The surplus surplus in working age, mainly from 15 to 64 years, brings innovation and flexibility.
These are key features that may significantly increase economic efficiency. A big workforce of young people in Southeast Asia, continuous digitization, growing AI adoption.
The growing investments in AI infrastructure and startup ecosystems turn this moment in a golden window to set the region as a worldwide digital economic power.
Demographic dividend in Southeast Asia
Changes within the age structure offer long -term economic potential. The upcoming demographic dividend is a key motor for acceleration of digital economic growth.
The “demographic dividend” refers back to the developing number of individuals of working age as a result of a protracted -term decrease in fertility.
According to Escap insight of population dataThe population in Asia and the Pacific in 2024 is 4.8 billion, about 60% of the worldwide population.
And it is predicted that by 2050 it is going to increase to five.2 billion. In Southeast Asia, this number is to achieve 774.6 million to 2050.
Although the population remains to be growing, the expansion rate slows down. In 2024, the annual increase within the Southeast Asia population was 0.73% and it is predicted that by 2025 it is going to fall to 0.70%.
By 2050, 19.0% of the Southeast Asia population can be 0-14, and 16.3% can be 65 and more.
This is a violent shift from 2023, where 24.3% was aged 0-14, 67.6% within the 15-64 working group, and only 8.1% was 65+.
Southeast Asia undergoes a demographic transition, with a shrinking young population and a rapidly growing older population after the bonus.
Changing the demographic dividend right into a digital advantage over the economy
The generation who knows the technology will direct the reception and development of digital technologies. So why does this demographic moment matter for digital growth?
The digital economy of Southeast Asia is developing, especially in electronic trade, digital financing and web media.
Joint report Google, Temasek and Bain & Company It forecasts that GMV e-commerce of Southeast Asia (gross value of products) will reach $ 159 billion to 2024.
Digital Financial Services (DFS) will even increase, and revenues will increase by 22% to $ 33 billion in the identical 12 months.
Meanwhile, World Economic Forum It provides that the digital economy of Southeast Asia can reach $ 1 trillion in GMV by 2030.
The use of the Internet can also be growing; At the start of 2023, over 70% of the Southeast Asia population was online. The average age of the region is about 30, and young people dominate in digital space.
Southeast Asia is the primary player of AI innovation and adoption, offering AI-based services and products.
Digital platforms, including social media, help American corporations connect and cooperate with consumers from Southeast Asia, significantly increasing the visibility of the brand.
Read also: Shopee: The E-Commerce Giant Changing the Face of Online Shopping in Southeast Asia
The demographic bonus is a one-time probability that Southeast Asia countries cannot overlook. The National Digital Generation will result in a metamorphosis towards a stronger digital economy.
But there are challenges: an aging population can change the bonus to a demographic load.
Many rural areas still have digital unevenness as a result of limited access to the Internet and low digital skill.
Can Southeast Asia really use this moment without strategic cooperation between governments, investors and communities, especially when the digital division continues to expand? Let’s see.
References:
IP and legal applications. (and). Growth of digital economy in Southeast Asia: possibilities and challenges. iPandlegalfilings.com/the-rise-of-the-digital-economoma-in-sueut-east-asia-oportunities-and-challenges/
World Economic Forum. (2023). Like Southeast Asia can grow to be a billion digital economy. Wormum.org/stories/2023/12/hows-southeast-asia-can-become-tilion-digital-economomi/
Kajimura, H. (2020). Digital economy in Southeast Asia: possibilities and challenges. iseas.edu.sg/wp-content/uploads/2020/06/iseas_ewp_2020-5_kajimura.pdf
Asia and Pacific population trends. (and). Data: Southeast Asia. Trends of the population-sipacific.org/data/sea
Compas.com. (2022). Understanding demographic bonuses and their advantages. compas.com/skola/read/2022/12/21/080000069/pengenitian-bonus-demographic-dan-manfawea
Bain & Company. (2024). E -conomy Sea 2024. Bain.com/about/media-center/press-releases/sea/e-conomy-sea-2024/
Journal of Library Scholar. (and). Demographic bonus in Southeast Asia: possibilities or challenges? jurnalpustacacendekia.com/index.php/jca/article/view/130/160
Arden Jaya. (and). Impact of a demographic bonus on digital economic growth in ASEAN. jurnal.ardenjaya.com/index.php/ajsh/article/view/644/565
CNBC Indonesia. (2023). Demographic bonus, ASEAN GROWTH MACHINE. Cnbcindonesia.com/research/20230906140454-128-469890/bonus-demographic-ertumbuhan-ekonomi -sean
