ASEAN ends talks on digital economy pact

It covers data flows, payments, e-commerce, and digital trade rules.

ASEAN member states have concluded negotiations on the ASEAN Digital Economy Framework Agreement (DEFA), according to a press release from Singapore’s Ministry of Trade and Industry (MTI).

The negotiations were concluded at the Second Meeting of the 57th ASEAN Senior Economic Officials Meeting held in Manila, Philippines, from 27 to 29 May, MTI said.

The ASEAN DEFA is the first comprehensive, region-wide agreement dedicated to the digital economy, MTI said. It establishes common rules and frameworks to facilitate digital trade across ASEAN.

The ministry said the agreement covers cross-border data flows, digital trade procedures, digital payments, electronic transactions and online consumer protection.

It also includes provisions aimed at strengthening digital interoperability among ASEAN Member States.

MTI said the framework also addresses emerging areas including artificial intelligence, financial technology (fintech), and source code protection.

The agreement builds on existing ASEAN digital economy commitments and sets out shared frameworks intended to streamline digital trade procedures, according to MTI.

It is expected to make it easier for businesses, including small and medium enterprises, to access opportunities in Southeast Asia’s digital economy and for consumers to carry out cross-border transactions, MTI said.

The ministry cited ASEAN studies showing that implementation of the framework could double the region’s digital economy to $2.56t (US$2t) by 2030, based on analysis by Boston Consulting Group.

MTI said Singapore played an active role in supporting the conclusion of the agreement, alongside ASEAN Member States, the ASEAN Secretariat, and business stakeholders.

The agreement is targeted to be signed at the 49th ASEAN Summit in November 2026, according to MTI.