The Digitalization Process in East Timor and Its Impact on the Country's Economic Development

ЮГО-ВОСТОЧНАЯ АЗИЯ: АКТУАЛЬНЫЕ ПРОБЛЕМЫ РАЗВИТИЯ, 2026, №1(70), 240-251

 
Annotation: The digital transformation of Timor-Leste represents a unique phenomenon in the context of small island developing states (SIDS). Having gained independence in 2002, the country long remained on the periphery of the regional digital economy due to destroyed infrastructure, a shortage of skilled personnel, and the absence of a coherent technological development strategy. However, by the mid-2020s, the situation began to change dramatically. Accession to ASEAN in October 2025, the adoption of strategic documents, and the engagement of international partners created the prerequisites for a systemic digital transformation. The article analyses the institutional foundations of digitalisation, the state of infrastructure, e-government projects, the emergence of e commerce and fintech ecosystems, educational initiatives, international partnerships, as well as persistent challenges and risks.

Keywords: digital transformation, Timor-Leste, small island developing states (SIDS), ASEAN, digital infrastructure, cybersecurity, e government, e commerce, financial technology (fintech), international partnership