Smart Cities in Southeast Asia

McKinsey-CLC Smart Cities in Southeast Asia

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While good management is a critical element in a smart city, governments are not the only actors. Smart cities are not just top-down initiatives; they actively engage corporations and residents in making the overall ecosystem more efficient. In fact, many of the innovations that are changing the fabric of cities worldwide, such as e-hailing and smart office buildings, are revenue-generating ventures introduced by private-sector companies. Companies operating effectively in this space have identified public problems and come up with digitally enabled solutions, many of which can be introduced quickly and cost-effectively.

Recent MGI research examined how the current generation of smart city technologies can perform in a variety of urban settings worldwide. It found that they can improve many quality-of-life indicators by 10 to 30 percent. They can save time, improve public health and safety, create a cleaner and more sustainable environment, and foster a sense of community and civic engagement. This paper takes a more focused regional view of smart cities and their potential in Southeast Asia.