Southeast Asian internet economy to hit $1trln by 2030, report says

Southeast Asian internet economy to hit $1trln by 2030, report says

The popularity of online food orders and deliveries has help fuel the growth of Southeast Asia's internet economy. (Photo: Bangkok Post)
The popularity of online food orders and deliveries has help fuel the growth of Southeast Asia's internet economy. (Photo: Bangkok Post)

SINGAPORE: Southeast Asia's internet economy is forecast to reach US$1 trillion by 2030, as tens of millions more people take up online shopping and embrace food delivery, according to an industry report released on Wednesday.

The report, by Alphabet's Google, Singapore state investor Temasek Holdings and global business consultants Bain & Company, said the region had added 60 million new internet users since the start of the coronavirus pandemic, taking the total to 440 million.

The region of 11 countries is one of the world's fastest growing internet markets, due to a young population, rapid smartphone usage and urbanisation, and a burgeoning middle class.

The online industry for Southeast Asia is expected to grow from an estimated US$174 billion in gross merchandise volume (GMV) by end-2021 to $360 billion by 2025, and $1 trillion by 2030, driven primarily by growth in e-commerce and food delivery, as consumers stuck at home turned to the internet.

The report, which covers Indonesia, Thailand, Vietnam, Singapore, Malaysia, and the Philippines, found that e-commerce GMV is expected to nearly double to $120 billion by the end of the year and reach $234 billion by 2025.

All countries covered experienced double-digit growth in 2021, with Indonesia alone, the region's most populous nation, contributing 40% of Southeast Asia's total GMV at $70 billion.

The Philippines saw 93% growth, becoming a $17 billion digital economy. "GMV (for Southeast Asia) has increased 49% year-on-year, as seismic consumer and ecosystem shifts accelerated by Covid continue to drive a massive digital adoption spurt," said Florian Hoppe, Bain's Asia-Pacific Head of Digital Practice.

Do you like the content of this article?
COMMENT

Govt prepares state agencies to better monitor sex offenders

The Justice Ministry is preparing various government agencies for a new law set to take effect on Jan 23 aimed at preventing people convicted of sexual and violent crimes from reoffending.

08:30

France needed a great Mbappe and got him, says Deschamps

DOHA: Olivier Giroud scored a historic goal for France in their 3-1 last-16 win over Poland at the World Cup on Sunday but it was a pair of Kylian Mbappe screamers that left Al Thumama stadium gasping and coach Didier Deschamps hailing his greatness.

08:26

'Ruthless' England surge past Senegal 3-0 to set up France quarter-final

AL KHOR, Qatar: Clinical England overcame a pedestrian start to surge to a comfortable 3-0 victory over Senegal on Sunday as high-quality goals by Jordan Henderson, Harry Kane and Bukayo Saka swept them into a mouth-watering World Cup quarter-final clash with France.

08:00