Digital development among top 5 ASEAN countries Convergence or Divergence

Digitalization plays a pivotal role in driving economic growth and encouraging innovation, making it crucial for nations to reduce disparities in digital development to ensure inclusive and sustainable progress. This study examines the convergence of digitalization among the selected top five ASEAN economies—Singapore, Malaysia, Indonesia, Thailand, and Brunei—focusing on two indicators: internet usage (IU) and fixed broadband subscriptions (FBS). The research aims to determine whether digital disparities within these nations are narrowing or widening over time, a process known as sigma and beta convergence. The analysis utilizes panel data from 1995 to 2022 for IU and from 2003 to 2022 for FBS. The results show sigma convergence in both indicators, suggesting that these ASEAN economies are becoming more similar in their digital development. However, beta convergence analysis reveals mixed outcomes. While there is evidence of beta convergence for IU, implying that less digitally advanced countries are catching up, there is divergence in FBS, indicating that disparities in fixed broadband access are widening. These findings have important implications for policymakers and stakeholders, who must address the gaps in digital infrastructure and access to ensure equitable digital growth across the region. The results highlight the necessity of targeted interventions to enhance digital inclusion and infrastructure development, particularly in lagging countries. Future research should consider a broader set of ASEAN nations and additional digitalization indicators to provide a more comprehensive analysis of digital convergence in the region.