Google, Temasek, and Bain & Company have published the 8th edition of the e-Conomy SEA report, titled “Reaching New Heights: Navigating the Path to Profitable Growth.”
The report reveals that Southeast Asia’s gross merchandise value (GMV) is expected to reach USD218 billion (~RM1.01 trillion), growing by 11% year-on-year, with the region’s digital economy revenue set to reach USD100 billion (~RM463.6 billion), representing an 8x growth over the past eight years.
This year’s report introduces revenue numbers in addition to GMV, providing insights into business growth amid economic challenges and digital participation in the region.
Key insights on Malaysia from the report:
- Domestic demand in Malaysia remains strong, driven by increasing household spending, employment, and wages. However, investments in Malaysian digital companies have decreased due to global shifts and funding issues.
- Online Travel is the primary driver of Malaysia’s digital economy in 2023, reaching USD4 billion (~RM18.5 billion) with a 49% year-on-year growth. The Transport and Food Delivery sector also shows strong growth, fuelled by digital habits like food delivery and e-commerce.
- E-commerce in Malaysia, valued at USD13 billion (~RM60.2 billion), accounts for 57% of the total GMV. There is potential for e-commerce expansion in areas outside of Kuala Lumpur and Selangor.
- Malaysia ranks as the 2nd biggest digital payment market in Southeast Asia, with digital payments driven by QR codes and government support. Digital wealth, growing 61% year-on-year, presents opportunities for financial institutions.
- Efforts have been made to improve digital inclusion in Malaysia, but there is still a digital economic divide between urban and rural areas. Over 70% of digital economy transactions are made by the top 30% of spenders, emphasising the need to bridge this participation gap.
Overall, the report highlights the continued growth of Southeast Asia’s digital economy and the importance of deepening digital engagement, despite economic challenges, to unlock further growth opportunities in the region.
To read more about the report, you can head over to the e-Conomy SEA 2023 site.
