LEVERAGING TECHNOLOGY AND CONNECTIVITY TO SPUR GROWTH IN ASEAN - MAS-ESS Essay Competition 2018
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LEVERAGING
TECHNOLOGY AND
CONNECTIVITY TO SPUR
GROWTH IN ASEAN
MAS-ESS Essay Competition 2018
Yau Chun Yi & Tan Yean San
Hwa Chong Institution (College Section)
Leveraging On Connectivity And Technology To Spur Growth In Asean
Executive Summary
More than 1 in 5 Singaporeans do not view Asean favourably. They are not
wrong in thinking so. Certainly, Asean has brought prosperity to the region, but this
prosperity did not stem from the internal economics of — but rather the politics behind —
Asean. Regional peace among countries has created an environment stable enough to
attract investment and trade external to the bloc.
Asean has a long way to go before becoming an economic union that sustains
itself through predominantly regional trade. The forging of a more united Asean identity
is vital, but Asean must also focus on infrastructure, capitalising on the recent winds of
change blowing towards digitalisation to enhance connectivity. There are many long-
term plans to build common facilities that can be delivered if Asean positions itself to
catch the technological drift.
The advancement of the digital economy opens up novel platforms for SMEs,
facilitating growth but simultaneously, automation will displace workers. Singapore’s
local SMEs will need more investment and preparations have to be made in order to
install critical soft infrastructure within Asean economies. This essay will thus seek to
explore original ways in which connectivity1 and technology can be leveraged on to
address the above.
1
This essay will focus on human and physical connectivity. Physical connectivity refers to the
infrastructure linking between countries, such as bridges, roads, railways, ports and airports. Human
connectivity. Human connectivity refers to the relationships and interactions among peoples of the
member countries.
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Leveraging On Connectivity And Technology To Spur Growth In Asean
Singapore cannot do this alone. She needs to create win-win partnerships with
the other Asean nations to truly advance the region. Hopefully, in her year of
chairmanship, Singapore will be able to turn around Asean's fortunes, inspiring
confidence within and external to the community and at the same time learn keenly from
her neighbours.
[Word Count: 294 words]
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Leveraging On Connectivity And Technology To Spur Growth In Asean
Table of Contents
Asean’s Opportunities
Local Resources .............................................................................................. 4
Digitisation in the 21st Century .......................................................................... 5
Singapore’s Role and Her Relations to Asean ................................................. 6
Hurdles to Cross ............................................................................................... 7
Connecting Nations and People: The Need to Connect
The Asean “One Belt, One Road” .................................................................. 11
The Asean Penpal ........................................................................................... 13
An Ecosystem for the Entrepreneur and the Employee: Riding the Digital Wave
Incubating Entrepreneurial Talent ................................................................... 15
Online Matchmaking ....................................................................................... 16
Uplifting the Unskilled ..................................................................................... 18
A Smarter Asean ............................................................................................ 18
Final Thoughts ............................................................................................................ 21
Bibliography ............................................................................................................... 22
Appendix A ................................................................................................................. 27
Appendix B ................................................................................................................. 29
3|PageLeveraging On Connectivity And Technology To Spur Growth In Asean
Asean’s Opportunities
Local Resources
Asean possesses vast amounts of natural resources, a relatively young
workforce2, and a booming middle class3.
It is also relatively protectionism-averse, though this varies across Asean. One
unitive policy is its openness to trade, which Singapore has continuously emphasised
on throughout Asean's existence4. Trade relationships have been built extensively with
regional strongholds external to the bloc5.
As a result, the Asean economic community has garnered strong investor
confidence6. Traditionally, the region has found itself at the lower end of the GVC7
hierarchy, but with rising recognition from investors all over the world, Asean is
expected to become “the world’s factory” in the near future8. In order to achieve this,
Asean should prioritise looking inwards to strengthen itself from within.9
2
Over 60% of the overall regional population are people below the age of 35. They are more productive,
energetic and receptive to change than working adults and is a vital factor for digitisation in Asean. Later,
we will explain how Asean needs to have a more open mindset towards digitisation and be more
optimistic about this development.
3
There is an estimated 190 million people in Southeast Asia who could be defined as middle class —
people with disposable income of $16-$100 a day — as of 2012. But according to Nielsen, a global
marketing research firm, that number will more than double by 2020, to 400 million people.
4
Being export-dependent and having no hinterland of its own, Singapore has to ensure that free trade
comes to its shores. On top of free trade agreements, Singapore wishes to be more connected to its
neighbours such that economic benefits from exporting its own goods not only remain on paper but
translate into physical terms.
5
Asean’s top five trading partners are the People’s Republic of China (PRC), Japan, the European Union
(EU), the United States and South Korea.
6
Same article referenced in Footnote 4. Many foreigners see the potential in Asean and are starting to
invest more resources into the region.
7
GVC: Global Value Chain. Defined by the World Bank Group as the “international fragmentation of
production.”
8
Asean has a unique mix of unskilled labour and entrepreneurship not unlike major economic powers
such as China and the United States. It is thus very capable of utilising both to put out products in bulk
and to engage in innovation.
9
Three quarters of Asean’s trade volume remains external to the bloc. Though intra-Asean trade vigour is
measured at 3.5 as compared to the European Union’s 1.9, experts acknowledge that intra-Asean
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Digitisation in the 21st century
In order to harvest Asean's enormous demographic dividend, we must encourage
digitisation of its economy. Currently, Asean still has room for improving its digital
infrastructure (Figure 1).
Touted as the key driver of growth in the Asean region, digitisation can potentially
transform public services as well as the productivity of localized SMEs10. This is
expected to drive innovation and the expansion of e-commerce, lowering entry barriers
for proliferation of new SMEs across Asean.
Governments can take the lead by increasing Internet access to rural
communities. It is critical that they set up the relevant infrastructure to prime these
groups for Internet penetration.
These are grips for Asean to grab onto for its progress. But for all members to
share the spoils, it is necessary for us to enhance connectivity among everyone. Trade
and commerce can then benefit the region as a whole, and not be centralised in a single
location.
coordination its harmonisation of regulations still has much room for improvement. The economic
community must act as a single entity in order to reap the best trade benefits with the rest of the world.
10
SMEs: small and medium enterprises. These companies are the backbone of any economy as they
keep the free market competitive, ensuring sustainable economic growth. Unemployment has fallen while
Gross Domestic Product (GDP) rates have grown worldwide with the emergence of SMEs.
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Figure 1: Table showing a positive relationship between infrastructural development and
competitiveness ranking.11
Singapore’s Role and Her Relations to Asean
“Asean is definitely good for Singapore.” - Tommy Koh12, Singapore’s
Ambassador-At-Large.
Singapore stands to gain firstly, from the expansion of her consumer market13,
secondly from the lower barriers to export goods to her neighbours and thirdly, access
to resources other Asean nations have that she lacks, such as the more abundant
hinterlands and human talent.
As Asean’s current chairman, Singapore is capably positioned to broker Asean's
path into technological, and hence, economic growth. Given her expertise in finance-
11
Sourced from The Global Competitiveness Index 2016-2017 published by the World Economic Forum.
12
Ambassador-At-Large Tommy Koh stated that Asean has benefitted Singapore economically and
politically. Singapore has access to a greater consumer base and resources and continues to prosper
with her neighbours under the regional security Asean provides.
13
From 5 million to a whopping 630 million people!
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related technology, Singapore will prioritise deepening Asean's digital connectivity14 to
inspire economic growth in the region.
Hurdles to cross
This path, however, is hindered on many levels. Asean’s terrain is difficult to
navigate15 ; it is effectively separated into two geographic regions16 .Vast technological
disparities17 exist between Asean nations (Figure 2). Member nations are divided —
culturally, politically and economically18, resulting in numerous disputes over the
execution, financing and planning of projects. These contribute to Asean's poor track
record of implementing its decisions19. (Figure 3) As such, our proposed solutions will
consider the disadvantages that continue to plague regional efforts to further growth.
14
Singapore has the skilled workforce for instituting “Smart” initiatives, which it can share with her
neighbours in Asean. It plans to accelerate digitisation within Asean economies.
15
The topographic map of Southeast Asia indicates mountainous areas that spans over mainland and
maritime regions, making it difficult for roads and railways linking the entire landmass to be built.
16
Southeast Asia consists of two geographic regions: Mainland Southeast Asia and Maritime Southeast
Asia. The former encompasses Cambodia, Laos, Vietnam, Myanmar, Thailand and Malaysia
(Peninsular), while the latter encompasses Indonesia, Singapore, Brunei, Malaysia (Sabah and Sarawak)
and the Philippines.
17
According to the Straits Times, Internet user density in Cambodia and Laos is lower than 20%.
Singapore, Malaysia and Brunei remain ahead in digital readiness among all Asean countries.
18
According to Dr Surakiart Sathirathai (Chairman of Asian Peace and Reconciliation Council) on
TodayOnline, he identifies the 8 key challenges Asean faces as follows: religious/lingual/ethnic/cultural
diversity, poor implementation of decisions, insufficient focus on local SMEs, little connectivity between
Asean institutions, lack of an Asean identity, absence of common economic or political policies, little
knowledge about each other between the member states as well as incongruence between Asean
decisions and each country’s own values.
19
Only 30% of the decisions made by Asean are implemented. There is also a conspicuous lack of any
governing body within Asean to settle disputes or impose acquiescence.
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Figure 2: Varying extents of internet penetration in ASEAN, as compared to the global
average of 50% and regional average of 53%.20
.
Figure 3: List of projects under the Asean Master Plan for Connectivity. The red shades
represent major barriers21.
20
Sourced from Tech in Asia.
21
Taken from “Master Plan on Asean Connectivity 2025.”
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Connecting Nations and People
The Need to Connect
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Connectivity facilitates trade and commerce, which are the basis for economic
growth and innovation in any region. Benefits reaped extend to diplomatic and political
gains. Enhanced connectivity is a precursor to increased interaction and greater cultural
understanding among member nations — a necessity in Asean's catalogue of diplomatic
tools to forge stronger regional unity.
Improving intra-regional connectivity takes a modern twist as it is augmented by
digital innovations. Traditional connectivity22 no longer suffices as people and
businesses recognise the importance of the digital economy23 in their daily routines.
Social media and cyberspaces act as the new middlemen, handling enormous volumes
of information24 to match producer to consumer25. Asean must see the potential in
digital technology and capitalise on it to further instigate regional growth. That being
said, traditional physical connectivity is still a basic foundation for growth and cannot be
neglected26.
22
For thousands of years, sea links and roads serve as the basis for trade, commerce and
communication as merchants and traders with new ideas and goods utilise them to reach out to other
regions.
23
14% of SMEs in the UK consider broadband connection to be vital to their future growth, although
about 45,000 firms are still on dial-up.
24
To put it in perspective, 300 petabytes means 300,000,000 gigabytes, which is about the hard drives of
1.2 million laptops combined together. Furthermore, Facebook handles a daily incoming traffic of 600,000
gigabytes.
25
Despite all the controversy surrounding collection of browsing data, many platforms such as Google
and Facebook keep advertising profiles of their users, and are able to match relevant advertisements with
users’ needs and desires.
26
Communication and commerce have been supplemented with the boom in the aviation industry after
World War II and the advent of online spaces in the late 20th century. Physical goods, however, still have
to be transported in bulk by sea and land as air cargo is costly and volume of goods that can be carried is
heavily restricted. Thus, focusing on traditional connectivity is still important for trade.
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We need a multi-pronged approach to achieve combined economic growth.
While we aim to physically integrate Asean economies in the long term with its own
“One Belt One Road”, digital methods can be employed to break down cultural barriers
and economic differences.
The Asean “One Belt, One Road”27
Asean can aspire towards its own “One Belt, One Road” that will bridge its
perimeters. Trade routes would be streamlined to make it more convenient for cargo to
move from one country to another, yielding lower costs and smoother trade traffic.
Furthermore, we envision a more cohesive transportation network being a testament of
Southeast Asian cooperation. The major ports of mainland Southeast Asia will be
connected to that of maritime Southeast Asia using “One Belt”, with “One Road” linking
major highways and rail links over the mainland’s mountainous and forested areas.
There are two roles Singapore can play in this scheme. The first would be an
overall coordinator of the project’s execution. Her experience as a mediator28 on local
and international stages enables her to resolve conflicts between stakeholders29.
Furthermore, she has a highly attractive investment climate, which grants her the capital
27
For more details, refer to Appendix B
28
Ex-Honourable Chief Justice Chan Sek Keong notes in a speech he made in 2009, “we have…
implanted mediation into the genetic makeup of a large number of our lawyers and also members of the
professional, business and industry groups.” SIngapore clearly values mediation as a tool for conflict
resolution.
29
All ten member nations and a foreign power with vested interests.
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to initiate this high-cost project. Finally, Singapore is known for her efficiency in
managing infrastructure30, albeit local and small in scale, and be an effective director.
The second would be that of a bridge between the two geographic regions upon
completion of the project. This role hinges on Singapore’s specialisation in entrepôt
trade. In the context of this project, it would present much lower shipping costs31.
Completing the infrastructure will take a very long time. The project will see itself
through several generations of leaders with differing priorities and agendas. It will
encounter numerous financial obstacles. Though physically transcending geographic
borders is undoubtedly an arduous task, the benefits realised will be a tremendous
boost for Asean on the world stage if its leaders are willing to persevere and consider
the grander scheme of things.
30
Singapore is internationally renowned for its efficiency, which extends to the management of its
transport system.
31
Take for example, the trade route between Thailand and Indonesia. Cargo vessels travelling from the
former to the latter can deposit their cargo in Singapore, before having either Singaporean vessels or
Indonesian vessels transport the cargo to Jakarta. As opposed to a direct route, individual ships travel
shorter distances through this network. Costs are thus shared among the vessels and each country bears
a smaller cost, especially benefitting the lower-income member nations.
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The Asean Penpal
Unlike other supranational organisations32, Asean appears to be incapable of
increasing cohesion within itself. However, it does have a valuable resource to mobilise
— its relative youthfulness33.
We present The Asean Penpal. Being a multicultural exchange programme that
uses online platforms as a means of communication between students of various
countries, it aims to engage schools in partnerships with other Asean schools. On top of
their usual curriculum, students will have to set aside a few hours every week to chat
with their penpal or play video games34.
Given that the young are much more tech-savvy and impressionable than
working adults, it is a good opportunity to encourage interaction with their peers in
neighbouring countries. Long-lasting bonds can thrive until adulthood and will lay a
foundation for a more united Asean. Previously, this would only be a fantasy. Before the
internet, mountains and forests impeded people’s movements. Air travel is costly while
mail is too cumbersome. Now in the digital era, Southeast Asians can come together on
cyberspaces and participate in the new community that transcends physical borders.
32
There are two prominent regional unions that exemplify common history and heritage being
cornerstones for a secure foundation: The European Union (EU) and the Commonwealth of Independent
States (CIS). The EU identifies itself based on its upholding of democratic values, human rights and
individual liberty. Indeed, its member states are liberal democracies, thereby aligning with the EU vision of
regional identity. Member nations of the CIS have a shared history and can easily identify with each other
over their membership in the former Soviet Union.
33
Refer to Footnote 3
34
Video games are an excellent avenue for youngsters to bond together. There are popular games that
are free-to-play, require minimum graphics settings and encourage teamwork (such as DOTA 2, League
of Legends and Team Fortress 2) and hence a cheap computer, thereby connecting gamers regardless of
socioeconomic background. In addition, Steam, an online video game platform with a total user base of
18.5 million, is very popular within Southeast Asia. Users in the region form a niche, with 2.22% of Steam
users located in the Philippines and 1.62% in Indonesia.
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An Ecosystem for the Entrepreneur and
the Employee
Riding the Digital Wave
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“I hope 15 years later people forget about e-commerce - because they think it’s like
electricity.” - Jack Ma
To fulfil Jack Ma’s dream of the digital marketplace permeating all aspects of our
lives and the economy, Asean has to prepare itself physically and mentally to embrace
the digital economy.35 A stepping stone is to make Asean a more start-up-friendly
environment that will facilitate the increase in tech-savvy SMEs, which will in turn
catalyse digitalisation by infusing technology with our daily lives.
From cab-hiring venture Grab to e-commerce portal Tokopedia, an increasing
number of enterprising youngsters has risen up to the opportunities disruptive
technology presents36. By removing the need for brick-and-mortar shops, it has
significantly lowered barriers to entry into many markets. It is imperative that aspiring
entrepreneurs learn to wield technology to fully exploit its potential.
Incubating Entrepreneurial Talent
Good start-up scenes thrive on excellent incubators and accelerators. However,
of all Asean countries37, few provide substantial support for their business incubators. 38
This is a gap that must be plugged. Taking inspiration from Singapore’s NTU Ventures
35
With the exception of Malaysia (31st) and Singapore (1st), other Southeast Asian economies rank
below top 50 for most technologically-ready countries in the world.
36
Refer to Appendix A
37
A wealth of evidence shows that Asean countries are increasing investment in nurturing homegrown
start-ups. Even Cambodia, one of the poorer Asean nations, has at least a start-up accelerator
programme in the country.
38
Defined by entrepreneur.com as “programs, often sponsored by private companies or municipal
entities and public institutions, such as colleges and universities with the goal of creating and growing
young businesses by providing them with necessary support and financial and technical services.”
15 | P a g eLeveraging On Connectivity And Technology To Spur Growth In Asean
and Thailand’s KIA39, the goal of establishing incubators throughout the region should
be geared towards attracting enterprising youths from both rural and urban backgrounds
to create their own businesses.
We propose that the incubator be attached to key national educational
institutions — a hotbed for educated and ambitious young talent — with extensions into
rural communities. This is the quickest way to uplift a significant proportion of Asean's
demographic, given the massive income inequality among Asean countries being an
obstacle to its way forward.
Online Matchmaking
Another significant problem entrepreneurs and incubators alike experience is a
lack of information, which contributes to their risk-averse behaviour40. Hence, we
propose to create a specialised database that consolidates all information about their
portfolios, in hopes of assuaging each party’s fears and assisting them in making more
calculated decisions.
That sounds like a job for Google. However, Google falls short of delivering
specifics, especially so in this case. A newly-established entrepreneur will have to
spend hours collating information on incubators while incubators looking to invest in
rising talent are impeded by the former’s relative obscurity41.
39
Kenan Institute Asia
40
Optimism regarding risk and expected returns is a critical factor in investor confidence, which is in turn
dependent on the investors’ perception on how worthwhile their investment is as informed by the
information made available to them.
41
The PageRank algorithm works in such a way that pages that get more links from users and have a
more established history is more likely to show up at the top of its search results page. A newly-
established entrepreneur is thus very unlikely to show up
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But do you know what the opposite of Google is? Matchmaking apps. They are
personalised. They care not about its most popular user; they take into account the
user’s preferences and wishes; they factor in logistical support such as distance and
interests. Indeed, it has been suggested as a model to be adapted into business 42 but
has only seen a very recent crystallisation43.
Within this new database, a newly-established entrepreneur and an eager
incubator each create an online profile, providing information about their new ideas,
their financial health and their recent endeavours. The system will then classify their
profiles under certain “tags”44, which serve as a simpler search function. There will also
be an automated matchmaking function on the website. A user can just click on it, and
the system will match his “tags” with those of a complementary party45.
In Asean, the main avenue of pairing regional entrepreneurs with incubators so
far is through conventions. Examining your partner in scrutiny requires constant
revisiting, questioning and affirmation, which is impossible to do in a one-off event that
lasts three days! A “matchmaking” app is a catalyst that presents less time, less cost
and stronger business bonds for regional entrepreneurs and incubators.
42
Susan Solovic argues in her article "Matchmaking Isn't Just for Dating. It's a Model for Many New
Businesses" that many modern businesses born of disruptive technology (eg. Uber, Thumbtack) are
essentially charging a fee for matching a service provider to a consumer who requires said service. A
unique feature that has seen rising popularity is a ratings function.
43
Four highly prominent ones stand out and they are Tech cofounder, Founder2be, FounderDating and
CoFoundersLab. They started around 2011-2012.
44
We are thinking along the lines of classifying endeavours and the personal traits of the entrepreneur
and incubator. The system will analyse their endeavours and classify them according to the technology
they aspire to work on such as “semiconductors”, “hard drives”, “graphics card” and “LCD displays.” The
system will also analyse their investment habits and assign them a risk-taking score, 1 being risk-averse
and 10 being risk-loving.
45
For example, the system matches risk-loving incubators to entrepreneurs embarking on untrodden
innovations and risk-averse incubators to entrepreneurs working on technologies already improved by
many people.
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Uplifting the Unskilled
Given that the above is a long-drawn plan, Asean countries must simultaneously
upgrade the skills of their existing workforce to alleviate structural unemployment. We
propose the uplifting of workers with low education qualifications via the implementation
of an Asean-recognised skill qualification certification. Referencing Singapore’s WSQ46,
reputable agencies can be engaged to train youths in certain occupations, with the aid
of experienced company personnel.
A Smarter Asean
In the Art of War, Sun Tzu outlines one of the key strategies for winning wars is
to prepare sufficient logistics before executing an operation.47 Contextually speaking,
each Asean country needs to ensure the security of its soft infrastructure 48 through
smart technology49 before greater progress can be achieved. Smart technology is
increasingly viewed as the elixir to problems that plague rapid urbanization, in particular
inefficient healthcare and transport services. (Figure 4)
46
Workforce Skills Qualifications.
The quote in question is 兵马未动，粮草先行 ( bīng mǎ bù dòng, liáng cǎo xiān xíng). Loosely
47
translated as, “In the operations of war, where there are in the field a thousand swift chariots, as many
heavy chariots, and a hundred thousand mail-clad soldiers, with provisions enough to carry them a
thousand li, the expenditure at home and at the front, including entertainment of guests, small items such
as glue and paint, and sums spent on chariots and armor, will reach the total of a thousand ounces of
silver per day. Such is the cost of raising an army of 100,000 men.” In order to achieve success, one must
make the necessary preparations before even taking action.
48
In his article A Different Approach to the Usual Problems, writer John Miri asserts that soft
infrastructure “starts with ideas, the conceptual frameworks that give shape and direction to what is
eventually physically manifest.” He cites an example of soft infrastructure being governmental policies
that will lay the ground on which hard infrastructure can be built, allowing the end goal to be achieved.
Extending this understanding to Asean and smart technology, smart technology, especially when applied
in the healthcare, housing and transport fields, is the framework that will enable the manifestation of the
digital economy.
49
According to the paper Smart Cities and Infrastructure published by the UN, smart technology is a
means of raising standards of living in an urban city in a sustainable manner. It involves the “intelligent”
use of data, generated by different systems using sensors,meters, digital controls and analytic tools, to
allow “optimal use of resources.”
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One need only look at Singapore’s Changi Airport to understand the endless
possibilities smart technology presents. Self-check-in kiosks has eliminated the need for
long queues at the counter. iShop Changi, enabled by the airport-wide free Wi-Fi,
introduces the newest deals to the shopaholic traveller. Sensors conserve energy via
control of light panels and water supply. In short, Changi Airport can be viewed as the
ideal, if miniature, model for a smart city.
Although Singapore has long declared her desire to be the world’s first smart city,
the Asean community has only recently started taking steps in this direction 50 with plans
for an intraregional Smart Cities Network51. Despite that the plan’s fruition remains
elusive52, the key focus of this initiative is on its mutual benefits for all involved,
including Singapore. Other countries’ efforts can serve as significant learning points for
Singapore53. Similarly, other Asean nations can learn from Singapore’s incorporation of
smart technology54.
50
Thailand has embarked on its Smart Thailand 2020 initiative, focusing on the integration of
governmental, climate, national security and resources databases. Meanwhile, Malaysia is partnering
private companies in its pursuit of smart technology, the latest addition being a partnership between
Telekom Malaysia and Huawei Technologies to improve the country’s fibre broadband network and
introduce cloud technology and artificial intelligence into Malaysia.
51
The Network requires up to 3 cities in each Asean country to work towards adopting and integrating
smart technology. Although most Asean nations already have plans or are currently carrying out smart
city projects, the Network will connect these projects together, engaging all member nations in “Asean
community building.”
52
Again, this is mainly due to the digital readiness and relative income of each individual Asean nation,
given that the implementation of smart technology can be rather expensive for large cities as specialised
equipment (sensors, powerful data processing computers etc.) and experts have to be engaged.
53
For example, in the transport scene, Singapore has yet to develop a solution to drivers’ parking woes
while Malaysia’s ParkEasy app gains traction among drivers based in Kuala Lumpur, where it is
undergoing trials.
54
Particularly in the healthcare industry where telemedicine - a novel concept- has shown potential to
reduce patient traffic at hospitals. Singapore is also taking steps towards transforming itself into a
cashless society by adopting modes of e-payment such as Apple Pay and Samsung Pay, extending even
to wearable technology such as smart watches. This will lay the groundwork for the digital economy by
lowering transaction costs. Another notable usage of smart technology in civilian life is the installation of
sensors and other IOT (Internet of Things) devices in public spaces (hawker centres, HDB buildings).
19 | P a g eLeveraging On Connectivity And Technology To Spur Growth In Asean
Figure 4: Features of a Smart City55 (Singapore). The comprehensive application to
various aspects of society will raise the country’s standard of living, leading to overall
positive effects such as a healthier and more productive workforce.
Final Thoughts
Connectivity is the core direction Asean must move towards, facilitated by
disruptive technology. We focused on two kinds of connectivity, both human and
55
Sourced from Smart Nation Singapore website.
20 | P a g eLeveraging On Connectivity And Technology To Spur Growth In Asean
physical, that are vital to Asean's growth, specifically bridging gaps between youths of
different countries and overcoming physical barriers between the two regions.
But what we cannot bridge with physical infrastructure, we can link digitally. We
can start by applying technology to workplace productivity as well as invigorating local
start-up scenes. Locally, Singapore will strive to implement policies that complement the
above developments. Regionally, Singapore offers her knowledge and expertise
acquired over the years and learn from the progress other Asean nations have made,
making this a win-win partnership.
[Word Count: 2000 words (excluding captions, titles, quotes and footnotes)]
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Bibliography
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asean-is-good-for-singapore
2. Abairdqz. "Southeast Asia's Middle Class Is Diverse, Confident, and Growing
Richer by the Day." Quartz. January 11, 2016. Accessed May 29, 2018.
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26 | P a g eLeveraging On Connectivity And Technology To Spur Growth In Asean
Appendix A: An Overview of Asean’s Start-up Scene
Funding (USD
Start-up Headquarters Category
millions)
Grab Singapore Transportation 4100
Lazada Singapore E-commerce 2660
Sea Singapore General Internet 1610
Tokopedia Indonesia E-commerce 1340
Matahari Mall Indonesia E-commerce 641.8
Go Jek Indonesia Transportation 550
Traveloka Indonesia Travel 500
Internet
Airtrunk Singapore 307
Infrastructure
Music and
iflix Malaysia 298
Entertainment
Zalora Singapore E-commerce 238
Property E-
PropertyGuru Singapore 183
commerce
Computer Vision
Trax Singapore 158.1
Technology
Sunseap Singapore Renewable 134.97
27 | P a g eLeveraging On Connectivity And Technology To Spur Growth In Asean
Technology
Elevenia Indonesia E-commerce 110
MDAQ Singapore FinTech 99.5
List is obtained from TechInAsia (statistics are accurate as of Dec 2017)
28 | P a g eLeveraging On Connectivity And Technology To Spur Growth In Asean
Appendix B: The Asean One-Belt One-Road
Building the Belt
Asean can be divided into three maritime sub-regions and one overland region
(Figure 5): The Indonesian Area (coloured green), the Malacca Straits (coloured red),
the South China Sea (coloured yellow) and Mainland Southeast Asia (coloured blue).
So far only the Malacca Straits serve as a prominent international shipping lane. It is
arguable that this is a normal occurrence owing to the other three being not-so-strategic
positions on the world map, thereby reducing their status to one that is regional.
The physical way to go about doing this is to initiate more rigorous free trade
agreements among member nations. Currently, intra-regional free trade is made
possible by the Asean Free Trade Area (AFTA) Agreement signed in 1992.
Furthermore, member nations should also invest heavily in direct short trade routes
between major ports within a sub-region. Altogether we have identified 23 possible ports
(Figure 6) that can participate in this megaproject.
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Figure 5: The sub-regions of the proposed Asean One-Belt, One-Road56
56
Image is self-generated.
30 | P a g eLeveraging On Connectivity And Technology To Spur Growth In Asean
Number (as
Proposed Sub- Member Province/
indicated in Port Name
region Country State
Figure 5)
1 Ulèë Lheuë Malacca Straits Indonesia Aceh
Northern
2 Kuala Tanjung Malacca Straits Indonesia
Sumatra
3 Port of Penang Malacca Straits Malaysia Penang
4 Port Klang Malacca Straits Malaysia Selangor
Port of
5 Malacca Straits Singapore Singapore
Singapore
Port of Indonesian
6 Indonesia Lampung
Bakauheni Area
Indonesian
7 Tanjung Priok Indonesia Jakarta
Area
Indonesian
8 Tanjung Perak Indonesia East Java
Area
Indonesian
9 Benoa Indonesia Bali
Area
Indonesian
10 Kupang Indonesia West Timor
Area
Indonesian West
11 Pontianak Indonesia
Area Kalimantan
Indonesian Central
12 Sampit Indonesia
Area Kalimantan
Indonesian East
13 Balikpapan Indonesia
Area Kalimantan
Indonesian
14 Makassar Indonesia South Sulawesi
Area
Indonesian
15 Bitung Indonesia North Sulawesi
Area
Indonesian
16 Sorong Indonesia West Papua
Area
South China
17 Bangkok Port Thailand Bangkok
Sea
31 | P a g eLeveraging On Connectivity And Technology To Spur Growth In Asean
Sihanoukville South China
18 Cambodia Sihanoukville
Port Sea
South China Ho Chi Minh
19 Saigon Port Vietnam
Sea City
South China
20 Da Nang Port Vietnam Da Nang
Sea
South China
21 Port of Manila Philippines Manila
Sea
Mainland
22 Yangon Port Myanmar Yangon
Southeast Asia
Mainland
23 Hai Phong Port Vietnam Hai Phong City
Southeast Asia
Figure 6: Table of the 23 ports
Bettering Asean goods
Yet, another significant problem is a lack of demand for Asean goods. No matter
how many new intra-regional routes have been drawn up, big businesses are still not
enticed to use them. An endless stream of price-competitive Chinese products flows
into the Asean market. They are cheap and abundant, allowing firms to operate and
produce at much lower costs. However, the answer is not to counter this stream with
import quotas and tariffs; that will only halt the progress of emerging economies.
Instead, Asean nations should focus on supply-side policies using disruptive
technology, seeing through process and product innovation, thereby enhancing the
quality of Asean goods and ensuring large outputs from manufacturers. Both quality and
quantity should be emphasised on to compete with goods external to the bloc, thus
allowing businesses to use Asean products and raw materials as cost-effective and high
quality substitutes.
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Building the Road
A super highway consisting of both roads and rail links (Figure 7) will be built
among Yangon Port in Myanmar, Hai Phong Port in northern Vietnam, Sihanoukville
Port in Cambodia and Bangkok Port in Thailand, with a strategic crossroad placed in
Vientiane.
Figure 7: Road and rail links for the “Road” (highlighted in pink)
The mountainous regions of Mainland Southeast Asia will prove to be difficult to
overcome and the construction will be lengthy and costly. We suggest that in the
meantime, should this megaproject really take flight, is to use the pre-existing roads that
connect the four countries, giving it slight capacity upgrades and refurbish the tarmac.
33 | P a g eLeveraging On Connectivity And Technology To Spur Growth In Asean
The superhighway can be constructed in the future, using more advanced virtual reality
technologies and more advanced mountain scaling equipment and techniques.
A need for better administration
A transnational economic authority will be set up to manage the new network.
This authority will draw its manpower from all Asean members, ensuring that there is
equal representation at its executive committee. It also possess powers that can
overrule the decisions of other countries, but only in the fields of managing the security
of this megaproject. Thus, we propose that it possess a legal taskforce to enforce
compliance from member nations57.
Previously, under the AFTA Agreement, the Asean Secretariat had authority to
monitor and ensure compliance with AFTA measures, but no legal authority to enforce
it, resulting in inconsistent rulings. This new administration for the Asean One-Belt, One-
Road will have to learn from this shortcoming.
That being said, policies that govern this network will not be determined by this
transnational economic authority. It will be discussed at Asean summits where all
nations are present and a proper consensus is reached based on a standard two-thirds
vote in favour. Any disputes among Asean members over policies will have to be settled
in these summits and they have to oblige to the voting results in these summits.
57
For example, should a member nation decide to place embargoes and tariffs on incoming Asean
vessels, this authority has the right to reverse that decision. For extra caution, captains of Asean vessels
can act as legal enforcers and refuse to pay the tariff or to continue trading despite the embargo being in
place
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The formation of this new administration has yet to be imaginable. This requires
an enormous amount of trust and cooperation in order to function properly without major
disputes. Member nations will have to learn to accept differences and understand that
this initiative is for the greater good of the region, and not for a single country to benefit
at the expense of others.
An idea of a complete round
A regional vessel can take the proposed route of departing from Yangon Port
carrying Myanmar-made goods and entering the Malacca Straits, dropping off products
destined for Malaysia, Singapore and Indonesia and accepting theirs in return, before
entering the Indonesian Area and performing the same exchanging process. It will then
move onwards to the South China Sea through the Celebes and Banda Seas, paying
Manila a visit. Finally, it calls at one of three final destinations, at Bangkok,
Sihanoukville or Hai Phong City, conveniently unloading goods destined for Myanmar
and Laos, which will be transported via the “Road”, through train and truck journeys.
And the new cycle will start again.
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