Break down digital divide barriers to drive economic growth in SE Asia

Jeff Paine

Southeast 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 Southeast 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 Southeast Asia fifth out of seven global regions based on the scores of 82 countries measured across four digital inclusion levers: accessibility, affordability, ability, and attitude.

The journey towards greater economic opportunities

A recent research project, commissioned by the Asia Internet Coalition and carried out by Economist Impact, surveyed 200 senior executives across India, Indonesia, Malaysia, Singapore, Thailand, and Vietnam to better understand their views on the opportunities and challenges pertaining to the region’s digital economy. The majority of respondents (89 per cent) saw digital inclusion as critical for rapid economic recovery during and after the Covid-19 pandemic. However, respondents agree that more attention needs to be given to improve digital inclusion (67 per cent), and that more investment and resources are needed from the government to bridge digital divides (65 per cent).

However, the digital development journeys across the region are as diverse as the region itself. Respondents also pointed out that the challenge of digital inclusion is multi-faceted. Digital inclusion should not just look at providing access; it should also address unequal digital literacy and a lack of trust in technology, and raise awareness of the benefits for users to go digital.

With these in mind, the report outlines key recommendations to bridge the digital divide in Southeast Asia.

* Increase awareness about the benefits of digital inclusion

With greater digital inclusion, countries will benefit from socio-economic opportunities that can accelerate economic recovery during and after the Covid pandemic. Businesses can become more competitive both locally and globally and there will be more jobs and upskilling programmes available for individuals. Understanding the pros of digital inclusion will drive efforts towards making the Internet more accessible and inclusive for all.

*Promote public-private collaboration

Bridging the digital divide cannot be done by any one sector alone. Different stakeholders must work in synergy to achieve valuable outcomes. This includes open dialogue between the public and private sectors on current and prospective technology challenges, such as the introduction of prominent digital tools to improve digital inclusion.

*Nobody left behind

Digital inclusion must capture all populations, including disabled people and those in rural communities. This ensures that all members of society can reap the maximum benefits.

*Back appropriate regulatory policies

Regulation can aid in expanding infrastructure and building online trust to improve digital inclusion in the region. Contrary to perceptions, the private sector welcomes regulations if they can lead to greater digital inclusion, such as in areas including data protection and cybersecurity.

*Increase digital literacy and support upskilling

Gaining access to digital platforms is the first step, but it is imperative that people understand how they can use the technology in a productive manner. Stakeholders must place equal importance on digital skills training and education to make the most out of the Internet economy.

The time to tackle digital divide barriers is now. Despite the challenging environment caused by the pandemic, the momentum of the region’s digital economy has not been derailed. Plans to recover from the economic downturn must take into consideration the significant role that the digital economy will play. Governments need to seize the moment and accelerate digital inclusion to build an ecosystem that will power the overall recovery of the region’s economies.

The writer is managing director of Asia Internet Coalition