Thailand, Malaysia, Singapore see digital growth
Reading Time: 3 minutesThe digital sectors of Thailand, Malaysia, and Singapore contributed to a 24% regional increase in profits in 2024, reaching USD 11bn, according to a new report.
Thailand and Malaysia strategic cost measures in e-commerce and digital finance, optimising take rates and reducing customer subsidies to improve margins. In Thailand, e-commerce platforms grew 15% year-on-year by gross merchandise revenue (GMV), aided by additional revenue streams and promotions. Malaysia’s regulatory frameworks propped up profitability, as digital lending and payments grew 14% and 16% respectively.
Singapore, meanwhile, leads in transport and travel, where online travel agencies (OTAs) have upped commission rates and expanded high-margin offerings such as travel insurance. Singapore’s online travel sector enjoyed a robust comeback, with gross travel bookings (GTB) 18% above pre-pandemic levels.
E-commerce fueled by video
Thailand’s robust video commerce, Malaysia’s expanding digital finance, and Singapore’s online travel and media markets are partly shaping the SEA digital markets and even providing a roadmap for the region.
Video commerce is now a significant driver of GMV in Thailand, Malaysia and Singapore, representing 20% of the market across these countries, up from under 5% in 2022.
Thailand leads in video integration, with popular influencer content and real-time product demos, and Malaysia and Singapore platforms are also leveraging video to engage and keep customers.
Growth in e-commerce is increasingly reliant on returning customers, and the average e-shopper in Thailand, Malaysia, and Singapore now buys online around eight times a year, with beauty, electronics and groceries the most popular categories, and fashion resilient but with slower growth.
Malaysia leads in fintech
Malaysia has emerged as a leader in digital finance, as gross transaction value (GTV) from digital payments across SEA reached USD 1.14tn in 2024, up 14% year-on-year. The country has capitalised on QR codes making digital payments more accessible and driving digital lending up 16%.
Meanwhile, Malaysia’s regulatory environment claims to back responsible credit growth and financial inclusion. Malaysian digital finance is also expanding into wealth management, with digital assets under management (AUM) projected to reach USD 69bn by year-end, up 24%.
Singapore remains a major financial player, with advanced cross-border payment systems and increasing adoption rates of digital insurance. In Thailand, the emergence of digital banks has boosted lending and payments for individuals and small businesses. Regulators tightening oversight to safeguard against borrowing risks could moderate sectoral growth, however.
Online travel and media sectors make strong recoveries
Singapore’s travel industry has rebounded, with GTBs reaching USD 51bn, up 93% from 2019, thanks to local consumers spending more on luxury experiences. Thailand and Malaysia have also capitalised on this, with OTAs expanding services to include travel finance and insurance, contributing to an 18% sectoral revenue increase.
The online media sector is also thriving, with SEA digital advertising revenues growing by 13% in 2024. Thailand has a substantial share of global mobile gaming, an industry that saw a 12% increase in downloads across SEA. Malaysia and Singapore are also contributing to this trend. In Singapore, video-on-demand is a growth driver too, with platforms such as Netflix and Disney+ expanding to meet consumer demand.
Funding, cybersecurity challenges
The digital economies of Thailand, Malaysia, and Singapore faces challenges in attracting sustained private funding, as rising interest rates and global economic shifts have made investors more cautious. However, investor confidence in high-potential sectors, particularly AI and software services, remains strong, especially in Singapore. In 2024 alone, SEA saw over USD 30bn invested in AI infrastructure, with Singapore leading the way in apps for finance, transport and media.
In tandem with increased digital adoption, cybersecurity threats have also surged, however. Some 50% of digital users in SEA have experienced some kind of online scam, making digital security a priority. Thailand and Malaysia have invested in AI-powered fraud detection to secure transactions. Singapore has emerged as a regional leader in cybersecurity, establishing standards and protocols that enhance consumer trust, particularly in digital finance and e-commerce. Across the board, scam-related losses grew 41% in 2024, especially among affluent users, underscoring the need for continuous security improvements.
E-commerce, digital finance, and online media sectors are expected to keep growing in Thailand, Malaysia, and Singapore as AI investments, digital infrastructure and cybersecurity mature. The future of SEA’s digital economy lies in balancing profitability with security and consumer trust.