ASEAN’s Digital Generation — looking beyond the pandemic
By Bradford Loh
In our latest flagship research report, the Sea Insights team explored how the ASEAN population was affected by the pandemic, their perceptions about digitalisation, and the needs of the post-pandemic world.
These findings are based on a survey of ~86,000 ASEAN citizens across the region, and done in collaboration with the World Economic Forum.
For the full report by the World Economic Forum click here.
We highlight 8 key takeaways from our research:
1. The pandemic had a severe economic and mental impact across ASEAN, particularly to MSMEs and women.
60% of people surveyed reported a decline in income and savings during the pandemic. MSME owners and workers in the dining and tourism sector were the most severely impacted. Social, mental and physical outcomes also took a hit during the pandemic, with women, in particular, reporting substantial declines.
2. The prolonged pandemic that could leave behind a markedly different world
Respondents foresaw a more caring and more hygienic world, with greater improvements in health and healthcare, and with increased adoption of digital technologies post-pandemic. However, they also reported worrying about future economic crises, pandemics, misinformation and environmental degradation.
3. Signs of adaptation and new discoveries
64% of respondents have digitalised over half of their tasks; this number rises to 74% among MSME owners. Amid the crisis, nearly one-third of respondents created a new business, while 12% created employment for others, and 25% started a new job.
4. The crucial role of digitalisation for economic recovery, especially for MSME
Some 85% of respondents and 87% of MSME owners see digitalization as being either very important or important for economic recovery. Respondents who reported greater levels of digitalization of their work and business reported lower levels of income decline. Similarly, business owners with an online presence were less likely to report declines in savings and income compared to those without one.
5. The strong desire to digitalise further and the flywheel effects
The propensity to desire further digitalization rises dramatically to 70%-80% for those who were already using digital tools to complete most tasks. This could reflect the flywheel effect of digitalization where those who have already internalized a sufficient level of competency and experienced the benefits of digitalization are more eager to deepen their level of digitalization.
6. High demand to further digitalise finance, especially among MSMEs
Some 66% of respondents identified payments as a key area for further digitalization while 43% wanted to further digitalize the loans/financing process. MSME owners, in particular, attached great importance to digitalizing finance, with 75% wanting more digital payments and over half (53%) of them wanting greater digitalization in lending.
7. Access to digital infrastructure and devices still the largest barriers to digital adoption
An expensive/poor internet connection and access to digital devices were the top two barriers to digital adoption. Respondents who have digitalised 25% or less of their tasks also pointed to the lack of digital skills as a key barrier.
8. A strong need for the reskilling and upskilling of the ASEAN workforce
Technology use, creativity and innovation, self-discipline, and resilience and adaptability were considered to be the most important skills to succeed in the post-pandemic world.
