The internet economies in Malaysia, Thailand, Singapore and the Philippines are growing by between 20% and 30% annually, with no signs of slowing down, according to Google and Temasek multi-year research program. 

This is a remarkable feat compared to other regions, but hardly the best showing in Southeast Asia. The two pacesetters in the region are Indonesia and Vietnam, which lead the pack with growth rates in excess of 40% a year.

image
The two pacesetters in the region are Indonesia and Vietnam, which lead the pack with growth rates in excess of 40% a year.

Time is money: competing for user engagement

Companies are switching their focus from acquiring new customers to driving engagement. Their goal is to convince users to stay on their platforms for longer, in the belief that purchases will follow. Vying for user engagement, companies have expanded their scope across sectors, moving into new services, gamifying promotions and streaming enticing content.

This has ignited more intense competition, while providing users with more choices and lower prices.

Growth opportunities beyond metros

The growth of the internet economy has yet to spread evenly across Southeast Asia. Seven metropolitan areas that house just 15% of the region’s population still account for more than 50% of the internet economy.

People living in these metro areas buy six times more online than those living elsewhere. The internet economy, however, has the potential to grow twice as fast in areas outside the big cities, bringing all Southeast Asians on board.

Read More Here

About the author

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

What is Vietnam’s Mining Capacity for EV Batteries?

From automobiles to mobile electronic devices, lithium-ion batteries have become the energy storage solution of choice for many manufacturers.

Malaysia looks to emulate Thailand’s digital park

The campus is an interconnected ecosystem for start-ups and tech entrepreneurs, tech companies, investors, accelerators, incubators, academies, and government agencies to co-exist in Bangkok that help drive Thailand to become a global hub for digital innovation.

Will cryptocurrency expansion continue among emerging markets in 2022?

Emerging markets were at the forefront of last year’s massive growth in global cryptocurrency adoption. With this growth widely tipped to continue into 2022, a range of countries will see their crypto markets mature or expand.