Vijay Eswaran on Future-Proofing ASEAN Nations the Next Tech Wave

From the bustling megacities of Singapore and Bangkok to the verdant rice fields of Vietnam and the thousands of  islands of the Indonesian archipelago, the 10 countries of the Association of Southeast Asian Nations stand at a crossroads.

As the region’s economies surge, driven by a young and growing population, a demographic dividend poised to peak in 2030, the specter of automation and technological disruption looms large. Can ASEAN countries future-proof their workforces, harnessing this demographic boom and navigating the uncertainties of the Fourth Industrial Revolution?

Vijay Eswaran, founder of multinational conglomerate QI Group, knows the region and its business environment better than most. QI Group, for one, has locations in 30 countries, including several that comprise the ASEAN group. And Eswaran believes it can be done — if done properly. 

The challenges are stark. A 2020 study by The Asia Foundation revealed that 41% of ASEAN workers lack the digital skills needed for future jobs. While the region boasts impressive economic growth, disparities persist, with millions still mired in poverty and lacking access to quality education and training. Moreover, the pace of technological change is relentless, with automation threatening to displace low-skilled labor across sectors.

“With ASEAN being the fastest growing internet market in the world, with 125,000 new users coming onto the internet every day, the digital divide between those with access to technology and those without deepens, causing disparities in education, job opportunities, and access to information,” Eswaran wrote in December 2023. 

However, amid these challenges, hope remains. Recognizing the urgency, ASEAN leaders have begun charting a course toward a future-proof workforce. Vision 2040, the bloc’s long-term strategic plan, prioritizes “human capital development and lifelong learning” as key pillars for regional competitiveness. 

But translating vision into action demands concrete strategies and collaborative efforts.

Building a Skills Bridge

Eswaran said that a reevaluation of their educational system to “align them with the demands of the [Fourth Industrial Revolution]” is imperative. 

“With the push toward smart manufacturing, there’s a need for specialized training institutions and programs to upskill the local workforce in both information technology and operational technology,” Eswaran said.

Eswaran also said that embracing digital fluency starts with local governments. Governments should invest in expanding broadband access, particularly in rural areas, and integrate digital literacy into primary and secondary education. Public-private partnerships can establish digital skills boot camps and upskilling programs for existing workers.

“In the rural areas and developing countries in ASEAN such as Cambodia and Laos PDR, limited connectivity and access to digital tools hinder participation in the digital economy,” Eswaran stated. 

In addition to digital knowledge, the fact of that matter is that science and math will always have a place. Prioritizing the STEM fields of science, technology, engineering, and mathematics education is crucial. This requires revamping curricula, fostering innovation in teaching methods, and attracting qualified STEM educators. Regional collaboration can develop standardized STEM frameworks and exchange best practices, but it is a process and will take years to bear fruit. 

And although it mostly goes unsaid, soft skills like critical thinking, problem-solving, and collaboration are equally vital. Integrating these skills into education programs and promoting experiential learning opportunities like internships and apprenticeships can prepare future generations for the evolving workplace.

Investing in Lifelong Learning

Traditional education systems may struggle to keep pace with the rapid evolution of job requirements. Embracing micro-credentials and modular learning allows individuals to acquire specific skills relevant to changing demands, fostering continuous upskilling and reskilling throughout their careers.

In addition, collaborative efforts between educational institutions and industry leaders can ensure curriculums reflect real-world needs and equip graduates with relevant skills. Joint research projects and internship programs can bridge the gap between academia and the job market.

A societal shift toward lifelong learning is essential. Governments and employers can incentivize continuous learning through tax breaks, subsidies, and flexible work arrangements that allow employees to pursue further education and training.

Eswaran said some of the ASEAN nations have jumped on this sooner than others. 

“The Singapore government has constantly promoted lifelong learning and upskilling, providing subsidies and grants to encourage individuals to acquire skills relevant to 4IR technologies, such as data analytics, [artificial intelligence], and cybersecurity,” Eswaran said. 

Gig Up

The rise of the gig economy presents both challenges and opportunities. Governments need to develop regulatory frameworks that protect gig workers while fostering innovation and entrepreneurship within this growing sector.

As Eswaran wrote in his 2023 article, many in the ASEAN workforce, either by choice or necessity, have already grabbed onto the gig life. 

“Remote work has essentially become the norm, and the pandemic has ushered in a fresh breed of entrepreneurs and workers, known as the gig economy, which has undergone a significant transformation within the ASEAN region,” Eswaran wrote. “It has become increasingly common for individuals to juggle two or even three distinct jobs simultaneously.”

But change requires changing, and those happy with the status quo could find themselves in trouble. As automation displaces jobs, robust social safety nets are crucial to mitigate the impact on workers. This includes unemployment benefits, retraining programs, and portable pension schemes that ensure workers are not left behind.

Workers whose jobs are automated must be supported in transitioning to new opportunities. Governments and employers can collaborate to offer personalized career guidance, reskilling programs, and financial assistance during the transition period.

Future-proofing ASEAN’s workforce is not just an economic imperative, but a social necessity. By investing in skills development, embracing lifelong learning, and adapting to new work paradigms, ASEAN nations can unlock the full potential of their demographic dividend and navigate the 4IR with confidence. Failure to do so risks widening inequality, leaving millions behind and compromising the region’s long-term prosperity. 

“The time to invest in nurturing talent and fostering innovation is now,” Eswaran said. “The dividends of these efforts will undoubtedly propel the ASEAN region toward a future characterized by sustained growth and prosperity for all its citizens. This transformation is not just a possibility; ASEAN must remain relevant and competitive in the 21st century.”

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