“Reimagining the Digital Era” DIGITAL TRANSFORMATION AGENDAS & INITIATIVES WITHIN THE ASIA PACIFIC ECONOMIES SEPTEMBER 2017 2 Digital Transformation Agendas & Initiatives within the Asia Pacific Economies TABLE OF CONTENTS Sr. Chapter Title Page No 1 About the report 4 2 Messages from ASOCIO and WITSA 7 3 Executive Summary 9 4 Status of Digital Transformation in Asia Pacific Economies 11 5 ICT Landscape for Key Asia Pacific Economies 13 6 Recommendations for Asia Pacific Digital Transformation 181 Appendices 199 3 ABOUT THE REPORT 4 Digital Transformation Agendas & Initiatives within the Asia Pacific Economies ABOUT THE REPORT OBJECTIVE OF THE REPORT ASOCIO and its research partner WITSA have together published this research paper named ‘Digital Transformation Agendas & Initiatives within the Asia Pacific Economies’. The objectives of this research paper are: • To recognize the importance of digital initiatives in the APAC Region • To identify and share each nation’s digital transformation plan • To suggest policy recommendations for making APAC a truly digital region COVERAGE This research paper which was developed over the course of three months primarily covers three core aspects: 1. Detailed overview of the Information and Communication Technology (ICT) industry in twelve identified Asian economies. This includes the performance of segment such as ICT Hardware, ICT Software, ICT Services, telecommunications, e-commerce, fintech, etc. in each of the twelve countries. 2. An assessment of the performance and plans with respect to digitalization in the select Asian economies and throws light on some of the critical challenges regional challenges in areas spanning from access to digital infrastructure to digital security to human resources, among several others. 3. The report concludes with a set of (7+1) core policy-level recommendations that could be the seen the foundation to develop a comprehensive digital agenda for the Asia Pacific region as a whole. The twelve countries covered as a part of this research are as follows: 1. Australia 5. Korea 9. Sri Lanka 2. Bangladesh 6. Malaysia 10. Taiwan 3. India 7. New Zealand 11. Thailand 4. Japan 8. Singapore 12. Vietnam 5 Digital Transformation Agendas & Initiatives within the Asia Pacific Economies Published by: The Asian-Oceanian Computing Industry Organization (ASOCIO) is an ICT federation organized by ICT associations representing from 24 economies throughout Asia Pacific. ASOCIO was established in 1984 and it is the most time- honored and active international ICT trade organization in Asia and Oceania. Its influence covers more than 10,000 ICT companies and represents approximately US$ 350 billion of ICT revenue in the region. ASOCIO's objective is to promote, encourage and foster relationships and trade between its members, and to develop the computing industry in the region. Presently, ASOCIO represents the interests of 31 economies, comprising 24 members from Australia, Bangladesh, Bhutan, Brunei, Cambodia, Chinese Taipei, Hong Kong, India, Indonesia, Japan, Laos, Macao, Malaysia, Mongolia, Myanmar, Nepal, New Zealand, Pakistan, Philippines, Singapore, Korea, Sri Lanka, Thailand, Vietnam and 7 guest members from USA, UK, Canada, Spain, Russia, France, and Kenya. Under the ASOCIO umbrella, member economies are provided an opportunity to collaborate amongst the member economies for growth. Partner: The World Information Technology & Services Alliance (WITSA) is a global consortium of leading ICT industry association members from over 80 countries/economies. As the leading recognized voice of the global ICT industry, WITSA aims to drive transformation and grow the industry, given that ICT is the key driver of the global economy: WITSA’s members and stakeholders comprise national associations, multinational corporations, institutions and organizations, researchers, developers, manufacturers, software developers, telecommunication companies, suppliers, trainers and integrators of ICT goods and services. As such, they represent a large and obviously vital constituent group for whom the effective balancing of concerns and rights affecting the security, privacy and information capability provided by ICT products and services underpins business development and economic activity. 6 Digital Transformation Agendas & Initiatives within the Asia Pacific Economies Research Agent ValueNotes specializes in the management of competitive and market intelligence, information and research. Since 2000, they have helped organizations across diverse industries, markets and geographies make better business decisions by providing actionable intelligence. ValueNotes works with clients across the globe, including leading global corporations, management consulting firms, research publishers, PE/VC firms, and money managers. [www.valuenotes.biz] Disclaimer: This publication contains a collection of articles sourced from various industry players, academia and published reports. The information in this report has been obtained from sources believed to be reliable. All views expressed in this report are based on the opinions and judgements of the author. This report is for general information only, and does not constitute a business recommendation or professional advice. Readers are encouraged to consult their own professional advisors before making any decision based on the contents of this report. Neither the author, nor the publisher or their partners, of this report accept any liability for any consequences arising from the use of this report or the material contained herein. Publisher: Asian-Oceanian Computing Industry Organization (ASOCIO) Partner: World Information Technology & Services Alliance (WITSA) September 2017 Copyright © ASOCIO and WITSA 7 MESSAGES FROM ASOCIO and WITSA 8 Digital Transformation Agendas & Initiatives within the Asia Pacific Economies ASOCIO CHAIRMAN’S MESSAGE I am pleased to announce the release of the ASOCIO inaugural research report in conjunction with the launch of ASOCIO’s new tagline titled ‘Reimagining the Digital Era’. Asia Pacific (APAC) strong and vibrant economy, favorable demographics, ICT investments, and ongoing economic integration have laid the foundation for the region to become a global leader in the digital economy. Countries in APAC have tremendous potential to embrace, transform and lead in the digital economy and a true digital revolution will transform the ICT development in the region in the near future. Countries in APAC have the opportunities to equip employees with digital tools that can increase productivity and create a higher-skilled ICT workforce in the long run. Besides that, an increase in broadband penetration, higher worker productivity and ventures in new digital industries can uplift national GDP growth. To bring APAC to a full digital revolution, barriers that will need to be addressed are the weak business case for building out broadband, regulations inhibiting innovation in mobile financial services and e-commerce, low consumer awareness and trust hindering the uptake of digital services, lack of a single digital market and a limited supply of local content, primarily due to the weak local digital ecosystem. Despite all the challenges faced, it is still important for APAC countries to embrace this digital age as it will gives benefits such as an increasingly cashless society, Industry 4.0 – Digitizing product and service offerings, digitizing customer engagement and digitizing internal operations to increase productivity, increase efficiency in public services and implementation of smart cities. Besides that, in line with ASOCIO new vision; to be the Catalyst of Asia Pacific Digital Transformation and Enablement, this report plays an important role to initiate the realization of the digital economy in APAC region. In this research, we will be sharing with you each economies digital transformation plan, key initiative strategies undertaken in each economy as well as the importance of digital initiative in the region. Readers would have the opportunity to understand in depth the digital agenda of various economies in APAC. At the end of the report, there are few policies recommendations for making APAC a truly digital region. Lastly, I will like to take this opportunity to thank WITSA (World Information Technology and Services Alliance) for its support and all 12 target economies for your generous contribution to make this inaugural report a success. David Wong Nan Fay Chairman ASOCIO 9 Digital Transformation Agendas & Initiatives within the Asia Pacific Economies WITSA CHAIRMAN’S MESSAGE “Fully leveraging ICTs requires a society-wide effort: the government, the business sector, and the population at large each have a critical role to play” -The Global Information Technology Report 2016, WEF The World Information Technology & Services Alliance (WITSA) is pleased to co-sponsor this important report with the Asian-Oceanian Computing Industry Organization (ASOCIO). As Information and Communications Technology (ICT) impacts nearly every aspect of human life, there is perhaps no factor more important to the development of ICT than that of government commitment, together with the ICT industry to fully engage in the Digital Revolution. Over the past several years a large number of nations have benefited and continue to benefit from ICTs. Communications, education, manufacturing, health care, transportation, urban development and resource management are but a few key sectors transformed by the incredible innovations we have witnessed. There is much more to come. Much can be learned from the enormous efforts and investments that these countries undertook and are presently undertaking to transform their societies into the Digital Age. In order to continue the astonishing and beneficial growth of ICT, a number of factors need to be in place to include a quality regulatory environment, adequate infrastructure as well as reliable and dependable cyber security, affordability and a skilled workforce. There are however complex challenges inherent in each one of these factors. Nations continually struggle with prioritizing resource allocations based on real-time, pressing societal needs. Embracing ICT development may not be perceived as one of them. However, it is proven that those countries that do make the decision to commit to ICT development benefit immensely from their decision. It is our sincere desire that this work can be expanded around the globe in order to continue to accumulate and share information which will provide great value to nations so that they too will enjoy the benefits of ICT to the fullest. We welcome your feedback and hope you enjoy the report. Yvonne Chiu Chairman WITSA 10