Southeast Asia's internet economy to cross 0b this year: Industry report, Digital News

Southeast Asia's internet economy to cross $130b this year: Industry report, Digital News

Singapore’s Online Empire Is Growing Faster Than a Rubber Duck in a City Of Lights

In 2024, Southeast Asia’s digital playground is worth a staggering US$105 billion (roughly SGD 141 billion). The surge? A pandemic‑driven roller‑coaster that pushed millions of folks to click “Buy” instead of “Cancel.” The report—crafted by Google, Temasek Holdings, and Bain & Co.—covers five key players in the arena: Indonesia, Malaysia, Vietnam, Singapore, and the Philippines.

More People, More Clicks

  • +40 million new internet users this year (now 400 million in total)
  • About 70 % of the region’s pop is online
  • Internet adoption grew by a solid 5 % since 2019

The big takeaway? COVID slapped a permanent boost of digital habits on everyone. Whether it’s shopping, ordering pizza, or binge‑watching, people are now glued to their screens.

Which Sectors Are Winning?

  • E‑commerce surged 63 %, hitting US$62 billion in 2020—now the biggest vertical.
  • Travel took a 58 % hit, dropping to US$14 billion.
  • Singapore’s online economy shrank 24 % to US$9 billion because of the travel slump.
  • Vietnam & Indonesia? Still booming, doubling growth rates.

A look ahead: the region is set to triple its gross merchandise value to US$309 billion by 2025—pretty much on target with last year’s US$300 billion forecast.

Fast‑Track to Unicorns

With 11 % more users, Southeast Asia has become one of the fastest‑growing digital markets worldwide.

  • Global online users reached ~4.7 billion, up 7.4 % from last year.
  • Startups like Grab and Go‑Jek have become unicorns, sucking in billions of dollars from tech giants and investors.
  • Deal volume dropped since 2018 because big‑ticket unicorn funding slowed. In H1 2020, deals hit US$6.3 billion—down from US$7.7 billion the previous year.
  • Investors still have plenty of cash but are focusing on companies that can hit the bottom line.

Simply put, the pandemic rewrote the playbook for Southeast Asia’s digital economy: more users, more clicks, and a sharp pivot toward e‑commerce that’s reshaping how we shop, travel, and play.