The Price of Admission Into the World’s Fastest-Growing Economies

A new price to play in Southeast Asia’s USD 1 trillion economy has emerged. This “tax” is the non-negotiable investment in compliance, safety, and data governance required to earn the trust of both consumers and regulators.

For years, the mantra for global expansion used to be simple: be available everywhere. But Southeast Asia’s digital landscape has changed. The regional economy is scaling fast, fraud is rising, and new technologies—from AI-driven personalization to blockchain-based transactions—are reshaping user expectations.

The macro environment, marked by geopolitical instability and economic uncertainty, is forcing this shift. Today, trust isn’t a feature. It’s the foundation for everything: from secure transactions to a reputation that sticks.

Why yesterday’s playbook fails 

Southeast Asia is home to some of the world’s most active digital users, but also some of the fastest-growing fraud rates. Consumers are far more cautious about:

• How their data is used
• Which payment methods can they trust
• Whether platforms are transparent about pricing
• How AI influences what they see or buy

Their expectations have evolved: trust must be proven upfront.

Governments are tightening to match the digital boom

To protect citizens and maintain stability, regulators across ASEAN are raising the bar:

• Localization and operational compliance are becoming standard. Indonesia’s PSE registration is no longer an anomaly; it is a model.
• Financial accountability is strengthening, with strict enforcement of digital VAT and local taxes.
• Safety mandates are accelerating. Singapore’s Online Safety Bill and Australia’s under-16 platform restrictions signal that child safety and fraud prevention are national priorities.
• Industry accountability is expected. Malaysia’s scrutiny of platforms like Roblox reinforces that self-regulation must meet international best practices.

Data sovereignty is now the default expectation.

ASEAN’s push toward regional data rule harmonization underscores the need for platforms to respect where data is stored and how it moves.

AI needs governance just as much as innovation.

With AI becoming mainstream, transparency and responsible use are front and center. Apple’s AI data disclosure guidelines are a preview of regional expectations: consumers and regulators want clarity, safety, and accountability in how AI systems influence experiences. The responsible-use guidelines from Sahabat-AI, Indonesia’s open-source LLM, also highlight how local innovators are building trust within the wider tech ecosystem.

Trust now has five dimensions: Where platforms must deliver

As trust becomes the price of admission, SEA consumers expect it across multiple layers:

• Payment trust: secure, familiar payment options backed by strong local regulation.
• Brand trust: consistent enforcement of safety, content moderation, and responsible behavior.
• Data handling trust: clarity around privacy, storage, and cross-border data flows.
• Pricing and transparency trust: upfront information, no hidden fees, predictable billing.
• AI usage trust: transparent models, explainability, and responsible automation.

The hidden costs of non-compliance

Failing to pay the cost of compliance doesn’t just lead to fines; it leads to market exclusion.

• Market lockouts: The biggest risk is no longer a fine, but a complete block, cutting off access to millions of users overnight.
• Operational burden: Building in-house teams to manage the unique compliance, tax, and legal rules for each new market diverts resources from core product innovation.
• Reputational damage: With abundant choices, SEA users quickly disengage from services they perceive as unsafe or opaque. And in a mobile-first region, negative sentiment travels fast.

Partnering for global growth 

So how does a publisher scale globally without building a new compliance, tax, and operations team for every country? 

The answer is to find a partner who has already built the necessary infrastructure. Expanding into new regions requires more than just a great product; it demands a deep, operational commitment to the local ecosystem. That is to say, understanding localized contexts and rules is becoming an imperative aspect that publishers need to consider. 

Coda has spent over a decade building this bridge, managing local payment integrations, tax compliance, and regulatory relationships so our partners can focus on content and growth.

Growth through trust

The digital opportunity across Southeast Asia is immense, but it is gated by trust. The macro environment, vigilant regulators, and increasingly discerning consumers have made trust the ultimate currency of digital growth.

Publishers have two paths forward: build local compliance and operations from scratch, or plug into proven commerce infrastructure built for trust. In Southeast Asia, growth follows trust —and trust determines who wins. 

Learn how Coda supports responsible, trusted growth across Southeast Asia here.