Southeast Asia’s digital economy projected to reach US$368 billion in 2026
Google, Temasek and Bain & Company report that generative AI has reached 243 million people across the region, or 58% of its working population.
Southeast Asia is forecast to generate US$368 billion in digital-economy gross merchandise value (GMV) in 2026, a 17% year-on-year increase, according to Google, Temasek and Bain & Company. Their 11th annual e-Conomy SEA report projects that the figure will exceed US$1 trillion by 2035.
The report, titled Building the Intelligent Economy, identifies e-commerce as the main contributor to growth, with GMV of US$226 billion and an 18% annual increase. It puts online travel GMV at US$59 billion, up 10%, while online media revenue is US$44 billion, an increase of 22%.
Generative AI adoption has reached 243 million people, representing 58% of the region’s working population, the report says. Consumers account for about 60% of regional AI token usage, largely for routine work and study. Enterprise workloads represent 45%–60% of usage in Singapore and Malaysia.
Among users, 75% said they would allow AI agents to find the best prices and make purchases for them. However, the report says trust depends on safeguards: 44% demanded strong privacy protections, while 30% required the ability to reverse autonomous actions.
Singapore’s digital-economy GMV is projected at US$31 billion in 2026, up 8% year-on-year, and US$59 billion by 2035. The report puts generative AI penetration there at 70% of the working population, or 3.2 million people.
