ASEAN ministers sign digital economy pact

MANILA, Philippines — Ministers of the Association of Southeast Asian Nations (ASEAN) yesterday signed the Digital Economy Framework Agreement (DEFA), a priority deliverable under the Philippines’ ASEAN chairship.

Speaking at the DEFA’s signing yesterday, Trade Secretary Cristina Roque said the agreement is a landmark achievement, being the world’s first region-wide digital economy agreement of its kind.

As such, it is expected to enable the ASEAN to shape the future of the digital economy.

Roque said the agreement would support ASEAN’s aim to build a more integrated digital economy for nearly 680 million people and potentially double its value to $2 trillion by 2030.

“But DEFA is not simply about economic growth. It is establishing the rules, systems and cooperation that will allow our people and businesses to participate more fully in that growth,” she said.

The agreement will provide a common framework to promote a more seamless, secure and interconnected ASEAN digital marketplace.

Under the agreement, ASEAN members will work together on key areas such as digital trade and cross-border e-commerce to make it easier for businesses to offer goods and services across the region.

Roque said the agreement can also help open employment opportunities in e-commerce, information technology-business process management, digital services and the creative industries.

Asian Development Bank president Masato Kanda said during the ASEAN Business and Investment Summit yesterday that the multilateral lender is providing up to $5 billion by 2030 to support the implementation of the DEFA.

“ADB is pledging up to $5 billion by 2030 to help ASEAN turn its DEFA into action: digital infrastructure, cross-border data and payments, cybersecurity, AI readiness and digital inclusion,” Kanda said.

At the same event, Kanda announced the ADB will help strengthen the region’s water and food security through the ASEAN Resilient Rivers Initiative, which aims to mobilize up to $8 billion in public and private financing by 2030.

He said these two initiatives complete ADB’s $30-billion pledge by 2030 announced last May to support the ASEAN’s development priorities.