Home ยป Digital Business Revenue in the Southeast Asian Economy to Touch One Hundred Thousand Billion Dollars by 2023: An In-depth Study

Digital Business Revenue in the Southeast Asian Economy to Touch One Hundred Thousand Billion Dollars by 2023: An In-depth Study

Google, Temasek, and Bain & Company have released the e-Conomy SEA report for the year 2023. This year’s theme is “Reaching new heights: navigating the path to profitable growth,” providing insights into the digital industry in Southeast Asia across six countries: Vietnam, Thailand, Philippines, Malaysia, Singapore, and Indonesia.

The specific focus of the report is on the digital business revenue, which is projected to reach $100 billion this year. Meanwhile, the Gross Merchandise Value (GMV), a key metric in the digital industry, is expected to increase to $218 billion. What’s intriguing is that the revenue is growing at a rate of 1.7 times the GMV, reflecting a more stable business landscape.

The report highlights several interesting points, such as the lowest investment in the digital business over the past six years, despite an increase in fundings. The business focus has shifted towards customer retention, profitability, and the growth of digital finance clusters. High-value customers also have a significant impact on overall digital business revenue. Additionally, new growth will come from expanding the customer base beyond the capital city.

There are other interesting aspects of the report worth mentioning. Selected digital business clusters leading the industry in the region include e-commerce, transportation and food delivery, travel, online media (games, music, videos), and financial services.

E-commerce revenue has grown at a staggering rate due to service providers’ increased revenue from commissions and other services like transportation and advertising.

Food delivery services have maintained their customer base even after the COVID-19 pandemic, reflecting changing customer behaviors.

Transportation services have rebounded strongly to pre-pandemic levels.

Digital payments (cards, in-app transfers, e-wallets) account for 50% of total spending, with a continuous decline in cash usage.

Read the full report here (link to be added).

TLDR: The e-Conomy SEA report highlights the projected growth and revenue in the digital industry across Southeast Asia. Key findings include the expected $100 billion digital business revenue, a 1.7 times growth rate compared to the Gross Merchandise Value, and the noteworthy contributions of high-value customers. Various digital business clusters, such as e-commerce, transportation, food delivery, travel, online media, and financial services, are driving this growth. Additionally, the report reveals shifting customer behaviors and the increasing popularity of digital payments.

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