The Digital Transformation of Societies: The Example of Malaysia, Thailand and Indonesia in the ASEAN Economy

Digital transformation has emerged as one of the most influential drivers of contemporary socio-economic change, shaping development trajectories, social resilience, and the capacity of societies to adapt to external shocks. Despite the growing body of research on digital transformation, relatively little attention has been devoted to societal digitalization as a distinct analytical category. Existing approaches remain largely focused on technological infrastructure, economic performance, or organizational transformation, while the social dimension of digital development is frequently treated as secondary. Addressing this gap, the present study conceptualizes societal digitalization as an autonomous dimension of digital transformation and advances a human-centred perspective that emphasizes digital capabilities and meaningful technology use rather than mere access to technological resources. The study examines the digital development trajectories of Indonesia, Malaysia, and Thailand (ASEAN-3) between 2016 and 2023, with particular attention to the transformative effects of the COVID-19 pandemic. To this end, an original Digital Development of Society (DDS) Index was developed and applied. The index is grounded in a hierarchical framework encompassing three interrelated dimensions: Access, Skills, and Use. The findings reveal substantial cross-country differences in both the level and structure of societal digitalization. More importantly, they provide empirical evidence of a second-level digital divide, demonstrating that improvements in digital access do not automatically translate into higher levels of digital competence or more advanced forms of technology utilization. The results further indicate that a structural shift in digital development—moving the focus from connectivity towards digital skills and meaningful use—accelerated during the 2020–2023 period. Consequently, human capital emerges as a more decisive determinant of digital maturity than infrastructure alone. The study contributes to the literature by offering a new conceptual framework for understanding societal digitalization and by introducing a multidimensional measurement tool capable of identifying structural bottlenecks in socio-digital development. Furthermore, the findings extend the policy debate on digital transformation by providing a diagnostic framework that enables policymakers to identify structural bottlenecks in national digital ecosystems and to align infrastructure investments with human capital development and meaningful digital participation.