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Southeast Asia’s Grab, Sea and GoTo face slowest internet growth in the region since 2017 as e-commerce expansion decelerates: report

  • Total online spending in Southeast Asia will rise about 11 per cent this year to US$218 billion, reaching its lowest growth rate since at least 2017
  • The region’s internet economy is now on track to reach US$295 billion by 2025, down from a previous forecast of US$330 billion

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The latest internet sector research from Google, Temasek Holdings and Bain & Co marks the second time estimates have been revised downward in their annual study, which covers Singapore, Indonesia, Malaysia, Thailand, Vietnam and the Philippines. Image: Shutterstock
Bloomberg
Southeast Asia’s internet economy will log its slowest growth on record this year, a group of researchers said, as they slashed near-term e-commerce spending estimates for the region by 13 per cent.
Total online spending in Southeast Asia will rise about 11 per cent this year to US$218 billion, down from 20 per cent a year earlier, reaching its lowest rate since at least 2017, according to research from Google, Temasek Holdings and Bain & Co.

The biggest category, e-commerce, is set to reach only US$186 billion in 2025, rather than the US$211 billion the researchers estimated previously.

Consumers in the region of more than 650 million people are curbing spending to cope with elevated inflation and interest rates.

The Shopee app is displayed on the smartphone of an employee at the company’s headquarters in Singapore. Shopee is the e-commerce subsidiary of Southeast Asian tech conglomerate Sea. Photo: Bloomberg
The Shopee app is displayed on the smartphone of an employee at the company’s headquarters in Singapore. Shopee is the e-commerce subsidiary of Southeast Asian tech conglomerate Sea. Photo: Bloomberg

The region’s internet economy is now on track to reach US$295 billion by 2025, according to the report, down from a previous forecast of US$330 billion.

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