ASEAN must accelerate digital technology advancement

President and Managing Director of Bosch Southeast Asia Martin Hayes said that this must be done in a manner that does not hinder trade.

 

Hayes was speaking at a session titled “The Future of Technology — Focusing on the Digital Economy” during the ASEAN Business and Investment Summit (ABIS) 2016 in Vientiane, Laos.

 

Hayes, who is also the treasurer and a founding member of the EU-ASEAN Business Council, said that as markets become more volatile and dynamic, policy makers struggle to keep track of the latest developments and either embrace the new entrance by way of making necessary legislation adjustments or prohibit them entirely.

 

“We need effective leadership to overcome the challenges in an uncertain environment. Both business and political leaders should possess the knowledge and capability to be agile, adaptable and resilient,” he said.

 

Hayes said that new social behaviours such as online shopping are rising and becoming prevalent, and with that, customer expectations and requirements are also increasing such as shortened delivery times and round-the-clock customer service.

 

As such, he said, traditional markets are facing increasing competition from new entrants not only through vertical and horizontal integration but also by means of disruptive technology and services.

 

“Who would’ve thought that the online transport services would rattle taxi companies all around the world or that Amazon would turn out to be one the world’s largest retailers?,” he told the audience.

 

To ensure that fair competition is upheld, he said, governments must not foster any protectionist measures that serves the interest of one specific stakeholder.

 

He added that should one stakeholder become too powerful or monopolistic, in the interest of the industry and the economy, politics should respond with effective competition laws to curtail such developments.

 

“An effective competition policy should entail enforceable rules that prescribe anti-competitive activities so as to facilitate a unified market and production base within the region.”

 

Hayes said that the digital economy naturally requires infrastructure to support it and more importantly access to high quality broadband networks.

 

He said that enhancing economic connectivity will require other sectors involvement such as transport, communication and energy.

 

“Fiscal infra development should be aligned with internet connection expansion. For example, E-commerce as a distribution channel is only available if the customer is connected to a transport network for physical distribution of the products and services,” he said.

 

Another area that ASEAN needs to develop is in the treatment of data, Hayes said.

 

He added that the responsible use and treatment of data is the core for new business models. “It forms the very basis of personal trust that can also become a competitive advantage.”

 

Hayes said clear and precise legislation on how to treat data are required to ensure transparency and avoid ambiguity.

 

It is also necessary for the region to invest in cyber security, and that the the governments must strengthen cooperation in combating cybercrimes as part of the 2025 blueprint for political security that will foster greater confidence by companies and consumers alike.

 

“While cyberattacks and cybercrimes are top concerns for companies and governments alike, this does not mean that access should be cut off.”

 

In this new digital era that is not regulated sufficiently yet, clear rules are required and must be internationally harmonised to support international production and operational networks, Hayes said.

 

He said that for ASEAN to enhance its participation in the global value chain, the region needs to have a better regulatory coherence.

 

“Intellectual property protection is also critical not only for innovative companies to thrive but also for ASEAN to climb up the technological ladder,” he added.

 

The Brunei Times