A REVIEW OF DIGITALCREATIVE INDUSTRIES IN ASIA(2024)
- hub asean
- Aug 15
- 4 min read
Digital creative industries have the potential to drive socioeconomic development in the Asian region. On one hand, they contribute to economic growth and create new jobs: for example, according to PricewaterhouseCoopers(PWC) estimates, the Indian entertainment and media industry is forecasted to grow faster (+10%) than the broader economy (+6.31%) in 2024–2028. On the other hand, they also strengthen a country’s national brand and soft power in the international political arena, bridge the
cultural distance with other countries, create positive spillover effects on other sectors, and foster human development.
Moreover, the digital transformation has opened up new opportunities for developing countries to capture value. High-speed internet, portable devices, and streaming services have removed any physical barriers to content distribution, allowing local film producers, game developers, and music artists to gain access to a global audiences and diversify their revenue streams.
On the production side, cloud technologies and advanced collaborative tools have enabled cross-border collaboration, which increased the demand for local co-production and co-development partners. In fact, global media and entertainment companies are expanding their footing in the region, with heavy investment in local content as interest in Asian intellectual property rises worldwide.
Moreover, as creative value chains become increasingly global and fragmented, Asian countries are well positioned to specialize and become attractive offshoring destinations for specific activities, thanks to high-quality output and lower costs.
However, an assessment of crucial enablers reveals that countries are not fully prepared to seize such new, unprecedented opportunities. Digital creative industries’ potential remains partly untapped, due to a mismatch in supply and demand for job skills, and an opportunity to design more favorable regulation. This report assesses the barriers to creative industry growth through the following framework (Figure 1). The results are summarized below.
Fragmented responsibility among public entities and weak data frameworks hamper the ability for long-term policy setting. Multiple government agencies are responsible for supporting creative industries, often lacking communication and coordination between one another. The risk of this governance framework is to duplicate efforts or fail to grasp a 360-degree view of the sector. Lack of well-organized and accessible data and unstructured public–private dialogue also hinder the government’s ability to design effective policies and efficiently allocate investments.
Local industry development in digital creative industries requires higher investment in local talent in specific roles that are in short-supply. There is a general skill gap across all roles with respect to global standards, and not enough talent to keep up with surging demand. The shortage of skilled professionals is evident both in creative and technical roles, and constitutes a challenge especially for small, local independent companies. The most sought-after profiles in the audiovisual sector are screenwriters, technical crews, post-production supervisors, animators, production accountants, and visual effects specialists; in gaming, there is a severe lack of game designers, producers,
artists, and programmers. Moreover, low salaries, long working hours, and lack of safety nets are still an issues for many creative professionals.
Educational institutions struggle to keep up with the digital transformation and ever-changing global standards: curricula are often outdated, too theoretical, and not enough industry-relevant, while government-led education initiatives are characterized by low awareness among industry players. On a good note, the private sector is increasingly active in capacity building, playing a crucial role in filling the training gap.
Lack of financial support and unfavorable regulation hinder the creation of a conducive business environment for digital creative businesses and entrepreneurs. Fiscal incentives are a decisive factor for industry development, but not all countries have them in place. Funding availability is an issue for most local players and entrepreneurs, be it in the form of public and private grants, venture capital investment, or access to bank loans.
At the same time, strict government control, censorship, and content bans limit creativity and increase regulatory uncertainty, discouraging foreign (and local) investments. Piracy is still widespread, as the protection of intellectual property rights has room for improvement.
The study of global and regional best practices shows that creative powerhouse countries developed holistic, long-term strategies that increase talent supply and the overall skill level, support the creation of local intellectual property, and make the country an attractive destination for foreign companies. Canada created thousands of jobs by subsidizing salaries and attracting “anchor companies”; the Republic of Korea strengthened its national brand through the global export of K-culture; Colombia built a thriving audiovisual ecosystem from the ground up in only 10 years; Malaysia is on track to become the Southeast Asian hub for digital businesses; the United Kingdom built a structured approach to creative skill development that relies on awareness, subsidized apprenticeships, and public-private partnerships for capacity building; and Singapore positioned itself as the gateway to Southeast Asia by prioritizing skill development and favoring collaboration with international players.
The examination of such best practices provided valuable insights into the successful strategies they employed to foster job creation and stimulate growth. There are a few, overarching lessons that we can derive from these examples, which could lay the foundation for further policy work in the dynamic landscape of creative industry development (Figure 2).
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
