The ASEAN region is rapidly evolving and becoming a hub for digital transformation, with a projected digital economy worth US$1 trillion by 2030. Recognizing the need to attract and retain top talent, ASEAN countries are starting to explore opportunities in enhancing their efforts in this area. This is crucial for the region to stay competitive in the global market and ensure sustainable growth in the digital age.
Challenges in Education and Skills Development
Despite the promising growth prospects, ASEAN faces significant challenges in education and skills development. Disparities in quality education are evident across the region, as highlighted by international assessments like the Programme for International Student Assessment (PISA). While Singapore and Vietnam have shown strong performance in mathematics, reading, and science, other ASEAN countries such as Brunei, Malaysia, Thailand, Indonesia, the Philippines, and Cambodia are lagging behind.
The dominance of European and North American universities in higher education rankings further underscores the need for ASEAN countries to invest in their educational systems. Only two ASEAN universities, both from Singapore, are ranked among the top globally. Emerging economies like Vietnam and Thailand are increasing their educational expenditure and focusing on technology and innovation in higher education. However, concerns about graduate employment and skills mismatch persist, indicating a need for further reforms in the sector.
Addressing Barriers to Innovation and Digital Skills
Barriers to innovation, entrepreneurship, and digital skills remain a challenge in ASEAN. The digital divide across socioeconomic groups, unequal access to digital technologies, internet connectivity, and digital literacy are concerns that need to be addressed. Rural areas and marginalized groups are particularly vulnerable to these disparities. While there are emerging entrepreneurial communities in sectors like health technology and e-commerce, measuring innovative entrepreneurial behaviors remains a challenge, hindering the region’s understanding of its innovation landscape.
Measures to Accelerate Knowledge-Based Economies
To accelerate the transition towards knowledge-based economies, ASEAN countries are exploring various measures, especially in the wake of the COVID-19 pandemic. Talent attraction and retention schemes are being implemented to tap into the global talent pool. Each country has its own approach, reflecting the diverse stages of digitalization and technology talent development in the region. Visa programs targeting startup founders, innovators, and high-skilled professionals are being introduced to attract talent to countries like the Philippines, Vietnam, Singapore, Indonesia, Thailand, and Malaysia.
Creating a Supportive Ecosystem for Innovation
Creating a supportive ecosystem for talent attraction and retention is essential for fostering innovation-driven growth in ASEAN. Robust digital infrastructure, clear legal and regulatory frameworks, schemes to promote entrepreneurship and innovation, and investment in digital skills development are key components of this ecosystem. Policymakers need to anticipate and address potential negative consequences such as increased housing demand, higher service costs, and lack of integration between foreign talents and local communities. Ensuring visible benefits for domestic communities not directly linked to the local innovation and entrepreneurship ecosystem is also crucial for sustainable growth.
Adapting to Emerging Trends in Remote Work
As the landscape of remote work and mobile skilled individuals evolves, ASEAN countries need to adapt their visa policies and approaches to meet the demands of the fast-growing digital economy. Fostering a supportive ecosystem for talent attraction and retention will not only drive innovation but also maximize positive impacts on host countries and local communities. By embracing these changes and investing in education, skills development, and talent attraction, ASEAN can position itself as a global player in the digital economy.
In conclusion, enhancing efforts to attract and retain top talent is crucial for ASEAN countries to stay competitive in the digital age. Addressing challenges in education, skills development, innovation, and digital skills is essential for sustainable growth and fostering a supportive ecosystem for talent attraction and retention. By investing in these areas and adapting to emerging trends, ASEAN can unlock its full potential and thrive in the global market.