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Coronavirus pandemic
Opinion
Syed Munir Khasru

Opinion | The key to Asean’s post-pandemic recovery is digital transformation

  • The pandemic has accelerated Southeast Asia’s adoption of e-commerce, which holds great economic potential
  • But, for the region to become a major digital economy, gaps in infrastructure, access, inclusion, skills and policy must be addressed

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A man in Medan, North Sumatra, Indonesia, reads a newspaper with an advertisement about the creation of the country’s largest internet company, GoTo. A divergence in technological readiness across Southeast Asia has led to differing levels of digitalisation. Photo: EPA-EFE
The coronavirus pandemic has accelerated Asean’s digital transformation at an unprecedented scale and speed. With bricks-and-mortar businesses in Southeast Asia disrupted by lockdowns, e-commerce surged to US$62 billion in 2020, 63 per cent up from 2019. Online shopping is expected to grow by another US$100 billion by 2025, research shows.

In Thailand alone, downloads of shopping apps increased by 60 per cent early in the pandemic. In Indonesia, where almost all businesses are micro, small and medium-sized enterprises (MSMEs), the government has been compelled to help entrepreneurs adopt digital tools and skills. Across the region, the shift to online work and schooling has seen the number of internet users hit 400 million.

Southeast Asia’s adoption of digital solutions has played an important role in addressing a wide range of socio-economic challenges. Singapore was the first country in the world to introduce a Bluetooth-based mobile app, TraceTogether, for contract tracing, with others in the region following suit.
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The use of technology to compliment conventional health care has benefited members of the Association of Southeast Asian Nations. Deployment of information apps providing transparent and accessible data on the pandemic has kept the “infodemic” under control, for example.

Technology has also been used to roll out social programmes: the adoption of digital identity systems has been accelerated to ensure cash transfers reach the poor. Additionally, the plethora of online marketplaces that have sprung up during the pandemic has helped small businesses survive and, in many cases, thrive.

Digital integration has enabled Asean to harness its power as a collective, enabling member states to compete effectively in the global economy and also allowing them to foster domestic growth.

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