Asean's digital economy offers potential in post-Covid world

THE Brunei government, as it takes over the Asean chairmanship in 2021, faces the daunting task of uniting members in addressing the biggest challenges of this generation. Driving the region's economic recovery post-pandemic must undoubtedly be at the top of the economic bloc's agenda.

The good news is that Asean is well-placed to leverage the potential of its digital economy to drive recovery efforts. In 2019, South-east Asia's Internet economy hit US$100 billion, more than tripling in size over the preceding four years. By 2025, the region's Internet economy is expected to grow to US$300 billion. The Internet economies in Malaysia, Thailand, Singapore, and the Philippines are growing by between 20 per cent and 30 per cent annually. While this is a remarkable feat compared to other regions, Indonesia and Vietnam are the markets to watch - they boast growth rates in excess of 40 per cent a year.

If Asean member states want to reap the immense benefits that the Internet economy can bring, the economic bloc needs to sow the seeds now. Member countries need to work together to develop smart, forward-looking policies that stimulate Asean's digital economy by spurring innovation, encouraging greater entry and participation of small and medium-sized enterprises (SMEs) and entrepreneurs, and empowering businesses with the ability to grow and invest for the future.