Singapore tops Asian Digital Transformation Index

SINGAPORE — Singapore has come up tops in a new index launched on Tuesday (Nov 22) that measures the ability of 11 Asian economies’ to transform themselves in the face of digital disruptions.

The inaugural Asian Digital Transformation Index, developed by the Economist Intelligence Unit (EIU) under commission from Australia’s largest telco Telstra, assesses the overall environment for digital transformation in organisations across three pillars: infocomm technology infrastructure, human capital and industry connectedness.

Singapore’s top position in the region is primarily due to its well-developed digital infrastructure, which is made easier by its being a small island country with a concentrated population, the EIU said in its report. In addition, it has a highly supportive and coordinated set of government policies to boost infrastructure development, the business use of technology and entrepreneurship.

Ms Wynthia Goh, the Singapore-based chief digital officer for Asia at insurance giant Aviva, said: “The physical [technology] infrastructure here is excellent. The regulatory structure is also very strong. In the financial services industry, the regulator plays an important role in encouraging digital development. It has a keen awareness of the need for the industry to transform itself, and actively encourages such transformation in a variety of ways.”

The Republic is second only to Japan in industry connectivity, which is the ability to draw on resources external to the organization, such as digital partnerships with other companies, networks or communities. The main benefits such partnerships have yielded include productivity improvements, faster speed to market and enhanced brand awareness, the EIU said in its report. However, it added that the most important prize from digital collaboration has been more innovative ideas for new products and services.

Despite its strengths in developing top-notch IT engineers and developers, Singapore ranked fourth in human capital, as it continues to face the challenge of building talent pools with advanced digital skills and expanding data sharing to enrich digital partnerships, the EIU said in its report.

The Asian Digital Transformation Index, drew on a survey of 870 executives in 11 major Asian markets (table) and three global comparators - the United States, Australia and the United Kingdom - across six industries: manufacturing, financial services, media, healthcare, professional services, and logistics. Outside Asia, Singapore lags behind the US but leads both Australia and the UK in digital transformation, the EIU report showed.

Mr Paul Tyler, Telstra’s Group Managing Director, International, said: “As e-commerce and digital processes only grow in importance, countries that fall behind when it comes to their digital infrastructure, human capital or ecosystem risk putting their economy at a disadvantage when it comes to competing on a global scale and attracting investment.”