Digital industries are the next frontier for developing Asian economies seeking to grow and prosper. As the world sees more technological competition and fragmentation, these countries risk falling further behind without concerted efforts to build digital talent.
Historically, cooperation among the Global South has enabled developing economies to help each other through knowledge and technology transfers. Projects have focused on physical infrastructure including roads, railways and power plants to promote regional connectivity and support industrial activity.
More recently, projects have focused on developing digital infrastructure, most notably China’s Digital Silk Road initiative, which strives to fill a digital infrastructure gap in many developing countries. While some countries have raised concerns about data security risks, demand for digital infrastructure will only intensify in sectors ranging from generative artificial intelligence (AI) to e-healthcare.
Beyond hard infrastructure, developing Asia urgently needs to address soft infrastructure gaps to help local workforces thrive in a digitised economy. Accelerating technological changes mean skills could become obsolete in a matter of months.
A lack of digital literacy will increasingly equate to lost economic and employment opportunities. It is time to lay the foundations for digital human capital and give developing Asia’s workforce improved capabilities to compete with global talent pools.
Future south-south cooperation initiatives should emphasise helping the workforce of developing countries compete both in existing industries transformed by digitisation and in industries driven by emerging technologies. A broad spectrum of upskilling is relevant, including education, vocational training, entrepreneurship and research and development.
A trainee reads pamphlets during a ceremony in Wakiso, Uganda, on April 16. China Communications Construction Corporation runs a two-week training programme for local foremen and engineers in the central district of Wakiso. Photo: Xinhua
The younger generation of workers and students in developing Asia, better educated and more globally informed, aspire to more sustainable, digital and inclusive economic growth. Equipping them with the necessary skills for evolving sectors helps them access higher-quality jobs that will grow incomes. Developing countries seek to move beyond being low-cost supply bases and become equal partners and potential markets.
Digital upskilling can build upon existing south-south cooperation frameworks in different sectors. For example, projects by the India-Brazil-South Africa Fund upgraded marketing and trading capacity for high-quality rice seed production in Vietnam and implemented e-learning programmes to upgrade the skills of the country’s healthcare professionals and medical students during the Covid-19 pandemic.
These developing country networks can leverage their history of cooperation to foster knowledge transfer and upskilling in the agriculture and healthcare sectors. This can help workers adopt digital tools, such as AI and machine learning, which can provide data-driven insights and raise productivity.
Developing Asian economies facing shared challenges in digital upskilling could identify ways to foster partnerships for digital transformation across continents. For example, the African Union’s Smart Africa initiative works on enhancing broadband connectivity, digital literacy and job creation, especially for underserved and rural communities in various African countries. Digital south-south cooperation will have mutual benefits, bridging the digital divide and creating better-skilled workforces across countries.
Thailand’s Prime Minister Srettha Thavisin shakes hands with Microsoft CEO Satya Nadella during “Microsoft Build AI Day” in Bangkok on May 1. Microsoft said it would create Thailand’s first data centre region to boost cloud and AI infrastructure, promising AI training to more than 100,000 Thais to develop tech. Photo: AFP
Home-grown companies can play a more prominent role. India has emerged as a regional technological hub because of its well-established ecosystem, initially as an IT offshoring hub for multinational companies and, more recently, applied research labs for AI and intelligent manufacturing.
Big tech firms have expanded in Thailand, Kenya and parts of Latin America, sometimes working with university faculty. Home-grown companies rooted in local communities have even greater incentive to equip citizens with digital skills and generate a pipeline of future talent. They can train local researchers and developers, strengthening AI research and development traditionally dominated by Western countries.
To sustain AI ecosystems, developing Asia also needs to promote responsible innovation and protective policies for vulnerable populations. In countries that have become destinations for outsourced data labelling for AI, there are risks to data workers such as graphic content exposure and exploitation. Data privacy protection is another area not adequately addressed by nascent AI legislation.
Integrating digital skills training into primary and secondary school curriculums is essential in preparing the next generation of talent. Kenya’s Digital Economy Blueprint and similar initiatives in other developing countries aim to incorporate computer literacy, coding and other skills. Despite these efforts, these countries might struggle to keep pace with the seismic shifts occurring in AI development.
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Another innovation could be the creation of a “digital Peace Corps” to encourage young professionals trained in relevant technology disciplines to spend time in another developing country facing similar challenges. The focus would be to foster knowledge transfer and build capacity in areas ranging from digital literacy to the upskilling of less educated workers to curriculum development.
These young professionals should be from a developing nation, graduates of any tertiary institution and enthusiastic about preparing developing Asia’s workforce for a digital future. The headquarters can be based in a developing Asian country focused on addressing these issues. Reciprocal exchange of young professionals can build trust and create cross-country solutions.
While Hong Kong has a developed economy, its role as China’s international hub positions it to aid in digital south-south cooperation. With a growing skill base in AI and high-end professional services across sectors, Hong Kong can assist developing Asian economies in building more robust innovation ecosystems.
Through partnerships and training, Hong Kong can empower people and organisations to cultivate a more digitally competitive workforce. Expanding its horizons from serving developed markets to serving developing ones can be challenging as it will require cultural and mindset shifts. However, doing so can give Hong Kong’s globally minded young professionals a sense of mission and purpose while helping shape a better digital economic future for millions.
Janet Pau is executive director of the Asia Business Council
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