By His Excellency Satvinder Singh, Deputy Secretary General of the ASEAN Economic Community

In response to the profound changes permeating every aspect of life brought about by digital technology, ASEAN has put in place in 2021 an agenda  to  develop  a region-wide  digital  economy  through  the  Bandar Seri Begawan Roadmap (BSBR): An ASEAN Digital  Transformation Agenda to Accelerate ASEAN’s Economic Recovery and Digital Economy Integration. Guided by the BSBR, the region has been actively carrying out digital transformation initiatives that would position the region as a leader and empower every individual, community, and nation to thrive in the digital economy. 

Current ASEAN’s digital transformation agenda and initiatives include:

• Cross-border payments:seamless digital cross-border payments are an important strategic means to  further  advance  the  ASEAN  financial  integration,  financial inclusion and the development of the ASEAN digital economy. I am glad to share that  the  bilateral  cross-border  QR  code  payment  linkages under  the  ASEAN  Payment  Policy  Framework  for  Cross-Border  Real-Time  Retail  Payment  System  (RT-RPS),  have  gone  live  in Vietnam, Cambodia, Lao PDR, Indonesia, Malaysia, Singapore, and Thailand. 
• Digitalised Trade:ASEAN is currently working towards the Second Generation of the ASEAN Single Window, which is envisioned to be more interconnected, inclusive and accessible to businesses in ASEAN, between ASEAN and among dialogue partners.  
• Digital ID: Since 2023,  ASEAN  has  embarked  on  the  initiative  to  establish regionally comparable and recognisable unique business identification numbers, better known as ASEAN UBIN. We are now working on a  region-wide implementation plan for the ASEAN Member States to roll-out its implementation. 
• Artificial Intelligence:ASEAN launched  the  ASEAN  Guide  on  AI  Governance  and Ethics in February 2024, which sets a baseline standard for AI  governance. The Guide aims to strike a good balance between the economic advantages of AI technology,  on  one  hand,  and  its  associated  risks,  on  the    The  Guide  lays  a foundation  for  a  whole-of-community  approach  to  develop  coherent  AI  regulations  and  standards  across  the  region, ensuring consistency and facilitating cross-border cooperation.
• Cybersecurity: Reinforcing cybersecurity  cooperation  and  data  protection is  a priority  to  advance  the  continued  development  of  a  secure,  resilient,  interoperable, and rules-based cyberspace as a key component of digital transformation. Glad to share that ASEAN will operationalise the ASEAN  Regional  Computer  Emergency  Response  Team  (CERT) by this year, which will improve a coordinated  response and information exchange in the face of trans-boundary cyber  threats and attacks. Additionally, ASEAN  is committed to continuing to strengthen  the  implementation  of  key  mechanisms  under  the  ASEAN Framework  on  Digital  Data  Governance  which  provides  policy  and regulatory guidance on governing digital data in the digital economy.

As the penultimate action item in the BSBR, ASEAN has also started  negotiating  the ASEAN  Digital  Economy Framework Agreement (DEFA). The ASEAN DEFA will strive to achieve the vision of the ASEAN Leaders  to  develop  a  modern,  comprehensive,  and  coherent  digital transformation strategy towards an ASEAN digital economy.

The ASEAN DEFA, as the first region-wide digital economy agreement in  the  world, will have a direct correlation to the future of ASEAN’s digital economy.  

First, the ASEAN DEFA is expected to further enhance ASEAN digital economy’s dynamism and competitiveness. Currently, the region has a population of over 650 million and a combined GDP of over US$ 3 trillion,  making  it  a  significant  player  in  the  global  digital  economy landscape. According to the preliminary study conducted for DEFA, with a robust, advanced and forward-looking  DEFA,  ASEAN  can  add  up  to  US$ 2  trillion  to  the regional  digital  economy  by  2030.  According  to  the  same  study,  the DEFA  is  expected  to  raise  the  tide  for  all  ASEAN  Member  States regardless of their current level of development with a value multiplier ranging from 3.0 to 6.5 times. 

Second, connectivity is fundamental in addressing the digital divide across ASEAN. The  ASEAN  DEFA  Negotiating  Committee  is  considering adding digital equity and inclusion provisions, committing AMS  to  recognise  the  importance  of  expanding the  opportunities  for  every  community, especially  the  underserved,  to participate in the digital economy.   Additionally, there are discussions, subject to available resourcing, on adopting or maintaining policies that promote reliable, high-speed, and affordable internet access, and equitable access to education, skills, technology, and capacity. These are, of course, without prejudice to the eventual outcome of the negotiations.

Third, the ASEAN DEFA may also consider cross-regional core provisions like digital trade, payments, and ID that enable deeper regional cooperation while shedding light on the capabilities that individual ASEAN Member States need to improve. As we are in a new era of digital trade and cross-border e-commerce, it is crucial to ensure sustainable development of the digital economy by having forward-looking and future-proof rules and principles on these two areas.

Negotiating a first-of-its-kind and a high-quality agreement is not easy. While ASEAN has done a lot of work since the launching of the DEFA negotiations in 2023, there is recognition that coordination between government agencies in each of the respective ASEAN member states is crucial in discussing specific provisions. Alignment within each AMS is therefore as important as a shared vision among AMS. This is a tall task.

I would also like to highlight that while ASEAN is negotiating the DEFA, works are underway to develop the next ASEAN Economic Community (AEC)  post-2025  agenda. This will continue to amplify economic integration while considering emerging trends and relevant developments to establish a leading digital and innovative community.

The future of ASEAN’s digital economy is exciting and bright. The support and active participation of all stakeholders are indispensable in  propelling  ASEAN  towards  achieving  a  robust,  advanced  and forward-looking DEFA. Through collaborative partnerships and effective  engagements,  we  can  pave  the  way  for  a  prosperous  and resilient ASEAN that not only meets the challenges of today but is well-prepared for the opportunities and uncertainties of tomorrow. Together, ASEAN can truly flourish as a leading digital economy powerhouse in the years ahead.

About the writer

His Excellency Satvinder Singh serves as the Deputy Secretary General for the ASEAN Economic Community. In this position, he will be instrumental in leading the implementation of the AEC Blueprint 2025 and overseeing the AEC Department at the ASEAN Secretariat. Moreover, he will provide strategic guidance to further advance ASEAN’s economic integration agenda.