Cambodia prioritised the development of its telecommunications infrastructure as a commitment at the first ASEAN Digital Ministers’ Meeting.

ASEAN, already the most-connected region in the world, has set a goal for transitioning to a digital economy under the ASEAN Digital Masterplan 2025.

Given the ongoing COVID-19 pandemic, much of the discussion was based on the importance of “developing an inclusive and sustainable digital economy”, according to a news release.

Cambodia was represented by Minister of Post and Telecommunications Vandeth Chea. Senior officials from China, Japan, South Korea, the US and the International Telecommunication Union also attended the event.

The Kingdom has a notable distinction of being among the most connected countries in the world, with mobile phones outnumbering people. However, a wide gap exists between its urban and rural populations, with the latter lacking access to reliable, broadband internet.

Net penetration increased by 15 percent between 2019 and 2020, with 58 percent of the country having access to the internet, according to German portal specialising in market and consumer data, Statista.

“Digital transformation has played an important role in minimising the impact of the COVID-19 pandemic and has provided an effective solution to ensure uninterrupted administrative and business activities,” Minister of Post and Telecommunications Vanadeth Chea said at the meeting.

“Cambodia has prioritised telecommunications infrastructure, both fixed and cellular, to deliver reliable and affordable services and promote digital literacy to the public,” he added.

Earlier this year, an additional $500,000 investment from the UN Development Programme was earmarked to help 150 local small and medium-size enterprises (SMEs) go online under the Ministry of Commerce’s Go4eCam pilot project.

Among the firms to have already benefited from Go4eCam is Grocerdels, a local delivery app that allows users to purchase goods directly from farmers.

The firm saw a nearly two-fold increase in orders amid the pandemic, forcing it to increase its workforce by 50 percent.

Growth in the e-commerce sector was the silver lining in an otherwise  dreary economy that saw the country’s gross domestic product (GDP) dip by 3.1 percent after sustaining more than 7 percent annual GDP growth for nearly a decade.

The World Bank has forecast the Kingdom’s GDP to grow by 4 percent in 2021, largely because of free trade agreements and the agriculture sector.

A study by McKinsey Global Institute found that a $1 investment in telecommunications infrastructure can reap as much as $20 in GDP growth over the long term.. McKinsey helps leaders in the commercial, public and social sectors develop a deeper understanding of the evolution of the global economy and provides a fact base that contributes to decision-making on critical management and policy issues,

“Economic recovery after the pandemic will require greater efforts to foster the uptake of e-commerce and digital solutions all over the country,” said Shamika N. Sirimanne, director of technology and logistics for the UN Conference on Trade and Development

“Cambodia stands ready to cooperate with ASEAN member states and dialogue partners to transform the ASEAN region into a digitally connected community and leading economic bloc powered by secure, transformative digital services,” Chea added.

The ASEAN Digital Ministers’ Meeting is meant to be an annual event with rotating hosts. This year’s meeting was held digitally because of the pandemic. Myanmar is slated to host it next year.

• Tags: infrastructure, telecommunications