Infographic: ASEAN’s Digital Economy
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- Infographic: ASEAN’s Digital Economy
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Bibliographic details
- Authors: JIA FENG
- Published: September 1, 2018
Overview
- ASEAN is poised to become digital-first economies but still faces five core challenges: affordable Internet, business competition, better education, stronger safety nets and financial inclusion.
- The region is young: "more than half of its 643 million people are under 30."
- ASEAN’s economy is "$2.8 trillion" and its membership comprises "10 members" moving toward greater economic integration.
- The Internet has reached most people in Brunei Darussalam, Malaysia, and Singapore, while "more than 70 percent of Cambodia, Indonesia, Lao P.D.R., and Myanmar remains offline."
Digital strengths and illustrative examples
- Indonesia’s digital ecosystem "boasts more than 1,700 start-ups—among the world’s largest clusters of new firms."
- GO-JEK evolved from a ride-hailing app to a platform for mobile payments and other digital services.
- Sea, described as "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."
- High-speed broadband is scarce across most of ASEAN; Singapore is "the sole exception."
Core gaps and challenges
- Internet access inequality: significant offline populations in several member states ("more than 70 percent of Cambodia, Indonesia, Lao P.D.R., and Myanmar remains offline").
- High costs of high-speed broadband relative to China, Japan, and Korea.
- Need for workforce reskilling as education systems must adapt to "new demands for a digital future."
- Social protection shortfalls: "Stronger safety nets are needed to protect those displaced by automation."
- Financial inclusion and fintech risks: "ASEAN nations should seek to improve financial inclusion through technology and adapt their regulatory frameworks to manage the risks associated with fintech."
Five priorities to grow the digital economy
- Internet connectivity must be "universal and affordable."
- The business climate must "encourage competition, which spurs innovation."
- Education systems must "adapt workers’ skills to new demands for a digital future."
- Stronger safety nets are needed to "protect those displaced by automation."
- Improve financial inclusion through technology and "adapt their regulatory frameworks to manage the risks associated with fintech."
Key statistics and regional role
- Population: "643 million" (with "more than half ... under 30").
- Economy size: "$2.8 trillion."
- Start-ups in Indonesia: "more than 1,700 start-ups."
- Offline share cited for specific countries: "more than 70 percent of Cambodia, Indonesia, Lao P.D.R., and Myanmar remains offline."
- ASEAN’s global rank by economy size: "fifth largest economy in the world."
- Membership: "10 members."
Conclusion
- With hundreds of millions of young people and an economy of "$2.8 trillion," ASEAN has significant potential to lead a regional digital transformation, but realizing that potential depends on closing the digital divide through the five priorities above.
F&D Magazine — On The Cusp — JIA FENG — September 2018.
Content in this bundle
- Infographic: ASEAN’s Digital Economy – IMF Finance & Development Magazine | September 2018
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