Digital economy in Southeast Asia, estimated to be valued at $1 trillion by 2030

The region’s digital economy will be worth USD200 billion this year

Even after three years of the COVID-19 pandemic, Southeast Asians continue to accelerate the adoption of digital technologies. 

The e-Conomy SEA 2022 report by Google, Temasek, and Bain & Company showed that 460 million internet users (more than 20 percent) across Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam came online in the past three years.

It also suggests that the region’s digital economy will be worth USD200 billion this year. 

Moreover, with 2020 being the region’s “digital decade,” e-Conomy also noted that Southeast Asia’s digital economy is projected to expand twice as fast as GDP in most SEA countries and even reach USD1 trillion by 2030.

“All in all,” it concluded, “[Southeast Asia’s] digital economy is grounded on strong social and economic fundamentals, and offline to online trends, which provides much to be optimistic about especially as the region settles into its ‘digital decade’.”

AsiaOne found Singapore and Indonesia to be the top investment destinations among the six markets surveyed.

According to Temasek’s deputy director of technology and consumer, Fock Wai Hoong, Indonesia’s sizable market continues to provide a wealth of investment prospects.

More: Indonesia’s digital economy set to reach $330 billion by 2030

In contrast, Singapore was a “fertile ground” for businesspeople with regional and international aspirations, with deal value doubling from the previous year.

Florian Hoppe, the head of Bain’s digital practice in Asia-Pacific, said, Singapore’s digital growth will also be aided by its status as a regional hub and the apparent influx of family offices and asset management companies from Hong Kong to the city-state.

Hoppe stated that Singapore has done well in reopening its borders, attracting investors and talent, whereas Hong Kong is “still relatively difficult to reach.”

Across Southeast Asia, the digital financial services (DFS) sector has continued to grow and has surpassed e-commerce as the region’s biggest investment sector. As pureplay fintechs and consumer tech platforms drive digitalisation, established financial services organisations are striving to capture new consumer groups and expand their regional presence.

The Property Report editors wrote this article. For more information, email: [email protected].