ASIA AFTER COVID
Driving Digital in Responseto the Global Pandemic

1Economies and Businesses in a Pandemic Reality
The world has changed and continues to do so even as Covid-19 remains the greatest threat tohumankind and our way of life in more than seven decades. Barely a year since it first emerged
as a novel coronavirus, Covid-19 is leaving a trail of destruction across the world, cutting aswathe through billions of lives, hundreds of million livelihoods, tens of million businesses andindustries, and hundreds of economies and nations.
The numbers are staggering. By the end of the 2020, the pandemic has already infected an
estimated 80 million and claimed more than 1.7 million lives (www.worldometers.info). Total
losses in working hours as a result of lockdowns and shutdowns have been estimated at over
12% or the equivalent of almost 400 million jobs for 2020 (International Labour Organization– ILO). This remains an optimistic forecast given the current surge in global cases which is
expected to last beyond this year.
Such dire numbers correspond with the widespread closure of businesses and industries
worldwide. A World Bank survey conducted in early September found 26% of global
businesses were non-operational, whether they were permanently shuttered or temporarilyclosed in response to the enforced lockdowns as well as drastic drop in consumer demand.
Given the impact on businesses, industries and trade, the world is now in recession with theInternational Monetary Fund (IMF) projecting in October 2020 a contraction of -4.4% for the
global economy. The World Bank has released a worse forecast, predicting a steeper dive inglobal growth of 5.2% for the year.
Compared to the world economy, the picture in Asia is rosier. Nevertheless, the region is
expected to record its first contraction in 6 decades. The Asian Development Bank (ADB) in
September 2020 predicted negative growth of 0.7% with three quarters of Asian economies
headed for a contraction this year.
Recent news of imminent vaccine availability has created an upsurge of hope and optimism.
However, scientists and pharmaceutical companies have repeatedly cautioned that vaccine forthe masses should not be expected before the third, if not fourth, quarter of 2021. What thismeans is that the world would need to contend with Covid-19 and its debilitating impact on
lives, livelihoods and economies for at least another 8 – 10 months.
In the meantime, human capital, enterprises of all sizes from micro and small to medium andlarge corporations, industries and governments are compelled to look for solutions in order tomitigate the business and economic impact of the global pandemic while preparing for a postCovid-19 landscape.

2Digital, the Way Forward After Covid-19
Following the anticipated recession in 2020, the global and Asian economies are forecast to
rebound in 2021. Such an outcome, however, would hinge on the caveat that the pandemic does
not exceed projections before widespread vaccine availability in the new year.
The IMF, in its latest global outlook in October, expects the global economy to expand by 5.2%
while the World Bank has projected partial recovery at 4.2% in 2021. For Asia, the ADB has
forecast a stronger rebound of 6.8% with China leading the way.
In the meantime, businesses worldwide and in Asia have grappled with common issues
stemming from restrictions imposed to curb Covid-19 and they include the following: Drop in demand from a combination of enforced shutdowns; restricted movement
preventing conventional sales; and physical distancing requirements leading to fewer
customers.
 Lack of supply from the disruption to the local and global supply chains as vendors facesimilar restrictions described above.
 Obstacles to operations as usual as owners and employees faced various difficulties
merely to turn up for work.
It is clear that digital solutions served to partially offset many of these problems, whether it ismigrating to a digital and in many cases an e-commerce platform to create and meet demand,
utilising e-procurement for supplies, or shifting to work-from-home (WFH) via online
communication and interaction tools.
Indeed, this shift towards digitalisation, particularly among the micro, small and medium
enterprises (SMEs) around the world, is gaining momentum following the onset of the global
pandemic. For instance, the US Chamber of Commerce estimated that digital sales among
American SMEs grew by 10 – 17% in April and May 2020 while a McKinsey survey in May
2020 found that digital adoption increased by one third during the first Covid-19 peak inGermany.
In addition, the ICCO Cooperation in May had called on businesses to capitalise on digitalmodels, platforms and technologies, stating: “This (Covid-19) has created a very huge
opportunity for digital transformation. In order to ensure business continuity … businesses
should quickly shift to digital platforms in terms of order booking, money transfer andcoordinating the delivery of order.”In view of rapidly-escalating digital adoption levels, the digital industries in Asian economies
are poised to capitalise on this turn of events.
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Nevertheless, growth in digital demand is still dependent on the capacity of the industry toinnovate and produce digital solutions tailored to the needs of business and industry in theirrespective economies.
At the same time, traditional businesses and industries require assistance, financial orotherwise, to embrace digital transformation. This being the case, these two complementary
forces of digital demand and supply are critical to building economic resilience in a post Covid19 landscape.
In response to the pandemic, governments across the region have introduced aid packages androlled out initiatives to revive and revitalise economic activity, including specific programmes
to either develop the digital industry or accelerate digital transformation within the physicaleconomy.
The remainder of this White Paper presents a brief look at some of the public and private sector
initiatives for digital development, adoption, migration and transformation across 12 ASOCIO
member economies that participated in an online roundtable discussion on 20 October, 2020.
Their responses are featured in two separate sections. The first, Digital Response and Best
Practices looks at how these economies responded to the pandemic, some of which can beemulated across the region.
The second part outlines the National Digital Response to Covid-19 in alphabetical order of
economies and contains information that was extracted to populate the first part.

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Digital Response and Best Practices

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Leveraging on E-Commerce, Online Banking and Digital Payments
Businesses and societies in every economy went digital in response to the pandemic andenforced restrictions. E-commerce experienced a boom, as did the alternative of online banking
and using digital means and instruments for payment.
In Bangladesh, one of the leading online grocery stores recruited and trained almost 1,000
additional employees to meet pandemic-driven market demand while leading banks reported
as much as a 70% rise in online banking.
In the case of Bhutan, banks moved towards providing payment apps with scan and pay
features. The central bank initiated the single QR code-based payment method that allowed
consumers to scan one QR code and make payment. Further, the central bank also promoted
the centralised payment gateway known as Bhutan Immediate Payment System (BIPS). Several
eCommerce platforms emerged during the lockdown and have continued to gain traction. IN
addition, the central bank also introduced a sandbox programme to promote and support thedevelopment of fintech, regtech, blockchain and distributed ledger technologies.

India’s financial and related institutions expedited digital adoption and transformation in thewake of Covid-19, particularly in the area of digital payments. In this case, the digital payment
ecosystem had already been developed by the National Payments Corporation of India (NPCI)
through initiatives for bill payments and electronic toll collection, among others.
As the pandemic surged in Japan, the Government raised its intention to move towards theuse of digital currencies, which has been under consideration by the Bank of Japan incollaboration with foreign central banks.

Malaysia, which already had among the world’s highest per capita online shoppers,
experienced a surge in e-commerce at the height of the Covid-19 pandemic, resulting in manyof the newly-unemployed joining the ranks of the gig economy as delivery providers.
The current NLD Administration in Myanmar released its Covid-19 Economic Relief Plan
(CERP) in April 2020 consisting of 7 Goals, 10 Strategies, 36 Action Plans and 76 Actions,out of which a main goal is to promote e-commerce and mobile payments.
In Singapore, e-commerce also experienced a boom with the Government placing emphasison driving SMEs towards digitalisation, particularly in e-payment and e-invoicing capabilities.
The Government also offered matching grants and other subsidies to businesses to go online
as this would open up future opportunities for cross-border sales and gain a foothold on the
global market in the post-pandemic landscape.
6At the height of the pandemic, businesses and talents in Thailand increasingly embraced
digital technologies and solutions including mobile payments, e-wallets, video conferencing
and collaboration tools. Thai businesses are also harnessing AI as a means to gain insights into
customer needs and to help reduce physical interaction during the epidemic while also
improving the digital customer experience and helping companies understand changes in
consumer behaviour.
Likewise in Vietnam, the number of people buying online increased by more than 70% in
2020. Currently, Vietnam has more than 150 fintech companies including 28 e-wallets. During
the year, VN Pay, a Vietnamese startup on epayment solutions, become the second unicorn
startups in the country and 12th in the region.

Adjusting to Work from Home and Transitioning to Virtual
For millions of business owners and employees, the lockdowns in their economies led to therelatively novel concept of work-from-home (WFH) with meetings, discussion andpresentations carried out via online video conferencing tools such as Zoom, Microsoft Teams
and others.
For instance, the Government of Bhutan actively promoted the WFH culture among civil
servants with meetings and capacity building activities conducted online. This same trend was
also seen in the private sector.
Many physical events were held fully or partially online, including the Tech Fest Asia in
Malaysia, which was originally intended to coincide with the World Congress on IT (WCIT2020).
Specific industry sectors in many economies also took the opportunity to push for WFH andthe virtual way of doing business. In Hong Kong, the logistics industry expedited its roll outof AI-powered robotic process automation (RPA), ramping up its schedule to automate more
processes such as e-invoicing to enable WFH or work from anywhere.
Meanwhile, the public and private sectors in Taiwan leveraged on everything virtual during
the global height of Covid-19. Remote conferences became mandatory while B2B business
transactions were conducted almost exclusively online. A virtual exhibition centre was alsoestablished.
When companies moved to work from home in Singapore, 37% of respondents in a survey
conducted by SGTech indicated WFH was new to them. It took at least 3 weeks before
7companies surveyed became comfortable with WFH. Without surprise, 60% of respondents
had acquired remote collaboration software/meeting tools as a first priority.
As the months progressed, companies highlighted 3 key areas of concern with WFH:
1. managing employees remotely;
2. tools and practices to keep company data secure; and3. managing approval processes and workflow.
Against this backdrop, SGTech created webinars offering solutions from members to tackle
such requests and worked with government agencies to curate a list of specific digital solutions
that could be used to tackle the pandemic such as online collaboration tools, temperaturescanning solutions and e-commerce solutions.
In Vietnam, monthly goverment meetings were carried out online as was the case with
National Assembly meetings.

Shifting Towards Digital Business Models
As the pandemic resulted in restrictions on traditional brick and mortar business, many turned
towards digital business models to continue driving sales by engaging with customers andselling online.
This could be seen in Bangladesh, where there was a discernible shift towards businesses
built on a digital model or the adoption of digital platforms to replace shuttered enterprises hit
by the pandemic.
In India, fintech companies are leveraging on the impact of Covid-19 to offer a wide range of
integrated solutions and are deploying innovative business models by developing cutting-edge
technologies such as AI, machine learning (ML), cloud, internet of things (IoT), blockchain
and human computer interfaces (HCI).
A new project was launched in Korea to encourage the development and migration to ‘untact’business using AI, software programs, networks, and digital devices. ‘Untact’ is a new term
meaning non-face-to-face contact. Among the activities this would cover are food & beverages,
shopping, delivery, job interviews and even cultural performances.
Meanwhile in Malaysia, the government-owned Malaysia Productivity Corporation (MPC)
developed a Digital Transformation Framework specifically for SMEs hardest hit by Covid19. The framework included a roadmap to provide a step-by-step guide for businesses totransform into digital models able to ride out the pandemic and thrive in a post Covid-19
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landscape. This ranged from securing financing via alternative and digital sources; topurchasing cloud-based apps and services; hiring and training talents in digital tools; migrating
to new business models built on a digital platform; and adopting digital processes including
automation for all aspects of business.
Similar to Malaysia, the Government in Taiwan is encouraging SMEs to migrate to digitalplatforms or at least to incorporate digital solutions in all their processes; from demand andsupply side to operations and administration.
The online business model is also proliferating among businesses in Vietnam. Meetings,
events, marketing and sales as well as customer training activities are being shifted from offline
to online, in the process saving funds for businesses. The digital signature is used by almost all
businesses here.

Expediting Digital Adoption and Transformation
Beyond the rapid adoption of digital business models, digital transformation also became apriority in many economies with the need to build resilience one of the many factors driving
this trend.
One of the main components of Digital Drukyul in Bhutan, digital transformation of public
and business service delivery picked up pace during the pandemic. The National Unique
Identity (UID) continued to be developed, which will enable the issuance of a unique identity
to every individual in Bhutan. The UID is expected to be used in government service delivery,banking services, and more.
In Hong Kong, the financial industry accelerated its integration of artificial intelligence (AI)
into operational processes with chatbots, robo-advisers and robotic process automation (RPA)
to address the reduction in frontline banking and customer services. Support for this enhanced
rate of digital adoption was forthcoming from the Hong Kong Government, with regulatory
bodies such as the Hong Kong Monetary Authority moving swiftly to prepare relevant policies
and guidelines.
In the case of India, the pandemic significantly boosted the use of contactless digitaltechnology in the world’s second most populous nation where every citizen already has anational digital identity in the form of the digitally-authenticated Aadhar identification number.
While businesses in Japan expectedly responded to the crisis with a swift and seamless
transition to virtual business models, e-commerce and online transactions, the real gains indigitalisation came from the Government. It moved to drive its digital transformation (DX)9

policy across many different aspects of government administration and public services. This
included web conferencing for civil court proceedings, document submission to government
agencies and many more. Among the first steps towards DX was the adoption of an Intellectual
Property Promotion Plan 2020 by the Government
Similarly, the pandemic further served to drive the Government, businesses and society in
Korea towards even deeper digitalisation to narrow the digital gap between companies andworkers.
Digital transformation was also a priority in Malaysia where many SMEs, which account fora disproportionate 99% of all registered businesses, bore the brunt of pandemic restrictions.
They began pivoting towards digitalisation and automation. Organisations such as the Malaysia
Digital Economy Corporation (MDEC) and the National Tech Association of Malaysia(PIKOM) supported such efforts by rolling out programmes to offer digital tool suites to SMEs
for their digitalisation journey.
In Singapore, the Government set aside 30% of a major allocation for digitalisation in theform of ICT contracts for the public sector in order to accelerate digital transformation as wellas to support businesses through the pandemic. Many of these contracts are earmarked tomigrate systems onto the commercial cloud as this would facilitate the development ofapplications and services for citizens and residents in a faster and more scalable manner.
In Vietnam, the National Digital Transformation Program to 2025, with a vision extending
to 2030 was approved by the Prime Minister on 3 June 2020 and this will require all
government offices, ministries and provinces to begin implementation soon.

Migrating to Online Education and Learning
With schools and higher learning institutions closed in many economies, the focus shifted toonline education and digital delivery of learning and training. This was evident in almost all
economies across ASOCIO.
In Bangladesh, the University Grants Commission introduced policies requiring all
universities to digitalise delivery of education as well as other processes such as admissions.
This aspect of digitalisation was already in the works following a collaboration between the
Government and the World Bank under a 2009 programme, Higher Education Quality
Enhancement (HEQEP). At the height of the pandemic, the North South University (NSU)
became the nation’s first education institution to roll out online learning courses with the focus
now on reaching out to socially-marginalised groups.

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In Bhutan, online education is now considered possible using Google Classroom, broadcast
media and other channels. Classes from Pre-Primary to VIII went completely online since
March 2020. The Ministry of Education is in the process of implementing a national-level
Learning Management System and this is expected to be actively used from the 2021 academic
session.
Meanwhile, the private sector in Taiwan ramped up knowledge acquisition and skills training
in digital capabilities in order to build a strong digital economy for the long term, which will
be focused on three key areas: digital literacy, digital learning and advanced knowledge. For
instance, the Digital Trade Academy is giving hands-on training for among others, talents intourism that have been hit especially hard.

Supporting the Economy and Society with Government Aid Packages
Given the economic toll on business and individuals wrought by the pandemic, governments
in many economies were compelled to roll out a host of economic aid packages. Many were in
the form of grants, financing or incentives to adopt digital technologies and platforms.
One of the few yet to announce digital-specific measures is the Government in Bangladesh,which however is expected to respond to calls by businesses and industries to provide economic
incentive packages for digital-related and digital-enabled SMEs to bring their services to thegrassroots. Digital industry entrepreneurs believe such government support could offset ananticipated drop in ICT revenues for 2020 resulting from the impact on Bangladesh’s
outsourcing service provision.
The Government of Bhutan is supporting training programmes to public, corporate andprivate sector professionals, including on blockchain, micro-services and other technologies
and frameworks.
To support all businesses impacted by pandemic restrictions, the Hong Kong Government
funded remote working or remote services for businesses. For example, the Innovation andTechnology Commission (ITC) launched the Distance Business (D-Biz) Programme to support
enterprises under an Anti-Epidemic Fund. This programme offers funding support by fasttracking processing for the adoption of digital solutions by enterprises.
In India, since its national digital identity Aadhar is linked to individual bank accounts andmobile numbers, this enabled a smooth and seamless distribution of financial aid by theGovernment. To date, the Government has disbursed more than USD5 billion in cash benefits
to those in need via digital payments using Aadhar. Beyond financial handouts, theGovernment has also provided generous credit facilities to the economy’s many SMEs as well11

as other monetary and fiscal support. It has pumped in an estimated USD63 billion to mitigate
liquidity issues for business and industry.
The Government in Malaysia lent considerable support via a Short-Term Economic
Recovery Plan that included financial aid in the form of grants and financing to drive digitalmigration of SMEs. This encompassed a RM700 million (USD170 million) digitalisation fundand a separate RM100 million (USD24 million) smart automation grant. In addition, theGovernment also provided 2 further allocations: a matching grant and another ‘Shop Malaysia
Online’ allocation for e-commerce, as well as disbursement of funds for e-wallets to stimulatecommerce. Over and above this, a ‘Dana Penjana’ National Investment Fund was establishedto provide venture capital for digital startups and other growth stage companies.
The Singapore government, meanwhile, rolled out 4 fiscal packages to support workers andbusinesses during this period. Singapore has set aside SGD93 billion or about 20% of its GDP
to counter the impact of the pandemic. The main objectives of the support were to help
companies manage cash flow, protect livelihood of the workers as well as re-train/upgrade theskillsets of workers to take on new roles in the economy with the anticipated displacement ofjobs. Close to 80% of the fiscal package is used for these purposes. SGTech took on the taskof conducting webinars to break down the government aid packages into bite-size pieces tomake it easily understood by our members as well as the larger economy.

Accelerating National Digital Programmes
Every economy in ASOCIO already has an existing national digital programme. What the
pandemic did was to accelerate some of these initiatives on the basis that digital would easeconstraints on business and pave the way for new opportunities in a post-pandemic
environment.
This was the case with Bangladesh’s ‘Digital Bangladesh’ programme, which grabbed thelimelight as the Covid-19 pandemic took a grip on a nation in which a vast majority of the
population continue to live on a subsistence level.
In Bhutan, the focus was on its ‘Digital Drukyul’ initiative to digitalise for a start; public
services, education and healthcare with a longer term objective of developing a digital industry
and economy. The public and private sectors are already looking into several areas to create asustainable digital ecosystem.
The pandemic is also poised to weigh in on the formulation of a new national Science
Technology and Innovation Policy (STIP 2020) for India. The changes to the business12

landscape are bound to add input into this new outlook and strategy for the digital industry andeconomy.
In Japan, among the first steps towards digital transformation (DX) was the adoption of anIntellectual Property Promotion Plan 2020 by the Government, followed by the proposed
establishment of a dedicated ministry to promote DX. The Government made a declaration tocreate the ‘World’s Most Advanced Digital Nation’ involving the digitalisation of the wholeof Japanese society. This was immediately followed by a new plan, Cybersecurity 2020, todrive government agencies and private enterprises towards comprehensive digitaltransformation. Subsequently, the government's Cyber Security Strategic Headquarters issued
a new plan, "Cybersecurity 2020”, aimed at encouraging government agencies and private
enterprises to carry out digital transformation.
Meanwhile, the Government in Korea unveiled a new master plan for digital transition post
Covid-19 revolving around 2 pillars: The Green New Deal and the Digital New Deal, withheavy investment for the latter over the next 2 years intended to create some 900,000 new jobs
by 2025 and catalysing industries in big data and digital infrastructure.
And in Thailand, the Government is proactively accommodating the needs of users
apprehensive over the potential impact of Covid-19 with policies and investments such as 5G
high speed networks, remote working capabilities and e-learning. To stimulate 5G development
and alleviate some of the investment required for operators, the Government has introduced
flexible payment terms that allow 700 MHz and 2600 MHz licenses to be paid over a ten-year
period.
The Singapore Government will spend an estimated SGD3.5 billion on ICT procurement,up from SGD2.7 billion in 2019, an increase of 30%. This is to allow the Government tocontinue to invest in technology to accelerate Singapore's digitalisation push on a whole-ofnation level.
In Vietnam, the National Digital Transformation Program to 2025, with a vision extending
to 2030, was unveiled on 3 June 2020, highlighting eight priority areas for digitaltransformation: healthcare, education, finance and banking, agriculture, transportation andlogistics, energy, environment and industry production. In addition, a strategy to develop
digital enterprises by 2030 was also submited to the Government.

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National Digital Response to Covid-19

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BANGLADESH

This economy’s nascent ‘Digital Bangladesh’ programme assumed the limelight as the Covid19 pandemic took a grip on a nation in which a vast majority of the population continue to live
on a subsistence level.
Since a prolonged lockdown would have been just as, if not more, devastating to Bangladesh’s
populace, the public and private sectors turned to more sustainable solutions by leveraging on
digital platforms and technologies to support business and industrial activities.
This included measures such as work-from-home (WFH) and a surge towards e-commerce,
online banking and telemedicine, developments that are expected to gain momentum in a post
Covid-19 landscape. For instance, one of the leading online grocery stores recruited and trained
almost 1,000 additional employees to meet pandemic-driven market demand while leadingbanks reported as much as a 70% rise in online banking.
Another positive development for Bangladesh’s digital economy was a discernible shift
towards businesses built on a digital model or platform to replace shuttered enterprises hit by
the pandemic.
Businesses and industries are now calling for economic incentive packages for digital-related
and digital-enabled SMEs to bring their services to the grassroots. Digital industry
entrepreneurs believe such government support could offset an anticipated drop in ICTrevenues for 2020 resulting from the impact on Bangladesh’s outsourcing service provision.
The pandemic also had the effect of accelerating the nation’s transition towards online
education. Its University Grants Commission has introduced policies requiring all universities
to digitalise delivery of education as well as other processes such as admissions. This aspect ofdigitalisation was already in the works following a collaboration between the Government andthe World Bank under a 2009 programme, Higher Education Quality Enhancement (HEQEP).
At the height of the pandemic, the North South University (NSU) became the nation’s firsteducation institution to roll out online learning courses with the focus on reaching out tosocially-marginalised groups.

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BHUTANThe scourge of Covid-19 has crystallised the importance of digital to the predominantly
agrarian economy of Bhutan although the pandemic caused minimal disruption to lives andlivelihoods unlike many other nations worldwide and in Asia.
Nevertheless, the public and private sectors recognised the urgency of such digital alternatives
as online education and work-from-home (WFH) capabilities alongside the need to invest indigital technologies and a digital industry.
The Government has launched a ‘Digital Drukyul’ initiative to digitalise for starters; public
services, education and healthcare with a longer term objective of developing a digital industry
and economy.
Officials in Bhutan have outlined three reasons for the push towards digital: firstly, to scale up
the knowledge, skills and capabilities of the nation’s limited talent pool; secondly to drive
innovation within business and industry in order to facilitate greater participation in the global
market; and lastly to restructure an economy over-reliant on certain sectors towards moreproductive and lucrative opportunities.
To prepare for a post Covid-19 scenario, the public and private sectors are already looking into
several areas to create a sustainable digital ecosystem. They include: A new digital blueprint as a replacement or extension of the existing Information andCommunications Technology Policy and Strategies first introduced in 2009; Development of a digital infrastructure to improve connectivity in order to expedite thedeployment of digital technologies for automation, e-commerce, digital identity andblockchain; Improvement to digital literacy and skills via a digital curriculum in schools andinstitutions of higher learning as well as programmes to equip the workforce with digitalskills; Incentives for private sector investment via opportunities in flagship public sector
programmes, and support for digital startups and digital adoption; and Development of a roadmap for a 21st Century economy with digital and othertechnologies as the enablers.

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HONG KONG

Hong Kong’s high level of digital readiness cushioned the impact of Covid-19 on its economy
and businesses. While pandemic control measures such as stay-at-home and social distancing
invariably affected commerce, overall, the public and private sectors were either sufficiently
digitalised or able to immediately embrace digital transformation in adapting to the new normalof doing business.
For instance, the pandemic has accelerated digital adoption in Hong Kong’s financial industry,
particularly in integrating artificial intelligence (AI) into operational processes with chatbots,robo-advisers and robotic process automation (RPA) to address the reduction in frontline
banking and customer services.
Meanwhile, early adopters spent the time sophisticating such AI and data capabilities including
biometrics and fraud detection as well as the roll out of virtual banks and insurers.
Support for this enhanced rate of digital adoption has also been forthcoming from theGovernment, with regulatory bodies such as the Hong Kong Monetary Authority moving
swiftly to prepare relevant policies and guidelines.
Logistics was another sector where the roll out of AI-powered RPA was hastened by Covid19. The industry ramped up its schedule to automate more processes such as e-invoicing toenable WFH or work from anywhere.
Digital entertainment in the form of OTT video, games and related products and services was
yet another industry to benefit from the pandemic as consumers were compelled to or chose tostay at home.
To support all businesses impacted by pandemic restrictions, the Government funded remote
working or remote services for businesses. For example, the Innovation and Technology
Commission (ITC) launched the Distance Business (D-Biz) Programme to support enterprises
under an Anti-Epidemic Fund. This programme offers funding support by fast-tracking
processing for the adoption of digital solutions by enterprises.

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INDIA

Like many other economies, India’s digital industry is accelerating faster as a result of thesudden dependence of business and industry on digital platforms, channels and touchpoints tocope with Covid-19 and its restrictions.
The pandemic has significantly boosted the use of contactless digital technology in the world’s
second most populous nation where every citizen already has a national digital identity in theform of the digitally-authenticated Aadhar identification number. Since Aadhar is linked toindividual bank accounts and mobile numbers, this has enabled a smooth and seamless
distribution of financial aid by the Government. To date, the Government has disbursed morethan USD5 billion in cash benefits to those in need via digital payments using Aadhar.
Beyond financial handouts, the Government has also provided generous credit facilities to theeconomy’s many micro, small and medium enterprises (SME) as well as other monetary andfiscal support. It has pumped in an estimated USD63 billion to mitigate liquidity issues forbusiness and industry.
Like the Government, India’s financial and related institutions have also expedited digital
adoption and transformation in the wake of Covid-19, particularly in the area of digital
payments. In this case, the digital payment ecosystem has already been developed by the
National Payments Corporation of India (NPCI) through initiatives for bill payments andelectronic toll collection, among others.
Over and above this, fintech companies are leveraging on the impact of Covid-19 to offer awide range of integrated solutions and deploying innovative business models by developing
cutting-edge technologies such as AI, machine learning (ML), cloud, internet of things (IoT),
blockchain and human computer interfaces (HCI).
The pandemic is also poised to weigh in on the formulation of a new national Science
Technology and Innovation Policy (STIP 2020) for India. The changes to the businesslandscape are bound to add input into this new outlook and strategy for the digital industry andeconomy.

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JAPAN

As one of the world’s most digitally-advanced economies, Japan responded to its Covid-19
state of emergency with a swift and seamless transition to virtual business models, e-commerceand online transactions on the part of the private sector.
That was to be expected, but the real gains in digitalisation resulting from the pandemic camefrom the Government, which had lagged behind the private sector all this while despite theintroduction of a digital transformation (DX) policy almost 20 years ago.
As the pandemic swept through Japan in the second quarter of 2020, the Government moved
to drive its DX policy across many different aspects of government administration and public
services. This included web conferencing for civil court proceedings, document submission to
government agencies and many more. Among the first steps towards DX was the adoption of
an Intellectual Property Promotion Plan 2020 by the Government, followed by the proposed
establishment of a dedicated ministry to promote DX.
Then in July 2020, the Government made a declaration to create the ‘World’s Most Advanced
Digital Nation’ involving the digitalisation of the whole of Japanese society. This was
immediately followed by a new plan, Cybersecurity 2020, to drive government agencies andprivate enterprises towards comprehensive digital transformation.
Two days later, after the announcement was publicised, the government's Cyber Security
Strategic Headquarters issued a new plan, "Cybersecurity 2020”, aimed at encouraging
government agencies and private enterprises to carry out digital transformation.
In addition and as part of Japan’s renewed DX movement, the Government indicated its
intention towards the use of digital currencies, which has in any case been under considerationby the Bank of Japan in collaboration with foreign central banks.
Digital industry players are now pointing out that Covid-19 and 2020 could well be the point
in history when Japan made the quantum leap in digital transformation for both the public andprivate sectors.

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KOREA

Similar to Japan, Korea is a world leader in digital technologies complete with a comprehensive
digital infrastructure powered by 5G capabilities and an array of smart cities, smart factories,
smart grids and smart roads.
The Covid-19 pandemic has further served to drive the Korean Government, businesses andsociety towards even deeper digitalisation to narrow the digital gap between companies andworkers.
In April, the nation launched a new project to encourage the development and migration to‘untact’ business using AI, software programmes, networks, and digital devices. ‘Untact’ is a
new term meaning non-face-to-face contact. Among the activities this would cover are food &beverages, shopping, delivery, job interviews and even cultural performances.
On top of this, the Government then unveiled a new master plan for digital transition post
Covid-19 revolving around 2 pillars: the Green New Deal and the Digital New Deal, with heavy
investment for the latter over the next 2 years intended to create some 900,000 new jobs by2025 and catalysing industries in big data and digital infrastructure.
The New Digital Deal capitalises on synergies between the government and the business sector
and comprises 12 goals in 4 sectors:(1) Improve the Ecosystem of Data, Network and AI (D.N.A);(2) Apply 5G mobile and AI to all sectors of industry from primary, secondary to tertiary;(3) 5G mobile and AI based government;(4) Establish K-cybersecurity system;(5) Establish digital education infrastructure for elementary, middle and high schools;(6) Improve online education at universities and job training centres across the country;(7) Establish smart healthcare and care-giving infrastructure;(8) Promote remote working at SMEs;(9) Support micro enterprise’s online business;(10) Establish a digital management system for critical infrastructure in four sectors;(11) Digital transformation of urban areas and industrial complexes; and(12) Establish a smart logistics system.

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MALAYSIA

An economy with among the highest proportion of online shoppers in the world, Malaysia
experienced a surge in e-commerce at the height of the Covid-19 pandemic with many of the
newly-unemployed joining the ranks of the gig economy as delivery providers.
The nation’s micro, small and medium enterprises (SME), which account for almost 99% of
all registered businesses, bore the brunt of pandemic restriction which led the survivors to pivot
towards digitalisation and automation.
On this score, the Government lent considerable support via a Short-Term Economic Recovery
Plan that included financial aid in the form of grants and financing to drive digital migrationof SMEs. This encompassed a RM700 million (USD170 million) digitalisation fund and aseparate RM100 million (USD24 million) smart automation grant.
In addition, the Government also provided 2 further allocations: a matching grant and another‘Shop Malaysia Online’ allocation for e-commerce, as well as disbursement of funds for ewallets to stimulate commerce. Over and above this, a ‘Dana Penjana’ National Investment
Fund was established to provide venture capital for digital startups and other growth stage
companies.
Supporting this provision of funding, the government-owned agency Malaysia Productivity
Corporation (MPC) developed a Digital Transformation Framework to drive digitaltransformation of SMEs. The framework included a roadmap to provide a step-by-step guidefor businesses to transform into digital models able to ride out the pandemic and thrive in apost Covid-19 landscape. This ranged from securing financing via alternative and digitalsources; to purchasing cloud-based apps and services; hiring and training talents in digital tools;
migrating to new business models built on a digital platform; and adopting digital processes
including automation for all aspects of business.
Meanwhile, other organisations such as the Malaysia Digital Economy Corporation (MDEC)
and the National Tech Association of Malaysia (PIKOM) rolled out programmes to offer digital
tool suites to SMEs for their digitalisation journey.

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MYANMAR

The Myanmar Government responded to the pandemic with a Covid-19 Economic Relief Plan
(CERP) which seeks to mitigate the inevitable economic impact posed by the crisis while
establishing foundations that will facilitate Myanmar’s rapid economic recovery using all
available policy instruments to the fullest possible extent.
Digital technologies and solutions such as mobile payments, online food orders, videoconferencing and collaboration apps got overwhelmed by businesses and social-influencers in
Myanmar. Demand for webcams and laptops surged to a point that they went out of stock.
The Myanmar Economic Resilience and Reform Plan (MERRP) outlined the blueprint madepossible by CERP to help the country get back on track to achieve the overall objectives andgoals as set out within the Myanmar Sustainable Development Plan (MSDP). The MERRP’s
goals are bold and demanding, but they define the direction in which Myanmar must move.
Myanmar is drafting a national innovation policy and a series of action plans. Meanwhile, allgovernment departments/agencies are expected to receive a notification to receive fees,
charges, taxes, and all other levies in a digital-only form; via bank transfer, mobile banking,debit/credit card, and/or mobile wallet system.
Long-waited real-time inter-bank interoperability between Myanmar banks, digital banking
systems and mobile wallets will be implemented soonest. Popular shopping malls and markets
are encouraged to develop their own e-commerce sites. The Government is expected tonegotiate with large, global e-commerce companies to include Myanmar products.
With these developments, Myanmar entrepreneurs can sell online and ship abroad without
licensing procedures and exemption or reduction of customs duties and/or commercial tax forthe importation of 4IR technologies and related products.
As the next step, Myanmar will expand IT capacities across all government administrative units
and strengthen cyber security measures. Data classification policies are also being drafted, in
accordance with the upcoming trends and technologies.

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SINGAPORE

In response to Covid-19 and the considerably stringent pandemic control restrictions, thisisland nation spared no expense to prop up an economy increasingly leveraged on digitalisationand digital technologies. At this critical juncture, the Government has stepped up engagementswith trade associations such as SGTech to forge deeper partnerships within Singapore.
The Government spared no efforts in making use of technology to tackle the pandemic,
allowing the economy to slowly and safely open up, and allow lives to return to some level ofnormalcy. Examples include the building of TraceTogether digital application for contact
tracing, roll out of SafeEntry as the National Digital Check-in System, as well as launch of
MaskGoWhere and SupportGoWhere websites to help citizens find their designated collection
points for mask and Covid-19 related government support schemes respectively.
Even as the private sector adapted to the situation via work-from-home (WFH) directives ande-commerce for essential needs, the Government set aside a significant allocation of SGD3.5
billion (USD2.6 billion) on ICT procurement to spur digitalisation across the economy andsupport business recovery. This is an increase of 30% from 2019. The funds are expected to
be channelled into 5 key areas including: development of new tech tools to respond to COVID19; development of citizen- and business-centric digital services; development of ICT systems
on cloud; modernisation of government ICT infrastructure; and use of data analytics, artificial
intelligence (AI) and sensors within the public sector.
Many of these contracts are earmarked for the migration of systems onto the commercial cloudas this would facilitate the development of applications and services for citizens and residents
in a faster and more scalable manner. Importantly, SMEs will be eligible to participate in 80%of the potential ICT procurement opportunities. In 2019, nearly 70% of the total ICT contracts
were awarded to SMEs. The Government has placed emphasis on driving SMEs towards
digitalisation, particularly in e-payment and e-invoicing capabilities, in order to prepare forinternationalisation of businesses upon recovery from COVID-19. Such aids are being
provided via matching grants and subsidies. Another area given government support is ecommerce, where subsidies are given to retailers to go online as this would open up future
opportunities for cross-border sales and gain a foothold on the global market.

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TAIWANThe island economy of Taiwan is among the very few success stories in the fight against Covid19. With its sophisticated contact tracing capabilities based on digital technologies, Taiwan
recorded very few cases and avoided the kind of stringent restrictions that other economies had
to resort to.
Nevertheless, an export economy such as Taiwan’s has been invariably hit by the slowdown in
the world economy, particularly for its digital hardware and other software products andservices.
This was to an extent offset by increased demand in Taiwan’s video-conferencing and online
solutions. Indeed, Taiwan’s public and private sectors leveraged on everything virtual during
the global height of Covid-19. Remote conferences became mandatory while B2B business
transactions were conducted almost exclusively online. A virtual exhibition centre was alsoestablished.
In view of the pandemic’s potential to disrupt economic activity, the Government isencouraging SMEs to migrate to digital platforms or at least to incorporate digital solutions in
all their processes; from demand and supply side to operations and administration.
Taiwan’s private sector is also ramping up knowledge acquisition and skills training in digital
capabilities in order to build a strong digital economy for the long term, which will be focusedon three key areas: digital literacy, digital learning and advanced knowledge. For instance, theDigital Trade Academy is giving hands-on training for among others, talents in tourism thathave been hit especially hard.
These expanded efforts are expected to contribute to a strong economic recovery from theglobal pandemic by creating new digital opportunities for all Taiwanese in the years ahead,especially in the development of 5G network technology, AI and IoT applications as well asother digital-related solutions.

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THAILAND

Thailand was another nation that was spared the brunt of Covid-19’s devastating impact. Evenso, the spectre of the pandemic became a key accelerator for digital transformation among
businesses and organisations to ensure continuity.
As a result, Thai businesses and talents have increasingly embraced digital technologies andsolutions including mobile payments, e-wallets, video conferencing and collaboration tools.
The Government is proactively accommodating the needs of users apprehensive over the
potential impact of Covid-19 with policies and investments such as 5G high speed networks,
remote working capabilities and e-learning.
To stimulate 5G development and alleviate some of the investment required for operators, theGovernment has introduced flexible payment terms that allow 700 MHz and 2600 MHz
licenses to be paid over a ten-year period.
Thai businesses are also embracing AI as a means to gain insights into customer needs andhelps reduce physical interaction during the epidemic while also improving the digital customer
experience and helping companies understand changes in consumer behaviour.
Another area that this nation is focusing on is telemedicine. For example, the Yothi Medical
Innovation District (YMID) and the Technology and Innovation-Based Enterprise
Development Fund have fostered a channel where tech start-ups can help patients avoid thehospital, talking to doctors online to help reduce the chance of contracting Covid-19.

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VIETNAM

One of the success stories in terms of controlling the spread of Covid-19, Vietnam was also
one of the few economies that achieved positive growth in 2020 at 2.9%. In response to thepandemic, the Government implemented stringent measures including work-from-home(WFH) and online learning as well as other measures supported by IT applications.
Among the many apps developed during this period were Blue Zone for remote medical
examination and treatment, online health declarations, and online learning modules for schools
at all levels and geographic locations.
On June 3, 2020, the National Digital Transformation Program with a vision extending to 2030
was approved by the Prime Minister of Vietnam. During the year, many activities of
exchanging, connecting, promoting digital transformation were organised, galvanising large
enterprises and SMEs to accelerate digital transformation.
In 2020, the number of internet users increased by 40 million with Vietnam being one of six
countries in the world to produce 5G equipment on their own. Many applications for WFH,
online learning, telemedicine, electronic payments, and contactless transactions were deployedduring this period. Meanwhile, new technologies such as AI, Blockchain, IoT, AR, VR were
integrated in all solutions and applications to bring about very positive change in Vietnam.
Some of the digital transformation platforms developed have a large number of users of up to
hundreds of thousands of businesses. Digital signatures, electronic identity and electronic
invoices were also widely deployed while the Government is using eCabinet solutions, online
meetings and the online dissemination of e-documents between government agencies,
ministries and provinces.
The strategy “Made in Vietnam” by the Ministry of Information and Communication inspired
Vietnamese tecnology companies to master technologies and develop digital solutions resulting
in many applications and solutions during the last few years. In addition, a strategy to develop
digital companies by 2030 was also summited to the Government Office.

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What’s Next
Even as numerous types of vaccines are being transported and distributed worldwide, one issue
has been made crystal clear by this once-in-a-generation pandemic: business and industry,
governments and societies have to go digital in order to develop a more resilient and sustainable
future.
Given this reality, ASOCIO member economies must capitalise on this opportunity tochampion digital development and transformation to their respective private and public sectors
using Covid-19 as an example and cautionary tale.
Needless to say, efforts to narrow the digital gap among ASOCIO member economies must be
given priority and in this case, collaboration between the more digitally-advanced and the lessso in ASOCIO should be ramped up. For the newly-digitalising economies, education is a
critical area and this is where digital delivery of learning will come into play.
As the option of migrating to digital platforms for businesses and industries became a necessity
during the pandemic, ASOCIO should coalesce digital transformation frameworks androadmaps developed towards this end. Sharing of such strategies and processes will ultimately
increase cross-border business within ASOCIO.
Member economies must also take on a more active role in appealing to governments forfurther economic measures designed to accelerate the development of the digital industry anddigital adoption across all other industries as well as throughout government and society.
Another area for ASOCIO to speak as one voice should be a call to their respective
governments to build information and data platforms to share information on national digitalprojects. Information is, after all, the business we are in.

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MERRP document

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END

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