Asean on track to sign digital economy agreement in 2026

DPM Gan calls it a 'significant breakthrough' for members of the bloc

- Lu Wei Hoong Malaysia Correspondent

Deputy Prime Minister Gan Kim Yong (third from left) and Malaysia's Investment, Trade and Industry Minister Tengku Zafrul Aziz (sixth from left) at the 26th Asean Economic Community Council meeting in Kuala Lumpur on Oct 24. Talks on the Asean Digital Economy Framework Agreement, which aims to boost cross-border digital trade and services, reached a 'substantial conclusion' at the meeting, said Singapore's Ministry of Trade and Industry.

(PHOTO: BERNAMA)

Asean is on course to sign a digital economy pact in 2026, which aims to boost cross-border digital trade and services.

Talks on the Asean Digital Economy Framework Agreement (Defa) reached a “substantial conclusion” at the 26th Asean Economic Community Council (AECC) held in Kuala Lumpur on Oct 24, said Singapore's Ministry of Trade and industry (MTI) in a release.

Touted as the first major region-wide digital economy agreement in the world, talks on Defa officially began in September 2023, covering areas such as digital trade, cross-border e-commerce, cyber security, digital identity, digital payments and cross-border data flows.

Deputy Prime Minister Gan Kim Yong, who represented Singapore at the meeting, called it a “significant breakthrough” and told reporters afterwards that Asean will finalise the pact by 2026 and sign it.

"Digitalisation has become a key driver for economic development and growth. It is important for Asean members to find a way to harmonise our standards, our guidelines, and so that our systems are interoperable," he said.

Mr Gan, who is also Trade and Industry Minister, noted that the countries are at different stages of digitalisation and the pact had to accommodate differences in capacity and capability.