ASEAN’s STI Renaissance: Bridging the Gaps and Igniting the Progress
Science, Technology, and Innovation (STI) has emerged as a universal driving force, acting as the catalyst for progress and growth. It serves as the bridge between traditional industries and cutting-edge advancements, enabling economic landscape to adapt, diversify, and remain competitive.
In the context of ASEAN’s economy, STI has become indispensable elements that transcending the boundaries of economic status. It is woven into the very essence of economic activities, ranging from agriculture, energy, education, finance, manufacturing into tourism.
STI fuels economic growth by enabling country to move beyond traditional industries and explore new frontiers. Innovation in manufacturing processes and supply chain optimization has made ASEAN a key player in the global value chain. Fostering export-oriented economies and creating a robust foundation for economic resilience. Such economic transformation has shaped the regional economic growth projection by 4.7% this year and 5% in 2024.
At least, there are two nerves that potentially bring those projection into reality. Digital economy and clean technology industry. Both of them are becoming global grammar for nowadays. ASEAN’s market size of digital economy, refers to the generation, distribution, and utilization of goods and services are heavily reliant on digital technologies, electronic transactions, and the internet, has been projected reach as much as USD 1 trillion by 2030. The backed fundamentals are clear, over 460 million digital consumers, young and tech-savvy populations, to rising internet penetration.
The similar promising trajectory also comes for clean technology. It refers to technologies and innovation that aim to minimize their impact on the environment while providing solutions to various challenges. As the world grapples with another hottest year record (July, 2023), as the effect of global warming, clean technology emerges as a linchpin in this endeavor. Such commodity matters for a sustainable and economically resilient future in the face of climate change.
Specifically on burgeoning battery and electric vehicles industry, ASEAN showed potential with access to key resources and a growing automotive market. Indonesia and the Philippines boasting the largest nickel reserves in the world with 21 million tons and 4.8 million tons, respectively. While Vietnam through its Vinfast has been trailblazing EV manufacture in ASEAN, Thailand and Indonesia have been demonstrating robust growth in automotive sectors that exemplify the region’s market potential. Based on those promising fact, ASEAN EV market size is expected to grow rapidly from USD 0.86 billion this year into USD 3.54 billion by 2028.
This standing point also amplified by the result of 43rd ASEAN Summit in Jakarta a week ago. Digital economy and green economy (including clean technology commodity) became a center of discourse. Referring to the result, ASEAN countries have committed to establish regional EV hub. Through robust STI, it will strengthen our foothold as a top five new global economic power in 2027.
However, ASEAN faces challenges on fostering STI in the region. First, the gap between consumer and innovators of tech remains wide. Indigenous innovation is just on the low rate and makes ASEAN reliant upon outside technology. It has been reflected through ASEAN’s Global Innovation Index 2022. Although Singapore consistent in top 10, innovation gap remains clear while Myanmar still on 116.
Such condition most likely affected by our second challenge, the number of Gross Domestic Expenditure on Research & Development (GERD). Currently, ASEAN only spends 0.68% of regional Gross Domestic Product (GDP) for harnessing research and innovation. Compared to South Korea as one of a leading country in STI, they spend almost 6% of GDP. Meanwhile, we need to increase our GERD to at least 4% of GDP to maintain the economic growth based on STI.
Hence, riding the momentum of the summit, ASEAN need to consider renaissance on STI. It refers to a phase of renewed and revitalized emphasis on STI across region. First, ASEAN should renew focus on what field of economy with most significance chance to growth: digital economy and green economy. This will help ASEAN to concentrate on solving common regional barrier of STI, from infrastructure & connectivity gaps to digital divide. By prioritizing those sector, funding and investment allocation for STI will much effective.
Second, policy and strategy development. For harnessing the ASEAN’s STI renaissance, stakeholders should stand on the same page for STI adoption. We need to ensure the ASEAN Plan of Action on Science, Technology and Innovation (APASTI) elaborate digital & green economy focus. This regulatory and policy frameworks on STI should also based on ASEAN Business Advisory Council (BAC) 2023 recommendation: harnessing technology, fostering knowledge sharing, and promoting sustainability. Such framework will cope skill shortages and intellectual property protection issues.
Lastly, collaboration and global engagement. This will ignite the progress of renaissance in region. Besides, it will also cause economic and social advancement as region belief that STI will embrace country member to growth together. It recognizes that STI thrives in interconnected networks by more utilizing ASEAN’s Committee on STI (COSTI), it is a platform for technology transfer and partnership.
Since scientific progress on innovation and technology becomes one of ASEAN’s quests, STI renaissance represents a pivotal chapter in ASEAN’s journey for progress and prosperity. It underscores our commitment to harnessing the boundless potential of STI as catalyst for positive change towards global epicentrum of growth.
