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2018/SOM1/ECSG/DIA/011
The Development of Electronic Transmitted Content in APEC Economies
Submitted by: Technology Research Project Corporate
Public-Private Dialogue on Existing and Emerging Issues Related to
E-Commerce and the Digital Economy Port Moresby, Papua New Guinea
3 March 2018
The Development of Electronic
Transmitted Content in APEC Economies
Dr Peter LovelockDirector | Technology Research Project Corporate (TRPC) | Singapore
Director | TRP | University of Hong KongAssociate Professor | Singapore Management University
Overview
● The Digital Economy is enabling and creating the environment for
online services (and vice versa)
● Online businesses, however, face profound and rapidly growing
compliance challenges in going cross-border (i.e., leveraging their
potential)
● How does APEC address the challenge of regional growth and
regional regulatory (mis)alignment?
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The Digital Economy promises opportunities and potential
across the entire Internet value chain
3
Revenue generated by digital services
players in ASEAN = US$150 bn
Has the potential to add US$1.2 tn to
GDP by 2025
Source: AT Kearney, 2015
It is enabling traditional industries to do more (faster,
cheaper) and reach further …
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In Indonesia CI-Agriculture’s
HARA platform collects and
analyses data to advise farmers
resulting in 80% improvement in
productivity, 60% improvement
in crop yield, 50% reduction in
farming inputs and 25%
reduction in crop failure rates
Vietnam’s Nhan Hau village
created a website to promote
local braised fish products and
have since raised their
revenues by 50%
In the Americas, Goldcorp uses
Cisco’s IoT solutions to provide near
real-time insights into status and
location of equipment and personnel.
This reduces energy costs by USD1.5-
2m with ventilation on demand, while
improved tracking locates employees in
case of emergency 45 to 50 minutes
faster than before
AGRICULTURE MINING FISHING
… and not just for economic growth, but also social
development opportunities …
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E-HEALTH
HaloDoc connects users
in Indonesia to a network
of 20,000 licensed
doctors, 1,000 certified
partner pharmacies
through medical delivery
service ApotikAntar, and
licensed medical
laboratory services.
Bunda Medical Centre’s deployment of Philips'
Mobile Obstetrics Monitoring solution
increased early detection of high-risk
pregnancies 3-fold and helped expectant
mothers to receive necessary treatment for a
safe delivery. Within the 1-year pilot programme,
not a single woman died from preventable
causes related to pregnancy and childbirth
through early monitoring and risk stratification.
E-GOVERNMENT
The Singapore government’s
online application system for
integrated services, Online
Business Licensing System
(OBLS) – now LicenceOne,
reduced the average licence
processing time from 21 to 12.5
days, and new business
registration reduced from 5 days
to just 2 hours.
This resulted in estimated
savings of SGD11.4 million in
just its first year.
… creating new opportunities for innovative start-ups to fill
gaps in the market …
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In Japan, JMOOC – formed by
unis and corps coming together
to provide in Japanese – has
143 certified courses, 250,000
unique learners, with 610,000
course enrollments.
• flipped classroom (students
watch lectures at home and
do homework in class with
guidance from classmates
and teachers
South Korea’s Baedal Minjok
is a food order app with
listings of over 150,000 of the
country’s estimated 200,000
restaurants, over 2.9 million
active users and has over 15
million downloads
In Myanmar B2B marketplace
BaganTrade features some 600 local
companies, as a platform for local
producers to reach larger markets with
30,000+ monthly page views.
BaganTrade also promotes local digital
literacy (eg, e-commerce strategies) –
paving the way for further SME
development through innovative e-
commerce solutions and deployment.
ONLINE EDUCATION E-COMMERCE FOOD DELIVERY
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LOCAL LANGUAGE WIKIS
Kannada.in is an electronic
repository and knowledge
resource Wikipedia-style
portal built by IIIT Bangalore
with subjects ranging from
language and literature,
science and technology to
agriculture. Kanaja.in is the
most viewed website in
Kannada (by total Internet
users)
PAYMENTS
SBI Ripple Asia uses distributed ledger
technology to perform real-time interbank
transfers between countries and
currencies; in 2017, a consortium of 47
Japanese banks successfully trialled a
domestic pilot and are now trialling a cross-
border pilot with South Korea.
REMITTANCES
Ayannah is a remittance
start-up from the
Philippines which offers
digital financial services for
B2B/B2C internationally via
online and mobile
transactions through its
cloud-based platforms.
DOKU was the first e-payments and
risk management in Indonesia.
DOKU’s electronic money has been
used by over 1 million Indonesian
consumers and DOKU has teamed
up with over 22,000 merchants
The Digital Economy allows online businesses to expand
their offerings and reach
Go-Jek in Indonesia began as a
ride-hailing service and now
offers logistics, payments, food
delivery, laundry, massage, ticket
purchasing, auto mechanic
services and many more
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Malaysia’s iflix distributes Western
and Asian dramas
Partnerships with over 150 studios
and content distributors globally
including MGM, Disney, Warners,
Paramount, NBC Universal, Fox,
CBS, BBC, Sony, Discovery, etc
Zomato from India
offers restaurant search
services, online orders
and delivery, table
reservations and
payment systems. It is
now available in 23
countries around the
world.
However as services begin to grow they face new
challenges from going across borders such as…
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Privacy and personal data protection Cybersecurity threats
Local content requirements OTT restrictions
E.g. Japan (and many other countries) requires
destination countries to have similar levels of protection
as Japan or with individuals’ consent. However the
Personal Information Protection Commission (PPC)
has not defined a list of countries with acceptable data
provisions, creating regulatory ambiguity for
businesses.
According to Microsoft, the potential cost of cyber-
crime to the global community is $500 billion, and
a data breach will cost the average company
about $3.8 million.
According to Symantec 43% of cyber attacks are
aimed at small businesses
Thailand and Indonesia have floated draft
OTT regulations requiring onshore and
offshore providers providing a service in
these jurisdictions will be subject to the local
tax regime and local laws.
Australia is reviewing how its local content quota policy
can be extended to streaming services such as Netflix
and Amazon Prime.
Currently commercial free-to-air television networks
need to offer 55% local content on main channels
between 6am and midnight.
… with inconsistent and uncertain compliance
requirements
Double taxation
As more policymakers develop policies on taxing digital goods and services,
such policies need to consider the risks of double taxation from where a
company is registered, and where it derives revenue from
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Definitions and scopeExample: In Indonesia there is no clear consensus on what is an “Electronic
Systems Provider” or what the provision of services for public use entails
The GDPR covers EU citizens, but is less clear if the scope extends to non-EU
citizen residents of the EU.
The challenges are more profound and inconsistent in
sensitive sectors such as finance and health
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Permitted use of Cloud in FSI
AU HK IN ID MY NZ PH SG KR
Yes Yes Data
localisation
requirements
Data
localisation
requirements
Yes Yes Restricted
from
outsourcing
inherent
banking
functions
Yes Restricted
from
outsourcing
critical
information
systems
Source: ACCA Financial Services on the Cloud 2018
And while there is a lot written about the potential and
opportunities of the Digital Economy …
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Source: e-Conomy SEA Spotlight 2017, Google/Temasek
… there is less being done in terms of regional regulatory alignment
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And while there have been some recent efforts …
● APEC Cross-Border Privacy Rules (CBPR) for data flow accountability
● EU’s General Data Protection Regulation (GDPR) harmonizes personal data and
privacy of EU citizens
● Computer Emergency Response Team (CERT) multilateral agreements
● Bilateral tax treaties and OECD Multilateral Tax Convention
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● CPTPP’s e-commerce chapter potentially defines
regulatory alignment on data protection, limitations on data
localization and paves the way for the Digital Economy
MORE CAN BE DONE!
APEC has an opportunity to address regional
regulatory misalignment to enable more online and
cross-border trade
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● Taking the lead in defining the rules for the digital age
● APEC can facilitate a global solution through harmonizing rules and
regulations on regulatory compliance for the Digital Economy
● Reducing the compliance costs for doing business online and cross-
border will enable and grow trade. This is especially important for SMEs
which have less resources to ensure compliance in multiple markets
Recap
● The Digital Economy is enabling and creating new markets for traditional businesses
and SMEs
● As online businesses go cross-border they face new compliance costs
● Compliance differ from economy to economy, further increasing compliance costs
● This restricts trade, growth and realizing the full potential of the Digital Economy
● Time for APEC to show global leadership and work on regional regulatory alignment for
the Digital Economy
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Any Questions?
Contact:
email: [email protected]
phone: +65 6920 8561
website: trpc.biz
About TRPC:
TRPC is a boutique consulting and research firm with over 25 years experience in the telecommunications and
ICT industries in the Asia-Pacific. We offer specialised advisory, research, and training services, with a focus on
regulatory and strategic business issues, and possess an extensive network of industry experts and
professionals throughout the region.
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