London Daily

Focus on the big picture.
Wednesday, Jul 02, 2025

0:00
0:00

Southeast Asia moves closer to economic unity with new regional payments system

In a major step towards economic unity, Southeast Asian nations have launched a new regional cross-border payment system. This move could foster financial integration among participants, bringing the ASEAN bloc closer to its goal of economic cohesion.
The program allows residents in Indonesia, Malaysia, Thailand, and Singapore to pay for goods and services in their local currencies using a simple QR code. The Philippines is also expected to join the initiative soon, according to each country's respective central bank.

This regional payment system comes after the five Southeast Asian countries signed an official agreement last year and reiterated their commitment to the project at the recent ASEAN summit in May. They pledged to work on a road map to expand regional payment links to all ten ASEAN members.

The primary aim of this scheme is to support and facilitate cross-border trade settlements, investments, remittance, and other economic activities to create an inclusive financial ecosystem in Southeast Asia.

Experts believe that retail industries will particularly benefit from an expected rise in consumer spending, which could, in turn, strengthen tourism.

One of the critical objectives of this system is to reduce the region's reliance on external currencies like the U.S. dollar for cross-border transactions, especially for businesses. The strength of the U.S. dollar in recent years has led to weaker ASEAN currencies, hurting economies in the bloc, most of which are net energy and food importers.

By connecting QR code payment systems, funds can be easily sent from one digital wallet to another. These digital wallets can act as bank accounts and can be linked to formal financial institutions.

This system is expected to be particularly advantageous for micro-enterprises and small- and medium-sized businesses, which make up over 90% of businesses in Southeast Asia. It will also benefit marginalized individuals from low-income backgrounds, as it can be used by the unbanked population.

However, challenges lie ahead. Central banks will need to address security and fraud concerns and educate the public to embrace the new payment system. Additionally, there are concerns about potential currency pressures, particularly on the Singapore dollar, as it might emerge as a de facto reserve currency within the region.

Despite these challenges, analysts believe that a unified cross-border digital payment system will foster a sense of regionalism and ASEAN-centrality in managing international affairs, especially in light of escalating tensions among major global powers.

This coordinated action will require strong political will from regional leaders, and its success will determine whether ASEAN members can effectively implement this ambitious venture.

With this new payments system, Southeast Asia is paving the way for economic independence and stronger economic ties with a more integrated financial landscape in the region.
Newsletter

Related Articles

0:00
0:00
Close
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
Russian Shadow Payments via Cryptocurrency Reach $9 Billion
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
×