GSMA APAC Fintech Forum also Launches at Digital Nations Summit Singapore to Help Southeast East Asian Mobile Economy Innovate and Secure Online Trust
25 July 2024, Singapore: The mobile industry’s contribution to Asia Pacific’s economy will grow beyond $1 trillion by 2030, with faster adoption of 5G technologies in the region meaning it will exceed average global growth rates, according to the GSMA’s Mobile Economy Asia Pacific 2024 report launched today.
Unveiled at the GSMA’s Digital Nation Summit Singapore, the report shows that mobile technologies and services generated 5.3% of GDP (Gross Domestic Product) across Asia Pacific in 2023, a contribution that amounted to $880bn of economic value in 2023. The greatest benefits come from the productivity effects of mobile services and digital transformation on industries such as manufacturing and fintech. Mobile’s contribution to the APAC economy over the period of 2023-2030 will outpace the global average, growing by 15% in the region, compared to the global average growth of 12% over the same period.
Commercial 5G standalone (SA) networks, now present in seven APAC countries (Australia, India, Japan, the Philippines, Singapore, South Korea, and Thailand), will help fuel this growth, alongside 5G Advanced, RedCap and AI, creating opportunities to launch new 5G applications and kick start a fresh round in 5G investments for enterprises and consumers.
The authors of the report, GSMA Intelligence, expect 5G to add almost $130 billion to the Asia Pacific economy in 2030, with the manufacturing industry forecast to benefit the most, driven by new 5G-enabed applications including smart factories, smart-grids, and IoT-enabled products. Financial services and public administration are also expected to be big beneficiaries, as they turn to 5G to digitally transform services and operations. To help support this growth the GSMA today launched the GSMA APAC Fintech Forum, a new community programme to unite the connected fintech and commerce sectors with Asia Pacific’s mobile network operators through new technologies.
The Mobile Economy APAC 2024 Report, published today during the Digital Nation Summit Singapore hosted by the GSMA and Singtel, highlights the key trends and forecasts shaping the mobile ecosystems in the region. Key findings include:
- Mobile internet users in APAC will grow from 1.4bn (51% penetration rate) to 1.8bn (61% penetration rate) in 2030.
- Mobile data traffic in Asia Pacific will quadruple between 2023 and 2030 driven by an increase in data intensive content and growth in 5G adoption.
- Satellites and non-terrestrial networks can help reduce the connectivity gap, by bringing communications to the region’s challenging terrains – including archipelagos, rainforests, deserts, and mountain ranges – where traditional infrastructure is expensive and difficult to build.
- Operators across the Asia Pacific region are harnessing the power of generative AI (genAI) to drive internal transformations and seize new revenue streams through AI investment. For example, operators including Singtel, SK Telecom, Softbank and e& have formed the Global Telco Alliance to co-developing their own telecoms-specific AI models, benefiting from a global customer base of 1.3 billion across 50 countries.
However, while a number of APAC country’s including Singapore, South Korea, Australia, Japan, and New Zealand rank as some of the world’s most digitally advanced nations, large swathes of Asia’s population in other parts of the region still remain unconnected, despite most of them being within areas where there’s mobile coverage. This usage gap remains stubbornly high in some markets, notably Bangladesh, India, and Pakistan. Key adoption barriers include lack of affordability, particularly for devices, and a lack of digital skills, particularly among older citizens.
Julian Gorman, Head of Asia Pacific at the GSMA, said: “The growth in Asia Pacific’s mobile internet usage over the past decade has been nothing short of remarkable and the region continues to innovate at a pace. Asia’s rapid adoption, and invention, of new mobile digital services is bringing new use cases to life, that the rest of the world can learn from.”
“The large 5G investments mobile operators and governments are making puts many of Asia Pacific’s nations in a leading position to secure strong economic growth, unleashing a new era of innovation particularly in sectors such as fintech and manufacturing. However, in other parts of Asia Pacific, hundreds of millions of people are still missing out. Addressing this usage gap and building online trust are crucial to closing this digital divide and ensuring everyone can benefit from the life-enhancing applications mobile can provide in area such as finance, education, and health,” he added.
Mr Yuen Kuan Moon, Singtel Group CEO, added: “We see the exponential rise in enterprise mobile applications and solutions as a big boost to businesses, especially given the emergence of GenAI and the shift to the cloud as digitalisation continues to accelerate. This is why we’ve been working with many industry leaders to leverage intelligence, machine learning and robotics and cloudification to improve their productivity and customer engagement as well as innovate and scale their operations. While we ensure that our customers are well-supported in their digital transformation journey, we’re also mindful of the need to continue to provide vulnerable groups with access to digital tools so they too can be empowered and engaged in a digital economy.”
Digital Nation Singapore Summit, 25th July
The APAC Mobile Economy report was launched at the GSMA’s Digital Nation Summit in Singapore, an event that brings together industry leaders, policymakers, and innovators to explore the critical role mobile technology has in driving economic growth and creating a more inclusive digital future for Asia Pacific. The summit agenda features insightful keynote addresses, panel discussions, and fireside chats with executives from leading companies like Singtel, Google, and Grab.
This year’s summit will also include The GSMA APAC Fintech Forum a new community programme to unite the connected fintech and commerce sectors with Asia Pacific’s mobile network operators. The vision of the forum is to accelerate innovation and integration of mobile networks to advance the mobile economy and nurture digital trust as the foundation for sustainable and inclusive digital nations in the region.
The Mobile Economy report also highlights the need for greater collaboration in this space. The report says that with the rise of cybercriminals targeting consumers and businesses, particularly in the area of online payments and financial services, it is crucial governments, mobile operators and other digital ecosystem players work together to build consumer trust and online safety.
The fintech forum builds on the GSMA Open Gateway initiative, launched in 2023 and supported by over 280 mobile operators worldwide, serving two thirds of the world’s mobile users. Recently launched online security and anti-fraud APIs (Application Programming Interfaces) are now starting to be used by banks and online retailers to mitigate identity fraud and transaction risks. Asia Pacific mobile operators have been particularly proactive in this area, with operators in Australia, Indonesia, Japan, Malaysia, Singapore, South Korea, Sri Lanka, Thailand, and Vietnam committing to launch more online security services.
M360 Asia Pacific 2024, 1-2 October
Delegates attending this year’s edition of M360 Asia Pacific in Seoul will have the opportunity to hear from thought leaders and attend keynotes and panel discussions covering the key topics from the Mobile Economy APAC 2024 report, including how AI is reshaping business services, 5G acceleration and IoT (Internet of Things).
M360 Asia Pacific is brought in partnership with Host Sponsor, KT and will convene leading industry figures and policymakers from across the region. We welcome members of the media to pre-register for M360 Asia Pacific, taking place at Westin Josun, Seoul.
For more information visit www.mobile360series.com/asia-pacific. You can also follow developments on Twitter @GSMA using the hashtag #Mobile360 or www.linkedin.com/showcase/gsma-mobile-360-series.
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About GSMA
The GSMA is a global organisation unifying the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change. Our vision is to unlock the full power of connectivity so that people, industry, and society thrive. Representing mobile operators and organisations across the mobile ecosystem and adjacent industries, the GSMA delivers for its members across three broad pillars: Connectivity for Good, Industry Services and Solutions, and Outreach. This activity includes advancing policy, tackling today’s biggest societal challenges, underpinning the technology and interoperability that make mobile work, and providing the world’s largest platform to convene the mobile ecosystem at the MWC and M360 series of events.
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