The current investment climate for EdTech in Southeast Asia faces challenges but remains resilient. After a funding boom during the pandemic, investment slowed due to the tech downturn and the return of offline education. Despite this, Southeast Asia still hosts a vibrant EdTech ecosystem with nearly 3,000 startups addressing K-12 and beyond, showing that there is sustained interest in the sector. Despite this, securing funding has become more difficult, and investors are becoming increasingly selective, focusing on startups that show scalability and adaptability to the evolving educational landscape.

‍

Zenius (Indonesia) and, more recently, Geniebook (Singapore) are examples of companies in distress. The former announced that it would temporarily stop operations in January and, to date, it is uncertain whether it will resume its activity any time soon. Zhizhong Neo, co-founder and CEO of Geniebook, alludes to “the funding winter and the changing demands of the education market” as the main reason for axing 117 jobs since 2023, 24 of which happened in 2024. The company’s last round was raised in 2021.

‍

Despite a period of decline, investment in APAC EdTech is showing signs of recovery. Although funding saw a sharp drop in 2023, the region experienced a notable recovery in 2024, with $463 million raised by mid-year, already surpassing the total amount raised in 2023. The APAC market continues to attract significant attention, positioning itself as a leader in EdTech, with forecasts suggesting that the region will dominate the global market by 2030.

‍

Smartphone bans in schools across APAC

Schools have banned smartphones through different policies since the advent of smartphones, such as China’s Ministry of Education enforcing a nationwide ban in 2021. However, following a 2023 UNESCO report that highlighted the disruption to learning caused by smartphones, an increasing number of schools across APAC have started banning the use of smartphones in class unless there is a specific learning task that requires their use. The report noted that while there are some contexts in which technology can support learning, the use of smartphones distracts students from learning, and students can take up to 20 minutes to refocus post-distraction.

‍

Even EdTech-saturated schools in Singapore have required students to lock up their phones before classes begin, which has led to ‍. Not all organizations are in favor of the ban. In South Korea, the National Human Rights Commission of Korea recommended lifting it, citing concerns it restricts the right to communication. Most schools haven’t considered this recommendation, and the APAC regional trend seems to favor continuing the ban on smartphones during school hours. While this may limit some smartphone-based EdTech solutions, this may provide increased opportunity for EdTech solutions that provide hands-on and collaborative classroom experiences such as robotics and 3-D printing.

‍

Southeast Asia (ASEAN) Snapshot

Technical and Vocational Education and Training (TVET) is gaining momentum across Southeast Asia. Countries like the Philippines, Vietnam, and Malaysia are emphasising skills development aligned with industry needs while Singapore is focusing on a renewed push through offshore centres.

‍

Also in the last 3 months, there has been a notable increase in activities related to international collaboration, particularly in higher education. Universities in Indonesia, Thailand, and Malaysia are forming partnerships with institutions in Australia, Europe, and North America to offer joint programs and dual degrees.

‍

Up & Rising Edtech Company to Watch: Eduqat (Indonesia)

Rising Demand for Quality Education

• ‍Increased Parental Investment: Parents are investing more in their children’s education, often opting for private schools or international programs.‍
• Focus on STEM: There’s a growing emphasis on Science, Technology, Engineering, and Mathematics (STEM) education to prepare students for the future job market. A growing and burgeoning after-school market has been growing in more countries in Asia, with parents wanting to give a head start to their children in both academic and skills in STEM and even the Arts.

‍

Focus on Soft Skills Beyond Academics

Schools are recognizing the importance of soft skills like critical thinking, problem-solving, creativity, and communication.‍

Character Education: There’s a growing emphasis on character education to develop well-rounded individuals, focusing on educating for the heart (values) and not just head (knowledge) and hands (skills). This shift has led to a growing demand for solutions that foster values and life skills, including career coaching services, social and emotional well-being curricula and content. Additionally, critical thinking pedagogies coupled with EdTech solutions that support these initiatives are gaining acceptance. As a result, assessment criteria and measurements that go beyond academic rubrics will also be sought after.

‍

‍

Government Reforms Education Policies

Governments are implementing reforms to improve education quality, accessibility, and equity.

‍

‍

Teacher Training

Efforts are being made to enhance teacher training and professional development. The lack of digital fluency for educators remains a barrier to implement effective educational technologies. Professional development that addresses the why and when, not just the what and how of innovative tools and solutions from international providers, is crucial for sustained and effective adoption and continued purchases.

Smartphone bans in schools across APAC

Schools have banned smartphones through different policies since the advent of smartphones, such as China’s Ministry of Education enforcing a nationwide ban in 2021. However, following a 2023 UNESCO report that highlighted the disruption to learning caused by smartphones, an increasing number of schools across APAC have started banning the use of smartphones in class unless there is a specific learning task that requires their use. The report noted that while there are some contexts in which technology can support learning, the use of smartphones distracts students from learning, and students can take up to 20 minutes to refocus post-distraction.

‍

Even EdTech-saturated schools in Singapore have required students to lock up their phones before classes begin, which has led to ‍. Not all organizations are in favor of the ban. In South Korea, the National Human Rights Commission of Korea recommended lifting it, citing concerns it restricts the right to communication. Most schools haven’t considered this recommendation, and the APAC regional trend seems to favor continuing the ban on smartphones during school hours. While this may limit some smartphone-based EdTech solutions, this may provide increased opportunity for EdTech solutions that provide hands-on and collaborative classroom experiences such as robotics and 3-D printing.

‍

Southeast Asia (ASEAN) Snapshot

Technical and Vocational Education and Training (TVET) is gaining momentum across Southeast Asia. Countries like the Philippines, Vietnam, and Malaysia are emphasising skills development aligned with industry needs while Singapore is focusing on a renewed push through offshore centres.

‍

Also in the last 3 months, there has been a notable increase in activities related to international collaboration, particularly in higher education. Universities in Indonesia, Thailand, and Malaysia are forming partnerships with institutions in Australia, Europe, and North America to offer joint programs and dual degrees.

‍

Up & Rising Edtech Company to Watch: Eduqat (Indonesia)

Rising Demand for Quality Education

• ‍Increased Parental Investment: Parents are investing more in their children’s education, often opting for private schools or international programs.‍
• Focus on STEM: There’s a growing emphasis on Science, Technology, Engineering, and Mathematics (STEM) education to prepare students for the future job market. A growing and burgeoning after-school market has been growing in more countries in Asia, with parents wanting to give a head start to their children in both academic and skills in STEM and even the Arts.

‍

Focus on Soft Skills Beyond Academics

Schools are recognizing the importance of soft skills like critical thinking, problem-solving, creativity, and communication.‍

Character Education: There’s a growing emphasis on character education to develop well-rounded individuals, focusing on educating for the heart (values) and not just head (knowledge) and hands (skills). This shift has led to a growing demand for solutions that foster values and life skills, including career coaching services, social and emotional well-being curricula and content. Additionally, critical thinking pedagogies coupled with EdTech solutions that support these initiatives are gaining acceptance. As a result, assessment criteria and measurements that go beyond academic rubrics will also be sought after.

‍

‍

Government Reforms Education Policies

Governments are implementing reforms to improve education quality, accessibility, and equity.

‍

‍

Teacher Training

Efforts are being made to enhance teacher training and professional development. The lack of digital fluency for educators remains a barrier to implement effective educational technologies. Professional development that addresses the why and when, not just the what and how of innovative tools and solutions from international providers, is crucial for sustained and effective adoption and continued purchases.