Tag: digital economy

Kuala Lumpur, Malaysia – Malaysia’s digital economy is poised to reach $31 billion in Gross Merchandise Value (GMV) in 2024, an increase of 16% from 2023 according to the latest e-Conomy SEA 2024 report by Google, Temasek, and Bain & Company. In it, it stated that travel rebound and E-commerce underpin growth, with Malaysia recording significant investment in AI infrastructure and amongst top ten globally driving AI search interest.

According to the report, Malaysia’s digital economy has progressed towards profitability while maintaining double-digit growth for GMV. Deeper digital participation among users, effective monetisation strategies, and the recovery of pandemic-impacted sectors are expected to drive continued growth.

E-commerce remains the largest contributor to the digital economy. The sector grew by 17% to $16 billion GMV in 2024, as major ecommerce platforms reinvest in GMV growth, paired with the rise of video commerce. 

Meanwhile, online travel posted the fastest GMV growth compared to other sectors at 19% year-on-year (yoy) to reach $8 billion GMV in 2024 as Malaysia’s international tourism is experiencing a robust recovery and expected to exceed pre-pandemic levels in 2024. Spending on overseas travel has jumped 330% since 2020 as Malaysians take advantage of opportunities to travel abroad, though primarily in the Asia Pacific region, which accounted for 38% of outbound expenditures.

Speaking of travel, SEA visitors account for almost half (49%) of Malaysia’s inbound traveller spend, driven by several factors including improved air connectivity, strategic airline partnerships and a favourable exchange rate.

On another sector, food delivery and transport has grown 10% from $3 billion GMV in 2023 and to reach $4 billion in 2024. This steady growth momentum is driven by the recovery of commuter demand and international travel. 

Food delivery platforms are increasingly focused on boosting profitability through new revenue streams like tiered delivery options and subscription plans, while competitive intensity remains high in ride hailing due to new player entry and expansion of existing players.

Furthermore, online media in Malaysia has shown consistent growth with its GMV expected to grow 10% from $3 billion in 2023 to $4 billion in 2024, driven by the increasing popularity of digital content, games and streaming services. 

Lastly, digital financial services continues on an upward trajectory as various Malaysia’s digital banks offer compelling features and ease of access, contributing to the rapid growth of the DFS landscape. Digital payment is expected to reach $172 billion in 2024, a 5% increase from 2023, while digital wealth is expected to significantly expand and  reach an assets under management (AUM) of approximately $80 billion by 2030.

It is worth noting that artificial intelligence (AI) is transforming Malaysia’s digital landscape as the government continues to place emphasis on responsible AI development and deployment through its Malaysia AI Roadmap 2021-2025 and upcoming National AI Office (NAIO) launch. 

Malaysia is also among the Top 10 countries globally driving AI search interest, especially in the education, marketing and gaming sectors, with Kuala Lumpur, Putrajaya, and Selangor leading the nation in AI interest.

As more companies deploy AI to innovate, improve efficiencies and customer experiences as well as bring new ideas to life, the demand for AI infrastructure will continue to grow. To meet this demand, Malaysia has recorded a large AI infrastructure investment among SEA countries at $15 billion in H1’24. The report estimates Malaysia’s current data center capacity at 120MW and expects that to expand 5X over the coming years. 

Malaysia has seized the AI opportunity through strategic initiatives like KL20, which will bolster the startup ecosystem through incentives for high-tech industries, tax exemptions on foreign investments and a billion dollars in government funding for startups in Malaysia and the region.

YB Tuan Gobind Singh Deo, Minister of Digital, stated, “As Malaysia assumes the ASEAN Chairmanship next year, we aim to be a regional champion for digital policies that are forward-looking and transformative, to promote a regulatory environment that encourages technological advancement and to nurture cross-border collaboration. The e-Conomy report serves as a powerful validation of our efforts and is not merely a report; it is a testament to the immense potential that lies ahead for Malaysia’s digital future. It is a call to action for all of us – the government, the private sector, and the people of Malaysia – to collaborate and realize our nation’s full digital potential. Let us seize this opportunity and together, build a digitally empowered Malaysia that is prosperous, inclusive, and sustainable.”

Meanwhile, Farhan Qureshi, country director for Google Malaysia, said, “We have been seeing a consistent strong growth of Malaysia’s digital economy and this year is another strong testament of the potential of Malaysia’s digital economy. With the region’s focus on AI, it’s encouraging to see the country’s leaders are putting AI and semiconductors in the country’s priority list. At Google, we are committed to further support the growth of Malaysia’s digital economy by accelerating the local workforce with AI-ready skills and tools. From equipping youths with future-ready skills in AI through Google Career Certificate scholarships to deploying Google Workspace for public officers, we are dedicated to ensuring Malaysia remains at the forefront of the digital age.”

Amanda Chin, partner at Bain & Company, commented, “Southeast Asia’s digital economy continues to do well, with continued double-digit GMV and revenue growth and a surge in profitability across sectors led by key players. Likewise in Malaysia, we see a healthy digital economy driven by e-commerce, online travel and digital financial services. As Malaysia’s DFS sector embraces digital disruption, new technologies such as AI are poised to accelerate growth. To fully harness the transformative potential of Generative AI, businesses must advance beyond experimentation and invest in foundational elements—aligning AI initiatives with core business objectives to address real-world problems and create tangible value, strengthen AI talent, and build scalable, adaptable infrastructure for sustained growth.”

Lastly, Geia Lopez, head of data, insights, and international growth at Google Southeast Asia, stated, “Investments in AI infrastructure and growing interest of Malaysians in AI technology signal a promising future for the country’s digital economy. As the digital landscape evolves, driven by strategic government initiatives, it is essential to prioritize digital security to safeguard data, maintain trust, and ensure the sustained progress of the digital sector.”

Singapore—The latest ‘e-Conomy SEA report’ from Google, Temasek, and Bain & Company has been recently released and highlights that in 2024, the digital economy will reach $263b in Gross Merchandise Value (GMV), a 15% increase over last year. Revenues have also grown 14% and are projected to reach $89b in 2024. The report suggests that the digital economy can achieve both profitability and growth in tandem, marking a significant step towards achieving sustainable economic value.

Why SEA is primed for AI-powered acceleration

Southeast Asia is quickly becoming a global center for AI innovation and adoption. With substantial investments in AI infrastructure and a dynamic ecosystem of startups and developers, the region is on track to harness AI’s transformative potential across a wide range of industries. 

In the first half of 2024 alone, SEA attracted over $30b in AI infrastructure investments. Additionally, consumer interest in AI solutions is surging, with AI-related searches increasing 11-fold in the past four years. The region’s young, growing population, high levels of digital literacy, and widespread smartphone usage make it an ideal market for AI-powered products and services. 

From AI-driven travel planners to generative AI-based fraud detection, AI is delivering value across SEA’s digital economy, with applications spanning various industries. Pro-innovation policies that encourage AI growth and responsible governance will further expand opportunities within the region’s digital economy.

From transport, e-commerce, and online travel–these are the sector redefining SEA’s digital economy

After years of investment and development, leading players in the region’s digital economy are now progressing toward profitability while maintaining strong double-digit growth in both gross merchandise value (GMV) and revenue. Continued growth is expected to be driven by deeper digital engagement among users, effective monetisation strategies, and the recovery of sectors affected by the pandemic. E-commerce has also regained momentum, fueled by the rise of video commerce.

E-commerce, projected to reach $159b in GMV by 2024, is now primarily driven by existing customers, who contribute up to 70% of its growth. This marks a shift from previous years when first-time shoppers were the main drivers. Established players are reinvesting to boost GMV and defend their market share, as international competitors disrupt the market. Revenue is expected to increase 13% year-on-year (YoY) to $35b in 2024.

Meanwhile, video commerce has rapidly grown to account for 20% of e-commerce GMV, a significant jump from less than 5% in 2022. This trend is reshaping the e-commerce landscape in Southeast Asia, transforming the consumer shopping experience. From live shopping events to content created by influencers, video has become an essential component of online shopping.

Food delivery is also gaining traction as dining-out habits stabilize and new monetization avenues, such as in-app advertisements and subscriptions, emerge. Revenue in this sector is forecasted to rise by 54% YoY to $1.7b in 2024, while GMV is set to grow by 7% to $19b. Platforms are experimenting with strategies for future profitability, such as improving restaurant visibility and using AI to optimize operations.

In another industry seeing growth, the transport sector has surpassed pre-COVID levels, with revenue expected to grow by 36% YoY to $1.5b, driven by increased demand and strategic pricing. GMV is projected to rise by 18% to $9b. Despite inflationary pressures, consumer demand remains strong due to the expansion of established players into second-tier cities and rural areas, along with aggressive promotions by new entrants seeking user growth.

Online travel is outpacing the broader digital economy in terms of Gross Travel Bookings (GTB) growth, fueled by intra-regional travel within Asia-Pacific. Higher airfares and a growing preference for luxury travel options are expected to push GTB to $46b in 2024, a 21% YoY increase, while revenue is set to grow 18% to $20b. While direct booking channels remain dominant, online travel agencies continue to successfully monetise their core services as well as adjacent offerings, such as financing and insurance.

Meanwhile, online media is on track for significant growth, with GMV projected to rise to $30b, an 11% YoY increase. Video-on-demand and gaming are key drivers, with SEA developers gaining recognition in casual gaming and hyperlocal content. Advertising remains a reliable revenue stream, while hybrid models incorporating in-app purchases, subscriptions, and ads are becoming increasingly popular to cater to diverse player segments. The rise of gaming influencers has fueled a thriving creator ecosystem, with livestreaming becoming a key tool for facilitating real-time interaction between sellers and consumers.

Lastly, Digital Financial Services (DFS) are expanding rapidly, with revenue expected to grow by 22%, from $22b in 2022 to $33b in 2024. Digital payments and lending, which make up more than 90% of DFS revenue, are the primary growth drivers. E-wallets have become widespread, partnering with major payment card networks, while QR code usage continues to rise. 

It’s worth noting that a generational shift in investor behaviour is reshaping the wealth management landscape, a trend that is likely to persist as more merchants accept digital payments, risk assessment improves, and consumers increasingly seek online solutions for insurance and wealth management.

Increase in investor confidence in SEA’s long-term potential

Despite the ongoing challenges in the funding landscape, investors have demonstrated cautious optimism, channelling nearly 50% of their investments into emerging sectors. Although the exit environment remains difficult, early-stage companies in Southeast Asia have made substantial strides toward profitability. There is also a growing emphasis on fostering cross-border collaborations and improving IPO regulations to enhance capital market conditions.

Last year, the report highlighted four key factors to revitalise the funding landscape: realistic entry valuations, proven monetisation models, a clear path to profitability, and reliable exit strategies. While the first three have been successfully achieved, creating dependable exit pathways is still a work in progress due to the continued challenges in capital markets.

Singapore continues leading SEA’s increased appetite in AI products, services

Singapore’s digital economy has shown impressive resilience and is expected to reach $29b in GMV by 2024, marking a 13% increase from 2023. E-commerce has bounced back, growing from $8b in GMV in 2023 to $9b in 2024, while sectors like online media and travel have experienced double-digit growth, driven by strong infrastructure and pro-business policies.

Singapore ranks among the top 10 countries globally in terms of interest in AI-related topics, with sectors such as education, marketing, and travel leading AI search trends. There is a high demand for mobile apps featuring AI capabilities, including content creation tools, photo editing apps, and AI-powered virtual assistants. 

AI has also played a pivotal role in boosting Singapore’s tourism industry, enabling chatbots to provide personalised recommendations, analyse visitor data to optimise marketing strategies, and enhance visitor experiences through interactive exhibits and customised guides.

To meet the growing demand for AI infrastructure, investments in AI-ready data centers reached $9b in Singapore during the first half of 2024, second only to Malaysia, which attracted $15b in similar investments.

Digital Financial Services (DFS) have also become a key driver of growth, with digital payments and wealth management leading the way. Singapore’s status as a regional financial hub has drawn substantial venture capital and private equity investment. To stay competitive, the Singapore Exchange (SGX) has introduced initiatives to improve exit options and attract investor capital and IPOs. Singapore’s favourable business environment, political stability, and tax incentives have further strengthened its position as a leading economic hub.

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For Sapna Chadha, vice president for Southeast Asia and South Asia Frontier at Google, Southeast Asia’s digital economy is rapidly evolving as businesses adopt innovative strategies to achieve profitability, fostering a more sustainable and resilient ecosystem. 

“The rise of video commerce is supercharging e-commerce growth, with live shopping and creator-led content reshaping how people discover and buy products. Southeast Asia is emerging as a global hub for AI innovation and adoption. With significant investments in AI infrastructure and a thriving ecosystem of startups and developers, the region is poised to unlock the transformative power of AI across various sectors,” she said.

Meanwhile, Fock Wai Hoong, head of Southeast Asia at Temasek remarked how it is encouraging that SEA’s digital businesses are now focusing on achieving the appropriate balance between growth and profitability.

“Investors have also started looking for the next wave of growth by investing in nascent sectors such as software and services as well as AI, demonstrating confidence in the long-term potential of SEA’s digital economy. Temasek remains committed to deploying catalytic capital to the region’s digital economy to achieve sustainable and inclusive growth so that every generation prospers,” he said.

Lastly, Florian Hoppe, partner at Bain & Company stated that Southeast Asia’s digital economy continues to do well, with continued double-digit GMV and revenue growth and a surge in profitability across sectors led by key players. He also remarked how the region is also attracting significant AI investment, with over $30b committed to AI infrastructure in the first half of 2024.

“To fully harness the transformative potential of Generative AI, businesses must advance beyond experimentation and invest in foundational elements—aligning AI initiatives with core business objectives to address real-world problems and create tangible value, strengthen AI talent, and building scalable, adaptable infrastructure for sustained growth,” he said.

Kuala Lumpur, Malaysia – The Malaysia Digital Economy Corporation (MDEC) has announced two Memorandums of Understanding (MoUs) with Singapore’s Ascent and Indonesia’s Central Capital Ventura (CCV), marking a significant milestone in its efforts to strengthen Malaysia’s digital economy. 

These strategic partnerships bring in capital investment up to US$45m (RM200m) to fuel innovation, accelerate the growth of local startups, and reinforce Malaysia’s role as a premier digital hub within the ASEAN region.

Ascent has pledged to invest in early-stage Malaysian startups across pivotal sectors, including fintech, embedded finance, healthcare, sustainable agriculture, SME support, and next-generation technologies like Artificial Intelligence (AI) and robotics. 

This funding aims to boost financial inclusion, foster digital transformation, and empower high-potential startups to expand regionally. Through this initiative, Malaysia is well-positioned to emerge as a leader in innovation within these fields.

Meanwhile, Central Capital Ventura (CCV), the venture arm of Indonesia’s largest private bank, Bank Central Asia (BCA), is extending its regional ecosystem network to Malaysian startups, enabling collaboration across Southeast Asia. 

This strategic investment aligns with MDEC’s mission to accelerate growth in AI, cybersecurity, blockchain, and digital finance, providing essential support to Malaysian startups in these rapidly evolving sectors.

“Attracting global investments like these reinforces MDEC’s commitment to nurturing talent, driving digital inclusion, and strengthening Malaysia’s role as a regional leader in technological advancements. The strategic MoUs will enhance cross-border innovation, allowing Malaysian companies to leverage the resources and expertise provided by Ascent and CCV to expand their operations and compete globally. These partnerships will drive local innovation, foster talent development, and contribute significantly to Malaysia’s transformation into a dynamic digital-first nation,” MDEC said in a press statement.

They added, “These collaborations will offer Malaysian startups access to international markets, mentorship from industry experts, and potential follow-on investments. MDEC will work closely with Ascent and CCV to ensure the successful execution of these initiatives and to maximise their long-term impact on Malaysia’s digital economy.”

Manila, Philippines – Following the significant digital participation of AI, Google’s latest e-Conomy report for Southeast Asia revealed the accelerated growth for Philippines is expected to reach double digital growth from 2023 to 2025, positioning itself as one of the region’s fastest-growing economies.

Amongst the findings, it was reported that e-commerce continues to be the primary driver of the country’s digital economy, accounting for its 70% overall online activities. Benefiting from the shift of informal, unorganised commerce to organised digital platforms, it is also expected to reach $24B GMV by 2025 at 21% CAGR. 

By 2025, the local digital economy is set to continue its double-digit climb towards $35B GMV, growing at 20% CAGR making the Philippines a fastest-growing digital economy.

Meanwhile, online travel demonstrated the largest growth from 2022 to 2023 at 88% due to the ongoing momentum of tourism. 

Specifically, both domestic and regional transport providers are growing into outer cities. Businesses have also embarked on expanding their two-wheeler products as a more cost-effective alternative form of transportation in an effort to attract these markets. 

Speaking about the report, Nikki Del Gallego, head of data and insights at Google Philippines, said, “With continued double-digit climb towards $35B by 2025, the country’s digital economy continues to exhibit resilience and generate opportunities for Filipinos despite macroeconomic headwinds. This momentum is poised to continue, fueled by the immense potential of AI and the digital participation of internet users outside Metro Manila which could drive medium to long term growth.”

Bennett Aquino, partner at Bain and Company also commented, “It really is quite a feat that both Southeast Asia’s digital economy GMV and revenue continued their double-digit growth momentum despite this challenging macroeconomic environment, with revenue breaking the $100B mark in 2023.”

“More than anything, this shows the resilience of the Southeast Asia digital economy and that the key players are figuring out the monetization puzzle and making headway towards healthier unit economics. Despite external headwinds, we are optimistic that the digital economy – both for SEA and the Philippines – will continue to grow substantially in the longer run,” he added.

Meanwhile, Fred Pascual, secretary at the Department of Trade and Industry, said, “It is truly remarkable that the Philippine digital economy is on track to achieve sustained double-digit growth. Through a whole-of-government approach, the Department of Trade and Industry (DTI) remains committed to collaborating closely with partners from various sectors, including Google, to empower Filipinos in realising the benefits of the growing digital economy through upskilling opportunities.”

This year’s SEA digital economy revenue also is projected to reach $100 billion, expanding at a rate 1.7 times faster than the GMV of the area. This further delves into the opportunities of increasing digital participation to unlock the potential of raising digital engagement.

Kuala Lumpur, Malaysia – The 8th edition of the e-Conomy SEA report by Google, Temasek and Bain & Company has noted that domestic demand will drive economic growth in Malaysia with household spending, employment and wages on the rise. It also noted that online travel is growing 49% YoY – fastest of all the digital economy sectors – reaching $4b in gross merchandise value (GMV).

According to the report, Malaysia has the fastest-growing transport and food delivery sector in SEA. The sector grew 16%, boosted by Malaysian commuters’ return to offline activities and the continued preference for food delivery. 

It also added that even though foot traffic in malls has recovered to pre-pandemic levels and the food and beverage industry is experiencing an uptick, Malaysian consumers have held onto the digital habits that make their lives easier, such as food delivery and e-commerce. 

Meanwhile, e-commerce growth is flattening after growing 4% between 2021 and 2022 from pandemic-driven growth, but it remains Malaysia’s biggest digital economy sector at $13b, accounting for 57% of the total GMV. E-commerce is seeing high adoption in Kuala Lumpur and Selangor. 

However, there is a persistent gap between demand and supply in other areas of Peninsular Malaysia and East Malaysia, which presents an opportunity for e-commerce players to expand in those areas.

In terms of digital financial services (DFS) adoption, the irreversible offline-to-online behavior shift continues to drive growth in DFS adoption, and cash is no longer king with QR codes and other forms of digital payments becoming ubiquitous. Digital payments are the biggest value driver within the DFS categories in Malaysia – $165b GTV in 2023 – boosted by the government’s support for digital payments adoption and distributing benefits to lower-income communities through e-wallets. This has placed Malaysia as the 2nd biggest digital payment market in SEA in 2023.

It also noted that digital wealth grew 61% YoY – fastest of all the DFS categories – and is expected to be the second largest DFS sector in Malaysia by 2030. The increasing interest towards digital wealth presents a lucrative opportunity for established financial services institutions to retain high-net-worth customers. 

As the competition between DFS players intensifies, pure-play fintechs have extended their lending services to the underbanked segment, while established financial services institutions have been quick to shift their large existing customer bases to digitalised services. 

Lastly, Malaysia has seen good progress on digital inclusion, making inroads into rural areas to bridge connectivity gaps. The percentage of households with internet access saw an increase from 76% to 97% for urban and 49% to 89% for rural, within the time frame of 2015 – 2022. However, consumers outside of metro areas are at risk of facing a widening digital economic divide when it comes to digital participation – active involvement in the digital economy through consumption of products or services across sectors. 

Samuele Saini, country director at Google Malaysia, said, “Malaysia’s GMV is projected to reach between $45b and $70b by 2030 and we’ve seen how the resurgence of tourism along with Malaysian consumers’ sticky digital behaviours in e-commerce and food delivery can contribute to this economic growth. With Malaysia making good progress in bridging connectivity gaps, addressing the digital participation beyond metro areas can prove to be a key in unlocking the next wave of growth.”

Meanwhile, Willy Chang, partner at Bain & Company, commented, “t is remarkable that both Southeast Asia’s digital economy GMV and revenue continued their double-digit growth momentum, with revenue breaking the $100B mark in 2023. This shows the resilience of the Southeast Asian digital economy and that the key players are making progress towards more healthy unit economics and sustainable business models. Despite external headwinds and some return to in-person dining and shopping, we are optimistic that the overall digital economy will continue to grow in the longer run.”

Singapore – Amidst economic headwinds, Asia’s digital economies continue to post impressive gains, with cross-border initiatives and tools offering businesses new avenues to unlock unprecedented growth, according to the latest report by market intelligence firm IDC and commissioned by global payments platform 2C2P and Ant Group.

Data from IDC’s report mainly suggests that SEA leads in digital economy growth at 15.8% for the next five years, unlocking significant commerce opportunities for SEA and outpacing the United States and Europe.

Coupled with Korea and Japan, SEA’s digital economy is on the verge of explosive growth, projected to skyrocket from $501.7 billion in 2022 to a staggering $914.9 billion in 2027, marking an impressive 82% leap in just five years.

SEA also anticipates a 100% expansion in the e-commerce market, driven by accelerated digital payments growth, led by ‘buy now pay later’ options (38%), mobile wallet (18.9%), domestic payment (16.9%) and credit cards (14.4%).

Furthermore, private and public sector efforts are poised to inject an impressive $232.4 billion in fresh cross-border revenue into the SEA, Korea, and Japan economies from 2022 to 2027, as cross-border e-commerce revenue is primed to grow by 70% in those five years, outpacing the growth of domestic e-commerce revenue.

Talking about the results, Aung Kyaw Moe, founder and CEO of 2C2P, said, “Our mission at 2C2P is to empower businesses to navigate and thrive in the dynamic payment landscape in Asia. We hope the findings of this report encourage businesses to unlock the immense potential of Asia’s digital economies by tapping on existing public-and private-sector initiatives and tools.”

Meanwhile, Douglas Feagin, senior vice-president of Ant Group and head of cross-border mobile payment services at Alipay+, commented, “The rapid rise in the number and diversity of digital payment options presents a challenge  for small to mid-sized merchants. Which is why it is now imperative for businesses to cater positively to these digital habits, and I believe that by working together, we can help more consumers and businesses benefit from digitalisation.”

Singapore – TikTok has announced a multi-million dollar investment that will be aimed at helping SMBs transition their businesses online and participate in the digital economy. A total of US$12.2m will be used to deliver cash grants, digital skills training, and advertising credits for SMBs, including micro businesses in rural and suburban areas. 

This comes as TikTok continues to grow as a valuable platform for businesses and creators. According to research by the platform, SMBs polled increased their revenue by nearly 50% through selling their products and services on TikTok, and close to four in five businesses (79%) transitioned from offline to online marketing channels using the platform.

“Across Southeast Asia, more than 325 million people come to TikTok every month and 15 million businesses use the platform. The role we’ve played in expanding economic opportunities, education and community-building in this region and around the world is immense. We are excited to see the positive impact TikTok has had and are committed to continuing the work of helping individuals, communities, and businesses grow and thrive,” said Shou Chew, CEO of TikTok. 

Amongst the initiatives TikTok has planned for the SEA region is the ‘Support Local’ programme where over the next three years, it aims to empower micro and small businesses, particularly those in rural areas, who may be new to social commerce. Partnering with more than 25 government agencies and non-profit organisations across the region, the programme will give businesses the opportunity to reach new digital consumers through cash grants, digital skills training, and advertising credits.

In Indonesia, it will be partnering with the Ministry of Tourism and Creative Economy, Asosiasi Pusat Pengembangan Sumberdaya Wanita (PPSW), Platform Usaha Sosial (PLUS), and Telkom to launch TikTok Jalin Nusantara. Said initiative will establish internet connectivity in community hubs across nine rural villages in East Nusa Tenggara and North Sumatra. Besides strengthening the local digital infrastructure, TikTok Jalin Nusantara will offer training programmes in these villages, as well as in five creative hubs in key tourism and creative economy centres and five Telkom IndigoHubs. 

A partnership is also on the horizon within the Bangkok market which will further support TikTok as a learning platform for users. The company has collaborated with social enterprise Kid Kid, the Ministry of Natural Resources and Environment, and Bangkok Metropolitan Administration to raise environmental awareness and action amongst youth in Thailand. This includes educational workshops and challenges on everyday sustainable lifestyle choices, such as waste segregation and energy consumption. The programme is also in line with the company’s goal of increasing educational climate content and achieving operational carbon neutrality by 2030.

Beyond on-platform education, TikTok will continue to develop the next generation of entrepreneurs, particularly youth who may not have equal access to economic opportunities. In partnership with ASEAN Foundation, the Social Enterprise Development Programme will provide capacity building, mentorship, facilitation to market, and seed funding of up to US$320,000 to 20 youth-led social enterprises in the region, contributing to UN Sustainable Development Goals in Southeast Asia.

“In just over six years, we have created new avenues for income generation for both creators and businesses on the platform. We have also introduced e-commerce channels such as TikTok Shop, which allows SMBs to connect with new consumers and grow their businesses,” said Teresa Tan, head of public policy for Southeast Asia. 

“Our mission to inspire creativity and bring joy is firmly rooted in our desire to enable discovery, growth, and connections among individuals and communities in Southeast Asia. Today’s newly-formed partnerships and initiatives will expand our efforts to empower micro and small businesses who may face limited access to digital resources and opportunities. We are grateful for the support we’ve received throughout the region and are excited about the future impact we can make together,” added Tan. 

With a workforce of close to 8,000 employees across the region, TikTok also shared that it is committed to investing in developing local talent. Initiatives such as the regional TikTok Shop Graduate Development Programme, aimed at building talent for the e-commerce industry, and Singapore’s TikTok Tech Immersion technical boot camp for tertiary-level students, offer opportunities for young tech talent to thrive. 

Manila, Philippines – The trio Google, Temasek, and Bain & Company has finally released its overview of the SEA region’s digital economy for 2022. Titled ‘Through the waves, towards a sea of opportunity,’ the latest iteration of the annual e-Conomy SEA report projects that the Philippine digital economy is on track to hit $20b Gross Merchandise Value (GMV) by the end of the year. This is a $3b growth from last year’s $17b projected value. 

It is also projected to reach $35b GMV by 2025 and $100b to $150b GMV by 2030.

Despite the partial resumption of in-store shopping, e-commerce accounted for 70% of the overall Philippine digital economy. It is expected to reach $14b GMV by 2022 with a 17% growth from last year and is expected to amount to $22b GMV by 2025 as it continues to steer the local digital economy.

Aside from e-commerce, food delivery and video-on-demand round up the top three digital activities of Filipinos, showing an adoption rate of 88%, 69%, and 58% respectively amongst digital urban users.

Moreover, projections include transport and food delivery reaching $1.9b GMV, travel growing at $1b GMV, online media reaching $3.1b GMV, and digital financial services such as lending and remittance hitting $6b this year.

The report also stated that the Philippines will attract more investors across sectors in the years to come, as its digital investment sector grew 63% from last year. Digital financial services in the country continue to attract investor interest, garnering 56% of total investor funding in 2022. 

“The Philippine digital economy remains resilient despite headwinds and continues to provide boundless opportunities as it is projected to reach $20 billion GMV by end of year. This year’s e-Conomy SEA report also suggests that the country will be a leading investment destination with over 70% of investors expecting deal activity to increase in the period of 2025 to 2030,” said Bernadette Nacario, country director at Google Philippines.

Willy Chang, associate partner at Bain & Company, also said “The Philippines’ digital economy is one of the more attractive investment hubs in the region. Across internet sectors there remains tremendous whitespace for growth as the ecosystem drives greater digital inclusion in the country, particularly outside of metro areas.”

“The seventh edition of the e-Conomy SEA report shows that the digital future of the Philippines is bright as it has the fastest growing digital investments sector this year in the region,” said Department of Trade and Industry Secretary Alfredo Pascual.

e-Conomy SEA is an annual research programme that combines Google Trends, Temasek, and Bain & Company’s insights and analyses of the digital economies of six countries in SEA: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

Cyberjaya, Malaysia – Malaysia Digital Economy Corporation (MDEC), has appointed former SME Bank Malaysia’s Group Chief Strategy Officer (GCSO) Aiza Azreen as its new chief digital business officer (CDBO), still in line with the agency’sReinvent’ agenda, the mission to strengthen MDEC’s organization to further better its strategies in expanding the nation’s digital economy in the new normal. 

The ‘Reinvent’ agenda seeks to implement a strategic change in the agency’s management, aiming to inculcate a high-performing and high-impact organization. With this mission, the agency can build capabilities internally, identifying the right skills for managerial roles and ensuring that the departments have the best performances.

As the new CDBO, Azreen will be responsible for driving all business development, strategic, and operational aspects of the company. This also includes corporate and business development initiatives, strategic planning, budget development and control, commercial input into national digitalization development, and supporting investor relationships and fundraising.

Azreen will also be a member of the MDEC Operating Council (MOC) and will report directly to CEO Surina Shukri, overseeing and steering the digital adoption ecosystem in e-Commerce, data ecosystem development, and the digital infrastructure departments. She will also lead external innovation opportunities to expand commercial strategies and build corporate business and innovations for e-commerce, in line with MDEC’s focus on digitizing SMEs, MSMEs, and enterprises.

Azreen’s experience spans 20 years. She has worked in Australia and Malaysia across multiple industries in strategy development and execution of large-scale business transformation. She held leadership positions in organizations, such as Pertama Digital Berhad, Axiata Digital Services, and Axiata eCode Sdn Bhd, as well as Bank Rakyat, Sime Darby Group, and Media Prima Berhad and AmBank Berhad where she helped pioneer digital ecosystems. This includes pioneering Malaysia’s cashless ecosystem with Boost eWallet, deploying frontier technologies, innovating operating models, and commercializing businesses through mergers and acquisitions (M&As), venturing, building, and collaborating with strategic partners.

Azreen commented that she had “the good fortune” of having conversations with the leadership team at MDEC on what is required to accelerate Malaysia’s digital economy and on the execution of MDEC’s ‘Reinvent’ as well as the inherent and future challenges in these efforts. 

“At the end of these conversations, taking leave from the private sector to be part of MDEC’s journey was not a difficult decision to make. Today, I join the best-in-class team to contribute not just to MDEC, but to the country as well. With the recent launch of MyDIGITAL initiative and the Malaysia Digital Economy Blueprint, I am excited with what lies ahead,” said Azreen.

YBhg. Datuk Wira Dr Hj. Rais Hussin Mohamed Ariff, chairman of MDEC, said that with Azreen addition to the team, the organization aims to strengthen its expertise and experience as part of our relentless effort in fulfilling Malaysia 5.0.

“Increasing number of distinguished talents are now gravitating towards MDEC and this augurs well for our stakeholders, adding new perspectives and dimensions in a rapidly-changing landscape during unprecedented times like these. Her appointment will enable us to further expand and solidify our business development initiatives and reach in the digital economy sphere, allowing us to fulfill our goals and Malaysia’s digital vision as espoused in the Malaysia Digital Economy Blueprint (MyDIGITAL),” said Hussin.

Meanwhile, Shukri said, “The appointment of Aiza will strengthen our line-up as we expand our business capabilities and opportunities, both domestically and globally, in our resolve to create and bolster impactful digital outreach for Malaysia. I’m excited to work with Aiza and I am confident that she will further add value to MDEC as we strive towards driving digital outreach for the society and economy. Aiza’s appointment is a reflection of MDEC’s commitment to create technocrats and a people-first society in the age of 4IR technology, leading to shared prosperity for all.”

Singapore – Ride-hailing platform Grab has signed a Memorandum of Intent (MOI) with Infocomm Media Development Authority (IMDA) and Digital Industry Singapore (DISG) to support the development of Singapore’s tech ecosystem. 

The signed MOI will see Grab working with IMDA and DISG to grow its core product and engineering teams’ capabilities through the support of talent development programs like the TechSkills Accelerator (TeSA), seeking to enhance professionals’ technical skills and to provide hands-on training opportunities to individuals in the tech sector.

Meanwhile, Grab will also be creating new job opportunities, hiring around 350 employees in Singapore this year. This move covers the expansion of products and services to support the digitalization of micro SMEs, the delivery of digital financial services across Southeast Asia, as well as the development of the upcoming ‘digibank’, which will be managed by a Grab-Singtel consortium.

New job opportunities will come from areas of AI, Cybersecurity, Data Science, Software Engineering, as well as Product Management and Design. Some of the new hires will be involved in projects that aim to develop merchants’ products, and improve the user experience of the merchant app, which will be an all-in-one solution featuring modularized Grab services to select from.

A majority of the new hires, on the other hand, will be involved in powering Grab’s innovation engine that uses deep tech to build and enhance services for its users. Besides tech roles, Grab will also be offering employment opportunities in areas such as finance, operations, legal, public affairs, and business development. 

Co-founder of Grab Tan Hooi-Ling commented that despite the challenges brought forth by COVID-19, the tech industry continues to hold promise for new and renewed opportunities for talent. 

“As a Singapore-based tech company, Grab fully supports the development of the tech ecosystem here. We are building products that positively impact millions across Southeast Asia, and we want to continue deepening our R&D capabilities and push the boundaries of innovation, right here at our strategic base,” said Ling.

Meanwhile, Lew Chuen Hong, chief executive of IMDA, said that to secure a digital future, Singapore must be the place where companies choose to build unique digital products that cater for global markets.

“We are pleased to partner Grab, to strengthen Singapore’s tech ecosystem in these two key areas – to build our local talent in product development, and grow Singapore as the base for high-end R&D in tech,” Hong added.

Vice President and Head of DISG Ang Chin Tah also commented, “We are excited that industry leaders like Grab are stepping up to deepen their R&D activities here while providing more job and skills development opportunities for Singaporeans. Together, we will continue to build a vibrant and sustainable tech ecosystem to drive innovation and capture growth opportunities.”