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(It) Sector in South East Asia OPPORTUNITIES IN THE INFORMATION TECHNOLOGY (IT) SECTOR IN SOUTH EAST ASIA PREPARED FOR VEDP AUGUST 2020 Prepared by: Orissa International Pte Ltd Address: 1003 Bukit Merah Central #05-06, Singapore 159836 Tel: +65 6225 8667 Email: [email protected] Web: www.orissa-international.com OPPORTUNITIES IN THE INFORMATION TECHNOLOGY (IT) SECTOR IN SOUTH EAST ASIA PREPARED FOR VEDP AUGUST 2020 DISCLAIMER: All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. Orissa International Pte Ltd accepts no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions affecting any part of the publication. All information is provided without warranty, and Orissa International Pte Ltd makes no representation of warranty of any kind as to the accuracy or completeness of any information hereto contained. Copyright Notice: ©2020 Orissa International. All Rights Reserved. Permission to Reproduce is Required. August 2020 TABLE OF CONTENTS 1.0 INTRODUCTION TO SOUTH EAST ASIA ....................................................................................... 4 2.0 IMPACT OF COVID-19 ................................................................................................................ 6 2.1 COVID-19 Situation ............................................................................................................................ 6 2.2 Economic Impact ............................................................................................................................... 9 2.3 Key Business Trends ........................................................................................................................ 15 3.0 INDONESIA .............................................................................................................................. 17 3.1 Snapshot of the Indonesian Digital Landscape ................................................................................ 17 3.2 Software in Indonesia ...................................................................................................................... 19 3.3 Cybersecurity in Indonesia .............................................................................................................. 21 3.4 Digital Education in Indonesia ......................................................................................................... 23 4.0 MALAYSIA ............................................................................................................................... 25 4.1 Snapshot of the Malaysian Digital Landscape.................................................................................. 25 4.2 Software in Malaysia ....................................................................................................................... 27 4.3 Cybersecurity in Malaysia ................................................................................................................ 29 4.4 Digital Education in Malaysia ........................................................................................................... 31 5.0 PHILIPPINES ............................................................................................................................. 33 5.1 Snapshot of the Philippine Digital Landscape .................................................................................. 33 5.2 Software in the Philippines .............................................................................................................. 35 5.3 Cybersecurity in the Philippines ...................................................................................................... 37 5.4 Digital Education in the Philippines ................................................................................................. 39 6.0 SINGAPORE ............................................................................................................................. 41 6.1 Snapshot of the Singapore Digital Landscape .................................................................................. 41 6.2 Software in Singapore ..................................................................................................................... 43 6.3 Cybersecurity in Singapore .............................................................................................................. 45 6.4 Digital Education in Singapore ......................................................................................................... 47 7.0 THAILAND ................................................................................................................................ 50 7.1 Snapshot of the Thai Digital Landscape ........................................................................................... 50 7.2 Software in Thailand ........................................................................................................................ 52 7.3 Cybersecurity in Thailand ................................................................................................................ 54 7.4 Digital Education in Thailand ........................................................................................................... 56 8.0 VIETNAM ................................................................................................................................. 58 8.1 Snapshot of the Vietnamese Digital Landscape ............................................................................... 58 8.2 Software in Vietnam ........................................................................................................................ 60 8.3 Cybersecurity in Vietnam ................................................................................................................ 62 8.4 Digital Education in Vietnam ........................................................................................................... 64 APPENDIX: EXPORTS FROM VIRGINIA ............................................................................................... 66 Orissa International Page 3 August 2020 1.0 INTRODUCTION TO SOUTH EAST ASIA Table 1: Key statistics Indonesia Malaysia Philippines Singapore Thailand Vietnam GDP (USD Billion) 1,119 364 377 372 544 262 GDP Per Capita (USD) 4,136 11,415 3,485 65,233 7,808 2,716 Consumption (USD billion) 746 261 323 172 360 195 Industry (including construction) value added % 38.9 37.4 30.2 24.5 33.4 34.5 GDP Services value added % GDP 44.2 54.2 61.0 70.4 58.6 41.6 Imports of Goods (USD Billion) 171 205 113 359 240 271 Exports of Goods (USD Billion) 167 238 70 390 245 318 Total Population (million) 270.6 31.9 108.1 5.7 69.6 96.5 Urban Population (%) 56 77 47 100 51 37 Median age (years) 29.7 30.3 25.7 42.2 40.1 32.5 Total Area (sq km) 1,811,570 328,550 298,170 709 510,890 310,070 Indonesian Malaysian Singapore Philippine Thai Baht Vietnamese Currency Rupiah Ringgit Dollars Peso (PHP) (THB) Dong (VND) (IDR) (MYR) (SGD) Average Annual Exchange Rate 14,147.67 4.14 51.80 1.36 31.05 23,050.24 per US dollar (2019) English, Bahasa Filipino, Mandarin, Official Language Malay Thai Vietnamese Indonesia English Malay, Tamil Source: World Bank, UN Comtrade, Worldometer Note: All monetary amounts are in current USD. Figure 1: GDP in current USD trillion Source: World Bank Orissa International Page 4 August 2020 The six major countries in South East Asia – Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam – have a combined population of 582 million and GDP of USD 3 trillion. If it were a single nation, it would be the third most populous country and the fifth largest economy in the world. It would also have the eight largest consumption expenditure globally. The region is among the fastest growing in the world, with ASEAN (Association of Southeast Asian Nations) having witnessed an average annual GDP growth of 5.3% between 2000 and 2018, supported by an increasingly well- educated workforce, abundant natural resources and favorable geographic location at the heart of the Asia-Pacific region. The region’s population has a median age of around 30 years, providing an ample labor pool to support growth in the coming years. This youthful demographic profile also translates into receptivity to new technologies. Between 2019 and 2022, 50 million new consumers are expected to join the ranks of the middle class in Indonesia, Malaysia, the Philippines, Thailand and Vietnam by 2022. The middle class will expand to include 350 million people and continue on its upward trajectory, propelled by greater access to the flourishing digital economy and aspirations to better lives for themselves, their families and their communities. The above makes ASEAN a key export market for the US. In 2019, it was the fourth largest export destination for the US, after Canada, Mexico and China, receiving USD 108 billion worth of exports originating from the US. Orissa International Page 5 August 2020 2.0 IMPACT OF COVID-19 2.1 COVID-19 Situation 300,000 250,000 200,000 150,000 100,000 50,000 - 22-Jan-20 22-Feb-20 22-Mar-20 22-Apr-20 22-May-20 22-Jun-20 22-Jul-20 Vietnam Thailand Malaysia Singapore Philippines Indonesia Figure 2: Cumulative confirmed COVID-19 cases from 22 January 2020 to 30 July 2020 Source: Johns Hopkins University Center for Systems Science and Engineering (via United Nations Office for the Coordination of Humanitarian Affairs) 3,000 2,500 2,000 1,500 1,000 500
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