A TRPC Analysis of key ICT Policy Trends in the Asia-Pacific Region for May 2020.

1. A ANALYSIS OF KEY ICT POLICY TRENDS
IN THE ASIA-PACIFIC REGION
ICT POLICY IN ASIA 2020

2. RECENT DEVELOPMENTS
• Indonesia: Under Perppu No. 1/2020 (a COVID-19
response regulation) and MOF Regulation No. 48/2020,
the government has imposed a 10% VAT on the sale of
intangibles as well as an income/e-transaction tax on
certain larger foreign digital platform companies.
• Philippines: The Chair of the Ways and Means
Committee is proposing a series of digital taxes
including a 12% OTT tax on video and music streaming
subscriptions and a 12% VAT and corporate income tax
for digital advertisers. The recently passed “Bayanihan
to Heal As One Act” imposes criminal penalties for the
spread of false information on COVID-19.
• India: From April 2020, India’s 2% equalization levy has
been expanded to include “e-commerce operators”. A
WhatsApp chatbot has been created to promote
awareness on COVID-19.
• Thailand: An emergency decree empowering
authorities to order corrections of misinformation by
journalists and media groups was published.
THE RISE OF DIGITAL TAXES
• Governments have capitalized on the current
pandemic to expedite digital taxes, sometimes as
part of wider pandemic-related bills
• The larger roles digital platform firms are playing
during the COVID-19 era are cited as justification to
impose new taxes now
MEDIA LITERACY
• Governments have taken harsh action against the
spread of fake news
• State of Emergency bills passed in Asia have also
empowered governments to stem the spread of
misinformation
• These have come hand-in-hand with more holistic
efforts to educate the public on the facts of the
pandemic
ICT POLICY TRENDS IN ASIA
ICT POLICY IN ASIA 2020 | MAY 2020

3. ICT POLICY TRENDS IN ASIA
RECENT DEVELOPMENTS
• Australia: Parliament passed a law to address the
legal and privacy concerns on the government’s
contact-tracing app, COVIDSafe.
• Indonesia: Kominfo has deployed 1,000 smart IoT
machines aimed at:
• Reducing human interaction between cashiers
and customers through AI and AR technologies
at strategic retail and pharmacy locations; and
• Accelerating the delivery of accurate
information from the govt through chatbots and
applications such as Care Protect and 10 Safe
Houses.
• Vietnam: MIC and Health Ministry have co-
developed an Ncovi mobile app and the Vietnam
Health Declaration online portal.
• Singapore: The government has released numerous
online platforms to enable citizens to better navigate
daily life: MaskGoWhere, FluGoWhere, a national
WhatsApp channel, an AI-driven smartphone-based
temperature checker, etc.
DATA PROTECTION & PRIVACY
• Rise of government-endorsed contact tracing apps
have brought to the fore issues of surveillance and
privacy infringements
• Governments being pushed to address concerns
about whether data will be protected (now) and
deleted (post-COVID-19)
• There is also a need to address concerns on how
personal data is being used and the reconciliation of
public and commercial interests with private
companies joining the fray
DIGITALIZATION OF PUBLIC SERVICES
• Online platforms used for COVID-19 updates
• Apps developed to augment healthcare system’s
ability to better monitor and respond to the outbreak
• Use of advanced technologies (e.g. AI and IoT) to
ensure provision of public service from a distance
ICT POLICY IN ASIA 2020 | MAY 2020

4. RECENT DEVELOPMENTS
• Vietnam: Actively encouraging the development of local
champions. E.g.:
• FPT started construction of its HCMC data centre,
heralded as the country's largest
• MIC launched its own locally developed online
meeting platform Zavi
• Indonesia: The recently passed Perppu No. 1/2020
imposes an income/e-transaction tax on foreign
companies trading in intangibles. On the other hand, it
also recently encouraged greater investment by foreign
companies.
• Japan: The government announced a USD2.3 bn subsidy
to help Japanese companies diversify their supply chains
and move high-value manufacturing back to Japan.
• India: In response to Japan’s announcement, the Indian
Department for Promotion of Industry and Internal Trade
has been actively reaching out to Japanese investors.
NAVIGATING MIXED SIGNALS – ASIA GOVERNMENTS TORN BETWEEN PROTECTING
LOCAL INDUSTRIES AND SEEKING FOREIGN INVESTMENT TO STIMULATE THEIR ECONOMIES
• Governments are looking to increase protectionist
measures to promote local industries and protect
them from future supply chain shocks
• This is coupled with increased efforts to develop
local ICT capabilities and to regain productivity loss
• The persistence of data localization as part of such
protectionist measures is expected to continue
• Yet at the same time, there is recognition of the
need for foreign investment to ‘kick-start’ the
economy again
• Regional governments may lack the political will to
navigate these circumstances well
• While regional economies may look to reduce
reliance on foreign supply chains, not all have the
immediate capabilities to do so
MARKET OUTLOOK - 2020 & BEYOND
ICT POLICY IN ASIA 2020 | MAY 2020

5. RECENT DEVELOPMENTS
• Malaysia: Malaysia will be implementing a short-
and-medium term COVID-19 economic recovery
plan that focuses on helping SMEs to harness digital
technologies to recover and grow.
• Thailand: The Thai Cabinet recently approved a
THB50bn (USD1.5bn) budget to digitally equip
8,000 primary and secondary schools in remote
areas between 2020 and 2022.
• Philippines: ICT Dept has requested that
connectivity be provided for the Department of
Education’s online learning platform “DepEd
Commons” for free by telcos.
• South Korea: The government announced a ‘South
Korean New Deal’, which involves state-led digital
infrastructure projects, and promotion of “Untact”
(no-contact) services in areas including education
and health.
1. COVID-19 has accentuated the digital divide
• Economic activity during the COVID-19 period has
grown highly dependent on digital/ virtual tools
• Awareness that significant groups have been excluded
as a result has paved the way for discussions on closing
gaps in network infrastructure and digital inclusion
2. Many economies will be prioritizing digital
transformation for economic recovery
• Key areas for digitalisation include: payments,
healthcare, education, and supply chains
• A further acceleration in cloud adoption, which will
be a key underlying technology for many of these
digitalisation efforts, can be expected
• Frameworks for data sharing/governance and AI will
be crucial for the effective utilisation of technology in
post- COVID-19 economic recovery
RIDING THE DIGITAL WAVE – ASIA WILL EXPERIENCE A RAMPING UP OF
GOVERNMENT-LED DIGITALIZATION EFFORTS, DRIVING GROWTH FOR ICT SECTOR
MARKET OUTLOOK - 2020 & BEYOND
ICT POLICY IN ASIA 2020 | MAY 2020

6. Like our content?
For more on what TRPC does, please visit us at www.trpc.biz or connect with us via
social media.
TRPC is a boutique consulting firm which specialises in
telecommunications and information technology, particularly the
policy and regulatory issues associated with national information
infrastructure development, with an emphasis on the Asia-Pacific
region. We offer specialised advisory, research, and training
services, with a focus on economics, regulatory and strategic
business issues, and possess an extensive network of industry
experts and professionals throughout the region.