Southeast Asia is ready for remarkable growth, but its ascent hinges on strategic choices that foster regional unity and collaboration. These critical moves were the focus of the Straits Times Education Forum 2025 held on 11 March 2025, in partnership with Singapore Management University (SMU). The question is how the region can unlock its full potential.

The forum featured a panel comprising Singapore’s Deputy Prime Minister (DPM) Heng Swee Keat as guest-of-honour, and three prominent business leaders: Piyush Gupta, Chairman of SMU’s Board of Trustees and Chairman of Mandai Park Holdings; Aaron Tan, co-founder and Chief Executive Officer of Carro, a leading online marketplace for trading used cars; and Aldi Haryopratomo, an entrepreneur and investor active in media, healthcare, and technology. The discussion was expertly moderated by SMU’s incoming Provost, Professor Alan Chan. Here are four key insights from their discussion.

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Staying unified in a time of deglobalisation

DPM Heng invoked the principle of “unity in diversity,” borrowing from Indonesia’s national motto, to capture the dual challenge and opportunity facing the Association of Southeast Asian Nations (ASEAN). He noted that although the 10 ASEAN member states vary widely in religion, culture, history, and economic development, they have made significant efforts to forge common ground. “The idea of strengthening ASEAN unity has been a core theme across all of ASEAN’s work - across the political-security, socio-cultural, and economic pillars,” he stated. “We have forged all the institutional mechanisms to do this. So, this is a great strength which we must preserve.”

Amid a global shift towards deglobalisation - where economies become less connected and trade and investment decline between countries - DPM Heng expressed confidence that ASEAN’s commitment to integration will continue to yield benefits as both a single market and a unified production base. By deepening ties within the region and with strategic partners such as Japan, China, India, Australia, New Zealand, and perhaps even the European Union, ASEAN can reinforce its position as a trusted and neutral hub in an increasingly complex global landscape. Such efforts could set the bloc on track to become the fourth-largest economy in the world.

A pressing need for talent development and collaboration in the region

Mr Piyush Gupta, Chairman of SMU Board of Trustees and Chairman of Mandai Park Holdings, emphasised that while Southeast Asia has made significant progress, the region must continue to nurture its talent. He pointed to the region’s demographic advantage: “We have the power of demography. As a collective, we have an average age of 26 or 27. The [figure in the] US is in the high 30s. Europe is in the 40s. We have a digital-native population. Some of the greatest creativity and the best startup ideas are coming from our region. How do we take this and multiply it?"

He further observed that access to education opportunities remains a problem in the region, with only 17% of its students being tertiary educated; a number much lower than Europe’s 40%. While seven ASEAN universities rank in the global top 200, a broader and more robust education system is needed to meet the region's youth training needs. To this end, sharing best practices and fostering cross-border collaboration are essential. Mr Gupta highlighted polytechnics, rare outside Singapore, as opportunities for skill development, and emphasised maximising exchange and cross-accreditation programmes for greater regional mobility and knowledge sharing.

Mr Haryopratomo, who sits on the board of healthtech company Halodoc, agreed and highlighted the importance of in-demand knowledge among businesses and academia. As an example, he cited an event he had co-hosted with SMU Overseas Centre Jakarta (OCJ) that introduced Indonesian clinic owners to best business practices in healthcare management derived from regional success stories. He noted that the knowledge-sharing session was oversubscribed and underscored the demand for local expertise. "Most people don't know they can get this within ASEAN,” he said.

Deepening cultural understanding through experiences and friendships

Cultural nuances are critical to achieving regional business success, said Mr Aaron Tan of Singapore-based Carro, as he spoke about his experiences in Thailand and other markets. He recalled that a team member in Thailand, after receiving a poor review from his manager, chose not to return to work the following day. This reaction, Mr Tan explained, was not defiance but rather a reflection of the non-confrontational nature of Thai culture and knowing the cultural background helps colleagues to avoid misunderstanding. “To be fair to them, the Thais are very polite,” he observed.

Mr Tan, an SMU alumnus, also shared that it was his friendships with his Asian university classmates as he was growing up that gave him the confidence to explore the Southeast Asian market in his business and navigate the complexities that vary from country to country.

This led Prof Chan to stress the importance of cultural awareness : “Raising our students’ technology quotient is important, but equally crucial is developing their cultural sensitivity quotient,” he said. His comment encapsulated the forum’s broader message: genuine progress in Southeast Asia hinges on combining technical expertise with a nuanced understanding of local cultural dynamics.

DPM Heng also recounted his firm stance on promoting regional exposure over Western experiences for university exchange programmes. Despite pressure to reallocate funds earmarked for ASEAN visits to cover trips to the US, he maintained that investing in ASEAN experiences builds a deeper, more relevant understanding of the region - a strategy essential for nurturing homegrown talent and long-term cohesion.

ASEAN’s growth depends on unique and unified solutions

Mr Gupta highlighted the limited number of think tanks in Southeast Asia and the resulting dependency on Western thought leaders. He stressed that despite shared global challenges like climate change and the digital revolution, ASEAN’s challenges require localised perspectives and solutions tailored to its varying levels of development. He called for universities and think tanks to boost applied research, creating solutions “embedded in the real day to day living of people”.

The panellists also discussed how other areas could be harmonised across ASEAN to help the member states develop faster.

Both Mr Gupta and Mr Haryopratomo emphasised the need for unified payment systems and consistent business regulations to facilitate cross-border transactions. The absence of a common digital payment framework, they noted, creates significant challenges for regional scaling. Mr. Haryopratomo pointed to the success of QR payments, while acknowledging the difficulties of navigating multiple regulatory environments. Mr Tan advocated the need to harmonise regulations, such as manpower laws, citing inconsistent interpretations on fair wages and ‘just cause’ across ASEAN countries.

With regulatory inconsistencies, spanning payment systems and labour laws, regional integration is difficult. The panellists believe that unified action is needed to unlock ASEAN’s potential. Mr Tan concluded, "If we can create this shared future together, I think it would be a great success story for us and definitely a future growth engine for Singapore, and for the rest of ASEAN.”

Source: The Straits Times ©SPH Media Limited and permission is required for reproduction.