ASEAN’s senior economic officials have wrapped up negotiations for a landmark regional digital economy agreement that could reshape online commerce across Southeast Asia and potentially double the bloc’s digital economy to USD2 trillion by 2030.
The conclusion of talks on the ASEAN Digital Economy Framework Agreement (DEFA) was announced following the Second Meeting of the 57th ASEAN Senior Economic Officials Meeting (SEOM) in Manila from May 27 to 29.
The deal is a major step for the 10-member regional bloc as it seeks to position itself as one of the world’s fastest-growing digital markets amid intensifying global competition for technology investments and digital trade flows.
Once signed, DEFA will establish a common framework governing key areas of the digital economy, including cross-border e-commerce, data governance and privacy, digital payments, cybersecurity, digital identity, competition policy, artificial intelligence, and the movement of digital talent across the region.
The agreement promises fewer rules to navigate and greater certainty in cross-border digital trade. ASEAN officials said DEFA will make online transactions easier, safer, and more seamless by reducing regulatory barriers that have long fragmented the region’s digital marketplace.
The economic stakes are substantial.
Studies cited by ASEAN show that the region’s digital economy is on track to reach about USD1 trillion by 2030 under current growth trends. With DEFA in place, however, that figure could climb to as much as USD2 trillion, highlighting the potential impact of a more integrated digital market.
The agreement is also expected to provide a boost to micro, small, and medium enterprises, which make up the backbone of Southeast Asia’s economies. By improving access to regional markets and strengthening trust in online transactions, DEFA could help smaller firms participate more actively in cross-border commerce.
Beyond growth, ASEAN sees the pact as a tool for narrowing digital divides among member states and ensuring that the benefits of technological transformation extend beyond major urban centers.
The agreement is scheduled for signing in November during the 49th ASEAN Summit and the 28th ASEAN Economic Community Council Meeting.
