Asia’s digital embrace puts it on fast track

Deloitte’s digital engagement indices for government, businesses and consumers show that Asian economies are leveraging digital technologies to help them leapfrog development hurdles, resulting in them winning the race on connectivity. Asia has become the centre of global economic growth and by embracing digital, it will continue to lead global economic growth over the coming decade.
Ric Simes, Deloitte Australia economist, said digital technologies have been synonymous with rapid and evolving change over the past four decades.
“While we have made significant progress, we are only at the tip of the digital iceberg when it comes to what’s possible in the future,” he said.
“When applied on a global scale, we can see that Asian economies and societies are at the forefront of this revolution. Asia is leading the way in how digital developments can enable individuals, businesses and governments to do things differently and, often, more efficiently.”
According to the Deloitte digital engagement indices for government, business and consumers, Asian economies are ahead in digital engagement terms, with almost all Asian countries above the world average. Government and business engagement is high relative to the rest of the world, with individual engagement about average. The Deloitte digital engagement index scores each countries' Networked Readiness Index (NRI) against GDP per capita, showing that every country in Asia apart from Myanmar has above average levels of digital engagement for the level of their economic development.
Singapore and Hong Kong are world leaders, while the large population bases in countries such as China, India, Indonesia and Vietnam have considerable opportunities for the future. In middle-income countries in Asia, governments have been able to maintain strong growth agendas based on policies in areas such as trade, infrastructure and savings. Today, these countries are pursuing growth agendas with digital taking a leading role.
“Two elements have contributed to the success of Asia’s economies over recent decades. First, the opening of the traded goods sectors to external market forces and, second, encouraging the adoption of cutting edge technology wherever possible. These elements are related and have meant that these economies have been able to overcome hurdles to their development, bypassing old or second-best technologies and practices along the way,” said Frank Farrall, Asia-Pacific lead partner for Deloitte Digital.
For business, digital can encourage trade in the region by helping businesses, particularly small businesses, access global markets. In developed economies such as China or Malaysia, the use of online marketplaces, have opened up additional markets for local businesses, and have been a boon for many small businesses.
 For consumers, digital can provide opportunities in terms of connectivity, mobility and social networks. India is leading the way with the highest number of Facebook users in the world (195 million in May 2016) and e-commerce is also expanding, with China now the world’s largest e-commerce market. Across all countries, the potential to harness consumer engagement is high.
 For government, digital aids in the development of public infrastructure, particularly around smart cities, which can help leap infrastructure development hurdles. Digital government initiatives can also help to improve efficiency, transparency and inclusiveness of government. Countries like Singapore and South Korea are global leaders. Their governments continue to actively explore how to embrace the latest waves of technological advances so that they remain at the forefront, Deloitte says.