Southeast Asia’s internet economy is expected to be worth $330 billion by 2025, though this a downgrade from a previous forecast due to economic uncertainty and more pressure on tech companies to make a profit, an industry report said on Thursday.<\/p>\n
The annual report, by Alphabet’s Google, Singapore state investor Temasek Holdings and global business consultants Bain & Company, trimmed its forecast for 2025 from $363 billion in last year’s report.<\/p>\n
“Amidst global macroeconomic headwinds, reduced disposable income, sky-rocketing prices, and lower product availability, there is tapering of demand from Southeast Asia consumers,” the trio said in a joint release.<\/p>\n
The region of 11 countries is one of the world’s fastest growing internet markets, due to a young population, widespread smartphone usage and urbanisation, and a growing middle class.<\/p>\n
The report, which covers Indonesia, Thailand, Vietnam, Singapore, Malaysia, and the Philippines, is still upbeat on this year and sees the internet economy growing 20% to $200 billion, three years earlier than anticipated in an inaugural report in 2016.<\/p>\n
All six countries are expected to post double-digit growth between now and 2025, with Vietnam having the fastest growing digital economy this year at 28%.<\/p>\n
Indonesia, the region’s most populous nation, saw its digital economy grow 22% to $77 billion this year, contributing to about 40% of Southeast Asia’s total online spending.<\/p>\n
On the tech investment front, while early-stage deals are continuing with strong momentum, late-stage deals are seeing “more pronounced dips” and a pause in plans to go public.<\/p>\n
Global investors are getting increasingly cautious amid rising interest rates and plummeting stock valuations, the report said, with initial public offering prospects set to grind to a near halt for the next 12 to 18 months.<\/p>\n
The digital financial services sector is expected to overtake e-commerce to become the region’s top investment sector, with payments taking up the majority share of the deals.<\/p>\n
In the first half of 2022, the sector saw a record funding of around $4 billion.<\/p>\n
Meanwhile, Vietnam, Indonesia and Philippines are likely to attract more investors in the longer-term, the report said.<\/p>\n
“Universally investors generally expect deal activity to recover from 2024 onwards,” said Fock Wai Hoong, Deputy Head of Technology & Consumer and Southeast Asia at Temasek.<\/p>\n
Venture capitalists had $15 billion on hand to sustain deals at year-end 2021, the report said.<\/p>\n","protected":false},"excerpt":{"rendered":"
Southeast Asia’s internet economy is expected to be worth $330 billion by 2025, though this a downgrade from a previous forecast due to economic uncertainty and more pressure on tech companies to make a profit, an industry report said on Thursday. The annual report, by Alphabet’s Google, Singapore state investor Temasek Holdings and global business consultants Bain & Company, trimmed its forecast for 2025 from $363 billion in last year’s report. “Amidst global macroeconomic headwinds, reduced disposable income, sky-rocketing prices, and lower product availability, there is tapering of demand from Southeast Asia consumers,” the trio said in a joint release. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-799616","post","type-post","status-publish","format-standard","hentry","category-telecom"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/799616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=799616"}],"version-history":[{"count":0,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/799616\/revisions"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=799616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=799616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=799616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}