As Southeast Asia enters a golden age, here are the key opportunities

This report was written by Joseph Gan, Maria Li, Melissa Goh, Putra Muskita, Stefanie Yeo, and Willis Wee. First released to attendees at Tech in Asia Conference 2020, it attempts to gaze into the crystal ball and see what the next decade holds for us.

Introduction

Southeast Asia is about to enter its golden age. While the decade is off to a bumpy start because of the Covid-19 pandemic, the region is on the brink of a new era, one that holds promise of economic growth and technological innovation.

It has seen the rise of more than a dozen unicorns in the last decade, and more are expected to emerge in the coming years. At least US$7.7 billion was invested into Southeast Asian startups in 2019 alone, highlighting the fact that investors are taking note of how promising the region is.

It has a population of over 655 million people with a median age of 30.2 years – a youthful, productive workforce that’s eager for new technology, experiences, and opportunities. Additionally, as Southeast Asians earn more and gain exponentially higher discretionary income, this creates an opportunity for businesses looking to scale.

Southeast Asia is also ripe for disruption. Countries like Indonesia and Vietnam are emerging markets, which means new businesses can develop solutions to existing problems.

Consumers in the region are mobile-first, if not mobile-only. This opens new avenues for the growth of a digital economy.

With numerous tech unicorns in its stables, Southeast Asia has the opportunity to outpace the rest of the world in areas like digital payments and smartphone-based businesses.

However, the path ahead will be a rocky one. Covid-19 has had a significant impact on the region’s economic growth: Many businesses have been forced to close their doors, and many more are struggling to stay afloat.

Pandemic aside, Southeast Asian startups still need to grapple with other concerns, such as funding, talent acquisition, and changes in user behavior, as well as address various infrastructural, social, and cultural barriers to unlocking the region’s potential.

This report is Tech in Asia’s attempt to gaze into the crystal ball and see what the next decade holds for us. We’ll be exploring the top verticals that we foresee will power economic growth in Southeast Asia, the difficulties that startups in the region will have to tackle, and how they can be overcome.

Read on for the rest of the Conference Report, or download the PDF here.

Methodology

Before embarking on this report, we asked ourselves a few questions. What are the most exciting verticals in Southeast Asia? What impediments will it face? Who will play an important role in the region’s economic development?

Powering the next decade

Challenges

Conclusion