Letters | Asean’s digital transformation must allow members to move at their own pace

Readers discuss what the digital economic future holds for Southeast Asia, why the Hong Kong government’s housing numbers don’t add up, and the need for a sugar tax

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Motorcyclists pass a billboard advertising GoTo, a merging of Indonesian tech company Gojek and e-commerce pioneer Tokopedia, in Jakarta, Indonesia, on April 8. Photo: Bloomberg

Published: 11:30am, 28 Dec 2022

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Asean has the potential to become the fourth biggest economy in the world by 2050. This is in part thanks to the rise of the region’s digital economy, which is estimated to increase in value to over US$200 billion by 2025.

With an increasing number of e-commerce businesses based in the Association of Southeast Asian Nations, such as Singapore’s Lazada and Indonesia’s Tokopedia, there is enormous growth potential for Asean as a region, not only in e-commerce but also ride-hailing services and the general start-up environment.

However, economic expansion is both constructive and harmful. Although the prospect of becoming a rapidly growing economic power through digitalisation is appealing, Asean needs to balance growth with adaptation. It must work towards inclusive and sustainable development that ensures the safety of all.

Asean was established to facilitate economic integration within the region and with the globe. Although this worked well in promoting free trade, the region’s growth as a digital hub may require a different approach.

For one thing, the digital transformation is likely to have a significant impact on the region’s industrial sector. Currently, Southeast Asia is one of the largest industrial centres outside China. Automation can help boost efficiency and bring down costs. However, it has the potential to eliminate employment for a large number of people.