Thailand’s Digital Economy

Workshop on Succeeding in a Digital Economy for SMEs

Anantara Siam Bangkok Hotel, Bangkok, Thailand

12 October 2015

Kasititorn Pooparadai, Ph.D. National Science and Technology Development Agency (NSTDA)

and Digital Economy Preparation Committee Secretariat Office Ministry of Information and Communication Technology

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• Knowledge • Digitization • Virtualization • Molecularization • Integration/

Internetworking • Disintermediation • Convergence • Innovation • Prosumption • Immediacy • Globalization • Discordance

• The digital economy is the result of the transformational effects of new General-Purpose Technologies (GPT) in the fields of information and communication. It has impacted all the sectors of the economy and social activities, for instance: retail, transports, financial services, manufacturing, education, healthcare, media and so on. It has implications much beyond the Information and Communication Technology (ICT) sector. In addition, the internet is empowering people in a new and different way to create and share their ideas, giving rise to new content, entrepreneurs and markets.

• European Commission. Working Paper: Digital Economy - Facts & Figures 3

The DAE (Digital Agenda for Europe in 2010) emphasized the influence digital technologies were having on jobs and growth, noting that the internet is empowering people to create and share their ideas, giving rise to new content, entrepreneurs and markets.

Definitions

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Characteristics of the digital economy

Australia: The global network of economic and social activities that are enabled by information and communications technologies, such as the internet, mobile and sensor networks. This includes conducting communications, financial transactions, education, entertainment and business using computers, phones and other devices. Australia has made a commitment to becoming a leading digital economy, and faces competition from comparable countries that have also adopted a focus on promoting a local digital economy. ‘Without open access to appropriate categories of information, Australia may not enjoy the potential innovation in the digital economy

Singapore: Digital Economy will expand beyond just the Internet Economy (economic value derived from the Internet) to include economic and social activities resulting from other information and communications technologies (ICT)

Source: Infocomm Development Authority of Singapore Australian Government 2015

Our Definition of Digital Economy (and Society)

Digital economy is defined as the economy and society in which digital technologies are key enablers to the transformation of such basic activities as manufacturing, trade and services, learning and education, healthcare, public administration, and so on so forth, ultimately leading to job creation, economic growth, and social well-being.

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Source: National Statistical Office of Thailand, 2014 http://service.nso.go.th/nso/nsopublish/service/survey/ICT-HouseExc57.pdf

Source: NBTC, 2014

In 2014, according to the NSO of Thailand, about 35% of Thailand’s population have access to some form of Internet. The number of broadband subscribers by household (mostly ADSL) are low due to lack of physical infrastructure in hard-to-reach and rural areas.

% Household

11,611

164,775

555,495

893,548

1,293,341

2,072,799

2,624,278

3,204,499

3,822,354

4,351,909

4,930,419

5,336,194

0.1%

0.9%

2.9%

5.0%

7.1%

10.9%

13.4%

16.2%

19.1%

21.8%

24.6%

26.6%

0%

5%

10%

15%

20%

25%

30%

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Broadband Internet Subscribers Broadband Penetration

% Household

Notes: Total number of households in Thailand is 20.17 million in 2013

Number of Broadband Subscribers (Households) in Thailand 2003-2014

Usage of Internet, Computer, and Mobile in Thailand 2010-2014

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Ensuring Accessibility

Increasing Utilization

Improving Productivity

Creating Innovation

Digital Technologies

Digital Economy

Goals

(Examples) Digital technologies are used to

Create more jobs in both ICT and real sectors Generate more incomes for businesses and people Increase the well-being of people (Education, Health, etc.) Save lives and properties

0 1 1 0 1 0 1 0 1

Moving Towards Digital Economy

What is Thailand Doing Now?

•The current government has launched the Digital Economy Initiative (2014) with an aim to promote a new so-called digital economy and society by laying a strong digital foundation for the country to move forwards competitively in a modern world without leaving anyone behind. •As of today, the government is in the process of reviewing legislation related to the promotion of digital economy and society and expects to establish a national digital economy committee) to oversee the implementation of the Digital Economy Initiative. •Ministry of ICT is also formulating the 5-years Digital Economy Plan, which is expected to be completed by December 2015.

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Digital Economy Bills

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Digital Economy bills Key points Digital Economy and Society bill

• Setting up a national digital committee (and sub-committees) for economy and society

• Creating a national digital policy/ plan for economy and society (covering hard infrastructure, soft infrastructure, service infrastructure, digital economy promotion, and digital society promotion)

• Establishing a digital economy promotion agency to support and promote digital industries

• Setting up a Digital Economy and Society Development Fund (separate from the NBTC’s USO fund)

Ministry of Digital for Economy and Society Bill

• Renaming Ministry of Information and Communication technology as Ministry of Digital Economy and Society (Exact name is being debated) to reflect the change of mission focus

• Restructuring the ministry as well as assigning powers and duties to agencies under the ministry

Digital Economy Bills

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Digital Economy bills

Key points

Electronic Transaction Bill (Amendment)

• Updating the law to reflect technological changes • Including the legal recognition of electronic signature and

transactions

Computer-related Crime Bill (Amendment)

• Updating the law to reflect technological changes (including intellectual property issue)

Cyber Security Bill • Setting up a national cyber security committee • Creating a national cyber security policy and strategies to

quickly and efficiently respond to new cyber threats and attacks

Personal Data P t ti Bill

• Setting up criteria, mechanisms, measures to protect l d t

Digital Economy Bills

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Digital Economy bills

Key points

National Broadcasting and Telecommunications Commission (NBTC) Bill (amendment)

• Updating the law to ensure that the NBTC’s telecommunications master plan and frequency allocation plan are in agreement with the national digital policy and plan for economy and society

• Assigning powers and duties of the NBTC • Updating on the principles of frequency allocation (to better

serve public interest) (As of June 2015, further details of the draft bill are still confidential)

Electronic Transaction Development

• Assigning powers and duties of the Electronic Transaction Development Agency (ETDA) to drive the country’s electronic commerce and electronic transactions policy/ plan

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Digital Thailand

1. Innovation

2. Digital Hub

3. SMEs

6. Digital Citizen

7. Digital Workforce

4. Digital Inclusion

5. Quality of Life

8. Government Transformation

Competitiveness

Social Equality

Human Capital

Digital by Default

Government

Digital Thailand

2. Soft Infrastructure

3. Service Infrastructure

1. Hard Infrastructure

4. Digital Economy Acceleration

5. Digital Society

(Draft) Digital Economy Strategies

6. D

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orkf

orce

IC

T P

rofe

ssio

nal

Dig

ital w

hite

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lars

IT

Exp

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Digital Entrepreneur

SME e-Commerce

Digital Content

Business Transformation

Digital Citizen

Inclusive Society

Quality of Life

Paperless Process Participation Citizen Centric Service

Open Data Service Platform Enterprise Architecture

Broadband Standard Laws & Regulation

Cyber Security Privacy

Broadcast

International Gateway

Radio Frequency

Digital Literacy

Tech Startup

Data Center

Satellite

Universal Design

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Education

Digital Government

Thank you and please visit www.digitalthailand.in.th

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