6th National Business and Management Conference

Conference Proceedings ISSN: 2345-8720

De La Salle University – Manila
November 9 – 10, 2018

ASEAN ICT developments:

Current state, challenges, and what they mean for SMEs
Raymund B. Habaradas
Ian Benedict R. Mia

De La Salle University
ianbrmia@gmail.com

Abstract

The development of information and communications technology (ICT) in the Association of

Southeast Asian Nations has undergone a rapid pace following the rise of technologies in the digital
economy. Small and medium enterprises (SME) are also presented with a vast set of digital opportunities
to scale their businesses further. Given this, there comes the need to understand the current state of ICT
development in the region, the current challenges they are experiencing in terms of ICT adoption and
infrastructure, and what these developments mean for the future of SMEs. This is done through a review of
the current literature available on ICT development in the ASEAN.

Key Words: Association of Southeast Asian Nations, information and communications technology, small
and medium enterprises

Introduction

Information and communications technology (ICT) is revolutionizing the way people do business.
According to the 2016 Global Information Technology Report by the World Economic Forum, the rise of
ICT has brought about the Fourth Industrial Revolution (Baller, Dutta, and Lanvin, 2016), or more
popularly known as the digital revolution. This is characterized by global and digital communications, high-
density data storage and low-cost processing, and an increasing number in global users of digital
technologies.

In the Association of Southeast Asian Nations (ASEAN), the different member states have been
developing ICT policies and programs to help businesses, including small and medium enterprises (SMEs),
to adapt to the changing business landscape. In the ASEAN ICT Masterplan 2020, various thrusts,
initiatives, and action points were set along the following areas, among others: economic development and
transformation, innovation, ICT infrastructure development, human capital development, people
integration and empowerment through ICT, new media and content, and information security and
assurance.

Essentially, the main goal of the ICT masterplan is to create a “digitally-enabled, innovative,
inclusive, and integrated ASEAN community” to take advantage of the region’s shift towards a digital
economy. Over the past years, ICT has played a significant role in terms of connectivity and integration
between the different member states and their regional and global value chains. However, the development
of ICT is in different stages of growth across ASEAN member states. While some member states are still
emerging in their adoption of ICT, others have already established a strong foundation, and have established
their ICT infrastructure and systems.

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Conference Proceedings ISSN: 2345-8720
De La Salle University – Manila
November 9 – 10, 2018

In the e-ASEAN Framework Agreement of 2000 (ASEAN, 2012), ASEAN members states are
enjoined to integrate ICT development into their national policy. In the long run, this was meant to improve
the competitiveness of ASEAN in the global landscape (Dai, 2008). However, the digital divide among
ASEAN states calls for more action, which can be guided by the appropriate policy and regulatory
environment. But what is the relevance of ICT policies and programs to SMEs in ASEAN member
economies?

The ASEAN ICT Masterplan 2020 serves as an overview of the general policies being implemented
to enable ICT development in the region. It is expected to be implemented throughout 2016 to 2020, with
strategic thrusts tailored for the region’s transition to a digital economy. Among one of the specific
components of these strategic thrusts include the promotion of digital trade through “policy innovations,
awareness raising, and enabling electronic and other better modes of transactions and payments especially
for SMEs”. Specifically, the rise of financial technology platforms like e-commerce opens up opportunities
for many small businesses that can now take advantage of disruptive technology to compete with larger
players. Needless to say, digital trade is still a young and booming industry in the ASEAN.

However, many SMEs shy away from adopting technological innovations because they perceive
the costs and risks involved as being too high. Governments can address this by speeding up investments
in infrastructure that will help bring down the cost ICT. This is being done by several ASEAN member
states, which have deployed a wide range of programs to further develop their ICT sectors. Among some
of the common practices include the implementation of an e-Government platform, national broadband,
human resources training, and the development of ICT infrastructure.

Governments can also support programs that will facilitate the linkage of small businesses with
sources of technological knowledge and capability. For instance, technology transfer and knowledge-
sharing activities among universities, public research institutes, industrial associations, governmental, and
private sector intermediaries can help companies in various stages of their business life cycle to develop
innovation capabilities. As the ASEAM SME Policy Index 2014 states, the available linkages between
universities and industries among ASEAN states can help improve the innovation capabilities of SMEs in
ICT

In the following sections, we look into the varied ICT policies of ASEAN member states, as well
as the programs being implemented by the government and private sectors in light of the policy efforts.
These sections will also discuss the variations in terms of the level of ICT development between different
countries in the ASEAN.

Sustaining nationwide digitalization: Singapore, Brunei, and Malaysia

Singapore. In the 2015 and 2016 Global Information Technology Report of the World Economic
Forum, Singapore was ranked as the world’s most digitally connected country. In a nutshell, Singapore has
a productive ICT ecosystem since it is home to many global technology firms such as Google, Facebook,
and Alibaba. These firms aggregate many opportunities for other ICT firms as well as partner with one
another and end-user companies to continue creating commercially viable solutions related to ICT.
Moreover, several foreign institutions have partnered with Singapore industries like financial services and
manufacturing to expand their market to Southeast Asia. Singapore also has the TechSkills Accelerator
program to train ICT professionals (Economic Development Board Singapore, 2018).

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Conference Proceedings ISSN: 2345-8720
De La Salle University – Manila
November 9 – 10, 2018

Being the top-rated country in ASEAN in terms of ICT development, Singapore has had “a plethora
of policies for SMEs, and that these have been a key aspect of government industrial policy” (Lim, 2016).
One of these policy strategies is Infocomm 21, a market-driven, private sector oriented, and global strategy
that aims to liberalize the telecommunications market in Singapore and foster technopreneurship. Of these
initiatives, one of the crucial aspects that will impact Singapore-based SMEs is that of “dotcomming the
private sector” by attracting top talents, spurring consumer demand, fostering an e-lifestyle, and bridging
the digital divide.

Worth noting is Singapore’s “Smart Nation,” which envisions “a whole-of-nation movement to

harness digital technologies to build a future Singapore, to improve living and build a closer community,
empower citizens to achieve their aspirations through good jobs and opportunities, and encourage
businesses to innovate and grow.” Among the strategic national projects included under this vision include
the National Digital Identity, e-Payments, Smart Nation Sensor Platform, Smart Urban Mobility, and
Moments of Life. The country also enables a culture of innovation and experimentation through open data,
research and innovation, industry and startup ecosystem, cybersecurity and data privacy, and computational
capabilities and digital inclusion (Smart Nation and Digital Government Office, 2018).

There is also a strong drive in Singapore to encourage local e-businesses to internationalize. For
example, the Infocomm Media Development Authority of Singapore (IMDA) enables overseas linkages
“through partnerships with industry players to set up business centers in strategic countries.” IMDA further
describes Infocomm standards in Singapore as follows:

“Infocomm standards in Singapore are developed on a consensus basis and are the results of the
collaborative efforts amongst the government agencies, tertiary institutions, professional bodies and the
infocomm industry. The IMDA Standards Team plays a key role in fostering and facilitating the industry's
participation in local and international ICT standards forums.”

In 2016, Singapore established the Government Technology Agency, which “leads technological
transformation in the public sector, develops citizen-centric Smart Nation applications, nurtures ICT talent
and capabilities, and builds a more intuitive and anticipatory government through digital services.” Within
this agency, six capability centers are included such as application development, cybersecurity, data
science, government ICT infrastructure, geospatial technology, and sensors and Internet of Things.

Brunei Darussalam. The ICT policy of Brunei Darussalam is centered on the National Digital
Strategy 2016 to 2020, which contains three strategic outcomes: a vibrant economy powered by ICT, ICT-
smart citizens, and a connected and efficient nation (Authority for Info-Communications Technology
Industry of Brunei Darussalam, 2016). One of the most notable policies is the National Broadband Policy
established in May 2014. The policy aims to increase mobile broadband household penetration to 85% and
provide download speeds of at least two megabits per second to 95% of the population by 2017. Another is
the local business development policy framework, which enables capable local ICT companies and SMEs
to participate in the ICT projects of the government.

According to the National Digital Strategy, a National ICT Policy is in the works for Brunei and is
said to take “considerable time and effort.” To enable this, the following key roles are being undertaken by
their government: study, develop, and issue new essential ICT policies, clear and approve changes from
periodic review of existing policies, administer compliance through annual checks, and issue ICT-related
general orders.

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Conference Proceedings ISSN: 2345-8720
De La Salle University – Manila
November 9 – 10, 2018

There is a need for the country towards a mindset change to “transition to a new knowledge-based
economy and embrace ICT extensively.” The strategy recognizes that, “the people, businesses and the
Government of Brunei Darussalam must be prepared to do things differently and adapt to new ways of
learning, living, doing business, staying ‘connected’ and delivering public services.” One of the critical
sectors being the SMEs, adapting to the new knowledge-based economy by embracing ICT will, in the long
term, reap several benefits for these companies.

In support of the above-mentioned policies, Brunei Darussalam introduced the e-Government

initiative, which is managed by the e-Government National Center (SEACOOP, 2010). Under this, the
Digital Government Strategy for 2015 – 2020 aims to achieve a “digital government” by 2035, and “to lead
the digital transformation, and make government services simpler, faster, and more accessible.” The
program focuses on six key areas: advancing digital services, implementing universal access for
government systems, optimizing digital assets, strengthening security, enhancing stakeholder engagement,
and developing enterprise information management capability (e-Government National Center, 2017).

The e-Government initiative has shared services across key functions in government. One of these
include the One Government Network, whose aim is “to establish and connect agencies in accessing
integrated e-services as well as internet from a central gateway.” This platform is useful for streamlining
and optimizing the services being offered by the government in a single, centralized source. This could
translate to substantial reduction in transaction costs for SMEs that have dealings with multiple government
agencies.

Another initiative is the One Government e-Communication, which aims to improve the ways by
which different government agencies work together and encourages the development of ICT capabilities in
different functions of the government. As a communication platform, it offers email, office communicators,
and an active directory which the different government agencies can access to ease communications with
other agencies. This platform can make communication faster, as well as eliminate certain rigid and
multilevel bureaucratic practices that tend to be detrimental to the operational efficiencies of government.

Malaysia. In 2016, Malaysia released its Public Sector ICT Strategic Plan 2016 to 2020, which
details its policies and programs in line with ICT implementation in the country (Malaysian Administrative
Modernisation and Management Planning Unit, 2016). Within the strategic plan is the ICT Framework
2016 to 2020 which consists of four main components: ICT vision, ICT strategic thrusts, enabling
ecosystem, and basic principles. These components address several points of ICT development in Malaysia.

For the past years, Malaysia has undergone a rapid transformation of its ICT sector (Maynard,
2010), particularly in its telecommunications networks, national policies, institutions, and regulatory
regimes. During the 2015 Forum Digital Service Repository, the Malaysia Administrative Modernization
and Planning Unit stated how applications such as computing, big data analytics, open data, and enterprise
architecture had been crucial in providing opportunities for the ICT framework of Malaysia. Technologies
such as the Internet of Things (IoT), for instance, were highlighted. According to the Chief Secretary of the
Malaysian government (Kelleher, 2015): “With the combination of public sector policies and the strategic
utilization of information by the public sector, people on the forum showcase can provide an up-to-date
innovation on how our everyday lives will feel more connected to IoT”.

Malaysia also has a National Big Data Analytics (BDA) Roadmap (MDEC, 2016), making it one
of the few countries that have a structured BDA to “fully unleash the value of big data.” The BDA
Roadmap’s main strategic initiatives include the proliferation of BDA usage in the private and public
sectors, and building the BDA industry in Malaysia. As what can be seen in the current ICT framework of

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Conference Proceedings ISSN: 2345-8720
De La Salle University – Manila
November 9 – 10, 2018

Malaysia, the country is on the way to further develop its ICT sector and take advantage of current
technologies.

In line with the vision of digitalization and ICT development in various sectors of Malaysia, its
public sector has several programs in place. These include digital services, data-driven government,
cybersecurity, ICT governance, and a professional and capable workforce (Malaysian Administrative
Modernization and Management Planning Unit, 2016). Digital services, for instance, aim to integrate
various government services through a single platform that can be accessed by the Malaysian people. These
services range from daily transactions to essential government services, including those availed of by small
businesses.

In Malaysia’s education sector, the use of ICT has proven to boost the effectiveness of schools
(Carroue, 2013). With the use of social media, education software, laptops, and fast internet connectivity,
school children are immersed in a digital educational environment. The value of adopting ICT in the
education sector and any other sector is that it enables faster and direct communication, lessens the digital
divide across different people, and optimizes several processes.

Recently, the Malaysian government announced that it is focusing on several key ICTs: Internet of
Things, cloud computing, cyberspace security, and big data analytics (United States Department of
Commerce, 2017). The common denominator among these technologies is the processing of an immense
amount of data. These data are directed to the Big Data Analytics platforms of Malaysia, are assessed, and
provide valuable knowledge that will help map out the development of the country in several sectors,
including the military, the manufacturing sector, the education industry, the financial sector, and urban
planning. The use of these data is paving the way for a more optimized, efficient, and sustainable Malaysia.
Singapore, Brunei, and Malaysia may as well be at the forefront of ICT development in the region. Being
the most digitally-connected states in the ASEAN with their utilization of nationwide platforms for
digitalization, promotion of a startup and innovation ecosystem, encouragement of local e-businesses to
internationalize, and nationwide implementation of big data analytics platforms, these three countries are
in the process of sustaining these initiatives and even moving further.

In between infrastructure gaps and the road to a knowledge economy:

Thailand, Philippines, Vietnam, and Indonesia

Thailand. In alignment with the Thailand 12th Social and Economic Development Plan for 2017
to 2021 and the ASEAN ICT Master Plan, the Thailand 4.0 Strategy was recently formulated. This strategy
focuses on the progression of ICT development and investments, country infrastructures, quality of higher
education system, business sophistication, and innovation. Thailand’s Ministry of ICT has also launched
various ICT policies and programs for ICT administrators of different economic sectors because ICT is
seen as an engine of development for the country (Wongwuttiwat and Lawana, 2018).

The Thailand 4.0 Strategy is also referred to as Digital Thailand, which aims to transform the
existing economy into a “value-based and innovation-driven economy” with the use of digital technologies.
Its purpose is three-fold: “(1) building knowledge, technology, innovation, and creativity in order to release
the middle income trap; (2) building social security in order to drive the country forward without leaving
anyone behind and to enhance an equality society; and (3) building sustainability to balance economic
development” (Thailand Board of Investment, 2017).

A complementary national ICT policy to Thailand 4.0 is the ICT Policy Framework (2011 – 2020),
which aims to develop the Thai ICT industry as a leader among ASEAN economies. Thailand’s ICT

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Conference Proceedings ISSN: 2345-8720
De La Salle University – Manila
November 9 – 10, 2018

Ministry also intends to certify standard qualifications for ICT professionals, allowing them to be accredited
across ASEAN nations. Another notable national ICT policy is Thailand’s Master Plan on ASEAN
Connectivity, which aims to boost Thailand’s ICT competitiveness.

The Ministry of Digital Economy and Society, formerly known as the Ministry of Information and
Communication Technology, is at the helm of developing Thailand’s ICT sector. In several sectors of
Thailand such as government, industry, commerce, education, and society, the Thai government aims to
integrate the digital and knowledge-based economy with the use of ICT (Thailand Information and
Communication Technology Policy Framework, 2011).

ICT is widely used in the education sector of Thailand, not just in terms of the courses and programs
being offered, but as well as the integration of ICT in the daily lives of students. It began under Thailand’s
National IT Policy 2001 – 2010, where one of the main goals is e-Education (Makaramani, 2013). ICT in
Thai education focused on programs in “lifelong learning, computer literacy, human resource development,
virtual education, and creation of useful information, contents, and knowledge, among others.” The
development of these competencies will ultimately redound to the benefit of the business sector, which will
require a large pool of highly-skilled workers.

The application of ICT in Thailand’s education sector has brought forth several successes including
“setting the internet backbone in the country, schoolnet project, princess IT project, awareness of new
learning approach, and acquiring of hardware, software, digital contents, and networks for every school.”
Challenges include human resource and professional development for in-service teachers, administrators,
and personnel at all levels. Quality networks and infrastructure among Thai schools in rural areas are
challenges as well.

Philippines. The Philippines has created a number of policies and plans on ICT such as the National
Broadband Plan, National Cybersecurity Plan 2022, Philippine Framework for the Digital Terrestrial
Television Broadcasting Migration Plan, and eGovernment Master Plan 2.0. A number of published policies
can also be accessed in the website of the Department of Information and Communications Technology
(DICT, 2018).

During a 2014 forum held by the Philippine National Academy of Science and Technology
(NAST), the long-term strategic development plan of the national ICT infrastructure was discussed.
According to the NAST President, there is a need to fix the ICT infrastructure in the country particularly in
terms of corruption, bureaucracy, and the existing infrastructure itself. With the massive flow of information
through the Internet and across geographical boundaries, the ICT infrastructure of the Philippines must keep
up. Furthermore, although there are available digital technology solutions already, the ICT infrastructure
of the country is not sufficient to take advantage of them.

The Department of Information and Communications Technology (DICT), which was established
in 2016, is expected to be the trailblazer of ICT development in the Philippines. With the government
climbing in the United Nation’s ranking for e-government development (DICT, 2017), and over 25% of
Philippine businesses forecasted to digitally improve their products and services by 2020 (International
Data Corporation, 2017), ICT is an engine for growth in the country. Among several programs of DICT
include the ICT ecosystem development, national connectivity, e-Filipino, e-Government harmonization,
e-Civil Servants, Next Wave Cities, ICT-enabled startup, and Stepping-up the Value Chain (Department of
Information and Communications Technology, 2018).

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Conference Proceedings ISSN: 2345-8720
De La Salle University – Manila
November 9 – 10, 2018

There is also a wide range of other projects being developed by other agencies such as the
Department of Science and Technology (DOST). Several projects are focused on improving and making
government services more accessible to citizens. Some noteworthy projects include the Philippine Health
Insurance Corporation’s Personally-Controlled Health Centers, which are owned by patients and co-
managed by their health providers such as hospitals and clinics (Balucanag-Bitonio, 2013). Another is the
e-LGU (local government unit), which aims to make several services of the LGUs electronic and online,
thereby providing more convenience to individual citizens and businesses. In 2015, the DICT and DOST
launched the “Free Wi-Fi Internet Access in Public Spaces” with funds of $66 million.

One of the main challenges for ICT development in the country include continuing to upgrade its
telecommunications infrastructure to keep up with the increasing demand for broadband. As of 2015, the
average internet speed in the Philippines is 3.2 megabytes per second—the second slowest in Asia Pacific.
There is also a lack of competition in the telecommunications carrier industry, with the Philippine Long
Distance Company and Globe Telecom accounting for 70-percent and 30-percent market share, respectively
(United States Department of Commerce, 2017).

Vietnam. A report by the International Data Corporation (2016) shows that the overall ICT policy
framework in Vietnam is comprehensive “and complex” with several policies geared towards ICT
development. Among some of these policies include the socioeconomic development framework, the
cybersecurity governance framework, the e-Government policy, and the Vietnam Master Plan on
Information Technology.

According to the Vietnam Minister of Information and Communication, the ICT policy of Vietnam
involves the following: (1) strengthening the development and training of telecommunication and
information technology human resources until 2020, (2) completing the policies and mechanisms to support
startups, (3) deploying 4G technology and developing value-added services, (4) developing e-commerce
and improving the effectiveness of state agencies’ operation, (5) heightening the state management
efficiency in electronic transactions, and (6) strengthening information security (VietNamNet, 2017).

Vietnam focuses on the promotion of research, innovation, and high technology in different sectors
under the National Development Programme Tech 2020 (Toh, 2017). Attention is also placed on
biotechnology, automation technology, and materials technology as these technologies converge in certain
applications with ICT. The following sectors are some of those that will benefit: industry and services,
agriculture, healthcare, environment, and security. To make this possible, Vietnam has set as its foundation
the development of the technical infrastructure and human resources for ICT.

A variety of programs exist in Vietnam that aims to develop the ICT sector further. One of these is
the Payment System and Bank Modernization Project, which aims to digitalize several operations in banks
as well as propel the financial industry forward through technology to make it easier to use and increase
accessibility for clients, including small businesses. Another is the tax administration modernization
project, which aims to utilize technology-based tax administration systems and upgrade the current state of
taxation in the Vietnam government (World Bank, 2015; World Bank, 2012; Ministry of Information and
Communications, 2009).

Indonesia. The Oxford Business Group (2016) shows that Indonesia is “in the midst of national
transformation in the ICT sector. For the past 10 years, there have been advancements in availability of
telecommunications across the country, technology awareness and usage, investment in digital
infrastructure by the government and private sectors, regulatory oversight, and development planning.

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Conference Proceedings ISSN: 2345-8720
De La Salle University – Manila
November 9 – 10, 2018

These were made possible by the increasing demand of ICT products and services in Indonesia’s business
community.

There are, however, still issues in Indonesia’s ICT sector including infrastructure gap, low
information literacy, inefficient “spectrum frequency use”, expensive broadband service, cybercrime, and
non-connected government network (Ministry of Communication and Information Technology Republic
of Indonesia, 2015).

There are many ICT policies in Indonesia that help make the development of the ICT sector
possible. One of these is the National Long-term Development Plan which aims to “strengthen national
connectivity to balance economy and infrastructure development”. In the National Midterm Plan 2015 –
2019, Indonesia detailed out several policy directions: increase broadband coverage, enable high speed
internet access, optimize spectrum frequency use, and connect the ICT government network.

To give flesh to these policies and plans, Indonesia has implemented several public-private
partnerships, private projects, and public projects. One of its key ICT programs and applications include
the e-Government agenda, which include a range of initiatives such as the following: e-Procurement,
government one-stop services for business registration, siMAYA (virtual office administration system),
Indonesia National Single Window (e-payment, e-licensing, e-tax, e-port, and e-customs services), online
tax (all payments made via banking or postal systems), central e-learning portal (broken down into primary,
secondary, and higher education), electronic identity card for all Indonesian citizens (was previously used
as the voter database for the 2014 elections), and social welfare smart cards (cards for basic health
insurance, basic education, and social welfare services) (Tabor and Yoon, 2015).

Indonesia’s ICT sector is growing rapidly. This is partly driven by a young population that are more
adept with the use of technology, and who are active users of mobile telephone and internet services.
However, Indonesia still lags behind, at least in the Asia-Pacific, in terms of broadband access. Large areas
in Indonesia have limited access to internet connection, and this slows down ICT development for e-
learning, telemedicine, and other public programs. The government has attempted to bring ICT facilities to
these areas, but progress has been slow.

Overall, Thailand, Philippines, Vietnam, and Indonesia are on their transition towards an
innovation and knowledge-based economy given their current set of policies and programs. However,
several issues must be addressed, including the need to develop further these countries’ ICT infrastructure,
to enhance nationwide broadband access, and to improve the information literacy among their people.

Nascent, high potential ICT development: Cambodia, Myanmar, Lao PDR

Cambodia. Cambodia is in the process of developing ICT policies and frameworks. Among its
main goals apart from developing policies and frameworks include addressing structural challenges and
enhance the business and investment environment in the ICT sector, and providing measures and
interventions where needed (Yousos, 2017).

Cambodia’s ICT Policy Department detailed down a set of objectives for them to be able to develop
their ICT sector. Among these include improving and expanding telecommunications infrastructure and
usage, developing ICT skills of its people, diversifying the ICT industry, and promoting ICT applications.
They are also in the process of developing policy and regulatory frameworks in line with broadband, radio
communication, e-Government initiative, e-commerce, cybercrime, digital signatures, protection of women
and children online, and other ICT-related policies and regulations. These are encapsulated in Cambodia’s

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De La Salle University – Manila
November 9 – 10, 2018

National Information and Communication Technology Policy that will build on existing government
initiatives and overcome the lag of ICT development in the country (Yousos, 2017; Japan International
Cooperation Agency, 2015).

Under the Cambodian ICT Masterplan 2020, four key points are addressed to tackle the lack of
development in the country’s ICT sector: empowering people, ensuring connectivity, enhancing
capabilities, and enriching e-Services (Korea International Cooperation Agency, 2014). As the country is
still in the nascent stages of ICT development, more opportunities for international collaboration abound,
as well as technology exchange and transfer.

One of the main projects of the Cambodian government is on e-Commerce, which the Cambodians
define as “commercial activities via electronic communication.” The Cambodian government is rolling out
programs for e-commerce promotion focusing on establishing a technical foundation, implementing direct
and indirect administrative support, enhancing the legislative environment, and executing flagship projects
under e-commerce.

Apart from e-commerce, other flagship projects of the Cambodian government are the development
of an e-Government initiative, ICT security, the setting up of a tourism network, and the enhancement of
educational programs. These projects will have ICT at its center, thereby enabling several opportunities
including the optimization of processes and increased attractiveness of their country among foreign
investments.

Myanmar. Myanmar has been keen on the development of ICT, which is why several policy
frameworks on the sector have been formed: Framework for Economic and Social Reform 2012–2015, ICT
Masterplan 2011–2015, Telecommunications Masterplan, and E-Governance Masterplan. Among the key
elements of these frameworks are the creation of an IT-intelligent society, reduction of the digital divide,
widespread applications of IT to improve the educational levels in the population, and many others. These
frameworks are also implemented by several Myanmar authorities, including the Myanmar Posts and
Telecommunications Enterprise, which provide different kinds of telecommunications services.

It was in 1996 when the Computer Science Development Law was formed that the ICT sector of
Myanmar began its revamp. The law lays down policies and regulations to promote and disseminate the
usage of computer and science technologies in various sectors (Crossroads, 2013).

Meanwhile, some issues in Myanmar’s ICT development include infrastructure, government

support, technology transfer, international exposure, quality assurance, legal frameworks, standardization,
and business practices. The ICT sector in Myanmar, therefore, is still at its nascent stages. Several
opportunities are available in the ICT sector both for government and public sectors.

Currently, Myanmar’s ICT market is dominated by hardware, followed by training and software,
and other services such as trading, web and internet, network, and maintenance. One of the key drivers of
ICT development are software-related businesses. With the construction of the Myanmar ICT Park in 2002,
the software industry led the growth of the ICT sector (SEACOOP, 2010).

One of the key projects of Myanmar is the e-Government initiative, despite consistently being
ranked as one of the least developed countries in e-governance. The e-Government initiative is perceived
by the Myanmar government as “good government and clean governance,” apart from just increased
efficiency. Moreover, the government is working closely with the Korean International Cooperation
Agency in developing e-government platforms and in integrating ICT in policy formulation and legislation.

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November 9 – 10, 2018

Apart from these, Myanmar is also rolling out private and public initiatives in telecommunications,
software, education, and mobile banking, among others.

Lao PDR. Lao PDR’s ICT development is at its nascent stages, with the government establishing
frameworks and policies to further grow the sector. The Lao government has identified nine priorities in
line with the development of their ICT sector: infrastructure and access, enterprise and industry, research
and development, applications, human resource development, legal framework, awareness, poverty
alleviation, and standardization and localization (SEACOOP, 2010). The priorities are comprehensive and
attempt to set the foundations to maximize the entry of ICT in the country.

Several policies and regulations have been rolled out by Lao PDR to improve its ICT sector. These
include the National ICT Policy 2015 – 2025, National Broadband Plan 2012 – 2020, and e-Government
Master Plan 2013 – 2020 (Phissamay, 2016).

The main ICT program of Lao PDR is the e-Government Project. This project is divided into four
parts which includes infrastructure, e-applications, human resource development, and providing ICT
facilities (SEACOOP, 2010). The infrastructure component focuses on building internet connections
through the fiber optic data centers and ministries in order to improve information and knowledge exchange.
The e-applications contain seven key applications such as e-portal, e-document, e-archive, e-Map, e-
Registration, e-Learning, and video conferencing. The human resources development training aims to
improve the ICT skills and knowledge of its people. Lastly, the provision of ICT facilities such as servers,
desktops, printers, photocopies, and video conferencing equipment to various ministries enable the full
usage of the e-applications project.

Cambodia, Myanmar, and Lao PDR are at their nascent stages in ICT development. Among the
issues that these countries need to address alongside developments in ICT policies and programs are the
lack of ICT infrastructure, government support, technology transfer, international exposure, quality
assurance, legal frameworks, standardization, and business practices.

Conclusion

The policies and programs being rolled out by the respective governments of the 10 ASEAN
member states are expected to improve the ICT sector for the general ASEAN population. While countries
like Singapore and Malaysia have a more advanced approach to ICT through the development of various
digital technologies, other countries that are still at their nascent stages in ICT are beginning to learn the
ropes. One of the possible directions to address this digital divide is the exchange of knowledge and
experiences in terms of ICT policy formulation. Events ranging from competitions to expositions, for
instance, can help policy makers and other key stakeholders gain a better understanding of the existing ICT
landscape in the region. These can help them benchmark and to adopt innovations in their respective ICT
sectors.

It can also be seen that the ICT tools and skills being highlighted by the countries include the
Internet of Things, which involve the use of sensors to track down essential components of business data;
technopreneurship, which involves the merging of entrepreneurship and creative usage of technology in
businesses; open data, which refers to the transparency of data online such as relevant government data;
and big data analytics, which is redefining the way we process big amounts of data from day-to-day business
transactions. These technologies are revealing several opportunities for SMEs to thrive and grow. However,
as the ASEAN SME Policy Index 2014 stated, two of the main hindrances for the adoption of ICT in
businesses is (1) the perception of high risks and costs and (2) lack of ICT facilities. Therefore, it is

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necessary for the governments to be at the forefront of developing relevant policies that will direct their
countries to a knowledge-based, digital economy, while offering programs for SMEs to develop their ICT
capabilities and skills.

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