AS THE novel coronavirus pandemic struck, people in South-east Asia embraced technology at a faster rate and in more ways than ever before. In doing so, they have mapped out the role a strong, inclusive digital economy might play in the region's long-term success and prosperity.
According to the e-Conomy SEA 2020 report from Google, Temasek and Bain & Company, released on Nov 10, 40 million people across the region connected to the Internet for the first time this year - compared with 10 million last year and 100 million in total between 2015 and 2019.
When the virus began threatening people's health and disrupting their lives, South-east Asians went online to shop, pay, inform, educate and entertain themselves. Eight out of 10 said technology helped them during the crisis - and of those who started using a new kind of digital service as a result of the pandemic, nine out of 10 plan to continue using that service beyond it.
It's worth reflecting on the bigger story behind these numbers.
In the face of the biggest economic and health crisis in a generation, this surge online is the most profound shift we've seen since we first published the e-Conomy report in 2016. It means that despite a global economic downturn and the collapse of air travel, the regional Internet economy has held strong at a gross merchandise value of US$100 billion. But it also shows a more purposeful and inclusive Internet taking shape. South-east Asians increasingly expect more from digital services, not only in areas like e-commerce but also in emerging areas like health-tech and education-tech. Significantly, more than half the people who adopted a new digital service live outside of major cities - an encouraging sign of progress on the region's geographical digital divides.
In many ways, 2020 marks the end of one era and the beginning of a new one in South-east Asia's digital growth and evolution.
As it grows beyond a projected US$300 billion in value by 2025, the Internet economy can be an engine of opportunity, helping create jobs, providing better services and tackling social and economic challenges.
CONCERTED ACTION
This progress won't happen on its own, however. It will take concerted, coordinated action. In the months and years ahead, businesses, governments and civil society organisations should work together on four urgent priorities for unlocking the digital economy's full potential.
First, while the region continues to grapple with the impact of the pandemic, all South-east Asian nations should put skills training and job creation at the heart of economic recovery plans.
The virus has accelerated the importance of technology in almost every industry, yet without the ability to use even the most basic digital tools, workers will miss out on jobs and opportunities.
For businesses, meanwhile, the eConomy report finds that a lack of digital talent remains a persistent barrier to growth. Programmes like Skills Ignition in Singapore and Saphan Digital in Thailand, which bring together coalitions of government agencies and businesses to provide training and work placements, show the type of public-private partnerships required.
Second, to build on growing access to the Internet throughout the region, we should redouble efforts to close the digital divides that disproportionately affect regional communities, women and young people.
The Asia Foundation's Go Digital Asean programme is one step in the right direction. Backed by Asean governments and with support from Google.org, it funds local nonprofits in all 11 South-east Asian countries to help 200,000 small business owners and workers from marginalised communities (more than half of them women) get the technology skills they need. If it's successful, it should be a template for other, similarly ambitious programmes.
Third, tech companies, VCs and government digital agencies should shoulder the responsibility of guiding the next generation of talented South-east Asian startup founders and developers.
Startups like Gojek and Shopee have been critical during Covid-19. There are a host of brilliant founders ready to follow in their footsteps and, as the report shows, almost US$12 billion of 'dry powder' capital that could be invested to fund their growth. Not only do these founders want to build successful businesses, they also want to help address challenges like access to healthcare, education or financial inclusion, putting South-east Asia at the forefront of global technology developments. All of us have a stake in their success.
Finally, governments and businesses should engage constructively on the policies needed to foster innovation and entrepreneurship over the long term.
DIGITAL TRADE
One promising area is digital trade, which could deepen South-east Asian countries' economic ties to one another and the broader global economy, and help regional businesses compete and grow in new markets. Bain estimates greater digital integration within Asean could add US$1 trillion to regional GDP by 2025, while Singapore is already forging world-leading agreements with other Asia-Pacific nations like Australia, Chile and New Zealand. At a time when protectionism is rising around the world, South-east Asia can be a voice for openness and cooperation.
Technology has been at the heart of Southeast Asia's response to the novel coronavirus, helping hundreds of millions of people access digital services in their moment of need. The challenge now is to ensure that this positive, purposeful role continues as the region recovers and rebuilds - to shape the strong, equitable digital economy that all South-east Asians deserve in the decade to come.
- The writer is vice-president, South-east Asia, at Google
© 2020 Singapore Press Holdings
This article was written by Stephanie Davis from The Singapore Business Times and was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to legal@industrydive.com.
