KUALA LUMPUR (Bernama) – Southeast Asian member states must come together as a single entity to face up to the challenges of the Fourth Industrial Revolution that includes embracing the Internet, digitalisation and robotic technology comprehensively if they want to fully enjoy the fruit of global economic growth.

Given the uneven distribution of economic prosperity in Asean, revolutionising the way its people of more than 600 million are educated is an important ingredient to enable it to pool their talents.

More than anything else, the people are important as education enables them to acquire the skills needed and embrace the new technologies that will set the stage for Asean to collectively enjoy the fruit of the expanding global growth moving forward and not be left behind.

Undoubtedly, the Fourth Industrial Revolution is the new world order that is changing the tectonic plates of the world’s economy and Asean, which is supposedly receiving the attention in the global economic arena, cannot afford to miss the train.

This revolution is not the future, it is here – the Internet, new technologies, digitalisation, computerisation, robotics and machines taking over jobs.

As the revolution gathers pace, many western and developed nations are undertaking a massive overhaul of their political and economic landscape, but the same cannot be seen for Asean as a single entity and more so the questions as to whether it is taking charge in embracing change.

The 10-member grouping is being courted by the most advanced economies such as the United States, European Union countries, Australia, China, Japan, South Korea, Russia and New Zealand for trade deals and investments, as well as to advance relations.

This is flattering, but so far the expansion of trade and flow of investments has been on the basis of individual countries and not as a regional entity.

This is indeed a critical reminder for member states to work harder to prove that it can operate on a collective basis.

There is still much work to be done from the socio-political, economic, trade and investment point of view, particularly on how Asean plans to mobilise support and stimulate talents and entrepreneurship among its population of 600 million.

A pertinent point is that 65 per cent of the populace is under 35.

Hence, for Asean to meet the growth and inclusion challenges posed by the Fourth Industrial Revolution, the region has to revolutionise the way its people are being educated so that they become aware of the good and the dark side of technology.

“We have gone from pooling resources to pooling markets, but we have yet to pool our talents,” Mari Elka Pangestu, Professor of International Economics at the University of Indonesia said at the just ended World Economic Forum (WEF) on Asean.

She said while technology is a means to an end, people are still important, and they have to have the training and knowledge to use the technology.

“Developing new skills, such as collaboration and empathy, is important. With value chains, you can’t work in silos anymore,” she said, adding that at the same time there should also be awareness on the dark side of technology such as cyber crimes.

It is also crucial to hasten harmonising rules and regulations not only of those brick and mortar businesses, but also the booming digital economy, which is fast bringing down borders between the different nations.

In addition, to coordinate policy frameworks, the region needs to foster start-ups and create products to meet the demand for digital services, Sigve Brekke, President and Chief Executive Officer of Norway’s Telenor Group said.

“Local content could include information for farmers, which would allow them to cut out the middlemen,” he pointed out.

While Asean can take pride of its intra-trade figures, hovering around 25 per cent per annum of the total Asean trade, which stood at $543 billion in 2015, the figures could have been higher if only the region have tackled the issue of non-tariff barriers.

According to a recent joint report by the UN and the Economic Research Institute for Asean and East Asia, while tariff rates halved between 2000 and 2015, non-tariff measures actually tripled over that time – from 1,634 measures to 5,975.

Hence, Prime Minister Datuk Seri Najib Tun Razak’s keynote address at the World Economic Forum on Asean which asserted on the need for the transformation of the region at much faster pace was indeed a timely reminder for his fellow leaders and captains of industries.

“We need a transformation of rules, procedures and habits. But we also need a transformation of the mind, as we learn to think of ourselves more as Asean, act as Asean, and then reap the benefits of being Asean. Our national identity and interests can co-exist and even compliment Asean’s identity and interest,” he said.

The next generation equipped with the technological skills and essential knowledge would then be ready to be the new face of Asean.

And only then through such a foundation can the newly-minted Asean Economic Community take on added fervour and prepare the populace for the profound changes brought by the revolution.

But this can only happen if the governments and businesses collectively craft the right and timely responses to the challenges taking place.

 

Sourced from : http://borneobulletin.com.bn/wef-asean-must-be-ready-for-the-fourth-industrial-revolution/