Singapore (January 30, 2024) — Southeast Asia’s digital economy was projected to be worth $1.6 trillion in gross value added (GVA) in 2022, or 44.8% of the region’s GDP. The digital payments industry accounted for 62.9% of the total, or around $1 trillion in gross value added. Electronics and optical production (21%), Information and communications infrastructure (7.4%), digital commerce (5.6%), IT & software services (2%), online media market (0.9%), and mobile apps (0.3%) were the industries that came after digital payments.
According to UnaFinancial, the gross value added of the digital economy of Southeast Asian countries made up 45% of the region’s GDP in 2022. By 2027, the digital economy will contribute about 56% to the region’s GDP, with digital payments taking the lead (61.5%).
Indonesia accounted for the largest share with 42.6%, or $691.8 billion, of the digital economy in Southeast Asia. It was followed by Malaysia (15.6%), Singapore (13%), Thailand (11.2%), Vietnam (10.7%), Philippines (5.7%), Myanmar (0.6%), Cambodia (0.3%), Laos (0.2%) and Brunei (0.1%). According to UnaFinancial analysts, this aligns with the countries’ GDP distribution, confirming the suitability of the estimated amounts. Indonesia’s population, which accounted for 41.1% of Southeast Asia’s total in 2022, explains its leadership.
Digital payments will remain the leading sector with a share of 61.5%. Digital commerce will grow from 5.6% to 10.1%, Mobile Apps – from 0.3% to 0.9%, and Online Media market – from 0.9% to 1.1%. At the same time, the share of other sectors will reduce. These include Electronic & optical production (from 21% to 17.5%), Telecommunication infrastructure (from 7.4% to 7%) and IT & software services (from 2% to 1.9%).
In absolute terms, the GVA of all sectors will grow. The largest increase will be shown by Mobile apps (+303%), followed by Digital commerce (+160%), Online media (+75%), Digital payments (+42%), Telecommunication infrastructure and IT & software (+39% each). The smallest increase will occur in Electronic & optical production (+21%).
Analysts add: “In the next few years, while digital economies of Indonesia, Malaysia, Vietnam, Singapore and the Philippines will make up 97,6% of the total in SEA, Myanmar, Laos, Cambodia and Brunei may show the fastest growth given the timely introduction of digital technologies. Yet, the faster growth rates are explained by the small size of these economies in terms of GDP. This means that they will still be sensitive to various structural transformations.”