The growth of the digital economy could add US$1 trillion to the gross domestic product (GDP) of the Association of Southeast Nations (ASEAN) bloc over the next 10 years, according to a report released by global management consulting firm A.T. Kearney in conjunction with Axiata Group Berhad, at the GSMA\u2019s 2016 Mobile World Congress.<\/p>\n
The report, titled ASEAN Digital Revolution, highlights three factors that could see ASEAN become one of the world\u2019s top-five digital economies by 2025. First is that the region is a robust economy with a combined GDP of US$2.5 trillion growing at 6% per annum. Second, the bloc has a literate population of more than 600 million, of which 50% are below 30 years of age.<\/p>\n
The third driving factor is a well-developed ICT cluster with a track record of innovation and investment into new technology.<\/p>\n
\u201cWhen it comes to market size and growth opportunities, there are few economic regions that can match ASEAN\u2019s potential, especially when it comes to the digital economy. More than half of the bloc\u2019s population is aged 30 or below. This is the consumer group which is most likely to contribute to digital economy as they are most tech savvy,\u201d says Naveen Menon, Partner and Asia-Pacific Head of Communications, Media & Technology Practice at A.T. Kearney and one of the authors of the report.<\/p>\n
\u201cThe confluence of technology innovation, a youthful population and robust economies can help ASEAN leapfrog into the vanguard of the digital economy\u201d he added.<\/p>\n
Jamaludin Ibrahim, President and Group Chief Executive Officer of Axiata said, \u201cThrough accelerated innovation, mobile network operators are ready to support and grow the ASEAN digital economies of cashless societies, smart cities, borderless digital services and financial inclusion. However, for mass adoption of the services to drive digital economies, policies and a strong digital agenda is required in the region with visionary government and industry collaboration. It is our hope, therefore, to see operators and governments quickly come together to accelerate this development. I believe a \u2018revolution\u2019 is required.\u201d<\/p>\n
The report adds that the impending implementation of the ASEAN Economic Community (AEC), which promises to promote free movement of goods, services, investment, skilled labor and freer flow of capital, is also likely to provide a big boost to the sector.<\/p>\n
However, it highlights issues that need to be addressed, and policy initiatives that need to be implemented, for the region to meet the growth potential. These include:<\/p>\n
\u2022 Developing a comprehensive digital strategy, not just at the country level but one for the entire region
\n\u2022 Improving broadband and Internet access by releasing an additional 20MHz of spectrum per operator, per country
\n\u2022 Ensuring there are no more than four telecoms operators per market
\n\u2022 A comprehensive overhaul of in-country and cross-border regulations to ensure policies help boost growth of domestic firms
\n\u2022 Accelerating innovation in mobile financial services like allowing creation of digital-only banks
\n\u2022 Creating a single digital payment platform first in-country and then across ASEAN
\n\u2022 Creating 35 \u2018smart\u2019 cities that harness the power of technology to empower businesses and consumers
\n\u2022 Creating a national ID in each country for delivery of public services linked to the mobile phone and ensuring its interoperability across ASEAN
\n\u2022 Enhancing trust and security in ASEAN\u2019s digital economy by harmonizing cybersecurity, data security and privacy laws across the region
\n\u2022 Fostering a culture of digital innovation by revamping the K-12 and higher education system<\/p>\n","protected":false},"excerpt":{"rendered":"
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