SEA online economy grows 39% to $100b in 2019

The online economies of Indonesia and Vietnam grew 40% and led the growth in the region.

Southeast Asia’s Internet economy has grown 39% to $100b in 2019 from $72b last year largely to rapid user growth and changing spending habits, according to a joint Google, Temasek, and Bain & Company report.

Amongst SEA’s six largest markets, Indonesia and Vietnam posted an excess of 40% growth rate this year. Malaysia, the Philippines, Singapore, and Thailand surged between 20-30%.

Also read: Singapore's internet economy to hit US$27b by 2025

Of all factors comprising SEA’s online economy, e-commerce grew the biggest and fastest with 150 million new shoppers and a new value of $38b.

Moreover, over 40 million Southeast Asians became more dependent on ride-hailing apps as the sector is tipped to reach $300b in 2025.

As Internet access is getting more affordable, digital payment systems are hoping to expand to 100 million people with limited online access, with growth projected from $600b this year to $1t in 2025.

On the other hand, SEA businesses are feeling the crunch as they look for skilled workers to fulfill new roles created for the digital economy.