South East Asia’s Internet economy, spanning online shopping to games and advertising, will surge sixfold to about $200 billion in the next decade, according to joint research by Google Inc. and Temasek Holdings Pte.

As more consumers get online and shop from smartphones, e-commerce in the region could jump to $88 billion by 2025, a 16-fold increase, according to a report the two companies released in conjunction with a conference in Singapore.

That growth will be driven by an increase in the number of Internet users from 260 million to 480 million by 2020, according to the report.

Indonesia, the biggest economy in South East Asia, is projected to add Net users faster than any other country in the world, according to the report.

Despite such prospects, the region that also includes Malaysia, Singapore, the Philippines, Thailand and Vietnam attracted less than a fifth of the venture capital funding India received in 2014. In 2014, VC investment in Southeast Asia accounted for 0.04% of its gross domestic product. That compares with 0.15% in China, 0.25% in India and 0.3% in the U.S., according to the report.

“There’s a $200 billion opportunity in South East Asia,” Rajan Anandan, managing director of South East Asia and India at Google, told the conference. “Affordable smartphones and affordable data are really driving this revolution.”

Google and Temasek, Singapore’s state-owned investment company which invests in VC firms and startups through its unit Vertex Venture Holdings Ltd., worked together on the report, using Google’s proprietary data, Temasek’s research, as well as interviews with 59 experts.

Source: Magnitude of ASEAN’s e-commerce potential | Alex Bursak | LinkedIn

About the author

1 comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

New investment makes LINE MAN Wongnai Thailand’s largest tech startup

LINE MAN Wongnai was established in 2020 from the merger of LINE MAN, Thailand’s No. 1 on-demand assistant app, and Wongnai, a restaurant review platform. The company aims to be the most innovative e-commerce platform for services in Thailand

China continues to lead global e-commerce market with over $2 trillion sales in 2022

China accounted for over 37% share in the global e-commerce market, in terms of payments value in 2021. The country was followed by the US with $1.5 trillion, while the UK stood at a distant third with $292.1 billion in 2021

Reshoring China Production to Thailand: Key Sectors that Benefit

Thailand is benefitting from Sino-US trade tensions with several Chinese-based firms relocating part of their supply chain to Thailand, especially for electronics, chemicals, and automotive