Southeast Asia’s internet economy is forecast to reach $300 billion by 2025 as millions of people in the region take up online shopping and embrace ride-share food delivery, an industry report said on Thursday.
To hit that target, the online industry is expected to grow by 200% over the next five years from an estimated $100 billion this year, according to the report by Google, Singapore state investor Temasek Holdings and global business consultants Bain & Company.
“This pace of growth has exceeded all expectations,” the 64-page report said. “Internet access is now affordable for large segments of the population and consumer trust in digital services has improved significantly.”
Southeast Asia’s average growth rate of 5% per year since 2014 puts it far ahead of the global average and makes it an attractive investment destination as the Chinese economy is hobbled by the Sino-United States trade war.