SINGAPORE: In the age of AI, 5G, and cloud computing, people’s lives, communication, and work are radically transformed.
With companies adopting the fourth industrial revolution, global ICT investment reached US$4.9 trillion last year, as reported by SCMP.
Roadmap to prosperity
The Global Digitalization Index 2024, compiled by Huawei Technologies and the International Data Corporation, emphasizes that digital technology and AI will drive 70% of global economic growth over the next five years.
The report assesses the digital development of 77 countries, representing 93% of global GDP and 80% of the world’s population.
The report classifies countries into three groups—front runners, adopters, and starters—based on factors such as economic development, ICT industry maturity, connectivity, digital infrastructure, green energy technology, and supportive policies.
It highlights a strong link between a country’s ICT maturity and its economic growth. For example, in front runner countries like the United States, Singapore, and China, a one-point increase in the Global Digitalization Index (GDI) score can raise GDP per capita by US$945.
The report also emphasizes the high returns on digital investment, estimating that every US$1 spent on digital transformation could generate a return of US$8.3 in a country’s digital economy.
However, it also points to a widening gap: from 2019 to last year, highly digitalized countries increased their tech investments 18 times faster than less developed ones. This disparity could worsen global economic inequality if less advanced nations fail to catch up.
Singapore: A model for digital development
Singapore stands out as a model for digital development. Over the past three decades, the city-state has invested heavily in its digital infrastructure, research and development, policy revamps, and ICT talent.
To maintain its competitive edge, Singapore must continue to integrate AI into its economy and develop a roadmap for green data centers to support its net-zero goals.
Thailand: Accelerating digital transformation
For adopter countries like Thailand, the focus should be on expanding connectivity and supporting foundational technologies.
Thailand is accelerating its digital transformation by collaborating with telecom companies to roll out 5G networks and introducing plans to facilitate investments in cloud computing, big data, AI, and 5G.
Kenya: Building digital foundations
Starter nations, such as Kenya, must prioritize establishing fixed and mobile broadband connectivity to drive digital economic activities.
Kenya’s strategic investments in mobile network coverage, a national fibre-optic network, and digital government services have propelled its e-commerce sector to rank third in Africa.
Investing in the digital future
The report emphasizes the importance of green energy technologies for sustainability and reducing carbon emissions. It also stresses the need for medium- and long-term ICT plans to foster digital economies.
Additionally, emerging economies must enhance ICT talent development and create attractive job opportunities for STEM graduates to retain tech talent.
Ultimately, the Global Digitalization Index 2024 underscores that investment in the digital future is crucial for a nation’s long-term economic prosperity.
The rewards for staying at the forefront of innovation are higher than ever, making it imperative for countries to prioritize digital transformation and talent retention.