ASEAN Integration Monitoring Directorate ASEAN Economic Community Department

The ASEAN Secretariat

AS EAN tow ards the Fourth I ndustr ial Revolution

Symposium on ‘ASEAN Industrial Transformation to Industry 4.0’

Bangkok, 20 June 2019

Disclaimer: No part of this presentation should be cited, distributed, and/or reproduced without prior written consent from the ASEAN Secretariat

ASEAN Digital Transformation: Facts & Figures

Note: *Based on a 2018 survey carried out by the IDC Asia/Pacific involving502 executives & IT heads in the Asia-Pacific (excluding Japan).Source: (ASEAN Secretariat, 2017; 2018; International Federation of Robotics,2016; and International Data Corporation Asia/Pacific, 2018).

§ Digital economy – 7% of GDP – If tapped, could uplift the economy by US$ 1 trillion by 2025

§ Only 16% of MSMEs truly utilise digital tools (Bain & Co, 2018)

§ Future of jobs (refer to next slide)

48.5 internet subscribers per 100 persons in 2017;3.8 million users online/month –world fastest growing market

Cellular users – 147.3 per 100 persons in 2017

Fixed broadband – 7.2 per 100 persons in 2017

Automation – Singapore 2nd, other AMS in top 50

AI – Indonesia (24.6%) is leading in AI adoption in ASEAN, followed by Thailand (17.1%), Singapore (9.9%), Malaysia (8.1%) *

Online travel to reach US$ 90 billion by 2025

4IR is Changing SEA Economic, Political, and Social Landscape in Significant Ways

Future of jobs in ASEAN?• ILO (2016) – Cambodia, Indonesia,

Malaysia, Philippines, Thailand, and Viet Nam would have to renounce 54-56% of jobs to automation

• Workers will be displaced, but technology will also create new demand for workers across industries, by 2028 (CISCO, 2018)

• With more than half of its population below the age of 30 today, ASEAN stands to gain from the 4IR

ASEAN’s Major 4IR-Related MilestonesDates Key milestones/events Remarks

Apr 2017 30th ASEAN Summit 4IR was given political recognition by ASEAN Leaders

May-Dec 2018

ASEAN Readiness for the Fourth Industrial Revolution (4IR Assessment)

The Assessment was completed in August 2018, with feedback from sectoralbodies were collected between September and December 2018)

Aug 2018 ASEAN Digital Integration Framework Endorsed at the 50th AEM, in Singapore

Dec 2018 ASEAN Framework on Digital Data Governance

Endorsed at the 18th TELMIN, in Bali

Jan 2019 Special Session on 4IR Key highlights:• Need to give due consideration to those that are ‘left behind’ in the era of

digital transformation • A holistic strategy to embrace and address the challenge of 4IR, from

incentives to infrastructure, addressing social and environmental externalities, and effective use of available technologies to help reach SDGs

9th CoW ASEC To look into the development of the ‘next steps’ for advancing work on the 4IR in ASEAN, which should be cross-pillar and prioritise on areas where regional platform can best deliver

ASEAN Agreement on Electronic Commerce Signed by all AMS by 22 Jan 2019, and to be ratified by the 35th ASEAN Summit

July 2019 Special CoW Special, and smaller, CoW to discuss possible ‘next steps’ on ASEAN’s 4IR work

Thailand’s 2019 Priority Deliverables

1. Enhance ASEAN’s ability in addressing different security challenges such as terrorism, transnational crime and cybersecurity

2. Strengthen ASEAN’s capability to conduct preventive diplomacy

3. Promote enhanced border management cooperation within ASEAN

4. Promote constructive and inclusive maritime cooperation

5. Promote defence cooperation and defence diplomacy

6. Advance cooperation for sustainable security in ASEAN and the region by reinforcing strategic thrust

7. Promote the role of ASEAN Center of Military Medicine

1. ASEAN Digital Integration Framework Action Plan 2019-2025

2. ASEAN Innovation Roadmap 2019-20253. Guideline on Skilled Labour/Professional

Services Development in Response to 4IR

4. ASEAN Declaration on Industrial Transformation to Industry 4.0

5. Digitalisation of ASEAN Micro Enterprises6. ASEAN Single Window7. Local Currency Settlement Framework8. ASEAN Infrastructure Financing

Mechanisms9. ASEAN Gastronomy Tourism Masterplan 10.The Conclusion of RCEP in 201911. Promoting Sustainable Fisheries through

ASEAN Cooperation12. Roadmap for ASEAN Sustainable

Capital Market13. MoU between ACE & ASEAN

Universities/Institutions on Biofuels and Bioenergy

1. Establish ASEAN Centre for Active Ageing and Innovation2. Disaster Emergency Logistic System for ASEAN3. Advocate for ASEAN Network for Microbial Utilisation4. Develop human capital through programmes and

activities for life-long education5. Initiate programs to address malnutrition, stunting and

obesity6. Organise the 20th ASEAN Conferences on Civil Service

Matters 7. Organise ASEAN Civil Society Conference/ASEAN

People’s Forum8. Promote ASEAN Year of Culture in 2019 and

Development of ASEAN Cultural Centre9. Establish ASEAN Training Centre for Social Work and

Social Welfare10. Strengthen ASEAN University Network11. Enhance capacity of ASEAN Centre for Sustainable

Development Studies and Dialogue12. Organise the Special ASEAN Ministerial Meeting on

Marine Debris13. Nominate Mu Ko Ang Thong National Park, Hat Chao

Mai. Koh Libong Wildlife Sanctuary as an ASEAN Heritage Park

14. Monitor the progress of implementation of ASEAN Transboundary Haze Free Roadmap

ASEAN Political-Security Community

ASEAN Economic Community ASEAN Socio-Cultural Community

Advancing Partnership for Sustainability

ASEAN’s 4IR Relevant Initiatives – APSC & ASCC

APSC

• ASEAN Declaration to Prevent and Combat Cybercrime

• ASEAN Cyber Centre and Hub• Memorandum of Understanding (MoU) on

Cooperation to Counter International Terrorism between ASEAN and Australia

• ASEAN Leaders’ Statement on Cybersecurity Cooperation

ASCC

• Education: ASEAN Cyber University, Online Learning on Higher Education, ICT-ready Teachers, & ASEAN TVET 4.0

• Employment: Regional study on the impact of ICT & outsourcing on employment & on the adequacy of legislations in regulating employment relationship

• Future of Work: ASEAN Labour Ministers’ Statement on the Future of Work: ‘Embracing Technology for Inclusive and Sustainable Growth’, Singapore, 29 April 2019

ASEAN’s 4IR Relevant Initiatives – AEC (1)Sectors/Issues Initiatives Remarks

E-Commerce ASEAN Agreement on e-Commerce

The Agreement will contribute to a conducive environment for the growth of e-Commerce through,amongst others, advancing relevant trade rules and enhancing digital connectivity within ASEAN (endorsed at the 50th AEM, and signed at 33rd ASEAN Summit).

ASEAN Digital Integration Framework (DIF) 2019-2025

The DIF 2019-2025 is one of Priority Economic Deliverables of Thailand’s 2019 ASEAN Chairmanship. It identifies six priorities for ASEAN to focus on in the immediate term: (1) facilitation of seamless trade; (2) protection of data whilst supporting digital trade and innovation; (3) seamless digital payments; (4) broadening of digital talent base; (5) fostering entrepreneurship; and (6) coordination of actions (adopted at the 50th AEM, and endorsed by AECC). An action plan is currently being developed to advance digital integration in the immediate term.

ICT ASEAN Framework on Digital Data Governance

The Framework is being developed, and has the following objectives: (1) adoption of governance measures throughout digital data lifecycle; (2) enabling cross-border data flow; (3) promoting digitalization and leveraging emerging technology; and (4) regional harmonization of legal and regulatory framework of data.

ASEAN-JapanCybersecurity Capacity Building Centre

Under TELSOM, the establishment of the Centre is still at initial stage, and is to be supported by Japan and hosted by Thailand.

Renaming of TELMINto ASEAN Digital Ministers

ASEAN Telecommunications and IT Ministers (IT) decided in their Retreat on 28-29 March 2019: (1) to rename themselves as ‘ASEAN Digital Ministers’ to reflect the changing landscape of the sector and signal their direction towards engaging more cross-cutting issues and digital transformation; (2) to adopt proper branding in naming their masterplan, or the ASEAN Digital Masterplan 2025.

ASEAN’s 4IR Relevant Initiatives – AEC (2)

Sectors/Issues Initiatives Remarks

Science and technology ASEAN Innovation Roadmap

Currently being developed, the Roadmap is targeted for adoption by the ASEAN Ministerial Meeting on Science, Technology, and Innovation (AMMSTI) at the 18th

AMMSTI.ASEAN OpenInnovation and Entrepreneurship Programme

A collective mechanism to engage and coordinate diverse stakeholders (for completion in 2019).

ASEAN Foresight Alliance

The establishment of the ASEAN Foresight Alliance by the ASEAN Committee on Science and Technology (COST), in Chiang Mai, 10-11 May 2018, to help ASEAN facing future challenges.

ASEAN’s 4IR Relevant Initiatives – AEC (3)Sectors/Iss

uesInitiatives Remarks

MSMEs ASEAN SME Online Academy One-stop, open-access gateway that provides business information and training resources to support MSMEs development and internationalization (www.asean-sme-academy.org).

SME Service Centre A web portal to help facilitate linking MSMEs with traders, enterprises, suppliers, manufacturers, and consumers – allowing MSMEs take advantage of economic integration (http://aseansme.org/home).

Digitalisation of ASEAN Micro Enterprises

One of Priority Economic Deliverables of Thailand’s 2019 ASEAN Chairmanship. One workshop on the ‘Global Digitalisation Models for Micro Enterprises’ has been held in May 2019, with another policy dialogue on the ‘Formalisation of Micro Enterprises’ to be held at the end of June 2019. These initiatives will provide input towards the development of a policy guideline on the digitalization of ASEAN micro-enterprises.

Intellectual property Technology Innovation Support Centres (TISC)

Networking the TISC across ASEAN (126 universities in ASEAN have TISC).

ASEAN IP Training Operalisationalisation of ASEAN IP Training Platform for MSMEs.

Consumer protection Guidelines on Cross-Border B2C Complaints and Code of Conduct for Online Businesses

Both are still being developed.

Food, Agriculture, and Forestry

Climate Smart Agriculture & Guidelines on Sustainable Forest Management

The implementation of both initiatives will take into account relevant technological advancement (e.g. sensor imaging, etc.) in the sector

ASEAN’s 4IR-Related Cross-Pillar Initiative – ASEAN Smart Cities Network

Launched at the 32nd ASEAN Summit – a key deliverable of 2018 Singapore’s ASEAN Chairmanship

Inaugural Meeting 8 July 2018

Aims to promote cooperation on smart city development, develop commercially viable projects, and facilitate partnership with external partners

Build on the potential of technologies and innovative solutions to improve people’s lives in ASEAN cities

26 Pilot Cities in 10 AMS

Six focus areas: (1) civil & social; (2) health & well-being; (3) safety & security; (4) quality environment; (5) built infrastructure; and (6) industry & innovation

Non-exhaustive List of Major National Initiatives:Brunei Darussalam: National Digital Strategy 2016-2020 – National ICT White Paper for Brunei Darussalam (2016); The Digital Government Strategy 2015-2020 (2015); National Broadband Policy 2014-2017 (2014)Cambodia: Cambodian ICT Masterplan 2020 (2014); Telecommunication ICT Development (TICT) Policy 2020; Signing of the MoU with Microsoft on ICT cooperation (2016)Indonesia: Launch of ‘Making Indonesia 4.0’ Roadmap (2017); Indonesia Broadband Plan 2014-2019 Lao PDR: e-Government Development Plan 2013-2020 (2013); Signing of the MoU with Microsoft (as part of Microsoft’s National Empowerment Plan) (2016); National Strategies for Science and Technology Development 2013-2020 and Vision 2030 (2013)Malaysia: Development of the National Industry 4.0 Policy Framework (2018); Establishment of Industry 4.0 High Level Task Force (2017); Launch of the Centre of Excellence on Industry 4.0 (2017); Launch of the Digital Free Trade Zone (DFTZ) Initiative and Pilot Project(2017); The Malaysian ICT Strategic Plan 2016-2020 (2016); Launch of the National e-Commerce Strategic Roadmap (2016); 11th

Malaysia Plan 2016-2020 (2015); National IoT Roadmap (2015); National Broadband Initiative (2006)

Source: ASEAN Secretariat’s compilation from various sources

Non-exhaustive List of Major National Initiatives:Myanmar: Development of the Digital Economy Development Masterplan (2017); Universal Service Strategy 2018-2020 (2018); e-Government Masterplan 2016-2020 (2014); Philippines: Inclusive, Innovation-led Industrial Strategy (i3s) (2017); Philippines Digital Strategy 2011-2015 (2011); National Broadband Plan; e-Government Master Plan 2016-2020 (EGMP 2.0)Singapore: AI.SG Initiative (2017); Research Innovation Enterprise 2020 Plan (2016); Industry Transformation Programme (2016); Intelligent Nation 2015 (2015); National Robotics Program (2015); Smart Nation (2014)Thailand: Digital Government 2017-2021 (2017); Thailand 4.0 (2016); National Digital Economy Master Plan (2016-2020); Digital Economy Master Plan (2015)Viet Nam: Prime Minister’s Directive 16/CT-TTg on Strengthening Access to the Fourth Industrial Revolution (2017); Ministry of Industry and Trade’s Decision 4246/QD-BCT (2017); Prime Minister’s Decision 844/QD-TTg (2016); 2020 Broadband Plan (2016)

Source: ASEAN Secretariat’s compilation from various sources

Next Steps for Advancing the Work on 4IR

• Cross-sectoral/pillars policy coherence and consistency to ensurecomprehensiveness, inclusivity, sustainability, people-centred/oriented,and relevance to changing global and regional environments

• Special CoW to identify potential ‘next steps’ for advancing ASEAN’s workon the 4IR, which should be cross-pillar, prioritise on areas where theregional platform can best deliver, and take into consideration existingand planned initiatives.

• Following up on Thailand’s 4IR-related priority economic deliverables (under“strategic driver 1: future-orientation”) as quick wins.

Thank You!

ASEAN Integration Monitoring Directorate (AIMD)ASEAN Economic Community Department

The ASEAN SecretariatAIMD@asean.org