SINGAPORE: Southeast Asia's Internet economy was forecast to grow 39 per cent this year to US$100 billion as millions of people in the region went online to shop for the first time and ride-share firms grew in popularity, an industry report showed on Thursday (Oct 3).
The annual report by Google, Singapore's state investor Temasek Holdings and global business consultants Bain & Company also lifted its forecast for the region's growth through 2025 to US$300 billion, from US$240 billion previously.
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The region's online industry has more than tripled in the past four years alone as young users turn to their phones to do everything from banking, playing games and purchasing plane tickets.
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"This pace of growth has exceeded all expectations," the 64-page report, which was first produced in 2016, said. "Internet access is now affordable for large segments of the population and consumer trust in digital services has improved significantly."
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More than US$37 billion has been invested in Southeast Asian online companies over the last four years with the majority going into e-Commerce firms like Zilingo and ride-hailing Unicorns such Grab and Gojek, the report found.
Ride-hailing alone was worth US$13 billion, quadrupling in value since 2015, and expected to reach US$40 billion by 2025 when food delivery will be worth as much as transport.
