The digital economy is booming in SE Asia. A report called E-Conomy SEA 2018 by Google and Temasek about ride hailing apps, online media, online travel and e-commerce makes in SE Asia has some interesting facts and predictions:
- 350m
SEA digital consumers in 2018 in a $72Bn E-Conomy, expected to reach $240bn
by 2025
- Indonesia’s
e-commerce sector dominates the SEA region at $27bn in value; Vietnam has
the largest e-commerce share of total GDP at 4%
- 41%
of travel is booked online now, due to rise to 57% by 2025
- Online
media – gaming, ads, gambling and subscription music & video is growing
by 24% p.a. in SE Asia
- Ride
hailing and food delivery are with 26% growth with Indonesia tha largest and
fastest growing
- VC
funding is booming - 2,000+ internet companies got funding of over $7 bn over
3 years (record $1.4 bn in 2018)
- Unicorn companies include Bukalapak, Lazarda, Go-Jeck, Grab, Tokopedia Razer, VNG,
Traveloka. Only Lazarda has been through an exit (trade sale to Alibaba)
- Fintech
is attracting a great deal of new interest; Medtech, digital education and
social commerce will grow too
- Singapore
HQ and Indonesian companies got the most investments
- Improvements:
Mobile data costs falling, consumer trust growing, skilled talent pool bigger
- Challenges:
logistics still hard, disparate payment systems
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