This article was co-authored by Idham Nawawi and Soon Ghee Chua.
Collectively, the 10 member nations of the Association of Southeast Nations (ASEAN) have a number of strengths keeping it poised on the edge of a digital revolution, ready to reap the benefits digitalization has to offer.
It has a young population, most of whom are digitally engaged, with the majority connected to broadband via mobile phones. According to the United Nations, some 94 percent of its population is literate for adults aged 15 years or older– of which 40 percent are under 30 years old, and 90 percent of this age group have access to the internet.
All these form the foundations for ASEAN to be a leader in the digital economy, with a true ASEAN digital revolution transforming the region by 2025. We estimate the benefits to ASEAN GDP of embarking on this revolution in the region of up to US$1 trillion.
Challenges and roadblocks exist towards a unified digital market and full digital economy, resulting in ASEAN struggling to keep pace in ushering in the digital era despite its potential. However, the advent of the ASEAN Economic Community (AEC) brings with it the promise of a more integrated regional economy with its attendant rewards and the World Economic Forum on ASEAN on 1-2 June in Kuala Lumpur will offer a platform to address these issues.
To overcome these roadblocks within the digital economy’s complex value chain, there are five policy imperatives for ASEAN countries to act upon, essential to jump start changes within key areas.
1. Prioritise universal mobile broadband access
More technology neutral spectrum made available to telecom operators especially the 700MHz Digital Dividend
The pursuit of universal mobile broadband access should be a top priority to ensure that the 67 percent of the ASEAN population who live without access to basic internet services are included in the digital revolution shaping the future of the region.
Crucial to advancing mobile broadband access is the release of substantially more lower frequency bands, specifically the 700MHz digital dividend, to mobile operators. The freeing up and allocation of additional technology-neutral spectrum will catalyse economic growth, as a cost effective means for telcos to bring high speed internet access to the masses, especially those in rural areas.
In addition, policy-makers need to ensure not more than four operators per country for long-term sustainable, healthy economics for telecom operators.
Support digital literacy initiatives
ASEAN should empower their people to be digitally literate, focusing on the core groups of students, the workforce and senior citizens to become digital natives. Students are the next generation to participate in the digital economy, while blue-collar and white-collar workers can leverage on ICT to increase productivity and drive innovation. Senior citizens will also be able to leverage on technology to service their needs such as elderly care and remote health monitoring.
2. Accelerate innovation in mobile financial services, ecommerce and connected cities
3. Enhance trust and security in ASEAN’s digital economy
4. Strengthen the local digital economy
5. Foster digital innovation within ASEAN
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