Digitalisation is accelerating growth and transforming Southeast Asia’s economies. This growth is driven by the adoption of digital technologies, increased investments in digital infrastructure, and a thriving startup ecosystem. Digital platforms have been key drivers, acting as intermediaries of trust across crucial sectors, including e-commerce, digital financial services, healthcare, tourism, transportation, logistics, education, and food and beverages.
Beyond economic benefits, digital platforms advance sustainable development goals through their efficiency, accessibility, scale, and agility. They address social needs by supporting communities during natural and health crises, increasing access to goods and services for underserved populations, and promoting environmentally sustainable practices. Platforms also raise awareness, simplify choices, and encourage publicly beneficial activities.
This study presents illustrative examples of these outcomes based on consultations with various digital platforms, government representatives, and stakeholders from industry and civil society. The report, supported by Ant International, aims to show the direct impact of digital platforms to the lived experiences of individuals and communities.
Moving forward, digital platforms must actively collaborate with government, public and private stakeholders to manage the dual transitions of digital transformation and the shift to a low-carbon circular economy. Inclusive development should be recognised as a shared interest that also enhances business vitality and profitability.
Key Takeaways:
Digital platforms have transformed the way we work, live, and transact by acting as intermediary services between multiple user sets, such as buyers and sellers. These platforms digitalise interactions and transactions, creating efficient, accessible, scalable, and agile multi-sided marketplaces. They require scalable business infrastructure, relying on network effects to become more valuable as user numbers increase, and can operate continuously across geographies. By lowering barriers to entry and reducing operational costs, digital platforms offer seamless user journeys and enhanced accessibility. They also collect and process large amounts of data in real-time, boosting efficiency and agility in decision-making and product development. In Southeast Asia, digital platforms have driven digital economy growth by enabling MSMEs to digitise with low investments, investing in cybersecurity, and de-risking transactions for users.
Digital platforms harness their scale, accessibility, efficiency, and agility to support social and environmental goals. They have proven beneficial in connecting MSMEs with customers, facilitating government aid distribution, and supporting charitable giving. Platforms can enhance travel, increase mobility access, and promote upskilling of the population. However, the digital economy’s growth brings environmental challenges, with increasing energy and water use from digital transformation and AI. Despite gaps between intention and action, large digital platforms can mitigate environmental impacts through improved operational efficiencies, and support for sustainability efforts among user groups like MSMEs.
Digital platforms raise awareness and promote sustainable practices by steering users toward eco-friendly choices. As intermediaries, they showcase eco-friendly merchants and share data on the environmental impact of certain choices. Additionally, they use gamification and incentives, like reward points or discounts, to encourage sustainable behaviors through positive reinforcement.
Digital platforms, alongside the public and private sector can drive the transition to a low-carbon, inclusive, and circular economy. Governments should integrate sustainability with digital transformation plans, invest in infrastructure, co-create trusted data-sharing environments, and adopt platform approaches for public services. Digital platforms need sustainable operations, alignment with national priorities, and collaboration with governments for MSME and public service digital transformation. Impact sector stakeholders, including non-profits and social enterprises, can leverage digital platforms for research, outreach, and program delivery, combining technology with their expertise and community networks.
This report was made possible with the support of Ant International.
