Bumpy ride for region’s digital economy ahead

THE annual e-Conomy SEA report painted a rather rosy picture of South-east Asia’s digital economy this year. Gross merchandise value (GMV) is set to continue growing, and revenues – a metric debuting this year – also grew over the past three years.

But the long-term prospects have dimmed a little, with a toning down of the GMV forecast for 2025, from US$330 billion in 2022’s report to US$295 billion in 2023’s report. The search for profitability and the downward revision of the Covid-19 pandemic’s impact on the various sectors were cited as reasons for the change in forecast.

On the startup front, investors are mulling challenges in fundraising and exits. Private funding for South-east Asia could reach a six-year low, with only US$4 billion pumped into the region so far.