S-E Asia's digital economy set to exceed $390b by end-2025: Study

S'pore continues to be its anchor as it hosts bulk of region's Al start-ups

- Sue-Ann Tan Business Correspondent

At the launch of the annual report by Bain & Company, Temasek and Google on Nov 11 were (from left) Ms Sapna Chadha, Google's vice-president for South-east Asia and South Asia Frontier; Mr Florian Hoppe, a partner at Bain & Company; and Mr Fock Wai Hoong, South-east Asia head at Temasek. PHOTO: E-CONOMY SEA 2025

(E-CONOMY SEA 2025)

With Singapore continuing to be its anchor, the Southeast Asian digital economy is expected to exceed US$300 billion (S$390 billion) by the end of 2025, according to a study out on Nov 11.

Gross merchandise value (GMV) - the value of goods sold on e-commerce platforms, among others - for the region hit US$299 billion as at June 2025.

The findings are from an annual report by consultancy Bain & Company, Temasek and Google, and covers Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

In 2025, the report also expanded to cover four more Asean countries - Brunei, Cambodia, Laos and Myanmar.

When those four countries are included, revenue hit US$100 billion, and GMV hit US$305 billion.

This means that the digital economy of the region in GMV has exceeded the inaugural report's forecast of US$200 billion made a decade ago.

The rise of artificial intelligence (AI) is also expected to make the region ripe for transformation, especially with the region's large internet population and its keen interest in AI, the report said.

Singapore is the region's Al hub, with some 495 AI startups out of the region's 680 AI startups located in the Republic.

Over US$2.3 billion has been invested in AI-related startups.

Temasek is also looking at Al as a theme in deciding where to invest its funds. Temasek Southeast Asia head Fock Wai Hoong said: "AI is a global investment thematic that is impossible to ignore."