Latest news with #DigitalEconomyFrameworkAgreement
The Star
4 days ago
- Business
- The Star
Powering trade and economic prosperity through data free flow
When considering the free flow of data, a common misconception is that it comes at the expense of data sovereignty and security. — 123rf MALAYSIA is helming the Asean chairmanship this year, marking a significant milestone for the nation, with a clear opportunity to chart shared prosperity for the bloc. In light of geopolitical tensions and tariff uncertainties globally, fostering stronger partnerships in this environment would pay dividends in continuing to lift regional economies. One way to tackle both objectives is by facilitating trade – perhaps not in the traditional sense of import and export of goods as most would think, but instead through cross border data flows, which is increasingly the invisible lifeblood of economies in the region and beyond. The upside of open data flows is compelling – the OECD (Organisation for Economic Co-operation and Development) indicates global GDP can expand by 1.77% and exports by 3.6% if open data flow is adopted around the world. The catch? To get there requires clarity and collaboration across borders. When considering the free flow of data, a common misconception is that it comes at the expense of data sovereignty and security. In practice, this is not the case. The Covid-19 pandemic disruption to global supply chains offers a pertinent case-in-point: interconnectivity, be it of goods or data, drives growth. It is possible to advocate for data free flow while also having regard to data privacy, security, and intellectual property concerns. At its core, data security is dependent on how data is maintained and not the location where it is stored. This highlights the importance of governments in establishing robust privacy and data security regulations as well as appropriate infrastructure to ensure responsible use of data. It is possible to advocate for data free flow while also having regard for data privacy, security, and intellectual property concerns, says Cen. Another arena is around trade agreements – which have historically helped facilitate collaboration and boost economies of nations involved. Digital trade has overtaken traditional trade in economic value for more than a decade now, highlighting the growing need for trade policy to include guidance on robust treatment, security, and sharing of cross-border data. Regulatory progress notwithstanding, advocating for data free flow should continue to be a priority for markets throughout the region, including Malaysia, who stands to benefit. This opportunity comes down to trust and collaboration between states – including their respective governments, regulators, and businesses. The good news is that we're seeing the region chart progress in this respect, particularly with Asean's new Digital Economy Framework Agreement (Defa) currently under negotiation. The Defa's mandate is to create an open, secure, and inclusive digital economy of tomorrow for the nearly 680 million people in South-East Asia, and cross border data flow is a critical element in achieving this ambitious goal. With the right checks and balances, it is possible to establish data free flow with trust that can establish greater openness that powers markets and, ultimately, creates greater prosperity for the greater good. The digital economy is projected to reach US$16.5 trillion (RM70.6 trillion) and capture 17% of global GDP by 2028. South-East Asia is best positioned to capitalise on this growth with one of the world's highest mobile penetration rates at 136%, and with its digital economy projected to double to US$2 trillion (RM8.6 trillion) by 2030. Markets and venture capital already see the unique opportunity here: digital economy-related investments make up 71% of deals in Asean – 10% higher than the global average. The situation on the ground in Malaysia is equally promising, with investor confidence, innovation and a strong ecosystem pushing digital investments by 125% to RM29.47bil in the second quarter of 2025. All the signs are that the digital economy will facilitate the next wave of prosperity for the region – and the ways in which data is shared and managed have an outsized impact in shaping that wave. Malaysia has a unique opportunity to drive the data agenda that simultaneously benefits the country and the wider region. It can make its mark as Asean Chair by advocating for cross-border data flows on behalf of the bloc. — Bloomberg Kelvin Cen is the Head of South-East Asia at Bloomberg. He oversees 11 markets across the region, driving strategy and business development and strengthening the firm's key client relationships in the region. In his 14-year career with Bloomberg, Cen has held several leadership roles, including co-leading the APAC Corporations and Commodities business and, most recently, serving as the COO for Asia Pacific. The views expressed here are solely the writer's own.
The Star
28-06-2025
- Business
- The Star
Miti supports young entrepreneus through DEFA, Asean SME Academy, says Tengku Zafrul
KUALA LUMPUR: The Investment, Trade and Industry Minister is actively creating more space for young entrepreneurs to thrive, in line with Malaysia's role as Asean chair, says its Minister Tengku Datuk Seri Zafrul Abdul Aziz. infographic He said that through initiatives such as the Asean SME Academy and the Digital Economy Framework Agreement (DEFA), the ministry is breaking down barriers so that these entrepreneurs can start, scale, and connect their ventures beyond borders. "DEFA, the world's first regional digital economy treaty, is projected to grow Asean's digital economy to over US$2 trillion by 2030 and generate millions of jobs. These are not just statistics; they are doorways to your future," he said in his closing keynote address at the Nusantara Youth Forum 2025 held in Putrajaya Saturday (June 28). Tengku Zafrul said that as Malaysia opens doors for young entrepreneurs and innovators, it is important to mention how Malaysia's own long-term strategies align with these regional ambitions. "Through the New Industrial Master Plan 2030 (NIMP 2030), Malaysia is transforming our industrial landscape by focusing on high value-added sectors, advanced manufacturing, and future-oriented skills. "NIMP's core mission is to create quality jobs and ensure our industries - especially in electrical and electronics (and) green tech - remain globally competitive, resilient, and sustainable," he said. According to the minister, national frameworks such as NIMP are not just about Malaysia's progress. "They also complement Asean initiatives like DEFA and the Asean SME Academy, creating a seamless ecosystem that supports youth, from upskilling and financing to market access, so you can truly take your ideas from the region to the world," he said. Tengku Zafrul also gave recognition to arts and culture, saying that too often, the creative sector is wrongly treated as secondary to the "main economy". "The truth is, culture and creativity are economic engines, identity builders and bridges between nations," he said, adding that Asean's creative industries, from music to film, are gaining global attention. The Minister said he cannot overstate the importance of entrepreneurship in driving both economic progress and social transformation. "Today, the most exciting businesses in Malaysia, and indeed throughout Asean, are being founded, led, and grown by youths. "Whether you are developing tech solutions, running sustainable farms, designing innovative products, or launching platforms for social impact, you show the world what is possible when ambition is united with purpose," he added. - Bernama
The Sun
28-06-2025
- Business
- The Sun
MITI boosts young entrepreneurs via DEFA and ASEAN SME Academy
KUALA LUMPUR: The Ministry of Investment, Trade and Industry (MITI) is expanding opportunities for young entrepreneurs, leveraging Malaysia's ASEAN chairmanship to foster cross-border business growth. Minister Tengku Datuk Seri Zafrul Abdul Aziz highlighted key initiatives like the ASEAN SME Academy and the Digital Economy Framework Agreement (DEFA) as pivotal in breaking barriers for startups. Speaking at the Nusantara Youth Forum 2025 in Putrajaya, Tengku Zafrul emphasised DEFA's potential to elevate ASEAN's digital economy to over US$2 trillion by 2030. 'These are not just statistics; they are doorways to your future,' he said, underlining the treaty's role in job creation and regional connectivity. Malaysia's New Industrial Master Plan 2030 (NIMP 2030) further aligns with these goals, prioritising high-value sectors like advanced manufacturing and green technology. 'NIMP's mission is to ensure our industries remain competitive and sustainable,' he added, noting its synergy with ASEAN-wide programmes for youth upskilling and market access. Tengku Zafrul also championed the creative economy, dismissing its marginalisation as outdated. 'Culture and creativity are economic engines,' he said, citing ASEAN's rising global influence in music and film. He lauded young entrepreneurs driving innovation across tech, agriculture, and social impact sectors, stating, 'You show the world what's possible when ambition meets purpose.'
Barnama
19-06-2025
- Business
- Barnama
Malaysia Commits To ASEAN Integration To Bring About Resilient Regional Economy
BUSINESS KUALA LUMPUR, June 19 (Bernama) -- Malaysia is working actively towards upgrading existing trade agreements with ASEAN member states and dialogue partners, reinforcing its commitment to a more integrated and resilient regional economy, said Prime Minister Datuk Seri Anwar Ibrahim. He said ASEAN has laid a solid foundation that has 'guided us through disputes and crises, be it sovereignty and border issues, the scourge of pandemics, or climate disasters.' 'It has anchored our economic integration through initiatives like the Regional Comprehensive Economic Partnership, and in the future, the Digital Economic Framework Agreement. We will continue to place our trust in ASEAN's founding principles and its enduring potential. But we must go further in strengthening our collective resolve,' he said in his keynote address at the 38th Asia-Pacific Roundtable: Recalibrating Asia's Frontiers here today. He said that as an agent of change, Malaysia as the ASEAN chair, must not only reflect ASEAN's values, 'we must attempt to shape them.' Anwar stressed the need to 'confront the hard truths about our regional architecture, renew our commitment to shared responsibilities, and strengthen cooperation beyond just rhetoric. 'We are preparing for a world wrought with challenges, and must enhance regional integration, develop additional economic ties and tap future catalysts of growth, including digital transformation, the exponential surge of artificial intelligence, and energy transition,' he said. Addressing concerns over rising protectionism, Anwar noted that trade is fundamental to regional security. 'Trade is not a peripheral issue, it is a pillar of regional stability. When trade weakens, divisions emerge.' He highlighted the recent ASEAN-GCC-China Summit as a clear example of ASEAN's convening strength and its commitment to harnessing economic synergies and fostering institutional collaboration. Anwar said the conclusion of the Digital Economy Framework Agreement (DEFA) will unlock the vast potential of the regional digital economy and more importantly, greater intra-regional connectivity will create new opportunities for local businesses to expand their footprint across the region.'
New Straits Times
28-05-2025
- Business
- New Straits Times
AEC's digital economy to hit US$1 trillion by 2030: strategic plan unveiled
KUALA LUMPUR: The impact of enhancing the digital economy via the Asean Economic Community (AEC) Strategic Plan 2026-2030 will be immense because the region's digital economy is projected to reach US$1 trillion by 2030, an economist said. KSI Strategic Institute for Asia Pacific economic advisor Dr Anthony Dass said this will be a key priority, and the newly binding Digital Economy Framework Agreement (DEFA) plays a significant role in increasing regional economic integration. "The digital economy contributes by facilitating cross-border trade, promoting innovation, enhancing connectivity and attracting investments into the region. A robust digital infrastructure fosters innovation, leading to new digital services, platforms, and business models that drive economic growth. "DEFA aims to address cross-border challenges and tackle issues like online fraud and misinformation, ensuring a safer and more trustworthy digital environment. Digitalisation will also streamline business processes, enhance productivity, and reduce operational costs across various sectors," he told Bernama. Nevertheless, Dass said significant differences in development levels, regulatory capacity, infrastructure, and digital skills across Asean member states pose challenges to the effective implementation and widespread benefits of DEFA. "Ensuring data free flow with trust while balancing data protection and national sovereignty is also a complex task," he said. Increase Asean economic resilience The potential of the AEC Strategic Plan to enhance regional economic integration is significant, given the lessons learned from the AEC Blueprint 2025, with its 97 per cent implementation rate. "The new plan is designed to be more dynamic and adaptable, moving beyond a 'business-as-usual' approach. By focusing on action-oriented, sustainable, dynamic, adaptable, agile, and inclusive strategies, the plan aims to create a more integrated and cohesive economy. "The emphasis on sustained growth and competitiveness, and the commitment to deeper integration through digitalisation, innovation, and sustainability, suggest a strong foundation for future progress," he said. He said the plan's effectiveness and potential impact will largely depend on the political will and implementation, and its adaptability to global shifts. Dass said its outline of six strategic goals, 44 objectives, and 192 strategic measures demonstrates a comprehensive and detailed approach to advancing regional growth. "While the plan is robust on paper, consistent political will and effective implementation across all member states are paramount. Past experiences show that disparities in development levels and regulatory capacities can hinder progress. "The current global economic landscape is characterised by rapid technological advancements, supply chain disruptions, and evolving trade dynamics. The plan's emphasis on 'agile and forward-looking strategies' suggests an awareness of this, but its actual ability to adapt to unforeseen challenges will be critical," he said. While the upgraded Asean Trade in Goods Agreement (ATIGA) is crucial for reducing trade barriers, he said the plan's effectiveness hinges on its ability to tackle persistent non-tariff barriers, particularly in critical services like finance and banking. "Additionally, the plan's development involved extensive engagement with various stakeholders. Continued engagement with governments, the private sector, civil society, and regional organisations will be vital for its successful implementation and to ensure that the benefits are widely distributed," said Dass. Shorter timeframe The AEC Strategic Plan, with its shorter timeframe of between 2026 and 2030, presents both opportunities and challenges. It allows the plan to quickly adapt to evolving global and regional dynamics. Hence, more responsive to emerging challenges and opportunities. "A five-year horizon can lead to concentrated efforts and a greater sense of urgency in achieving targets. Shorter cycles would allow for more frequent reviews and adjustments, ensuring the plan remains relevant and impactful," Dass said. Nevertheless, it is "highly ambitious" trying to achieve significant structural reforms and deep integration within a shorter period, given the diverse development levels among member states, he said. "Some initiatives, particularly those related to capacity building or institutional strengthening, may require a longer period to show their full impact. Maintaining consistent coordination and momentum across 10 diverse economies within a compressed timeline can be demanding. "Therefore, the effectiveness will ultimately depend on whether the shorter timeframe is utilised to foster greater dynamism and responsiveness, or if it leads to an overburdened agenda that struggles with comprehensive implementation," he said Strengthening MSME Participation The AEC Strategic Plan recognises Asean MSMEs as engines of growth and aims to strengthen their participation via various initiatives such as capacity building and digital readiness, access to finance and export markets and many more. "The plan likely includes measures to improve MSMEs' access to financing and connect them with regional and global export markets, overcoming existing limitations. "Addressing structural differences, inconsistent policies, and the absence of harmonised cross-border regulations that currently constrain MSME growth is crucial," he said, adding that financial assistance and awareness programmes are needed. The plan also focuses on promoting inclusivity among MSMEs to empower youth and women entrepreneurs, ensuring that the benefits of integration are shared widely. "Asean MSMEs will benefit from this plan because it increases competitiveness, expands market access, and promotes greater resilience, by displaying a diversification of markets and stronger support networks to help the MSMEs," said Dass. Measuring the progress Dass said Asean measures the progress of its strategic plans via a combination of mechanisms, drawing lessons from previous blueprints like the AEC Blueprint 2025, which include key performance indicators (KPIs). "The bloc assesses progress, its overall effectiveness, identifies challenges, and draws lessons from it at the end of a plan's cycle," he said. Asean will also conduct council meetings and other ministerial meetings to serve as platforms to review progress, discuss implementation issues, and provide guidance, he said. "These mechanisms ensure accountability, identify bottlenecks, and enable necessary adjustments to achieve its economic integration goals," he added. The leaders of the 10-member grouping recently adopted the AEC Strategic Plan to elevate the bloc's position as the world's fourth-largest economy. The plan will move to the implementation phase with each AEC sector developing its sectoral plans, translating strategic objectives into concrete actions, timelines and performance indicators. Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the plan is a comprehensive roadmap that will be part of the overall Asean Community Vision 2045 (ACV 2045).
