Photo Credit: New Mandala

ASEAN’s Internet Economy Have Surpassed 100 Billion USD

Southeast Asia’s internet economy is said to have reached 100 USD this year, according to a research conducted by Google, Temasek Holdings Pte and Bain & Co. It is reported that the manifold rise in the internet economy is because of the increasing usage of internet by the growing youth population of the region. The internet economy is said to have grown by 39 percent in the past 4 years that has enabled the region to cross the 100 billion USD mark this year.

The growth rate of the Asia’s internet economy in Vietnam and Indonesia is said to be over 40 percent while the internet economy of Singapore, Thailand, Malaysia and Philippines is reported to have grown between 20 per cent and 30 percent. Overall, the rise of the internet economy in the region is kept at 39 percent.

The online population of the region is said to be 360 million and 90 percent of the internet users in Southeast Asia primarily uses mobile phones to access the internet. The region have seen an upsurge in usage of internet in sectors that include food, transport, online media, online travel and digital financial services.

E-commerce and ride hailing companies are said to have benefited mostly from online transaction and Indonesia and Vietnam is seen to be leading the pack in internet economy through its unprecedented growth. Google’s Stephanie Davis, managing director, Southeast Asia have said that the reason behind this hike in internet users and the resultant rise in internet economy is because consumers in the region were turning to digital to perform many of their daily tasks.

The study also said that the internet economy is said to cross the 300 billion USD mark by 2025 and e-commerce and ride-hailing companies that uses digital payments have been largely credited for the increasing boom in the internet economy. In addition, digital payment alone is said to exceed 1 trillion USD in 2025 from its present 600 billion USD in the region.