{
  "id": 15854345,
  "title": "South-east Asia’s digital economy to hit US$368b in 2026, up 17% as AI uplifts growth",
  "url": "https://urgent.news/2026/10/21/south-east-asias-digital-economy-to-hit-us-368b-in-2026-up-17-as-ai",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-21T06:26:54.000Z",
  "source": {
    "name": "Straits Times",
    "slug": "straits-times",
    "url": "https://www.straitstimes.com/tech/south-east-asias-digital-economy-to-hit-us368b-in-2026-up-17-as-ai-uplifts-growth"
  },
  "original_language": "en",
  "account": "Despite geopolitical and economic challenges, the digital economy in Southeast Asia is projected to reach US$368 billion (S$470 billion) by the end of 2026, a 17% growth from US$315 billion in 2025, according to a report released on October 21 by Google, Singapore's investment firm Temasek, and consultancy Bain & Company. The report examines the digital economy and its components, valued at gross merchandise value, in 10 countries across the region: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. Strong growth was observed in e-commerce, online travel, online media, transport, and food delivery platforms.\n\nFlorian Hoppe, a partner at Bain, highlighted the region's digital economy's resilience, with expected GDP growth rates between 4% and 5% despite macroeconomic challenges. He attributed this to strong investment, with the International Monetary Fund projecting ASEAN GDP growth to reach 4.9% in 2026 and 4.7% in 2027, outpacing global growth forecasted at 3.1% in 2026 and 3.4% in 2027.\n\nAI technology has significantly boosted the e-commerce market, which is projected to reach US$226 billion, an 18% increase from US$191 billion in 2025. Sellers on e-commerce platforms now have access to AI tools for creating product videos, and customers receive AI-driven product recommendations, leading to a 10-15% conversion uplift for sellers. In a study of six countries, 69% of shoppers used AI to compare products. AI also aids online travel, where the gross merchandise value is expected to hit US$59 billion in 2026, up from US$53 billion in 2025, a 10% increase. This growth is driven by AI's assistance in discovering travel destinations, planning trips, and managing bookings. Online media, encompassing online ads, gaming spending, and video and music streaming subscriptions, is expected to contribute US$44 billion to the region's digital economy in 2026, a 22% rise from US$36 billion in 2025. Transport booking and food delivery are forecasted to reach US$40 billion by the year's end, up 15% from US$35 billion in 2025.",
  "summary": "The growth is expected despite geopolitical and macroeconomic challenges.",
  "key_points": [],
  "editors_take": null,
  "illustration": "https://urgent.news/ill/15854345.png",
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Google Blog",
        "title": "Southeast Asia’s digital economy to hit $368 billion",
        "url": "https://urgent.news/2026/10/21/southeast-asias-digital-economy-to-hit-368-billion",
        "published": "2026-10-21T04:00:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}