To capitalise on the transition to a digital society, nations in Southeast Asia need to close the gap between advanced technology and lagging policy, the Organisation for Economic Cooperation and Development (OECD) said last week.
Despite regional dynamism, challenges remain to ensure all individuals, businesses and governments have reliable and affordable access to digital networks and services, OECD secretary-general Angel Gurria said.
The Mexican economist and diplomat made the remarks at the OECD Southeast Asia Regional Forum in Bangkok.
The region has an increasingly diversified economy, an expanding middle class and a young and literate population who are well-positioned to embrace the digital transformation.
Digitalisation can spur much-needed innovation and productivity growth across many activities, transform public services and improve citizens' well-being, Mr Gurria said.
A digitalisation ecosystem could shift growth from exports to rising productivity, enabling countries to move up the value chain, he added.
However, Mr Gurria said wide gaps persist, both within and between Asean countries, with the cost of access to digital networks too high in some countries.
There is also a digital divide between small and large firms in terms of internet use, as well as between urban and rural areas, reflecting challenges to their governments' policies, he said.
The potential benefits of digital transformation go hand-in-hand with challenges to jobs and skills, to privacy and security, and to public institutions, said Mr Gurria.
"To ensure digital transformations benefit all of Southeast Asia's citizens equally, policymakers need to close the gap between Technology 4.0 and Policy 1.0," he said.
Pichet Durongkaveroj, minister of the Digital Economy and Society Ministry, said Thailand has faced policy challenges in dealing with digital ecosystem development for years.
The government is working on drafting regulation, changing the organisational structure of state agencies, and policymaking to keep pace with rapid technological changes, he said.
The Thailand 4.0 scheme has a multitude of goals, including improving the ecosystem for new businesses, adding incentives for private sector investment, and reducing the digital divide by wiring all villages in Thailand with broadband connections.
Thailand 4.0 depends very much on digital technology as a cross-platform tool to scale up development, improve quality and productivity, accelerate innovation and reduce social disparity in its new digital ecosystem, said Mr Pichet.
The government plans to offer tax incentives to Thai tech startups and global tech companies to accelerate participation in Thailand's first digital innovation park in Chon Buri, which is due to open in early 2018.