March 2025
Cross-border data flows are essential for the digital economy, enabling the seamless exchange of information across national boundaries, fostering innovation, economic growth and regional collaboration. According to research by the World Trade Organisation and OECD, global GDP could fall by 5% if countries restricted data flows – and conversely, if all countries were to enable data flows with trust, global GDP would grow by 1.77%.
Yet, an uptick in data localisation policies, arising out of concerns for data protection and privacy, economic goals, and national security and sovereignty, have created a challenging environment for the flow of data across borders and impact economic growth. This report draws from the discussion that took place during the Insights Forum public-private roundtable on Unlocking Cross-Border Data Flows: Navigating Data Localisation Requirements in the Financial Sector at the Singapore FinTech Festival in November 2024. The report synthesises key themes and presents recommendations for industry and governments to consider on how to enable the full potential of cross-border data in fostering innovation, economic growth and regional collaboration.
Key themes included the impact of geopolitics on cross-border data flows, the increasing constraints on cross-border data flows by localisation policies and regulatory ambiguity, the need to align national priorities with regional data governance standards, and the role of technology in addressing cross-border data challenges. These themes underscore how industry and government can think about the challenges posed by today’s dynamic and fast-paced social and economic interactions, which rely on the free flow of data across borders.
The discussion highlighted the need for governments to adopt balanced localisation approaches that account for both national interests and economic priorities, as well as to establish baseline standards to minimise inconsistencies and regulatory ambiguity. Governments in the Asia-Pacific region should also prioritise regional data governance agreements to harmonise data standards and enable regional data flows.
Additionally, companies should perform regular risk assessments to ensure compliance with relevant data protection regulations as they evolve and keep abreast of technological developments that can create new opportunities for overcoming cross-border data challenges.
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