Digitally savvy people in Asean more economically resilient during pandemic: study

DIGITALLY savvy individuals were more economically resilient during the Covid-19 pandemic, and such people are more likely to desire further digitalisation than their less savvy counterparts, according to a study by Singapore-headquartered consumer tech giant Sea.

Respondents who reported greater levels of digitalisation of their work and business reported lower levels of income decline, the Asean Digital Generation Report 2021 said.

The report, done in collaboration with the World Economic Forum (WEF), surveyed 85,908 people from six Asean countries - Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam - of which 77 per cent were aged 16 to 35.

One in 10 respondents were business owners. Among them, 24 per cent of business owners with an online presence said they saw an increase in savings, while 28 per cent saw an increase in income.

For business owners without an online presence, only 18 per cent reported an increase in savings and income. Sea noted that this was consistent across education level, industry and other demographic factors.

Some 85 per cent of respondents said that they saw digitalisation as important or very important for economic recovery.

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Meanwhile, digitalisation has a "flywheel effect", said the report.

Between 51 and 72 per cent of respondents who reported increased income wanted further digital adoption; 70 to 80 per cent of those who said they have already digitalised 50 per cent or more of their tasks wanted to increase the level of digitalisation even further, according to the report.

"This could reflect the flywheel effect of digitalisation where those who have already internalised sufficient level of competency and experienced the benefits are more eager to deepen their level of digitalisation," said the report.

Conversely, the "less digitalised" users - those who have digitalised 25 per cent or less of their tasks - were possibly less motivated or lacked the skills to digitalise further.

"In particular, limited initial exposure to digital tools during the pandemic is not a magic bullet for quality digital transformation," the report said.

"As the 'less digitalised' users have most likely not yet experienced the benefits of digitalisation, they have not yet reached the tipping point of getting the flywheel to start and consequently are less prone to further digital adoption."

It added that such individuals need "long-term nurturing policies" so that they can experience meaningful adoption of digital tools and appreciate the tangible benefits of digitalisation.

Similar to 2020, respondents said expensive or poor Internet quality or digital services were top barriers to digital adoption.

Overall, while less digitalised respondents identified digital skills as a key additional obstacle, more digitalised respondents were more concerned about trust and security issues instead.

"The survey showed improving the quality and affordability of Asean digital infrastructure, equipping Asean workforce with appropriate skills and enhancing people's trust in the digital environment are crucial to bring Asean over the tipping point for inclusive and sustainable digital transformation," said Joo-ok Lee, head of the regional agenda for Asia-Pacific at WEF.

Santitarn Sathirathai, group chief economist of Sea, said it is critical for the public and private sectors to work even more closely to minimise any friction and barriers that may prevent digitalisation from taking place.

"Through this, digitalisation can enable post-pandemic recovery in an inclusive and sustainable way," he said.