## The Digital Potential (ASEAN digital-economy infographic)

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**Canonical URL:** [The Digital Potential (ASEAN digital-economy infographic)](https://www.imf.org/-/media/files/publications/fandd/article/2018/september/asean-digital-economy-infographic-feng.pdf)

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### Regional scale and demographics
- If ASEAN were a single economy, its GDP would be the 5th largest in the world.
- ASEAN has the 3rd largest population in the world.
- More than 50% of its people are under 30 years old.
- ASEAN is young (more than half of its 643 million people are under 30) and has an economy of $2.8 trillion.
- On the cusp (GDP, trillions of US dollars): United States 19.4; China 12.0; Japan 4.9; Germany 3.7; ASEAN 2.8; United Kingdom 2.6.
- Population (millions of people): China 1,390; India 1,317; ASEAN 643; United States 326; Brazil 208.

### Innovation and digital ecosystems
- Homegrown examples:
  - Indonesia’s vibrant digital ecosystem boasts more than 1,700 start-ups.
  - GO-JEK evolved from a ride-hailing app to a platform for mobile payments and other digital services.
  - In Singapore, Sea—“the most valuable start-up in the region—worth several billion dollars—began as an online gaming company and branched out into mobile money and shopping.”
- Sectors highlighted: ride-hailing apps, intelligent traffic systems, advanced construction techniques, automated energy-consumption management.

### Digital access and the digital divide
- Internet penetration pattern:
  - “The Internet has reached most people in Brunei Darussalam, Malaysia, and Singapore.”
  - “More than 70 percent of Cambodia, Indonesia, Lao P.D.R., and Myanmar remains offline and can’t fully participate in the digital economy.”
- Broadband and cost issues:
  - “High-speed broadband is even more scarce.”
  - “ASEAN trails China, Japan, and Korea, largely due to high costs. Singapore is the sole exception.”
- Data sources cited: IMF, World Economic Outlook (April 2018); Measuring the Information Society Report 2017, International Telecommunication Union.
- Chart indicators referenced (as presented in the source):
  - (individuals using the Internet, percent of population)
  - (fixed-broadband subscriptions, per 100 inhabitants)
  - (fixed-broadband prices, percent GNI per capita)

### Economic integration and external links
- “Economic integration provides a platform for ASEAN’s digital economy to proliferate and realize greater economies of scale.”
- ASEAN’s top sources of foreign direct investment inflows, by share, 2017 (as presented):
  - Intra-ASEAN 19.4% 23% EUChina
  - 18.6% 17% JapanEU
  - 9.6% 10% ChinaUnites States
  - 8.2% 9% NetherlandsJapan
  - 7.8%9%
- ASEAN’s top merchandise trading partners, by share, 2017 (labels present in graphic as “Intra-ASEAN” repeated).

### Five key priorities to grow the digital economy
- (1) Internet connectivity must be universal and affordable.
- (2) The business climate must encourage competition, which spurs innovation.
- (3) Education systems must adapt workers’ skills to new demands for a digital future.
- (4) Stronger safety nets are needed to protect those displaced by automation.
- (5) ASEAN nations should seek to improve financial inclusion through technology and adapt their regulatory frameworks to manage the risks associated with fintech.
- Additional policy area noted: “Financial regulatory framework to manage the risks from fintech.”

### Conclusion and imperative
- “As a regional bloc, ASEAN is the fifth largest economy in the world, and with hundreds of millions of young people eager to join the digital revolution, there’s no better time to close the digital divide. The future of the region depends on it.”

*Prepared by JIA FENG, communications officer, IMF Communications Department*

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_Source: https://www.imf.org/-/media/files/publications/fandd/article/2018/september/asean-digital-economy-infographic-feng.pdf_