According to the findings, 36% of customers in this country use online platforms like Airbnb, Gojek, Grab, Lazada, and Shopee often. Use three or more of them to order food delivery or reserve a private-hire vehicle, for example.
Nearly four out of five individuals had made an online purchase in the past year, according to the study’s findings.
According to the Tech For Good Institute’s inaugural New Economy Progress Index, consumers are acquainted with activities conducted on online platforms. Despite this, individuals in South-east Asia are “still warming up” to various forms of online-to-offline trade that go beyond e-commerce, according to the institute’s findings.
The index was created in collaboration with the consulting company Bain & Company as part of a platform economy study published on Monday. The World Economic Forum collaborated on the study as well.
As a result of internet platforms like Alibaba and Amazon, economic and social activity has risen in the platform economy Transport, food delivery and e-commerce are only some of the many services they provide. Other services include digital financial services, health care and education.
The New Economy Progress Index measures how far forward a country’s platform economy is in terms of development. The index and report are based on data from a variety of sources, including surveys conducted in April and may of 400 consumers and 106 MSMEs.
According to the index, just 13% of Singapore’s MSMEs’ total revenues come from online food and e-commerce. These figures indicate that there are fewer businesses like this that have gone digital by using internet platforms. According to the institution, this presents “an chance to realize development with the proper assistance.”
The results from Singapore are similar to those from Indonesia, Malaysia, the Philippines, Thailand, and Vietnam, which were all in South-East Asia.
With a score of 70%, Singapore also performed well in the index’s other categories, including having strong digital infrastructure to enable online transactions. 93% of the country’s physical infrastructure is capable of delivering requested products. Although the institute acknowledged that mobile wallet users had space to expand, it pointed out that the habit of paying with one’s phone has room to develop as well. Mobile wallet use is prevalent in this area; 58% of individuals here make use of them.
Singapore’s total New Economy Progress Index score is 64% when these various categories are taken into account. When the platform economy has reached its full potential, a student will get a grade of 100%.
The combined score of the six Asean nations was 41%. However, according to Bain & Company, the index ratings cannot be compared due to the differences between the various countries. “In Singapore and Indonesia, for example, the economies are based on distinct pillars and have different development engines. If we were to do a global comparison, it would be flawed “it was included.
The platform economy, according to the Tech For Good Institute, has the potential to enhance the lives of people in South-east Asia. Eight out of ten customers, for example, have more choices thanks to e-commerce platforms, according to the study. A comparable percentage of MSMEs said that platforms allow them to access a wider consumer base online.
There are many methods to help boost the platform economy in Southeast Asia, including regional collaboration. The Internet economy of the six Asean nations may treble this year from US$105 billion to US$300 billion by 2025.
Singapore is eager to do its role, said Minister for Communications and Information Josephine Teo at the inauguration of the Tech For Good Institute on Monday. Like Asean’s efforts on cross-border data flows, Singapore promotes practical channels for data exchange. “These programs enable rural companies access a larger audience and achieve genuine advantages from digital commerce,” she said.