Asean ministers ink digital economy pact
Economic ministers of the Association of Southeast Asian Nations (Asean) on Saturday signed a digital economy pact, which seeks to accelerate the growth of their online economies by easing cross-border friction and tapping AI and other advanced technologies.
The Digital Economy Framework Agreement (Defa) aims to streamline digital transactions across the bloc’s 11 member states and boost the growth of the region’s digital economy to $2 trillion by 2030—double the growth projections without that pact.
“At its core, Defa provides a common framework for a more seamless, secure and interconnected Asean digital marketplace,” Trade Secretary Cristina Roque said during the signing. “It is about establishing rules, systems and cooperation that will allow our people and businesses to participate more fully in that world.”
ADB support
The Asian Development Bank (ADB) has pledged up to $5 billion by 2030 to support Defa’s implementation, covering cross-border data, cybersecurity and AI readiness, among others.
The ministers did not identify the projects they plan to activate under Defa.
But in an interview, Singapore Deputy Prime Minister and Trade and Industry Minister Gan Kim Yong said one of the initiatives they want to advance is Project Nexus, which seeks to link national digital payment systems into a multilateral network.
Singapore, next year’s Asean chair, also wanted to prioritize the Asean Single Window 2.0 platform, intended to streamline the electronic exchange of trade documents to expedite cross-border clearance processes.
Gan also said Defa could establish a unique business identity system across Asean that would allow companies registered in one member state to be reliably recognized when transacting digitally in another.
Roque cited as well the private sector’s role in implementing specific projects to realize Defa, saying the pact “provides an enabling framework, but your investments, innovations, technologies and entrepreneurial initiatives will bring this to life.”
