Google, Temasek, Bain report on Southeast Asia internet economy 2021
[ad_1]
Gojek drivers in Indonesia waiting to receive passengers
iStock Editorial | iStock Editorial | Getty Images
According to a report by, more than 75% have internet access in six countries of Southeast Asia. The majority have also shopped online at some point. Google, Temasek Holdings and Bain & Company.
According to a Wednesday report, as many as 40,000,000 people in Singapore, Malaysia and Indonesia, Vietnam, Thailand, and the Philippines logged on for the first-time this year.
The report stated that this increased internet use in six countries has resulted in more than 440,000,000 people using the Internet. Almost 80% have made at least one purchase online.
This report does not include the population of all Southeast Asian nations, so it leaves out ASEAN member Brunei. Cambodia, Laos, Myanmar and East Timor.
Digital services like e-commerce and food delivery, as well as online payments saw a spike due to the coronavirus pandemic. More than 60 million people in the region used digital services for the first time due to Covid-19 — and 20 million of them did so in the first half of 2021, according to the report, which is in its sixth year.
A road map to an internet economy worth $1 trillion
The majority of internet sector in Southeast Asia has been resilient to the effects of the pandemic. This included months of strict lockdown measures that affected employment and businesses worldwide.
Countries are slowly lifting restrictions to allow their economies to rebound, as the population becomes more vaccinated against Covid.
The report predicted that the internet sector in those six Southeast Asian countries could reach $174 billion in gross merchandize value (GMV) in 2021 — up 49% from a year ago, with e-commerce driving most of the growth. GMV is a metric most commonly used in e-commerce that measures the total dollar value of goods sold over a certain period of time.
According to the report, the growth of ecommerce in the region is also attributed to increased use of e-commerce and digital payment systems. According to the report, $707Billion in digital transactions will be made this year by these six countries. This is an increase of 9 percent over 2013.
The six countries will experience double-digit increases in their GDP this year as compared to 2020.
Reports show that the Philippines has a strong lead and expects to see 93% growth of GMV (from $9 billion in 2020 to $17 million in 2021).
In total, it is expected that the Internet Economy in six countries will exceed $360 Billion by 2025. The report predicts that it will reach $700 billion-$1 trillion by 2030, as more people shop online.
The landscape of deals is thriving
Southeast Asia is seeing more investors invest in its internet economy. This includes sectors like e-commerce, online financial services and e-commerce.
According to the report, 11 unicorns in consumer technology have emerged this year thanks to larger funding rounds and better valuations. Meanwhile, more well-established companies are looking into initial public offerings. A unicorn start-up is one that has a value of $1 billion or more.
[ad_2]