Asean's ability to digitalise is key to its recovery and growth trajectory

THE Covid-19 pandemic has accelerated the digitalisation of households and businesses, as well as the emergence of new and different technologies. It has also raised the possibility of reconfiguring global value chains post-pandemic in Asia.

As technology changes, so will the manner of global production and trade. Asean+3 Regional Economic Outlook 2021 said cost considerations will become less important, implying a need to strengthen other comparative advantages such as skilled labour supply, regulations and logistic capabilities.

To this end, many Asean members, especially Singapore, have been stepping up efforts to further facilitate digitalisation, diversify export markets and import sources, enhance inclusivity, support the transition to a green economy, and attract foreign investments by improving the business environment.