Digitalisation will continue to underpin Southeast Asia’s post-pandemic recovery and economic transformation. As creators, distributors and users of digital technology, Digital Economy Companies (DECs) play an influential role in this trajectory. Even as they strive for growth and profitability, their products and services are shaping the way we live, work and play. This study, produced in partnership with the National University of Singapore’s Centre for Governance and Sustainability, reviews how 439 DECs in the six largest markets in Southeast Asia – Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam – frame their impact beyond financial numbers.
By understanding the stakeholders and factors motivating DECs beyond growth and profit, his report seeks to serve as a catalyst for conversations on how stakeholders in the digital ecosystem may align their interests for inclusive, equitable and sustainable growth across the region.
Key Takeaway
Governments are currently not among the top stakeholders for DECs. As the digital economy matures and consequences of rapid adoption emerge, regulators are expected to play an increasingly significant role in shaping the environment in which DECs operate. DECs will likely see the need to engage with a broader range of stakeholders in the future.
Cybersecurity and data protection have emerged as key risk mitigation and compliance issues across SEA-6. Diversity, equity and inclusion were particularly important in Indonesia, Malaysia, Philippines and Singapore. DECs will need to shift from addressing immediate “licence to operate” issues to demonstrating responsible products, services and operations as demand for transparency and accountability gains momentum.
DECs generally did not identify environmental concerns as their main issue of focus. Listed DECs identified waste, circular economy, resource and energy efficiency among their top issues, while this was not the case for non-listed companies.
85% of DECs assessed expressed intention towards sustainability and impact as corporate information, while fewer than half have implemented initiatives to put these intentions into action. Only a quarter of DECs assessed have formally reported on their non-financial impact with clear metrics and targets. There is much scope for DECs to embed non-financial metrics into their strategic and operational plans, with clear goals against which their performance may be assessed.
Increasingly, DECs are under pressure to demonstrate profitability while mitigating risk and demonstrating benefit to people and the planet. As digital technologies evolve rapidly, operating responsibly is a moving goalpost. DECs could consider measuring and communicating performance on:
- Environment: Scope 1, 2, 3 GHG emissions, Climate-related targets
- Social: Cybersecurity, Data protection, Product or service safety, Employee upskilling or reskilling, Employee wellbeing
- Governance: Anti-corruption, Compliance and Competitive behaviour
