The year of 2023 has generally looked less rosy with more uncertainties as compared to 2022 as economic growth slowed down in many parts of the world. The baseline forecast is for global growth to slow from 3.5 percent in 2022 to 3.0 percent in 2023 and 2.9 percent in 2024, well below the historical (2000–19) average of 3.8 percent, according to the International Monetary Fund (IMF).
Advanced economies are expected to slow from 2.6 percent in 2022 to 1.5 percent in 2023 and 1.4 percent in 2024 as policy tightening starts to bite. Emerging market and developing economies are projected to have a modest decline in growth from 4.1 percent in 2022 to 4.0 percent in both 2023 and 2024, the IMF said in its World Economic Outlook: Navigating Global Divergences (Oct 2023) report.
“The global recovery from the COVID-19 pandemic and Russia’s invasion of Ukraine remains slow and uneven. Despite economic resilience earlier this year, with a reopening rebound and progress in reducing inflation from last year’s peaks, it is too soon to take comfort. Economic activity still falls short of its pre-pandemic path, especially in emerging market and developing economies, and there are widening divergences among regions,” it added.
The global wave of layoffs hitting US tech companies like Meta, Amazon, and Twitter has also come to Southeast Asia amid a slowdown in fundraising activities for tech startups.
Tech companies including venture capital-backed startups in Southeast Asia have also announced layoffs and austerity measures to cope with the uncertain macroeconomic situation.
In March, it was reported that e-commerce giant Shopee has laid off around 200 employees in Indonesia, mostly from the customer services team. In the same month, Indonesia’s biggest tech firm PT Goto Gojek Tokopedia announced another round of layoffs to streamline the organisation and boosting the company’s profitability.
About 600 roles will be affected, the company said then, following 1,300 jobs that were cut in late-2022.
Last month, it was reported that TikTok parent ByteDance will cut 1,000 gaming jobs in strategic shift. In the same month, Malaysia-headquartered used car platform Carsome is said to have cutting “hundreds of jobs” to reach profit.
On the other hand, according to Traxcxn, the Southeast Asia tech sector received a total funding of $4.3 billion in 2023 year to date (till Dec 5, 2023), a 65 percent plunge from $12.4 billion raised in the same period last year.
The global software as a service (SaaS)-based market intelligence platform said in its “Geo Annual Report: SEA Tech 2023”, the tech startup ecosystem in Southeast Asia continues to face the effects of the funding winter, in line with other major economies.
Companies in this space attracted late-stage funding worth $1.9 billion in 2023 year to date, a sharp decline of 65 percent from $5.4 billion raised in the same period in 2022.
Meanwhile, early-stage funding stood at $1.9 billion in 2023 year to date, 67 percent lower than $6 billion raised in the same period in 2022.
Seed-stage investments, too, fell 52 percent to $546 million from $1.14 billion raised in the same period in 2022.
FinTech, enterprise applications, and retail were the top-performing segments in the tech startup ecosystem in 2023.
Still, the FinTech sector received $2 billion in funding in 2023 till date, 65 percent lower when compared with the same period in the previous year.
As we usher into the new year, here are the Top 10 most-read news article of 2023 on TNGlobal:
1. Breakeven is near for Malaysian unicorn Carsome, says CEO Eric Cheng
Breakeven is near for Malaysian unicorn Carsome, says CEO Eric Cheng
2. Germany’s Infineon invests up to $5.46B to build largest 200-millimeter SiC Power Fab in Malaysia
Germany’s Infineon invests up to $5.46B to build largest 200-millimeter SiC Power Fab in Malaysia
3. Jaya Grocer launches membership program integrated with Grab
Jaya Grocer launches membership program integrated with Grab
4. Futu launches trading platform Moomoo in Malaysia
5. Grab launches intercity travel service in Malaysia and Singapore
Grab launches intercity travel service in Malaysia and Singapore
6. China’s Meituan explores deal for Delivery Hero’s Southeast Asia arm Foodpanda – report
China’s Meituan explores deal for Delivery Hero’s Southeast Asia arm Foodpanda – report
7. MoMo partners with Western Union for money transfer in Vietnam
MoMo partners with Western Union for money transfer in Vietnam
8. Singapore’s ShipsKart raises $2.7M Series A funding led by TMV and Hermes Offshore
Singapore’s ShipsKart raises $2.7M Series A funding led by TMV and Hermes Offshore
9. ION Mobility closes $18.7M Series A funding, brings TVS Motor Company on board as strategic investor
ION Mobility closes $18.7M Series A funding, brings TVS Motor Company on board as strategic investor
10. Carsome refutes funding bid from government; says its liquidity position remains robust at over $150M
TNGlobal’s Top 10 most-read analysis & feature articles in 2023