According to Google’s Temasek e-Conomy SEA 2021 Report (“Google Report”), internet usage in Southeast Asia increased with 40 million new users added in 2021 for a total of 440 million, up from 360 million in 2019 and 400 million in 2020.
Despite the continuing effects of the Covid-19 pandemic, the Internet economy continues to boom in Southeast Asia.
For example, Treasure Global reports that 89% of Malaysia‘s population is now online, up from approximately 56% in 2010.
At the same time, 81% and 80% of Malaysian and Southeast Asian Internet users, respectively, have made at least one purchase online.
The adoption and use of e-commerce, online media and food delivery soared with the total value of goods and services sold over the Internet, or gross merchandise value (GMV), in Southeast Asia expected to reach approximately $170 billion by the end of 2021, according to the Google Report.
In fact, according to the Google Report, the gross merchandise value of the Internet sector in Southeast Asia is expected to exceed $360 billion by 2025, up from $300 billion projected in the Google, Temasek and Bain Southeast Asia Report 202011.
Malaysia’s Internet economy has grown from $14 billion in 2020 to $21 billion in 2021 (47% growth) and is expected to grow to $35 billion by 2025.
As consumers in these markets are gradually shifting to the online platform model, the total value of Internet-based transactions has grown tremendously and is expected to continue to do so.
According to Google’s report, the total VGM of the Internet economy in South Asia is expected to soar from $174 billion in 2021 to $363 billion in 2025.
Treasure Global sees these positive economic and demographic trends in Southeast Asia and South Asia driving demand for its e-commerce platform.