Report: Southeast Asia's overall technology industry investment has declined, but the fintech and blockchain ecosystems remain strong

A new report from Tracxn shows that 2024 was a challenging year for Southeast Asia, with the region’s tech ecosystem experiencing a sharp decline in funding inflows and a major shift in the market landscape amid a weak global economy, while “continuing to innovate and adapt to challenges.” In 2024 (year-to-date), Southeast Asian tech startups raised $2.84 billion across 420 funding rounds, a 59% drop from $7 billion in 2023 and an 80% drop from $14.2 billion in 2022. Of this, Singapore accounted for nearly 67% of the region’s total funding, followed by Jakarta and Bangkok. Tech startups in Singapore raised “$1.9 billion in 2024,” while those in Jakarta and Bangkok “raised $276 million and $261 million, respectively.” Despite the decline in investment, certain sectors in Southeast Asia’s tech ecosystem have shown resilience and continue to attract investor interest. Among them, fintech topped the funding rankings, "raising $1.4 billion in 2024, followed by high-tech at $966 million and enterprise applications at $764 million." In addition, emerging industries such as clean technology and blockchain show great promise, thanks to "regulatory support and continued investor interest, indicating growth potential in the coming years." The report noted that despite the challenges, Southeast Asia's technology ecosystem has demonstrated adaptability through "continued investment, innovation and government support." The focus in 2025 will be on "high-growth" areas such as fintech, clean technology and blockchain, while leveraging "policy frameworks and investor enthusiasm to address economic complexity."