27 July 2023
Robocash Group’s latest finance publication reveals Singapore’s unrivaled digitalization in Southeast Asia, earning 1588 points in 2022.
Robocash Group, a leading financial services provider, has released its highly anticipated report on the degree of digitalization in Southeast Asia (SEA) for the year 2022. The study, which evaluated six countries in the region, including the Philippines, Singapore, Malaysia, Indonesia, Vietnam, and Thailand, ranked Singapore as the undisputed leader with an impressive score of 1588 points. Following closely behind were Malaysia with 1495 points and Indonesia with 1419 points, securing the second and third positions, respectively.
The comprehensive analysis considered 22 parameters to measure the degree of digitalization across the SEA countries. Using the method of data normalization, the study aimed to provide an unbiased assessment of the region’s digital landscape. While Singapore claimed the top spot with its outstanding score, Vietnam received the lowest score of 1258 points. Meanwhile, the Philippines and Thailand achieved similar levels of digitalization, while Malaysia solidified its position as the second most digitally advanced country in the region. Indonesia found itself in the middle of the ranking, showing promising potential for further growth.
Unraveling the factors that led to Singapore’s dominance in digitalization, analysts from Robocash Group highlighted several key aspects. Firstly, Singapore has emerged as a frontrunner in attracting investments in technology companies. Reports from Tracxn indicate that Singaporean tech companies have attracted over $50 billion in private investments, reinforcing the nation’s robust tech ecosystem.
Secondly, the city-state boasts the most powerful internet infrastructure across the SEA region. With an average mobile internet speed of approximately 72.18 Mbps and broadband internet speed reaching 214.23 Mbps, Singapore offers its citizens seamless connectivity, enhancing the digital experience for businesses and individuals alike.
Another significant contributor to Singapore’s digital prowess is the high penetration rate of debit and credit cards. Nearly 93.5% of the population possesses debit cards, while 41.7% own credit cards, signifying a wide adoption of cashless transactions and digital payment methods.
Singapore’s emphasis on smart home technology also played a crucial role in securing its top spot in the digitalization ranking. With an impressive number of smart homes per resident aged 15 and above, the nation demonstrated its commitment to integrating cutting-edge technology into everyday life.
Furthermore, Singapore’s strong governmental support for digitalization initiatives has been instrumental in shaping its digital landscape. The government’s focus on three key pillars – digital society, digital economy, and digital state – has guided its efforts towards achieving full digitalization. Over the past four years, the government allocated a substantial $10 billion to finance digitalization projects, with plans to invest a similar amount in the coming years.
Aside from these key factors, Singapore’s significant share of unique fintech users, high levels of smartphone and mobile phone penetration, and widespread adoption of social media and the internet further solidify its position as the regional leader in digitalization.
With Singapore setting an exemplary benchmark for digitalization in Southeast Asia, other countries in the region are likely to take inspiration from its successes and invest further in technological advancements to bolster their digital landscapes. As technology continues to play an increasingly critical role in the finance industry, keeping pace with digitalization trends will remain a top priority for businesses and governments alike across the region.
