e-ConomySEA2025From Digital Decade to Al Reality:Accelerating the future in ASEANTEMASEKBAIN&COMPANY⊙Referencee-Conomy SEA is a multi-year research programme launched by Google and Temasek hn 2016.Bahn Company oined theprogramme as lead research partner in 2019.The research leverages Temasek insights.Bah analysis.Google Trends.data frominformation included in this report is sourced as'Google.Temasek.and Bain,e-Conomy SEA 2025.uness otherwise specified.DisclaimerThe information in this report is provided on an as-is basis.This document was produced by Google.construed as definitive forecasts or guar antees of future performance or results.Google.TemasekGoogle TEMASEK BAIN COMPANY10th edition of e-Conomy SEA by Google,Temasek,Bain:Southeast Asia's digital economy research programme20162017201820192020Unlocking theUnprecedentedSEA's internetSwipe up and to theAt full velocity:$200B opportunitygrowth for SEA's $50Beconomy hits anright:SEA's $100Bin SEAinternet economyinflection pointinternet economyracing ahead20212022202320242025Roaring '20s:Through theReaching newProfits on the rise.The SEA Digitalwaves.towards aheights:Navigatingharnessing SEA'sDecadesea of opportunitythe path toad小vantageFrom Digital Decade toprofitable growthAl Reality:Acceleratingthe future in ASEANGoogle TEMASEK BAIN COMPANY4e-Conomy SEA research methodologyTemasek insightsBain analysisGoogle TrendsResearch partners'Expert interviews?and industry sourcesResearch partnersWith contributions from500CCAcVenturesALPHA JWCJanuary_ICapital기Sensor Tower.JUnGLecube milieuOPENSPACEvertexNONK'S HILLGENTREEFUNDGoogleTEMASEK BAIN COMPANY5This edition marks the expansion ofcoverage beyond SEA-6 to ASEAN-10SEA-6614M283M36M116M6M72M101Macross theseIndonesiaMalaysiaPhilippinesSingaporeThailandVietnamASEAN-4Unless otherwise stated,allmentions of 'SEA-6'in this reportrefer to these six markets:+81M463K18M8M55MIndonesia,Malaysia,Philippines,Singapore,Thailand,and Vietnam.'ASEAN-4'refers to Brunei.across theseCambodia,Laos,and Myanmar.'ASEAN-10'refers to all 10BruneiCambodiaLaosMyanmaraforementioned countries.Google TEMASEK BAIN COMPANYWe continue our focus on six leading sectors in the digital economy23EcommerceFoodTransportMarketplacesdeliveryDirect-to-consumerGroceriesVideo commerce56Online travelOnline mediaFinancial servicesFlightsAdvertisingPaymentsHotelsGamingLendingVacationVideo-on-demandWealthrentalsMusic-on-demandInsuranceGoogle TEMASEK BAIN COMPANYContent01020304Keeping growthRekindlingAdvancing into anMapping the Almomentum steadyinvestor interestintelligent economytransformation。Ecommerce·Landscape。Experience。EnablersFood deliveryAl nativesredefinitionDependenciesTransportEnterpriseOutlookOnline travel。Online mediaEcosystemenablementPayments·Lending。InsuranceGoogle TEMASEK BAIN COMPANY8Executive summary (1/2)SEA sustains itsVideo reinvigoratesRetail media surge asThe digital financialgrowth momentumecommerce;food deliverycontent boundaries blurservices (DFS)across core metricsis almost profitableecosystem strengthensKeepingmarkets now offer cross-border QRand short drama is a fast-emerginggrowthmomentumsteadyA cautious uptick inPositive signs of exits areprivate fundingfocus to Alemerging around the worldPrivate funding grew 15%in the bst12There are now -700 active Alstartups in SEA:-30%of privatefunding in the last 12 months hasgone towards AL 50%ofVCsRekindlingcontinues to garner the lion's shareinvestorof funding (45-50%up from-30%ninterestGoogle TEMASEK BAIN COMPANY9Executive summary(2/2)Capitalising on SEA'sRedefining consumerFostering consumer trustNuanced regulatoryenthusiasm for Aljourneys from searchfor Al-assisted decisionsto discoveryAdvancingusing tools like Al-powered searchinto anand multimodal inputs to answerintelligenteconomyCommemoratingTransformationalLooking ahead:the next decade10 years ofmilestones overholds both promise and uncertaintyunprecedented growththe past decadeover $3008 in 2025.However,whatisMappingthe Altransformationan 11.2X increase in a decade.and inflation.Google TEMASEK BAIN COMPANY01Keeping growthmomentumsteadyGoogle TEMASEK BAIN COMPANY11SEA's digital economy is on a strong trajectory tosurpass $300B in GMV.动Sustained digital adoption and effective monetisationstrategies have resulted in a resurgent ecommercesector,the food delivery model approachingprofitability,the rise of retail media,and blurred linesacross entertainment formats.Google TEMASEK BAIN COMPANYSEA continues to deliver double-digit growth in GMV and revenueGMV (SB)Revenue(SB)●Online media'●Transport and food●Travel●EcommerceSustained growthmomentum in 2025GMVand revenuedemonstrate sustaineddouble-digit growth despite▲+15%▲+14%continued macroeconomic▲+15%▲+15%pressures.Brunei.CambodiaLaos.and Myanmar are now29930599100260333487of tota GMV.3334302262750514252545Revenue growth remains3724in line with GMV growth21Revenue growth is keepingpace with,if not outpacing.18513833540over the past two years.20232024202520252023202420252025(SEA-6)(ASEAN-10)(SEA-6)(ASEAN-10)Google TEMASEK BAIN COMPANYDigital businesses derive revenue through direct salesor by functioning as an intermediary platformKey revenue definitionsEcommerceTravelFoodTransportOnlineDigital financialin the digital economydeliverymediaservices(DFS)Direct (1P)revenue modelSellerConsumerBrand.comFood.comNAThird party(3P)platform modelSellerPlatform ConsumerOTATransportPayments.etcmarket placesplatforms is a portion of the price of goods orIncludes advertisingGoogleTEMASEK BAIN COMPANYAs the market consolidates,ecommerceThe market is consolidatingas large players scaleGMV and revenue growth pick up againSeveral domestic players have exited the market.larger regional companies.These leading platformsGMV(SB)Revenue(SB)Video commerce increasesits contribution to GMV●GroceryVideo commerce continues ts rapid growth.Non-grocery359lower-value transactions.trusted local creatorrecommendations.and seamless▲+16%social-ecommerce integrations that convert▲+11%▲+13%▲+16%Al has become a core part of the shopping journey:users turn to Al for help withresearch and181185decision-making.whle ecommerce platforms use24Al to power product recommendations.Sixty-two15624percent of SEA consumers say Al-powered1382040features,such as hyper-personalsed product1735recommendations.have influenced their purchasedecisions.This is creating a new competitive1620158The creator economy becomes more diverse202320242025202520302023202420252025prefer authentic recommendations.Once(SEA-6)(ASEAN-10)(SEA-6)(ASEAN-10)dominated by top creators,the ecosystem ismeaningfu transactions.Google TEMASEK BAIN COMPANY15A high volume of low-cost purchases has propelledvideo commerce to 2.5X GMV in two yearsShoppertainment takes offVideo commerce GMV(SB)Video commerce in SEA-6up from less than 5%in 2022 The explosiveof content and commerce often led by creators.13%20%25%Average order value (AOV)2.5XThe number of sellers and stores usingGMV growthsince 2023With the right recipe for success.businesses can reach consumers in astage to showcase products or collaborate2025 overall2024 overallmessages and drive sales through trusted.Sellers and storesTransaction46using videovolumeVolume over value in driving growthThe growth in video commerce GMV ispowered not byhigher prices.but by a 50%YoY surge in trarsaction volume.The low AOV183M+6.5B+●80%YoY●50%YoYbroader market shift towards a trust-based.entertainment-led model where persuasive2022202320242025frequent,smaler transactions.Source Cube.SEA 2025Google TEMASEK BAIN COMPANY