AI Fuels ASEAN’s Digital Finance Revolution
Southeast Asia’s digital economy is poised to exceed $300 billion in gross merchandise value by 2025, capping a decade of sevenfold expansion. As the region’s transformation broadens across ten ASEAN markets, digital finance is emerging as its most powerful growth driver.
Launched by Google, Temasek, and Bain & Company, the tenth edition of the «e-Conomy SEA 2025» report – titled «From Digital Decade to AI Reality» – captures how ASEAN’s internet economy has matured into one of the world’s fastest-growing digital ecosystems.
With annual growth of around 15 percent in both gross merchandise value (GMV) and revenue, Southeast Asia is emerging as a formidable digital bloc and the fifth-largest economy globally. Revenues are projected to reach $135 billion by 2025, with profitability accelerating across sectors.
Towards a Thriving Intelligent Economy
«Surpassing the $300 billion GMV milestone firmly validates that Southeast Asia’s potential is even greater than we imagined,» said Sapna Chadha, Vice President for Southeast Asia and South Asia Frontier at Google. «The future will be defined by speed as the region harnesses its proven ability to seize the returns of this new age not in years, but in months.»
Temasek’s Fock Wai Hoong added that «funding levels have stabilised as investors prioritise quality growth and governance over sheer capital deployment.»
Bain & Company’s Florian Hoppe stressed that AI would be «a catalyst for impact as the region enters its next phase of value creation». He sees the greatest growth potential in digital finance, online media, healthcare, and education – «predominantly in intangible sectors, where the power of innovation is strongest,» he told finews.asia.
E-Commerce, Food Delivery, and Transport Anchor Growth
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E-commerce continues to lead the way, with GMV set to hit $185 billion and revenues $41 billion next year. Video commerce alone accounts for a quarter of total sales – a sign of how social-media-driven shopping is reshaping consumer behavior.
Food delivery platforms are approaching profitability through logistics optimization and advertising revenues, with segment GMV expected at $23 billion and revenue at $2.4 billion in 2025. Transport and online travel are also rebounding as mobility returns and tourism booms, particularly from China and India.
Digital Finance Becomes the New Growth Engine
Digital financial services (DFS) are expanding rapidly beyond payments, driving financial inclusion across the region. Embedded lending solutions and cross-border QR payment systems are connecting markets and consumers at unprecedented scale.
Digital lending and wealth management platforms are now central pillars of the ecosystem, with some surpassing $1 billion in assets under management in multiple markets. The region is now seen as a testing ground for financial innovation driven by AI and data analytics.
Focus Turns to Quality Growth
Private funding rose 15 percent year-on-year to $8 billion in 2025, with investors tilting toward late-stage deals and the DFS sector, which attracted half of all capital.
After years of volatility, valuations have stabilised, and capital is being concentrated on high-quality businesses with clear paths to profitability. Investors expect funding momentum to increase in Singapore, Vietnam, and Malaysia, especially in AI, software, and deep tech.
Defining Theme of the Next Decade
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Artificial intelligence is emerging as the defining theme of the next decade. Consumer interest in AI is three times higher than the global average, and nearly 80 percent of the region’s workforce reports learning to use AI tools.
More than $2.3 billion has been invested in AI startups over the past twelve months, representing over 30 percent of total private funding. The region’s data-centre capacity is also set to expand by 180 percent – outpacing the rest of Asia Pacific – as global players double down on infrastructure investment .
Singapore: Regional Leader in Digital Finance and AI Governance
Singapore continues to anchor Southeast Asia’s digital economy and stands out as the region’s AI governance leader. Its GMV is expected to reach $29 billion in 2025, with strong momentum across transport, food delivery, and online media.
Video commerce adoption has exploded, with sellers and stores up 125 percent year-on-year and transactions rising 30 percent. Digital lending and wealth management are also scaling fast, forecasted to hit $30 billion and $44 billion, respectively, in 2025.
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Singapore also leads in AI investment, having secured $1.31 billion in private AI funding – the highest among ASEAN-6 countries – with a 55 percent increase in the first half of 2025 alone. Its balanced focus on innovation and AI ethics is setting benchmarks for the region and beyond.
New Chapter for ASEAN Digital Leadership
The report’s findings signal that Southeast Asia’s «digital decade» has laid a solid foundation for the era ahead – one defined by AI-driven efficiency, financial inclusion, and sustainable growth.
As capital markets mature and policy frameworks solidify, ASEAN appears ready to transform its digital momentum into a lasting competitive advantage on the global stage.
