Digital Economy Can Add US$1 Trillion to ASEAN GDP in Next Decade

23 February 2016 – The
growth of the Digital Economy could add US$1 trillion to the GDP of the
Association of Southeast Nations (ASEAN) bloc over the next 10 years, according
to a report released by global management consulting firm A.T. Kearney in
conjunction with Axiata Group Berhad (Axiata), one of the largest Asian
telecommunication companies, at the GSMA’s 2016 Mobile World Congress.

The report, titled ASEAN Digital Revolution, focuses on the
growth opportunities, the hurdles that need to be overcome and policy initiatives
that will help the sector fulfil its growth potential and contribute to the
bloc’s overall economic expansion. The report highlights the following factors
that could see ASEAN become one of the world’s top-five digital economies by
2025:

“When it comes to
market size and growth opportunities, there are few economic regions that can
match ASEAN’s potential, especially when it comes to the digital economy. More
than half of the bloc’s population is aged 30 or below. This is the consumer
group which is most likely to contribute to digital economy as they are most
tech savvy,” says Naveen Menon, Partner and Asia-Pacific Head of
Communications, Media & Technology Practice at A.T. Kearney and one of the
authors of the report.

“The confluence of technology
innovation, a youthful population and robust economies can help ASEAN leapfrog
into the vanguard of the digital economy” he added.

Jamaludin Ibrahim,
President and Group Chief Executive Officer of Axiata said, “Through
accelerated innovation, mobile network operators are ready to support and grow
the ASEAN digital economies of cashless societies, smart cities, borderless
digital services and financial inclusion. However, for mass adoption of the
services to drive digital economies, policies and a strong digital agenda is
required in the region with visionary government and industry collaboration. It
is our hope, therefore, to see operators and governments quickly come together
to accelerate this development. I believe a ‘revolution’ is required!”

The report adds that
the impending implementation of the ASEAN Economic Community (AEC), which
promises to promote free movement of goods, services, investment, skilled labor
and freer flow of capital, is also likely to provide a big boost to the sector.

However, it highlights
issues that need to be addressed, and policy initiatives that need to be
implemented, for the region to meet the growth potential. These include:

As
one of the largest Asian telecommunication companies, Axiata Group today
operates in nine countries, servicing over 260 million subscribers. With a
diverse portfolio in mobile network operations, communications infrastructure
services and digital services, the Group pieces together the best in
connectivity, technology and people in its vision of Advancing Asia.

Axiata
has controlling interests under the brand name of ‘Celcom’ in Malaysia, ‘XL’ in
Indonesia, ‘Dialog’ in Sri Lanka, ‘Robi’ in Bangladesh and ‘Smart’ in Cambodia,
with strategic interests in ‘Idea’ in India and ‘M1’ in
Singapore. ‘edotco’, the Group’s infrastructure company, operates in
five countries to deliver telecommunications infrastructure services,
amassing a portfolio of over 16,000 towers and 12,000 km of fibre. It aims
to be one of the top regional tower companies and is committed to
responsible and sustainable business operations.

In
2012, Axiata established Axiata Digital Services (ADS) to capture the rapid
growth in internet-based businesses. Within three years, ADS has built a
portfolio of 28 digital brands, servicing growing demands in mobile money,
mobile adverting, e-commerce, entertainment and education.

As
a committed and long-term investor, Axiata provides employment to 25,000 people
within its operations. In line with its sustainability goals, the Group
actively supports and drives young talent development; disaster response and
recovery; as well as green initiatives.

For more information, please visit www.atkearney.com.