TECH4GOOD
Digital technologies, the new business models they enable such as the digital platforms, the mobile-first attitude of most of Southeast Asia’s population, and the widespread adoption of digital tools are driving the growth of Southeast Asia’s digital economy including the Philippines.
This is highlighted in the Tech for Growth to Tech for Good Report produced by the Tech for Good Institute for AsiaTech x SG and supported by the Infocomm Media Development Authority (IMDA) of Singapore. The report says that the region’s projected growth outpaces the global rate in terms of the percentage of the GDP attributable to the digital economy with the Philippines ranked at number five among the SEA-6 covered.
The SEA-6’s digital economy benefits from several factors that are enabling its growth and is expected to reach a gross merchandise value (GMV) of US$330 billion by 2025, and US$1 trillion by 2020. Among them are the continued digital transformation after the pandemic which accelerated digital adoption, the integration of digital and non-digital economies through online-to-offline (O2O) platforms that lowered barriers to entry to the digital economy for both consumers and MSMEs, and increasing innovation and startup activities. First-generation Digital Economy Companies (DEC) such as Lazada, Grab, Lalamove, and the SEA Group, among Asia’s early unicorns, have become inspirations to the next generation of startups.
These technology platforms have emerged as powerful catalysts for growth, and digital transformation, bridging the gap between physical and digital realms, and reshaping how we live, work, and interact. The report emphasizes, however, that the creation of economic value from technology adoption must also result in the sustainable, inclusive, and equitable transformation of both the economy and society. The concept of “Tech for Good” drives the point that disruptive innovation should serve national and regional economic, social, inclusive digital development, and environmental goals.
The report identifies four key areas where technology can help achieve these goals: economic empowerment, social inclusion, environmental sustainability, and resilience. Technology can be used to create new jobs and opportunities, especially for underserved populations. For example, digital financial services like digital wallets do not just provide convenience but also empower unbanked MSMEs and individuals to access the capital they need to grow. Digital platforms are also providing new livelihood opportunities for the same segment of the population.
To drive social inclusion, technology can be used to bridge the digital divide and connect people to essential services, such as education, healthcare, and government services. Emerging e-healthcare platforms are now able to provide access to modern diagnostics tools to people in remote areas.
Technology is seen to have a huge carbon footprint but, on the other hand, it is also being used to reduce our environmental impact and promote sustainable development. The use of smart and AI-powered smart grids helps to reduce energy consumption and greenhouse gas emissions. To help achieve resilience, technologies such as IoT sensors can be used to help communities adapt to shocks and stresses, such as natural disasters and climate change. Smart early warning systems can help people prepare for and evacuate from natural disasters.
There are a number of key enablers that are needed to ensure that technology is used for good in the region: digital infrastructure, digital literacy, digital talent development, trust in the digital ecosystem, innovation and entrepreneurship, and regional cooperation. Although the existing priorities in the region remain the same, the outcomes should be broadened to ensure that the Tech for Good impacts we are all aspiring for are achieved.
Creating an inclusive digital infrastructure is not just about providing connectivity for equitable access to everyone but making access affordable and reliable. It is not just about achieving digital literacy for inclusive adoption but having the right skill sets people need to carry on meaningful and productive participation in the digital economy. The development of talent for the digital economy should result in sustainable and adaptable livelihoods. In order to foster trust in the digital ecosystem, states need to have the appropriate policies to govern emerging technologies. Innovative startups and governments need to work together to promote responsible innovation and ensure that technologies are developed and used in a responsible and ethical manner. Finally, strengthened regional cooperation should result in a coordinated, consistent, and responsive regulatory environment in the region.
Southeast Asia is one of the fastest-growing economic regions in the world, with a young and digitally savvy population. The digital economy is playing an increasingly important role in the region's development, and technology is poised to have a major impact on the region's future.
The journey from “Tech for Growth” to “Tech for Good” requires intentional efforts from all stakeholders — platform operators, policymakers, entrepreneurs, and citizens alike. By harnessing the power of digital platforms responsibly and inclusively, Southeast Asia can unlock its full potential as a digitally empowered region. ([email protected])
(The author is an executive member of the National Innovation Council, lead convenor of the Alliance for Technology Innovators for the Nation (ATIN), vice president of the Analytics and AI Association of the Philippines, and vice president, UP System Information Technology Foundation.)