AS the world accelerates towards a digital-first economy, Southeast Asia stands on the cusp of significant transformation. The ASEAN Digital Economy Framework Agreement( DEFA) is poised not only to usher in a new era of economic growth but also to redefine how businesses operate in the region. Prime Minister Datuk Seri Anwar Ibrahim recently underscored the importance of this landmark agreement at the ASEAN Business and Investment Summit( ABIS) 2025 in Kuala Lumpur, highlighting its potential to foster a seamless digital marketplace across member states.
A VISION REALISED
The DEFA is a groundbreaking initiative aimed at integrating the economies of member states. Prime Minister Anwar ' s speech, delivered by Deputy Prime Minister Datuk Seri Fadillah Yusof, highlighted that significant progress has already been made in negotiations.
Once implemented, the DEFA will facilitate borderless trade, enabling easier access to markets and thereby transforming the region ' s economic landscape.
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The DEFA represents a monumental achievement in creating a cohesive digital marketplace across ASEAN. |
The DEFA is designed to eliminate trade barriers that currently hinder the flow of goods, services, and information across borders. By establishing universal standards for digital trade, it will empower businesses, large and small, to thrive in this interconnected digital marketplace.
The framework ' s ambitious goals reflect a collective commitment among ASEAN nations to fully embrace technology and innovation in their economic strategies.
EMPOWERING MSMEs
A crucial aspect of the DEFA is its commitment to ensuring that Micro, Small, and Medium Enterprises( MSMEs) are actively included in this digital transformation. With MSMEs being the backbone of ASEAN ' s economy, constituting a significant portion of the region ' s workforce and economic activity, their engagement is vital.
The DEFA promotes regional programmes that expand access to digital tools, enhance skills, and provide essential financing for these enterprises.
By supporting MSMEs, the DEFA aims to level the playing field, allowing smaller businesses to compete more effectively with
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larger organisations. This focus on inclusivity is essential to the overall growth and stability of the ASEAN economy, ensuring that technological advancements do not leave behind those most in need of support.
MALAYSIA ' S LEADERSHIP ROLE
In tandem with the DEFA, the establishment of the ASEAN AI Safety Network( ASEAN AI Safe) marks a significant step towards responsible technology adoption. This initiative champions ethical AI development and governance across the region.
Prime Minister Anwar ' s remarks emphasised Malaysia ' s leadership in this area, underscoring the importance of developing AI technologies that are safe, transparent, and aligned with societal values.
Malaysia ' s proactive leadership plays a pivotal role in this transformative agenda. By driving both the DEFA and the ASEAN AI Safe initiatives, Malaysia is positioned as a regional leader in digital transformation. The government ' s commitment to shaping a responsible AI ecosystem underscores its vision for a more interconnected and innovative future.
Digital Minister Gobind Singh Deo
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