This article first appeared in Forum, The Edge Malaysia Weekly on November 18, 2019 - November 24, 2019

Tan Thi Shu is the founder of Sapa O’Chau, a company in northern Vietnam that runs walking tours of beautiful Sapa. Nadhir Ashafiq started TheLorry to provide an on-demand transport solution for Malaysians and Will Soto runs Toserda, a speciality chilli shop in Bandung, Indonesia.

What do these Southeast Asian entrepreneurs have in common? All three were struggling to reach new customers and increase sales despite the unique products and experiences they offered. But by learning new digital skills and seeking out online tools, all of them were able to grow their business, increase sales and give back to their families and communities. Technology changed what was possible for them.

We see stories like these playing out time and time again in all corners of Southeast Asia — people using technology to improve their lives, small businesses using the internet as a platform to grow and new industries developing around a culture of innovation that is reshaping the regional economy.

The latest e-Conomy Southeast Asia report, published by Google, Temasek and Bain & Co, confirms that Southeast Asia’s internet economy reached the milestone of US$100 billion this year, triple what it was just four years ago, and is well on the way to tripling again — to US$300 billion — within six years. Malaysia, in particular, has seen its internet economy grow to US$11 billion this year, and it is expected to grow to US$26 billion by 2025.

It is a remarkable transformation when you consider that, just over a decade ago, four in five people in Southeast Asia still did not have access to the internet. A region that has always been at the heart of global trade is moving to the forefront of the new, online economy, rivalling the growth of digital in China and India.

But while stories like those of Toserda, Sapa O’Chau and TheLorry show us the remarkable progress Southeast Asia has made so far, there is still a lot more to do to make sure everyone in Southeast Asia can benefit from the new opportunities the internet creates.

First, we need to expand access to the internet more widely and equitably across the region.

The Google-Temasek-Bain report finds that 360 million people are online across Southeast Asia — 100 million more than just four years ago — with Malaysia contributing 26 million internet users to that figure. But only half of Southeast Asians are regularly using internet economy services like ride hailing or online media. And 200 million people still do not have access to the internet at all.

Second, we have to help people develop the skills they need to take advantage of digital opportunities as they come online. The report identifies a lack of readily available talent as the biggest challenge still facing Southeast Asia’s internet economy, while a separate Bain & Company research has found that 40% of small businesses in Asean say they do not have the necessary digital skills.

Third, by realising Southeast Asia’s online potential, countries need to put the right policies in place for businesses to grow. The report singles out digital payments as an area where smart policy and regulation can lay foundations for long-term success — as it has in countries like India, where business and government have collaborated to give online payment options to people without debit or credit cards.

At Google, we are humbled that people across Southeast Asia are using our tools and technologies to improve their lives and give back to their communities. But we also recognise that we have a broader role to play in shaping the regional internet economy for good, working hand-in-hand with our local partners. And in recent years, we have stepped up our efforts to make sure the benefits of technology are shared even more widely across the region.

We have committed to train three million people in digital skills across the region, focusing especially on small businesses, women, people in regional areas and students at school. Locally, we are collaborating with the Ministry of International Trade and Industry (Miti) on “Mahir Digital Bersama Google”, a nationwide programme offering free in-person digital upskilling training, and advocating for regulations that support economic growth and jobs. And we are investing in making the internet a safe, trusted place for Southeast Asians to use services and find information, from improving our privacy and security features to helping train journalists and combat fake news.

Reaching US$100 billion makes this a milestone year for Southeast Asia’s internet economy. We should celebrate that extraordinary achievement. More importantly though, we should use it as inspiration to keep unlocking the internet’s potential for all Southeast Asians. We know there is much more work ahead, and a big responsibility for companies like Google. We are looking forward to being part of this story as it continues to unfold.

Marc Woo is country head of Google Malaysia

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