03 April 2024
CO24044 | The ASEAN Digital Economy Framework Agreement: Uniting or Dividing?
RSIS Commentary is a platform to provide timely and, where appropriate, policy-relevant commentary and analysis of topical and contemporary issues. The authors’ views are their own and do not represent the official position of the S. Rajaratnam School of International Studies (RSIS), NTU. These commentaries may be reproduced with prior permission from RSIS and due credit to the author(s) and RSIS. Please email to Editor RSIS Commentary at [email protected].
The short URL of the present article is: https://staging.rsis.edu.sg/m41h
SYNOPSIS
The ASEAN Digital Economy Framework Agreement launched in September 2023 aims to unite ASEAN nations in fostering digital cooperation and adding up to US$2 trillion to its digital economy by 2030. Among the prerequisites, progress in digital payments and e-wallet adoption is needed and notable in some countries such as Thailand, Vietnam, and Malaysia. Yet, infrastructure disparities, varying internet access, and digital readiness in micro, small and medium enterprises pose challenges. Efforts to harmonise definitions, bridge digital gaps, and ensure policy alignment are crucial to unlocking ASEAN’s digital potential.
COMMENTARY
In September 2023, the ASEAN economic ministers initiated negotiations for the ASEAN Digital Economy Framework Agreement (DEFA) during the ASEAN Economic Community Council (AECC) meeting. This agreement is hailed as a landmark regionwide digital economy accord and reflects ASEAN’s dedication to a digitally interconnected future.
This framework aims to propel ASEAN’s evolution into a leading digital economy by fostering enhanced digital cooperation, paving the way for regional digital integration, and promoting inclusive growth and development.
Its core elements are Digital Payments and E-Invoicing, Talent Mobility and Cooperation, Cooperation on Emerging Topics, Competition Policy, Cross-border E-Commerce, Digital Trade, Digital ID and Authentication, Cross-border Data Flows and Data Protection, and Online Safety and Cybersecurity. These nine elements underscore collaboration within the digital ecosystem, aiming to unlock the value contribution of ASEAN’s digital economy, which is expected to add up to US$2 trillion to the regional digital economy by 2030.
ASEAN has shown promising advancements that could lead to an integrated digital market. As Graph 1 shows, the adoption of digital payments within ASEAN is on an upward trajectory, with the transaction value of digital payments in several Southeast Asian countries increasing significantly from 2017 to 2022. Notably, digital commerce accounts for the majority of these transactions, with Indonesia emerging as a leader in this domain.
Last updated on 02/07/2024
RSIS Commentary is a platform to provide timely and, where appropriate, policy-relevant commentary and analysis of topical and contemporary issues. The authors’ views are their own and do not represent the official position of the S. Rajaratnam School of International Studies (RSIS), NTU. These commentaries may be reproduced with prior permission from RSIS and due credit to the author(s) and RSIS. Please email to Editor RSIS Commentary at [email protected].
The short URL of the present article is: https://staging.rsis.edu.sg/m41h
SYNOPSIS
The ASEAN Digital Economy Framework Agreement launched in September 2023 aims to unite ASEAN nations in fostering digital cooperation and adding up to US$2 trillion to its digital economy by 2030. Among the prerequisites, progress in digital payments and e-wallet adoption is needed and notable in some countries such as Thailand, Vietnam, and Malaysia. Yet, infrastructure disparities, varying internet access, and digital readiness in micro, small and medium enterprises pose challenges. Efforts to harmonise definitions, bridge digital gaps, and ensure policy alignment are crucial to unlocking ASEAN’s digital potential.
COMMENTARY
In September 2023, the ASEAN economic ministers initiated negotiations for the ASEAN Digital Economy Framework Agreement (DEFA) during the ASEAN Economic Community Council (AECC) meeting. This agreement is hailed as a landmark regionwide digital economy accord and reflects ASEAN’s dedication to a digitally interconnected future.
This framework aims to propel ASEAN’s evolution into a leading digital economy by fostering enhanced digital cooperation, paving the way for regional digital integration, and promoting inclusive growth and development.
Its core elements are Digital Payments and E-Invoicing, Talent Mobility and Cooperation, Cooperation on Emerging Topics, Competition Policy, Cross-border E-Commerce, Digital Trade, Digital ID and Authentication, Cross-border Data Flows and Data Protection, and Online Safety and Cybersecurity. These nine elements underscore collaboration within the digital ecosystem, aiming to unlock the value contribution of ASEAN’s digital economy, which is expected to add up to US$2 trillion to the regional digital economy by 2030.
ASEAN has shown promising advancements that could lead to an integrated digital market. As Graph 1 shows, the adoption of digital payments within ASEAN is on an upward trajectory, with the transaction value of digital payments in several Southeast Asian countries increasing significantly from 2017 to 2022. Notably, digital commerce accounts for the majority of these transactions, with Indonesia emerging as a leader in this domain.
Last updated on 02/07/2024
