Southeast Asia's Platform Economy Boosts Growth
Platforms and superapps build digital and physical infrastructure.
If you need a success story for digital that will help brighten your day in an otherwise grim news cycle, look to SE Asia’s platform economy!
SE Asia’s platform economy is a great example of how digital can improve lives by providing infrastructure and real economic growth!
This Tech For Good Institute report clearly shows that digital platforms have been a catalyst for growth, and if that doesn't put a smile on your face, nothing will.
👉TAKEAWAYS:
1. Platforms have actively contributed to socioeconomic development in Southeast Asia.
Platforms have invested in and contributed to Southeast Asia’s digital economy by developing critical physical and digital infrastructure, and providing access and convenience to consumers and micro, small and medium enterprises (MSMEs).
2. Platforms offer a broad range of benefits at scale to consumers and MSMEs in Southeast Asia.
Consumers enjoy better access, affordability and financial inclusion when using Platforms. MSMEs can expand their customer reach through Platforms.
3. As with any new technology or innovation, countries need to manage challenges and risks in the Platform Economy.
Challenges and risks to consider include issues related to competition, consumer protection, changes in the labour market, and a growing digital divide.
4. Southeast Asia should chart its own course to maximize benefits while managing the challenges of the Platform Economy.
It is not easy to find the right balance in regulations. Many, if not all, advanced nations are still exploring options to get it right, and Southeast Asia is no different.
5. Four key priorities for SEA’s platform economy
(1) Close collaboration between regulators and market participants on policy development and execution
(2) An iterative and adaptive approach to deal with the evolving challenges
(3) Responsible and sustainable development of the Platform Economy
(4) Regional ASEAN coordination to maximize impact.
👊STRAIGHT TALK👊
Why do superapps and platforms rule SE Asia?
The facile answer is that they just copied China’s growth model. While this is certainly a factor, the real answer has more to do with limitations in physical infrastructure throughout the region.
SE Asia’s digital platforms thrive at scale because they need to be big enough to build out critical logistics and payment infrastructure.
This is no small feat in nations where physical and digital infrastructure is an ongoing challenge and provides an environment where only the strongest and largest platforms survive.
So far, the relationship between platforms and government has been positive, with the platforms providing real GDP growth that governments can take to the bank.
What is clear is that this honeymoon won’t last forever, with real issues of competition and consumer protection now boiling to the surface.
While these problems are real and serious, we must not forget that they are -good- problems to have! These are problems that signal growth, as shown by an impressive 24% of the ASEAN population attaining middle class.
SE Asia’s platforms have been successful in helping to provide real growth and improved living standards, which is something to be proud of.
Thoughts?
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