Asia-Pacific to see 65 mil jobs a year thanks to digital tech growth

KUALA LUMPUR – The Asian Development Bank has estimated that about 65 million jobs will be created yearly in the Asia-Pacific region until 2025, resulting from the increased use of digital technologies amid the Covid-19 pandemic.

Its chief economist Yasuyuki Sawada said the expansion of the digital sector will contribute to an average annual gain of 26.8% in Asia-Pacific’s gross domestic product (GDP), 15.6% in trade, and 26.1% in employment over the next five years.

Regional trade is also expected to increase by US$1 trillion (RM4 trillion) yearly over the next five years as digital economy growth in Asia is projected to accelerate, providing opportunities to bolster economic growth, build businesses, create jobs and address socioeconomic challenges.

“Overall, the global digital sector is expected to expand by an average of roughly US$617 billion annually, or US$3.1 trillion in total, from 2021 to 2025.”

Sawada said the digital sector in Asia is anticipated to grow by about US$184 billion annually, or about US$919 billion, in the next five years.

“Accelerated digital transformation can potentially boost global output, trade and commerce, as well as employment.”

He also noted that Asia-Pacific countries have leveraged rapid technological progress and digitalisation to recover and reconnect with the global economy during the Covid-19 pandemic crisis.

“Technology is helping to forge new global linkages, which offer enormous economic opportunities, but also present new risks and challenges.”

The bank in a report said if the digital sector expands by 20%, the global GDP will increase by an average of US$4.3 trillion yearly from 2021 to 2025, or by $21.4 trillion in five years, where more than 40% of the increase in global output will be accounted for by Asia.

“Nevertheless, recent firm-level activity in mergers and acquisitions in the region have shown signs of recovery, as countries start to reopen and ease some pandemic-related restrictions.”

It said governments in the region need to focus on data privacy and security, taxation, partnership between public and private institutions, and regional cooperation to better secure the digital sector. – Bernama, February 10, 2021