Florian Hoppe: Southeast Asia’s Digital Resilience, AI Infrastructure & the Next Growth Wave - E659

Spotify: https://open.spotify.com/episode/147TDmaS0ERT97vsTDwQf6?si=ad8265642b4d4463

Youtube: https://youtu.be/8XLdOWAnULY

"Two things stood out this year. First, the continued positive momentum. Many expected growth to slow due to global economic headwinds and several high-profile issues in Southeast Asia’s digital economy, yet we still saw double-digit growth in GMV and revenue, more sectors turning profitable, and major platform players performing strongly. Competition remains intense, with constant shifts and new trends emerging, but the overall trajectory stays clearly positive. Second, the focus on AI in Southeast Asia. What stands out is the region’s strong optimism toward AI, with interest levels three times the global average and net positivity higher than any other region." - Florian Hoppe, Partner at Bain

"The headwinds came mainly from global macro trends, including trade wars and tariffs. Southeast Asia largely escaped these impacts, even though there was a moment in April and May when uncertainty was high. GDP continues to trend up, and the digital economy has held up well, with double-digit growth across all sectors we examined. While some markets saw high-profile startup failures and audit issues, these did not detract from overall momentum. Beneath the surface, competition remains intense, especially in e-commerce where platform market shares shifted significantly, but the broader direction is still clearly positive." - Florian Hoppe, Partner at Bain

"Once the infrastructure layers are built, essentially laying the rails and pavement, we see a massive boom in data center investment across the region, alongside the emergence of strong local talent. The real opportunity sits in the enabling layer, which can unlock significant new business opportunities in the digital economy over the next decade. AI will reshape and enhance existing digital sectors, but it will also open new growth in areas that were previously constrained, especially healthcare and education." - Florian Hoppe, Partner at Bain

Florian Hoppe, Partner at Bain, joins Jeremy Au to unpack insights from the Bain Southeast Asia Digital Economy Report 2025 and explain why the region’s digital economy keeps growing despite global uncertainty and negative headlines. They explore the long-term forces behind this resilience, including consumer adoption, payments and logistics infrastructure, and sustained middle-class demand. The conversation covers the expansion from ASEAN six to ASEAN ten, how regional scale really works for founders, and why competition from China and global players continues to fuel innovation. Florian also explains why AI and data centers should be seen as foundational utilities, how local AI solutions create real value in healthcare and education, and what investors, policymakers, and parents should focus on as Southeast Asia enters its next digital decade.