Edges of Southeast Asia

SOUTH EDGES OF SOUTHEAST ASIA

EAST ASIA 1 2 Edges of Southeast Asia

All disruptions emerge from an Edge; for the Edge, together with the US- examples come from business, art, from the boundaries of what is dominant ASEAN Business Council and the design, architecture, science, culture, or ‘core’ today. What is initially dismissed Singapore Economic Development movements, and policies that are largely as peripheral may evolve to eventually Board, have sought to curate and unknown outside of the region. disrupt, and even supplant, the core. showcase the Edges of Southeast Asia, Duleesha Kulasooriya to shine a light on the bright spots of This series is not meant to be Executive Director Somewhere between the skyscrapers creativity and innovation in the region. comprehensive nor definitive. We solely Center for the Edge, Asia Pacific and tuk tuks in bustling city centres, on intend to provoke curiosity for you beautiful tourist beaches, in the rural As you explore the Edges, you will to further explore the evolution and farms, and flowing down the Mekong realise that they go well beyond the impact of these interesting examples. River, Edges are pushing the boundaries opportunities of digitalisation to reveal We hope you enjoy and learn from of our imagination. Edges have the untold stories of economic inclusion, these Edges. We invite you to connect potential to disrupt how people live, work urban renewal, sustainability, a rising with us and share both feedback and Liyi Chen and play, in the future. middle-class and an evolving identity additional examples for this ever-evolving Special Projects Lead and aesthetic. Southeast Asia is collection. Center for the Edge, Asia Pacific But how does one unearth the relevant home to a new generation of aspiring Edges? How do we distinguish between entrepreneurs and changemakers who those with the potential to have have demonstrated their grit, passion significant impact and those that are and conviction to break through a myriad simply interesting anomalies? Firstly, we of linguistic, cultural and geographical have to pay attention to what is actually complexities to showcase the untapped emerging, whether it is a technological, potential of the region. As the world societal, political, environmental, or begins to look to the horizon of recovery economic trend. Secondly, we need to from the pandemic, Southeast Asia is understand the broader global trends to aspiring beyond, to a more ambitious recognise where an emerging Edge aligns horizon of transformation. with deeper currents. With this Edges of Southeast Asia Southeast Asia is a region of cultural series, we explore some Edges that diversity, vibrant opportunities, and present a more nuanced and vibrant youthful optimism. The Deloitte Center picture of Southeast Asia today. These 3 4 Contents A New Growth Story

A New Growth Story – Deloitte 4 The decade before 2020 was phenomenal. for life. Deloitte’s WorldClass initiative, Change - rapid in some domains, slow in where we commit to preparing two others - was afoot and businesses had million Southeast Asian youth to thrive Bouncing Forward, Together – USABC 5 to start thinking and acting differently. in an Industry 4.0 world, is an example The pandemic has underscored and of us applying our expertise, knowledge, Getting Your Feet Wet in a accelerated that need for change. network, and resources to hasten the SEA of Opportunities – EDB6 shift to new paradigms. Despite the pandemic, Southeast Asia is still set to be one of the fastest-growing In creating this series, we attracted regions in the world. However, where diverse insights and perspectives across 9 that growth comes from, and what that Deloitte’s own Edges. The Deloitte Understanding Southeast Asia growth will look like, will likely be different Center for the Edge collaborated with than before. Many elements will play a Deloitte’s Southeast Asia Innovation Megatrends of Tomorrow’s World 11 role in building a brighter future for the team to provide a new context for the region, and Deloitte is committed to futures-planning work developed by supporting three of these in particular: the Deloitte Center for the Long View. 13 Exploring the Edges of Southeast Asia Despite our different vantage points, Business: As the world’s largest our common stance is this: if the past professional services firm, supporting decade was about growth, the coming businesses to do more and do better decade will be about reinvention and Five Prompts 15 is our core competency. In times of acceleration. Please join us in being part constant disruption, we support our of that journey. clients in reimagining and reinventing Contact Us 16 themselves to address the future needs.

Government: Forward-looking 17 Acknowledgements government initiatives are an anchor for Cindy Hook resilient growth. While continuing to work Chief Executive Officer with local and national governments Deloitte Asia Pacific to improve services, we are also keen to form new partnerships with them to address the ‘wicked opportunities’ emerging from disruption. Philip Yuen Chief Executive Officer Youth: Growing up in this vibrant region, Deloitte Southeast Asia our youth have mounting aspirations 5 6 Bouncing Forward, Getting Your Feet Together Wet in a SEA of Opportunities

As America’s foremost trade association responses to the COVID-19 pandemic Our partnership with Deloitte on the to Southeast Asia. For another, and partly of US companies doing business in and initiate stimulus measures to support Edges of Southeast Asia started with a because of this prismatic vastness, Southeast Asia, one of the core pillars economic recovery, the region has been conversation in San Francisco. Talking opportunities abound for the plucky of the US-ASEAN Business Council cited as home to great examples of about a region thousands of miles away individual or company willing to get their is to promote awareness about the technology adoption. It reflects the strong was not how we thought we’d spend our feet wet by exploring Southeast Asia from multifaceted elements of the mutually foundation of digital economy ecosystem morning, but once an idea takes hold the ground up. beneficial economic relationships development in the region, which has of you, it doesn’t let go. The more we between the United States and the ten enabled ASEAN’s internet economy talked about it, the more compelling the You might be wondering why the Southeast Asian nations which make up market to grow from US$32 billion in 2015 idea became - how do we tell the story Singapore Economic Development the ASEAN region. to US$100 billion in 2019. of Southeast Asia? Many people know Board is so invested in telling the the headlines: over 600 million people Southeast Asia story. As the government ASEAN is the number one recipient of Given that several of Asia’s leading in ten countries; a multi-trillion dollar agency responsible for bringing American foreign direct investment in technology unicorns are also in economy, including meteoric growth in international companies to Singapore, Asia. With more than US$200 billion in Southeast Asia, we believe the Edges of the digital economy; an abundance of we believe in the power of connections. annual two-way trade, it would be easy Southeast Asia project offers a window natural resources; and human capital. But Our networks include not just the US to focus solely on these commercial into the diverse potential of ASEAN fewer people know what these fantastic and Europe, but also Indonesia, Vietnam, metrics to assess the past and present Member States to utilise innovation to numbers actually look like on the streets of Malaysia, and all of the countries qualities of this relationship. However, not just bounce back, but to maximise Jakarta, Manila, Ho Chi Minh City, and the featured in this deck. We can’t confess as societies respond to the COVID-19 their economic potential to bounce countless other rural areas in the region. to knowing everything about Southeast pandemic and pursue economic forward in a world with “new normal”. Asia - no one can - but we can promise recovery, the embedded role of American The deck of cards you have in your hands to be a co-conspirator and partner for technology value chains and Southeast is our attempt to tell this story. Like the anyone interested in the region. So if the Asia’s emergence as a global innovation best narratives, it actually contains many stories in this deck pique your curiosity, foreign investment destination are likely to stories. A Malaysian company using tech get in touch. Who knows what will happen become more prominent features of our Alexander Feldman tools to synchronise halal standards over a conversation and a coffee. important connection. Chairman, President and CEO for millions of businesses. The son of a fisherman in Thailand taking direct-to- It is in this context that working with consumer to the next level by selling Deloitte Center for the Edge and the seafood on Facebook to over a million Singapore Economic Development Marc Mealy followers. An app in Indonesia that will Kai Fong Chng Board in supporting the Edges of Senior Vice-President, Policy link you up with a doctor for a virtual Managing Director Southeast Asia project is a natural fit. It consultation for just over US$1 and deliver reflects a continuation of a decades- medicine to your door. long commitment by the Council and its Brandon Chew members to support shared prosperity As we tried to bring these Edges to life, Regional Director and economic growth in Southeast Asia. two things became clear. For one, 25 [email protected] As ASEAN nations craft public health short case studies would never do justice https://go.gov.sg/edb-insights

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One but Not the Same Not Taken as a Bloc Southeast Asia is a physically fragmented Understanding region made up of over 25,000 islands Southeast Asia and archipelagos. It is also home to a variety of religious and cultural strongholds, from Islam to Buddhism to Catholicism. Many people in the region are multilingual, speaking a Taken as a Bloc handful of languages from the hundreds Southeast Asia is a geographical region. Most spoken formally and colloquially. countries in the region are members of the Association of Southeast Asian Nations (ASEAN).

About ASEAN ASEAN Members at a Glance Real GDP avg. GDP per capita Total Population Total area Population growth rate at current prices Third largest (Sq km) (millions, 2018) (2000-2018) (US$, 2018) 649M labour force after China and India Brunei 5,765 0.44 0.8% 30,668 Cambodia 181,035 15.98 7.7% 1,540 Year Established Fifth largest Indonesia 1,916,862 265.02 5.3% 3,924 economy in the world as of 2018, Lao PDR 236,800 6.89 7.1% 2,628 1967 with combined GDP of US$3 trillion Malaysia 331,388 32.39 5.1% 11,067 Myanmar 676,576 53.63 9.8% 1,441 The Philippines 300,000 106.6 5.4% 3,087 Real GDP Singapore 720 5.64 5.2% 64,567 Top ten largest economies in the world (US$ trillion), 2018 average annual Thailand 513,140 67.83 4.1% 7,447 growth rate Vietnam 331,230 94.67 6.6% 2,546 25.0 (2000-2018)

20.5 20.0 5.3% Next generation of trade agreements Smarter cities and a digital ASEAN The first ever digital-only free trade The ASEAN Smart Cities Network was 15.0 13.4 ASEAN free agreement, the Digital Economy formed in 2018 to promote collaboration trade partners Partnership Agreement, was signed for smart and sustainable urban 10.0 include between Singapore, New Zealand, development, to improve the lives of 5.0 and Chile in 2020. This was followed ASEAN citizens with technology as GDP in US$ trillion 4.0 China, Korea, 5.0 closely by the Australia-Singapore an enabler. With 26 ASEAN cities and 3.0 2.8 2.8 2.7 2.1 1.9 Japan, India, Australia, and Digital Economy Agreement. These over 100 partners involved, it hopes to 0.0 New Zealand agreements pave the way for a new era develop commercially viable projects US UK Itlay India

Brazil of digital trade in ASEAN and the world. with private-sector solution providers. China Japan France ASEAN Germany 11 12

Deloitte Center for the Long View

Megatrends In creating this series, we collaborated with the Deloitte Center for the Long View Additive Artificial Augmented Automation Blockchain of Tomorrow’s to connect to and draw influence from a Manufacturing Intelligence Reality Systems diverse range of sociatel, technological, World environmental, economic, and political megatrends to better understand the complex dynamics shaping the business world and its future. Climate Cloud Competition Concentration Crowdsourcing Change Technology for Talent of Wealth When looking at the Edges of Southeast Asia, we encourage you to look through the lens of these megatrends. Here is the challenge: what other new and emerging megatrends have you identified that are Data Demand for Digitisation DIY Empowered Monetisation Customisation Movement Women not yet on the list?

Environmental Focus on Geospatial Globalisation Industry Awareness Transparency Technology Consolidation

Internet of Knowledge Mass Next-Gen Partnership Things Worker Migration Workforce Models

Political Regulatory Resource Resource Sharing Fragmentation Landscape Price Volatility Scarcity Economy

Social Social Technisation Terrorist Urbanisation Media Unrest of Healthcare Organisations 13 14

Exploring The Edges of Southeast Asia have been Tun Yat Saving designed to inspire you to reimagine Boracay the Edges of business and growth opportunities. Each card presents an emerging Edge, Southeast which is elaborated upon to connect to and provide further insight into the Asia broader megatrends. Kampot Kenaf Pepper We hope the cards inspire you to not just observe, but to explore new opportunities within Southeast Asia. Global Halal BSD City Data Pool

88rising TE-FOOD Chulalongkorn University Centenary Park

Warung Free Fire BreadTalk Halodoc Pintar

Grab and Gojek Viddsee ecoSPIRITS National Steps Challenge

ZaloPay Anurak Avani Eco Ruangguru Saruethai

Mimpikita Rags2Riches Envirotech Waste ASEAN-Singapore Recycling Inc. Cybersecurity Centre of Excellence 15 16

How to Use This Information Five Prompts Contact Us

Deloitte Center for the Edge, Asia Pacific 1 “Imagination is more important than Duleesha Kulasooriya knowledge. For knowledge is limited, Executive Director whereas imagination embraces the [email protected] entire world, stimulating progress, giving birth to evolution.” Which 5 Edges Surprised you? US-ASEAN Business Council Albert Einstein Bernie Baskin Director 2 3 [email protected]

Singapore Economic Which 5 Edges Which 5 Edges Development Board Sparked a new Made you Brandon Chew thought? reconsider an idea? Regional Director [email protected] https://go.gov.sg/edb-insights 4 51

Which 5 Edges Which 5 Edges Changed your view Would you like to tell of Southeast Asia? someone about? 17 18 Acknowledgements

Research and Writing We would also like to thank the Tun Yat Provided by Tun Yat (https://tunyat.com/) following individuals, departments Liyi Chen, Nicole Yang, Al Tirapon Lim Kampot Pepper iStock.com/ jackmalipan and organisations for their support Zhen Jun, Duleesha Kulasooriya, Brandon and contributions: Global Halal Data Pool Provided by Serunai Commerce (https://globalhalaldatapool. Chew, Bernie Baskin, Marc Mealy. com) Nicholas Koh, Ann Chen An Ran, Sarah TE-FOOD http://2isao.com/do-thi-thong-minh-chiec-dua-than-co-giup-sai- Graphic Design Kerrigan, Dr. Florian Klein, James Chin, gon-het-ket-xe-va-ngap Rudy Tedja, Denise Wong. Crystalbel Foo, Victor Gan, Hansel BreadTalk Provided by BreadTalk (https://www.breadtalk.com.sg/) Cao, Melody Hong, Herman Loh, Dino Tan, Hai Pham, Kim Yeager, Mario ecoSPIRITS Provided by Proof & Company (https://proofandcompany.com/) Masaya, Shay Wester, Deloitte Center https://www.thenational.ae/lifestyle/can-plant-based- for the Long View, Deloitte Southeast Avani Eco degradable-plastic-solve-the-problem-1.746423 Asia Innovation, and all the companies Envirotech Waste Provided by Winder Recycling Company (https://www.facebook. mentioned in the 25 cards and in the Recycling Inc. com/winderrecyclingcompany) and Envirotech Waste Recycling image credits below. Inc. (https://www.facebook.com/envirotechphil/) Saving Boracay iStock.com/ TatianaNurieva iStock.com/ SandyBro

Image Credits Kenaf Provided by AffordAble Abodes (https://www.afford-able.com/) “Bunga Kenaf’, by Tu7uh, licensed under CC BY-SA 4.0

BSD City Provided by Sinar Mas Land (https://sinarmasland.com/ ) Warung Pintar Provided by Warung Pintar (https://warungpintar.co.id/) Chulalongkorn University Centenary Provided by LANDPROCESS (http://landprocess.co.th/) Grab and Gojek https://vietnambiz.vn/khong-bo-mang-goi-xe-grab-va-go-jek- Park phai-the-hien-su-linh-hoat-de-ton-tai-20200311145334559.htm Halodoc https://openspace.vc/2018/09/12/telehealth-apps-like-halodoc- ZaloPay Provided by ZaloPay (https://zalopay.vn/) on-rise-in-southeast-asia/

Mimpikita Provided by Mimpikita (http://mimpikita.com.my) National Steps https://www.straitstimes.com/singapore/health/silver-challenge- Challenge trails-spur-seniors-to-walk-more 88rising Provided by 88rising (https://88nightmarket.com/) Ruangguru https://jatimnow.com/po-content/uploads/IMG-20180508- Free Fire Provided by Sea Limited (https://www.seagroup.com/) WA0013.jpg http://mediagarden.co.th/portfolio-posts/garena-wold-free-fire/ ASEAN-Singapore https://govinsider.asia/innovation/asean-unites-to-fight-back-on- Viddsee Provided by Viddsee (https://www.viddsee.com/) Cybersecurity Centre cyber-crime/ of Excellence Anurak Saruethai https://s4.reutersmedia.net/resources/r/?m=02&d=20190630& t=2&i=1403184727&r=LYNXNPEF5T13W Provided by Rags2Riches (https://www.rags2riches.ph/) Rags2Riches https://www.nationalgeographic.com/news/2016/11/reese- fernandez-ruiz-explorer-moments-ethical-clothing-helps- women/ Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.

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