Cybersecurity, connectivity needed to tap potential of digital economy: DPM Wong

CYBERSECURITY, connectivity and the responsible use of artificial intelligence (AI) are among key digital priorities that need to be addressed, said Deputy Prime Minister Lawrence Wong on Tuesday (Jun 6).

The digital economy, comprising the information and communications technology (ICT) sector and digitalisation in other industries, grew to account for 17 per cent of Singapore’s gross domestic product in 2022, according to figures by the Infocomm Media Development Authority (IMDA).

The ICT sector alone, comprising software development and online services, grew by 8.6 per cent in 2022, compared with 3.6 per cent for the overall economy, said IMDA.

Wong, who is also finance minister, said that across South-east Asia the digital economy is projected to grow by five times to S$1 trillion by 2030, driven by new Internet users and a rising middle class.

“There are tremendous opportunities ahead of us, particularly in this part of the world,” he said at the Asia Tech x Singapore 2023 conference, held in Sentosa from Tuesday to Friday.

The conference on global tech issues is attended by tech professionals from all over the world.

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But there are challenges ahead, such as different rules on how data is handled across nations, concerns about job security and the ethics of AI usage, said Wong.

“How we manage these problems will define the future of the digital economy today,” he said.

Singapore needs to strive for a digital economy that is trusted, interconnected and inclusive, Wong added.

Establishing this will need the building of hard connectivity infrastructure, such as new subsea cable landings to increase Singapore’s network capacity, which is one of the goals listed in Singapore’s digital connectivity blueprint announced on Monday. The Republic will also upgrade its networks to raise Internet speeds to 10Gbps, laying the foundation for a new generation of apps.

Wong said soft infrastructure, like apps that support digital transactions, digital identity and certification, also form the backbone of today’s digital economy. These tools need to work across borders in order to realise the next bound of digital growth.

To do so, countries need to build trust by continuing to combat fraud and cyberattacks, to reduce the risks to users making digital transactions.

Countries should also work towards a common ground for the management of data, which will make it easier for them to collaborate and reduce costs for businesses, said Wong.

He also said a collective international approach is needed to deal with the issues AI raises.

While AI promises to shake up the digital economy with great potential, there remains serious concerns, especially in the biases that AI can exhibit in its decision-making, said Wong.

“As AI becomes more intimate and human-like, what is to stop it from being used to perpetuate falsehoods in society, commit hard-to-detect scams and undertake foreign influence operations?” he said, adding that these are the issues regulars, businesses and society will need to tackle.

He added: “No country can deal with all these issues alone. Only by coming together, and drawing on our collective wisdom and experiences, can we hope to succeed.” THE STRAITS TIMES