Thursday, 9 December, 2021

Southeast Asia Internet economy to hit $1tn by ’30

Southeast Asia Internet economy to hit $1tn by ’30

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, an industry report said 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 COVID-19 pandemic, taking the total to 440 million, report agencies.

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 US$360 billion by 2025, and US$1 trillion by 2030, driven primarily by growth in e-commerce and food delivery, as consumers stuck at home turned to the Internet.