SINGAPORE (Reuters) – Southeast Asia’s internet economy is forecast to reach $300 billion by the year 2025, when millions of people in the area to online shopping and embrace the ride and share in the food delivery industry, a report said on Thursday.
FILE PHOTO: A woman uses her phone on the observation deck of the city skyline, and enveloped by the haze, is to be seen in Singapore, September 13, 2019. REUTERS/Feline Generator or Photo File,
In order to get to that goal, the industry is expected to grow by 200% over the next five years, from an estimated $ 100 billion this year, according to the report, Google’s, Singapore’s state investor, Temasek Holdings, and the global business consultants Bain & Company.
The annual increase, by 2025, the outlook of the us $240 billion) before and after a rise in the growth rate over the past four years alone as the young internet users on mobile devices to do everything from the couch, and playing games, to purchase tickets.
“This growth has exceeded all expectations,” the 64-page report said. “Internet access is now affordable for large segments of the population, and the confidence and trust of the consumer, the services have significantly improved.”
(IMAGE: South-east Asia, the internet economy is on track to hit $300 billion by 2025 – here).
More than $37 billion has been invested in the South-east Asian-based on its recent four-year period, with the majority going into e-Commerce companies such as fashion retailer Zilingo and the ride of Unicorns, such a Grab, and Gojek, the report found.
Ride is coming alone was worth $13 billion for a four-fold increase in value since it’s 2015, and was expected to reach $40 billion by the year 2025, when the food supply is worth the transport.
South-east Asia, the average growth rate of 5% per year since the 2014 sets, it is far from the global average, making it a very attractive investment destination for China’s economy is hobbled by the Sino-u.s. trade war.
(IMAGE: South-east Asia, the internet economy in the gross merchandise volume is growing, here)
There are 360 million internet users in the countries that are in the report – Indonesia, Malaysia, the philippines, Singapore, south africa, and the Philippines, up from 260 million euros four years earlier.
That compares to about 4.4 billion internet users worldwide, an increase of 9 per cent a year ago, according to the wearesocial.com a digital monitoring service.
REGULATORY AND LABOR CONCERNS
However, there are a number of significant headwind to rapid regional growth, in particular the regulatory risks and a lack of skilled labour.
Malaysia’s competition regulator on Thursday proposed a fine of more than 86 million ringgit ($20.53 million), and to Seize for a violation of the country’s competition act by the driver of the promotion of competing services. Extract has a month to appeal before a final decision was taken.
In the meantime, Singapore has this week introduced a law, which is the social media sites, such as Facebook and Twitter, and to perform corrections or to delete the contents of the government is of the opinion to be false. The rights groups have expressed concern that the “false news” law will curb internet freedom.
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Also, the industry is still struggling to fill in the labor gaps, and with the demand for qualified technical personnel far exceeds the supply.
Even Singapore, which has tight restrictions on foreign labour, has said that it will seek more talent from overseas as it ramps up efforts to be able to grow in the industry.
“The Talent continues to be a pressing constraint in spite of all the efforts of the internet economy, businesses in order to ‘close the gap’,” the report said.
Reporting Aradhana Aravindan; Writing by Joe Brock; Editing by Jane Wardell