ASEAN e-commerce initiatives: A new hope

The Philippines, like many other ASEAN (Association of Southeast Asian Nations) member-countries, has been struggling to be a more competitive player in the global networked economy, realizing that the key factors in ensuring its future growth include proper education, modern technology infrastructure as well as the establishment of an effective business climate.

This future growth, however, can only be attained through thoughtful planning and cooperation between the government and the private sector. The country needs to establish a solid and competitive e-infrastructure by increasing quality bandwidth and the number of e-services providers and ensuring reasonable pricing for their products and services. Another crucial aspect that needs to be addressed is a conclusive national e-commerce policy, preferably one that is in line with the rest of the ASEAN member-countries.

Planning for the e-future

During the two-day meeting of the Global Business Dialogue on Electronic Commerce (GBDe) at the Mandarin Oriental Hotel early this week, discussions centered on e-commerce in the ASEAN region. The GBDe is the world’s largest private sector consortium on e-commerce and is responsible for laying the groundwork and planning for better global e-commerce policies in nine key areas.

Consumer confidence, convergence, cyber security, digital bridges, e-government, intellectual property rights, taxation and trade are deemed by the GBDe to be the most important elements of a successful and unified e-commerce initiative.

The GBDe’s mission is to work in cooperation with businesses, governments, non-governmental organizations, private foundations, consumer organizations and multilateral institutions to broaden the involvement of key stakeholders in creating an environment where e-commerce can reach its full economic potential.

The GBDe also had discussions with the eASEAN Task Force, an ASEAN advisory body composed of representatives from both the public and private sectors. These discussions were moderated by Roberto Romulo, a member of the GBDe’s Business Steering Committee and chairman of the eASEAN Task Force.

In 2000, the GBDe signed a cooperation agreement with the eASEAN Task Force, providing policy expertise to assist the ASEAN in its efforts to facilitate ICT and e-commerce development in the region.

Romulo said there was a strong agreement between the GBDe and the eASEAN Task Force on the fundamental requirements for a thriving e-commerce environment.

"A key point raised during the meeting is that e-commerce is continuing to play an increasing role in driving economic growth despite losing some of its high-profile glamour following the bursting of the dot-com bubble two years ago," he said.

ASEAN catching up fast

Researchers are predicting that the ASEAN region will have between 183 million and 242 million Internet users by 2005, mainly as a result of lower access prices spurred by increased competition. According to a leading research company, the Asia-Pacific region will experience a compounded annual growth rate for business-to-business e-commerce of 109 percent between 2001 and 2005 – the fastest increase for any region in the world.

This makes it even more crucial for ASEAN member-countries to push harder toward a cooperative regional e-initiative. Many of the ASEAN member-countries face similar difficulties and stumbling blocks that have deterred the much-needed progress in e-commerce, e-government and improved infrastructure and services.

Problems such as poor infrastructure and connectivity, high bandwidth cost and a general lack of quality competition among providers stifle growth and keep developing countries from reaching their full potential.

Furthermore, lack of government and private resolve to address these problems may prolong the time needed to build a desirable and competitive climate that is globally attractive and necessary for economic growth.

Broadband Initiative

In its 2002 agenda, the GBDe will sponsor a "Broadband Initiative," focusing on the belief that broadband deployment is key to the growth of e-commerce. Broadband connections will have a wider reach and provide more users with speedy and high quality Internet access. Should this become the standard, it will be easier to educate and gain more Internet users and consequently, make e-commerce a widely viable and acceptable means of doing business.

This initiative seeks to advocate best practices to encourage broadband technologies in areas where there is low penetration and in countries where the pace of deployment is slow.

The GBDe believes that addressing the demand-side is key to boosting broadband, and this is where decisive government action is required. Accelerated broadband access adoption, spurred by an aggressive campaign to build consumer demand, will lead to the advent of a mass market of new services and applications potentially capable of invigorating the whole Asian region.

Singapore’s success in e-government and e-commerce infrastructure deployment can be studied so that similar strategies can be adopted by developing countries.

A unified direction

The GBDe’s initiatives in its recently concluded regional meeting should help set a collaborative direction toward a global e-commerce policy as well as determine the specific requirements that will provide ASEAN member-countries with the necessary blueprint to be competitive in the coming years.

These efforts are necessary in building a renewed belief in the strength of the Internet economy and e-commerce, and in preparing the ASEAN for the potential business opportunities expected from the resurgence of a more confident and solid e-business environment in the near future.

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On the Net:

Global Business Dialogue on Electronic Commerce (GBDe): http://www.gbde.org

eASEAN Task Force: http://www.e-aseantf.org

eASEAN Roadshow: http://www.easeanrs.org/