The Digital Divide Amongst MSMEs in ASEAN
Date:
26 September 2024Type:
Research Project ReportsTags:
Digital, Digital Divide, Technology, MSMEs, Government, ASEANPrint Article:
The Association of Southeast Asian Nations (ASEAN) has recognised the critical need to address digital disparities amongst micro, small, and medium-sized enterprises (MSMEs) to promote inclusive and sustainable growth. The COVID-19 pandemic has accelerated the adoption of digital services across society, but a significant digital divide persists within the ASEAN region, particularly affecting MSMEs. To better understand the extent of this divide, we conducted a large-scale questionnaire survey in 2023, focusing on MSMEs across the region.
Key findings include:
- Current State of the Digital Divide: While basic digital tools such as mobile phones and cybersecurity software are widely used by micro and small firms, they trail behind medium and large firms in the adoption of more advanced technologies, further widening the digital gap.
- Impact of COVID-19 on Digital Tool Adoption: The pandemic accelerated the use of digital tools across firms of all sizes, with a notable increase in web meeting systems. Micro firms showed higher adoption of e-commerce, e-payment, and social networking services (SNS), while larger firms adopted more advanced tools, exacerbating the gap between smaller and larger enterprises.
- Obstacles to Digital Adoption: Micro and small firms face barriers such as limited business knowledge, inadequate ICT skills, and a lack of localised support. In contrast, larger firms encounter challenges related to financing and engaging employees in digitalisation efforts.
- Expectations of Government Support: Micro and small firms expect government assistance to bridge gaps in business knowledge, funding for digital investments, and IT skills development. Larger firms, on the other hand, seek support in IT management skills, particularly in planning, implementation, and developing digital transformation expertise.
