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China technology
Opinion
Ecaterina Bigos
Ecaterina Bigos

Macroscope | From robots to digitisation, tech is rapidly transforming Asia’s economy

  • Asia’s eager tech adoption is changing its economy in manufacturing, banking, healthcare and e-commerce, creating opportunities across the digital ecosystem

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A THK Co humanoid robot, designed by Yoshichu Mannequin Co, at the International Robot Exhibition in Tokyo in March 2022. Photo: Bloomberg
Ecaterina Bigos
The hype surrounding advanced technology has reached fever pitch, from the latest breakthroughs in artificial intelligence (AI) to the new Apple headset that some believe could revolutionise the virtual experience and take the metaverse mainstream. While it’s exciting to associate these with the future, it’s important to note that technological transformation is already affecting how many “real” industries are operating and creating opportunities.

While Asia’s tech infrastructure and automation have historically been underdeveloped relative to the West, factors such as high internet connectivity and increasingly affluent and urban demographics have driven the region to adopt technologies and automation more quickly.

Industry 4.0 technologies – also called the fourth industrial revolution or 4IR – is the next phase in the manufacturing sector’s digitisation. It is driven by disruptive trends including the rise of data and connectivity, analytics, human-machine interactions and improvements in robotics.
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China has been investing heavily in robotics and automation technologies to increase efficiency and productivity in its manufacturing sector. In Japan, companies such as Fanuc are leading the way in the development of industrial robots that can work alongside people.

Covid-19 accelerated the 4IR transition as physical distancing and shifting consumer demand forced companies to embrace digitisation and contactless operations. Smart technologies will continue to unlock the potential of the region’s manufacturing industries.

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Notably, the emerging Southeast Asian manufacturing bloc – Malaysia, Thailand, Philippines and Vietnam – continues to gain market share with 7 per cent of the global manufacturing output. The same is true of India with 3 per cent, based on the World Bank data, with China at 30 per cent and the US at 16 per cent still representing the largest shares.

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