASEAN member states (AMS) introduced visa programmes to attract foreign digital professionals.
Malaysia’s Tech Entrepreneur Programme and Indonesia’s Golden Visa exemplify efforts to tap into the global talent pool. However, intra-ASEAN mobility remains limited due to political sensitivities surrounding immigration policies. Efforts to facilitate labour mobility include the ASEAN Agreement on the Movement of Natural Persons, services liberalisation under the Regional Comprehensive Economic Partnership (RCEP) agreement, ASEAN+1 free trade agreements, mutual recognition arrangements (MRAs), and the ASEAN Qualifications Reference Framework.
Yet, these initiatives face implementation challenges.
“Foreign service providers often encounter domestic regulatory barriers, inconsistent professional standards, and low local interest due to socioeconomic factors”.
Mahusin and Prilliadi highlighted that “automatic recognition of foreign qualifications is rare, and MRAs do not guarantee market access”.
At the ASEAN Digital Economy Framework Agreement (DEFA) Exclusive Stakeholders Roundtable in September 2024, stakeholders emphasised that while hiring external talent is necessary, “long-term competitiveness depends on developing local talent”.
However, the local workforce often lacks the skills required by industry, underscoring the need for enhanced educational alignment with industry demands. The ASEAN Digital Masterplan 2025 calls for the establishment of “regional digital skills standards and accreditation frameworks for ICT and STEM qualifications”. However, this initiative has yet to become a priority.
ADDRESSING THE SKILLS GAPS THROUGH REGIONAL COORDINATION
Talent-focused initiatives under the ASEAN Committee on Science, Technology, and Innovation (COSTI) – such as the ASEAN Talent Mobility Community and the United States-ASEAN Science, Technology, and Innovation Cooperation Programme – prioritise researchers rather than digital professionals.
ASEAN’s fragmented approach to talent development is also evident in its technical and vocational education and training (TVET) landscape. The ASEAN TVET Council seeks to address this gap by promoting coordination, research, and skills development monitoring.
Various scholarship programmes, including the ASEAN-United Kingdom SAGE Women in STEM Scholarship and Australia for ASEAN scholarships, support talent development, yet these initiatives remain sector-specific rather than part of a cohesive regional framework.
RECOMMENDATIONS FOR STRENGTHENING ASEAN’S TALENT PIPELINE
To facilitate talent mobility and ensure ASEAN’s long-term competitiveness, Mahusin and Prilliadi propose a set of policy recommendations:
Regional Talent Dialogue: Establish a platform for regional cooperation to improve the movement of digital professionals and identify national and regional barriers to talent mobility.
ASEAN-Wide Tech Pass: Explore the feasibility of a region-wide ‘tech pass’ to facilitate intra-ASEAN movement of digital professionals, including non-AMS nationals based in ASEAN.
Labour Market Intelligence: Develop an ASEAN-wide labour market information-sharing system and encourage private sector participation to address skills gaps and regulatory barriers.
Corporate Investment in Talent: Incentivise businesses to invest in employee reskilling and upskilling initiatives through attractive reward mechanisms.
National Digital Skills Standards: Consider implementing national standards for digital skills training, drawing from models like the UK’s essential digital skills standards and Singapore’s Digital Skills for Life framework.
Engaging the ASEAN Diaspora: Leverage regional and global diaspora networks to encourage knowledge-sharing and best practices in entrepreneurship and innovation.
Industry-Relevant Credentials: Expand scholarship and funding opportunities with ASEAN external partners to support professional certification and micro-credential programmes.
Student and Intern Mobility: Ease visa restrictions to allow student and intern mobility within ASEAN, enabling students to gain practical experience at international technology firms based in the region.
TOWARDS A MORE INTEGRATED AND COMPETITIVE ASEAN WORKFORCE
As ASEAN deepens its digital economy integration, talent mobility and skills development must remain top priorities.
While existing initiatives provide a foundation, a more coordinated approach is needed to fully harness the region’s potential.
Mahusin and Prilliadi argued that “a consolidated framework for talent development would enhance ASEAN’s ability to meet the demands of a rapidly evolving digital landscape and ensure long-term economic resilience”. By addressing regulatory barriers, aligning educational curricula with industry needs, and fostering greater regional collaboration, ASEAN can position itself as a global hub for digital talent, driving innovation and economic growth for decades to come. – Features Desk
