'SE Asia’s internet economy to pass $100B this year'
Virus pandemic sparks surge in e-commerce, travel businesses decline, says e-Conomy SEA 2020 report
Southeast Asia’s internet economy will hit $105 billion this year amid increased e-commerce activity due to the coronavirus pandemic, according to a report published on Tuesday.
Despite a global economic slowdown, the gross merchandise value of the region’s internet economy has remained steady at an estimated $100 billion in 2020 and is expected to exceed $300 billion by 2025, according to the e-Conomy SEA 2020 report by Google, Singapore state investor Temasek Holdings, and business consultants Bain & Company.
The report covers the largest economies in the Southeast Asia region -- Indonesia, Malaysia, Vietnam, Singapore, and the Philippines.
It said e-commerce usage surged 63% this year to reach $62 billion, while travel businesses suffered significant challenges and contracted 58% to $14 billion.
Digital financial services have also seen a significant rise, with the average proportion of cash transactions declining from 48% of the total before the pandemic to 37%, the report said.
Singapore’s internet economy contracted 24% to $9 billion as the pandemic strangled the travel sector, while Vietnam and Indonesia continued to rise at double-digit rates, according to the report.
With an 11% surge in online users, the region’s online economy is expected to triple to $309 billion in gross merchandise value (GNV) by 2025, it added.
*Writing by Rhany Chairunissa Rufinaldo with Anadolu Agency's Indonesian-language service in Jakarta
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