Break down digital-divide barriers to drive growth in S-E Asia

SOUTH-EAST Asia's digital economy is emerging from the Covid-19 pandemic stronger than before. In fact, the region has ushered in the "Digital Decade", with its Internet economy set to surpass previous estimates to reach US$1 trillion in gross merchandise value (GMV) by 2030. Covid-19 was a catalyst for the shift in consumer behaviour, accelerating trends that saw digital platforms and services become an even more integral part of everyday life as consumers mitigated movement curbs by going online for their needs. For businesses that were able to pivot quickly to selling online, their nimbleness proved critical in cushioning against the full economic impact of the pandemic.

As we look to exit the pandemic and transition to endemic, maximising the immense potential of the digital economy will be vital to the region's overall economic recovery efforts. However, this requires that businesses and consumers are ready to join the Internet economy and take advantage of its tremendous promise. Businesses need to be connected to new technology infrastructure, such as 5G networks, and consumers must be able to access goods and services online.

While countries such as Singapore have largely closed the "access divide" and are working to bridge the digital skills divide, many countries in South-east Asia are still lagging in this regard. In fact, an estimated 30 per cent of the adult population in the region - 150 million adults - are digitally excluded. A recent Digital Inclusion Index, created by consultancy firm Roland Berger, ranked South-east Asia fifth out of 7 global regions based on the scores of 82 countries measured across 4 digital inclusion levers: accessibility, affordability, ability, and attitude.