However, GSMA and LKYSPP warn that without coordinated action, Southeast Asia risks falling behind in the race to unlock 5G-AI’s economic potential.
Asia Pacific’s mobile technologies and services sector added US$950 billion ($1.21 trillion) to the regional GDP last year and is on track to hit US$1.4 trillion by 2030.
But without urgent policy reforms and smarter spectrum strategies, digital momentum across Southeast Asia risks stalling. That’s the warning from reports released this week by the GSMA and Singapore’s Lee Kuan Yew School of Public Policy (LKYSPP), calling for a new era of regional coordination to unlock the full potential of 5G and artificial intelligence (AI).
GSMA’s Mobile Economy Asia Pacific 2025 report reveals that the mobile ecosystem supported 17 million jobs and generated more than US$90 billion in public funding (excluding spectrum and regulatory fees) last year. Yet, the report flags rising spectrum costs, a widening mobile usage gap, and an explosion in digital scams as emerging threats to continued progress.
“Mobile connectivity is the oxygen of Asia Pacific’s digital transformation. Yet… spectrum charges have tripled over the last decade, and over 700 million people remain offline. To sustain momentum, we need affordable spectrum, smarter financing and collective action to tackle scams and cyber-threats,” says Julian Gorman, head of Asia Pacific at GSMA.
According to GSMA, 5G accounted for 18% of mobile connections last year and is set to reach 50% by 2030. However, growth remains uneven, particularly in Southeast Asia, where infrastructure investment has not kept pace in rural and emerging markets.
Complementing GSMA’s findings, LKYSPP’s new research report estimates that 5G alone could contribute US$130 billion to Asia Pacific’s economy by 2030 but warns that the opportunity to establish regional digital leadership is rapidly narrowing.
Titled Leveraging 5G to Accelerate AI-Driven Transformation in ASEAN, LKYSPP’s report reveals that 5G adoption remains uneven across the region. While Singapore has achieved 48.3% 5G penetration, several Asean countries remain below 1%. Without decisive and coordinated action, these disparities could erode regional competitiveness and deepen inequality.
“The convergence of 5G and AI represents the infrastructure of innovation, powering smart manufacturing, precision agriculture, and autonomous mobility. Asean cannot afford to wait. Coordinated strategies that can accelerate regional leadership in intelligent connectivity must be established to help the region move beyond incremental improvements toward transformative digital leadership,” says Vu Minh Khuong, Professor at LKYSPP.
