The study on the ASEAN Digital Economy Framework Agreement (DEFA) has been officially endorsed by the ASEAN Economic Ministers’ (AEM) meeting on 19 August 2023. The study was commissioned by the ASEAN Member States, with the support from Australia for ASEAN Futures Initiative (Aus4ASEAN Futures), and provides an ambitious vision of harmonious digital opportunity for the region, going beyond the existing bilateral or multilateral Digital Economy Agreements (DEAs).
The DEFA study engaged with stakeholders across ASEAN, gathering information through a series of workshops and consultative sessions across the region. It also incorporated feedback from ASEAN’s private sector, surveying over 2,000 micro, small and medium enterprises (MSMEs), engaging over 60 business leaders at large corporations. It was also backed by a secondary literature review to derive best-practice recommendations.
The DEFA seeks to offer a comprehensive roadmap to empower businesses and stakeholders across ASEAN, through accelerating trade growth, enhancing interoperability, creating a safe online environment, and increasing participation of MSMEs. As such, key topics such as digital trade, cross-border e-commerce, cybersecurity, digital ID and digital payments are considered along with emerging topics such as AI to ensure a future-proof DEFA. According to a bottom-up model developed by Boston Consulting Group, ASEAN’s digital economy is projected to triple by the end of the decade through the natural adoption of digital technologies, growing from approximately US$300 billion to almost US$1 trillion by 2030. Progressive rules in DEFA would double this value contribution, unlocking US$2 trillion to ASEAN digital economy.
Dr. Kao Kim Hourn, Secretary-General of ASEAN, underscored that “The completion of the DEFA study is a major milestone and one of the most remarkable achievements in 2023, laying an important preparatory work for ASEAN to embark on DEFA negotiations. DEFA is also a testament to ASEAN’s long-term commitment to embrace digital transformation that will leap forward ASEAN businesses globally, and unlock a borderless era of economic growth.”
The ASEAN Economic Ministers’ (AEM) meeting also endorsed the Framework for Negotiating ASEAN DEFA, paving the way for ASEAN to commence the DEFA negotiations by the end of 2023.
The DEFA negotiations are expected to be officially launched at the 23rd ASEAN Economic Community (AEC) Council meeting and to be officially acknowledged by the ASEAN Leaders at the 23rd ASEAN Summit in Jakarta, in September 2023.
Source: ASEAN
Share:
<p>Time: 2024 By: Ministry of Industry and Trade</p>
