As was perhaps inevitable, the Association of Southeast Asian Nations is facing the spread of the Omicron variant of coronavirus, with cases rapidly rising over the past few weeks — Malaysia, for example, is seeing its highest-ever infection numbers. However, as most countries in Asean have now received vaccine supplies sufficient for double-dosing, the economy and businesses are regaining their full capacities. As at February 2022, the Philippines, Thailand and Vietnam are open to visitors, with certain limitations, and the rest of Asean is expected to follow suit in the coming months.
Despite the pandemic, investors are clearly optimistic about the region’s immense economic potential and market prospects — particularly in tech. For example, Southeast Asian tech start-ups raised an unprecedented US$8.2 billion in 2021. In Malaysia, the Malaysian Digital Economy Corporation (MDEC) announced its Digital Investments Future5 (DIF5) Strategy, which hopes to attract RM50 billion (US$12 billion) in investment into the country’s digital economy by 2025. Even as the pandemic continues to sweep through Asean’s underdeveloped communities, money is still being pledged to 5G and tech.
The economic story of the past two decades has centred around digital opportunities and the internet. Ask anyone what the world’s most successful companies are, and you would get a list of tech companies: Google, Apple, Facebook, Netflix, Alibaba, Tencent and so on.
In fact, development priorities shifted to accommodate the rise of the internet and deepening smartphone penetration. Telecommunication towers, cheap mobile devices and rapidly expanding tech sectors were favourites of development budgets. “Access to information” was one of the main reasons for this: Organisations across Asean discussed how to deliver development priorities through smartphones and the internet to attract funding. This was despite the lack of any real evidence that this was what poorer communities truly wanted or needed. In this digital fog, development needs were often forgotten, yet billions of dollars would be directed towards the “digitalisation” of anything possible.