Southeast Asia's digital economy projected to reach $368 billion in 2026 as AI drives growth

Despite global geopolitical tensions and economic challenges, Southeast Asia's digital economy continues to expand rapidly and is projected to reach US$368 billion by the end of 2026. According to the annual e-Conomy SEA report released on October 21, this represents growth of about 17% from US$315 billion in 2025. The report covers ten countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. The report describes the region's digital economy as resilient, with regional GDP growth remaining between 4% and 5%, above the 3.1% global growth forecast attributed to the International Monetary Fund. Artificial intelligence, described in the original article as a double-edged sword, is driving growth across major sectors. E-commerce stands at US$226 billion, online travel at US$59 billion, online media at US$44 billion, and transport and food delivery at US$40 billion. Investor interest in the region's AI infrastructure has also risen sharply. In the first half of 2026, private investment in data centres reached US$16.3 billion, approximately 16 times the US$1 billion recorded during the same period in 2025. By TOUCH SOVANRITHY