TikTok To Invest ‘Billions of Dollars’ Into Southeast Asian Businesses in Coming Years

SMEs will be the ones that stand to benefit.

June 15, 2023

TikTok To Invest ‘Billions of Dollars’ Into Southeast Asian Businesses in Coming Years

In the coming years, giant social video platform TikTok will look to pump in "billions of dollars" into Southeast Asia's (SEA) small-and-medium-enterprises (SMEs) in a bid to transform itself into more than just a video platform, and into a valuable business tool for the region.

Speaking at TikTok's Southeast Asia Impact Forum, the company's CEO Chew Shou Zi said that steps were already being taken to grow TikTok's utility into something that will end up benefitting Southeast Asian SMEs.

Chew revealed that TikTok has so far provided a platform for over 15 million SEA-based small businesses, including five million from Indonesia alone.

"I am delighted to announce that we are going to invest billions of dollars in Indonesia and Southeast Asia over the next few years," he said.

While Chew did not disclose the finer details of the proposed outlay nor its timeframe, he did reveal that it would definitely include a US$12.2 million investment that would end up benefitting more than 120,000 SMEs, entrepreneurs, as well as youth over the next three years.

TikTok CEO Chew Shou Zi at the company's Southeast Asia Impact Forum. IMAGE: CNBC

This comes after TikTok has cemented its position as one of the most important social media platforms of the last half decade, with over a billion users worldwide and 325 million of that coming from Southeast Asia alone.

Now, the company hopes to become more supportive of the creators and businesses that have become reliant on it for regular incomes. This is especially pertinent considering how more than 60 percent of those relying on TikTok for revenue have been earning more than the minimum wage in their own countries.

Additionally, a study by U.S.-based research firm Kadence International conducted between August and September 2022 also showed that from 3,400 TikTok users and 25 non-profits, 79 percent of businesses were already supported by the app in transitioning from offline to online marketing channels.

More importantly, 74 percent admitted that the platform had helped them up their sales volumes.

“As we continue to expand our platform, our content is also becoming more diversified," Chew said. "Dancing and singing is still important, and they hold their charm, but we’re witnessing other verticals, other sectors such as education, skyrocketing on our platform globally.”