Top 2018 technology and business trends

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Top 2018 technology and business trends

Bicky Bhangu

President - South East Asia, Pacific and South Korea
Rolls-Royce

Top 2018 technology and business trends to look out for in south east asia

The South East Asian region witnessed immense changes in terms of technology and business in 2017, creating a momentum which will extend to 2018 and beyond. Here are some of the top trends that will affect organisations in the region in the coming year.

2017 was an exciting year for South East Asia. Across the region, many countries and their governments ramped up macro technology-led initiatives focusing on areas such as digital and smart manufacturing. Singapore continues its push to a digital economy with initiatives like Smart Nation. Thailand has also strengthened efforts to transform into Thailand 4.0, a programme to reform its economy and society through technology. In Malaysia, the government recently revealed several measures in its national budget to develop capabilities for the digital era.

South East Asia will see continuous technological and business growth

By 2020, the World Economic Forum predicts that the region will be the fifth largest economy in the world. With a combined population of over 620 million and an economy of US$2.6 trillion, the potential for growth is immense. This expansion is driving demand in industries such as aviation and commercial aerospace. With the global market for new aircraft potentially reaching over 35,000 over the next two decades, Asia Pacific is expected to take up 41 percent of new deliveries, ahead of Europe and North America.

In terms of innovation, mobile technology, cloud computing, data analytics and artificial intelligence are all advancing rapidly. There will be growth opportunities related to aircraft digitisation and new high-performance materials as well as for hybrid engines and 3-D printing. However, this means that aerospace companies have to evolve much more rapidly to capitalise on these advances.

Ageing populations, shrinking STEM talent pool

Globally, the percentage of people over the age of 60 is expected to rise to 22 percent by the end of 2050. The South East Asian region faces its own challenges with regards to its ageing population.

Malaysia, for instance, will see its percentage of people who are 65 and older rise to 15 percent by 2050, tripling from 4.8 percent in 2010. Meanwhile, Vietnam’s population will transition from ageing to aged in the short span of 20 years. Thailand’s population will meet the same fate in 22 years.

In light of this, technology-driven industries must adapt and start thinking of measures to cope with the shrinking talent pool. Securing the next generation of STEM talent will become an uphill task. Hence, companies will need to focus on education and training reform, while governments will have to look into progressive immigration and offshoring. To cultivate student interest in STEM, Rolls-Royce helps organise initiatives like the STEM Fair School Science Competition in Thailand. We also have Generation Aerospace, our regional flagship programme, to inspire students all across South East Asia with the possibilities of technology. Keeping students engaged with interactive experiences will be key to successfully raising the future wave of STEM professionals.

Automation will unlock more value in jobs

Dramatic advances in robotics and automation technology will change the face of work in South East Asia. According to a recent estimate, the number of industrial robots in Singapore grew by a CAGR of 20 percent, surpassing the global CAGR of 16 percent indicated by the International Federation of Robotics (IFR).

The proliferation of robotics and automation technology will improve productivity across numerous sectors, including manufacturing. These developments will also add more value to jobs, instead of taking them away. A study of the impact of robotics in manufacturing, agriculture and utilities across 17 countries found that robots reduced the hours of lower-skilled workers. However, they didn’t decrease the total hours worked by humans, and they actually enhanced wages. The future looks exciting and further developments in automation will bring about more possibilities for a broad range of industries.

Small players, big impact

Startups will continue to play a huge role in innovation. Their flexibility and open culture make them well-equipped to push the boundaries of technology. In Singapore, for instance, the government is in talks with several startups to pioneer flying taxis. By 2030, the country intends to make aerial transport a part of urban mobility.

At Rolls-Royce, we recognise the innovative potential of startups and are always on the lookout for opportunities to partner with them. Currently, we team up with vendors to create solutions in the fields of automation, machine prototyping and additive manufacturing. In an era where technology is evolving so rapidly, larger enterprises and smaller players can – and should – join forces to drive innovation and enhance business potential.

China will continue having a huge influence on South East Asia

Recent developments in China indicate that the country will exert a bigger influence on the evolution of South East Asia. An innovation ecosystem has emerged in China—one that is perhaps even more competitive than Silicon Valley’s. For instance, Alibaba is investing in robotics and artificial intelligence to power their operations. BYD, the Chinese counterpart of Tesla, is also in the midst of pioneering engine electrification. Meanwhile, the Belt & Road Initiative continues to be pushed forward. These factors and more will have huge implications on business and technology in South East Asia in years to come.

With 2017 now behind us, organisations can look forward to 2018 with these trends in mind. The South East Asian region will continue to grow in terms of business and technological potential. This means that organisations must make a continuous effort to stay agile and adaptive in order to remain competitive in 2018 and beyond.
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