Going Digital: Preparing For The Digital Economy

The digital economy is upon us. But what exactly is the 'digital economy' and how can we leverage it to our advantage? SME explores the phenomenon behind the digitaisation of the economy

- Ong Xiang Hong

Since the dawn of the millennium, our economy has increasingly moved from the ‘traditional’ economy to the digital economy. The term ‘digital economy refers to an economy that is based on digital computing technologies, although we increasingly perceive this as conducting business through markets based on the Internet and the World Wide Web.

Through the digital economy, ASEAN and the world are living through a remarkable economic and societal transformation, driven by technology. In this changing world, economic growth and competitiveness are increasingly tied to the digital economy, which is a key driver of jobs, business creation, and innovation. And today’s digital economy is where people all over the world share ideas, learn new skills, and gain access to the storehouse of human knowledge.

This technology revolution has been dramatic. Since 2000, Internet user growth has exploded exponentially across the region, with Indonesia recording growth of 1,400 per cent, the Philippines with 1,385 per cent, and Thailand with 660 per cent. The region will still see staggering growth statistics: the total number of Internet users in the region is expected to grow from 260 million in 2015 to 480 million by 2020.

The digital economy has also had a great impact on jobs and growth. According to data compiled by Google and Singapore’s Temasek, Southeast Asia’s digital market would have reached US$50 billion in 2017 and could exceed US$200 billion by 2025. Of that, e-commerce could rise to US$88 billion from the projected US$10.9 billion in 2017 and US$5.5 billion in 2015.