Asean leaders back AI, digital economy

WORKING TOGETHER The leaders of the 11-country Association of Southeast Asian Nations join hands in the traditional “class picture” at the end of their summit. The summit resumes in November, also in Cebu. —AFP

The Association of Southeast Asian Nations (Asean) has backed efforts to accelerate the region’s digital transformation and expand the adoption of artificial intelligence (AI) as part of the region’s long-term development agenda.

Asean reaffirmed its commitment to strengthening the competitiveness, inclusiveness and resilience of micro, small and medium enterprises (MSMEs) through the Strategic Action Plan for MSME Development 2026–2030.

The plan includes measures to accelerate digital and technology transformation, deepen integration of MSMEs into regional and global value chains and support a greener transition, the bloc said in a statement after the conclusion of the Asean Leaders’ summit on Saturday.

Among Asean nations, Vietnam, Malaysia and the Philippines have emerged to be the powerhouses of the Southeast Asian digital economy.

Recent data from the Philippine Statistics Authority (PSA) showed that the Philippine digital economy accounted for 9.8 percent of the country’s gross value added (GVA) last year.

The sector generated P2.74 trillion in GVA last year, up 5.4 percent from P2.59 trillion in 2024.

Industries within the digital economy—including digital-enabling infrastructure, digital content and media, e-commerce and government digital services—employed 10.39 million Filipinos in 2025, representing 21.2 percent of total employment.

This figure was 1.2-percent higher than the 10.27 million workers recorded in 2024.

Digital-enabling infrastructure contributed the largest share to GVA at P1.79 trillion, or 65.3 percent. This was followed by e-commerce at 32.2 percent, digital content and media at 2.2 percent and government digital services at 0.3 percent.

Within digital-enabling infrastructure, information and communication technology (ICT) services led with a 27.1-percent share, followed by ICT manufacturing at 13.6 percent and ICT-enabled services at 13.3 percent.

Growing sector

In terms of employment, e-commerce accounted for the largest share at 75.8 percent, followed by digital-enabling infrastructure at 23.3 percent. Digital content and media contributed 0.8 percent, while government digital services accounted for 0.1 percent.

In its joint statement over the weekend, Asean leaders also noted the adoption of the Asean Framework and Action Plan for a Just and Inclusive Transition to Green Jobs (2025–2030), which aims to promote green employment, reskilling and upskilling of workers and stronger social dialogue to ensure that the shift toward a green economy is fair and inclusive.

The leaders welcomed the ongoing development of an Asean Declaration on Strengthening Labor Market and Social Resilience, which is expected to be adopted by the Asean Labor Ministers Meeting later this year.

The declaration will serve as a strategic framework to support the transition toward a “resilient, adaptable and inclusive” labor market amid economic and technological changes.

The regional bloc also expressed anticipation for the conclusion of negotiations on the Asean Digital Economy Framework Agreement (Defa), which is expected to be signed at the 49th Asean Summit in November.

The agreement is seen as a landmark initiative that will accelerate regional digital integration through cooperation in digital trade, e-commerce, electronic payments, digital identity systems, online safety and cybersecurity, cross-border data flows, competition policy and cooperation on emerging technologies such as AI.

Defa will support digital talent development and strengthen regional readiness for an increasingly AI-driven and interconnected global economy, reinforcing Southeast Asia’s position as a competitive and forward-looking digital hub.