Latest news with #DigitalEconomyFrameworkAgreement
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).
The Sun
26-05-2025
- Business
- The Sun
AEC Strategic Plan's shorter cycle of 5 years enables ASEAN to be agile, responsive
KUALA LUMPUR: The ASEAN Economic Community (AEC) Strategic Plan 2026-2030, which has a shorter cycle of five years rather than previous plans with cycles of 10 years, will enable timely review and updates of strategic measures so that integration efforts between member states remain relevant, agile and responsive to emerging and unforeseen future developments. As such, the AEC Strategic Plan from 2026–2030 adopts a five-year timeframe,' the Ministry of Investment, Trade and Industry (MITI) said in a document on the strategic plan. Although a 10-year timeframe provides a broader and long-term perspective for guiding ASEAN's economic integration, the implementation of the AEC Blueprint 2025 during the 2016–2025 period highlighted the need for greater flexibility and responsiveness amid fast-changing geopolitical shift and economic condition, the ministry said. 'A decade-long review cycle can limit the AEC's ability to recalibrate priorities in response to continuously evolving political and economic landscape,' it said in the frequently asked questions (FAQ) document released here. During a pre-media briefing earlier, MITI Minister Tengku Datuk Seri Zafrul Aziz described the economic blueprint as timely, highlighting three pertinent points, namely increasing intra-trade between member states, ASEAN openness extending beyond traditional trading partners and readiness of members towards reforms. While continuing the region's integration efforts, MITI said, the new plan introduces several notable enhancements that differentiate it from its predecessor, including consideration of megatrends, reframing regional economic integration, elevated role of micro, small and medium enterprises (MSMEs) as drivers of economic growth, and stronger emphasis on digital and technology transformation. 'The AEC Strategic Plan 2026–2030 reflects a heightened level of ambition in driving ASEAN's digital and technological transformation. It adopts a more integrated and strategic approach, treating digitalisation not as a standalone issue, but as a cross-cutting enabler of growth, competitiveness, and resilience across all sectors. 'The plan places strong emphasis on strengthening regional digital infrastructure, expanding digital connectivity, and fostering innovation as key drivers of ASEAN's future economy. This forward-looking agenda positions ASEAN to lead and compete effectively in an increasingly digital global landscape,' the ministry said. Furthermore, with negotiations on the Digital Economy Framework Agreement (DEFA) expected to be finalised by the year-end, it can be considered as a landmark agreement as it is the world's first regional digital economy agreement. As for MSMEs, MITI said that given their significant presence across ASEAN economies, the plan positions them not only as beneficiaries of integration, but also as active drivers of sectoral cooperation, innovation and the internationalisation of regional products and services. 'This marks a shift toward a more strategic and growth-oriented role for MSMEs in ASEAN's economic future,' MITI said. As for people of ASEAN, MITI said the plan would provide them with access to more competitive products and services that are affordable, accessible, high-quality and aligned with sustainability principles, supported by seamless and secure digital payments. 'They will enjoy broader employment opportunities across ASEAN member states, empowered to make well-informed choices as consumers with better access to accurate product information and stronger redress mechanisms to address issues with goods and services,' it said. The economic blueprint, adopted by ASEAN Leaders today, is a comprehensive roadmap incorporating six strategic goals, 44 objectives and 192 strategic measures. It was developed through a comprehensive consultative process involving all AEC sectoral bodies and inputs from other ASEAN Community Pillars, and also derived from consultations with 315 stakeholders' representatives from businesses, academia, civil society, parliamentarians and more. A region-wide public survey involving 7,568 respondents from ASEAN member states and Timor-Leste was also conducted for this purpose. The strategic plan is one of four strategic plans under the broader ASEAN Community Vision 2045.
The Sun
26-05-2025
- Business
- The Sun
AEC's five-year plan makes ASEAN more agile and responsive
KUALA LUMPUR: The ASEAN Economic Community (AEC) Strategic Plan 2026-2030, which has a shorter cycle of five years rather than previous plans with cycles of 10 years, will enable timely review and updates of strategic measures so that integration efforts between member states remain relevant, agile and responsive to emerging and unforeseen future developments. As such, the AEC Strategic Plan from 2026–2030 adopts a five-year timeframe,' the Ministry of Investment, Trade and Industry (MITI) said in a document on the strategic plan. Although a 10-year timeframe provides a broader and long-term perspective for guiding ASEAN's economic integration, the implementation of the AEC Blueprint 2025 during the 2016–2025 period highlighted the need for greater flexibility and responsiveness amid fast-changing geopolitical shift and economic condition, the ministry said. 'A decade-long review cycle can limit the AEC's ability to recalibrate priorities in response to continuously evolving political and economic landscape,' it said in the frequently asked questions (FAQ) document released here. During a pre-media briefing earlier, MITI Minister Tengku Datuk Seri Zafrul Aziz described the economic blueprint as timely, highlighting three pertinent points, namely increasing intra-trade between member states, ASEAN openness extending beyond traditional trading partners and readiness of members towards reforms. While continuing the region's integration efforts, MITI said, the new plan introduces several notable enhancements that differentiate it from its predecessor, including consideration of megatrends, reframing regional economic integration, elevated role of micro, small and medium enterprises (MSMEs) as drivers of economic growth, and stronger emphasis on digital and technology transformation. 'The AEC Strategic Plan 2026–2030 reflects a heightened level of ambition in driving ASEAN's digital and technological transformation. It adopts a more integrated and strategic approach, treating digitalisation not as a standalone issue, but as a cross-cutting enabler of growth, competitiveness, and resilience across all sectors. 'The plan places strong emphasis on strengthening regional digital infrastructure, expanding digital connectivity, and fostering innovation as key drivers of ASEAN's future economy. This forward-looking agenda positions ASEAN to lead and compete effectively in an increasingly digital global landscape,' the ministry said. Furthermore, with negotiations on the Digital Economy Framework Agreement (DEFA) expected to be finalised by the year-end, it can be considered as a landmark agreement as it is the world's first regional digital economy agreement. As for MSMEs, MITI said that given their significant presence across ASEAN economies, the plan positions them not only as beneficiaries of integration, but also as active drivers of sectoral cooperation, innovation and the internationalisation of regional products and services. 'This marks a shift toward a more strategic and growth-oriented role for MSMEs in ASEAN's economic future,' MITI said. As for people of ASEAN, MITI said the plan would provide them with access to more competitive products and services that are affordable, accessible, high-quality and aligned with sustainability principles, supported by seamless and secure digital payments. 'They will enjoy broader employment opportunities across ASEAN member states, empowered to make well-informed choices as consumers with better access to accurate product information and stronger redress mechanisms to address issues with goods and services,' it said. The economic blueprint, adopted by ASEAN Leaders today, is a comprehensive roadmap incorporating six strategic goals, 44 objectives and 192 strategic measures. It was developed through a comprehensive consultative process involving all AEC sectoral bodies and inputs from other ASEAN Community Pillars, and also derived from consultations with 315 stakeholders' representatives from businesses, academia, civil society, parliamentarians and more. A region-wide public survey involving 7,568 respondents from ASEAN member states and Timor-Leste was also conducted for this purpose. The strategic plan is one of four strategic plans under the broader ASEAN Community Vision 2045.
The Star
26-05-2025
- Business
- The Star
Thai PM calls for new Asean strategy to tackle US tariffs
Thai Prime Minister Paetongtarn Shinawatra at the 46th Asean Summit, at the Kuala Lumpur Convention Centre in Kuala Lumpur on May 26, 2025. - Reuters BANGKOK: Paetongtarn calls for regional unity and new approaches to counter global shifts and ensure economic resilience Thailand's Prime Minister Paetongtarn Shinawatra has urged Asean leaders to urgently re-evaluate their strategies and bolster regional unity. Speaking at the 46th Asean Summit on Monday (May 26), Paetongtarn highlighted the significant impact of recent US tariff impositions, warning they are reshaping global trade dynamics and challenging the bloc's economic outlook. The Prime Minister addressed leaders from nine Asean nations at the summit, hosted by Malaysia under the theme "Inclusivity and Sustainability". She stressed the meeting's critical timing, noting that global politics are shifting towards aggressive, self-serving policies and away from multilateral cooperation. Paetongtarn emphasised that Asean must build integrated supply chain networks and deepen regional integration to navigate this volatile economic landscape. She urged members to maximise existing Free Trade Agreements (FTAs) and explore new partnerships, while also strengthening Micro, Small, and Medium Enterprises (MSMEs). Reaffirming Thailand's commitment to a transparent and fair multilateral trading system, she underscored the urgency of completing the Digital Economy Framework Agreement (DEFA) by 2025. This, she stated, would unlock new growth and demonstrate Asean's proactive stance in the evolving global trade and investment environment. Paetongtarn also advocated for a people-centred approach to improve citizens' quality of life and enhance human security across all dimensions, from health and food security to combating transnational crime and natural disasters. She pushed for strengthening tourism, fostering cross-border infrastructure, and promoting shared cultural heritage. Looking to a sustainable future, the Prime Minister called for a "Green Asean". - The Nation/ANN
New Straits Times
25-05-2025
- Business
- New Straits Times
Asean growth outlook stays resilient at 4.7pct in 2025
KUALA LUMPUR: Asean's economic outlook for 2025 remains resilient, with growth projected at 4.7 per cent and inflation expected to hover around three per cent, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. He said the forecasted growth remains high compared to the global average, driven by strong exports and public spending in major Asean economies. "Last year, the gross domestic product growth was 4.8 per cent, higher than the global average, supported by exports and public sector capital spending in key economies," he said at a press conference today following the 25th Asean Economic Community Council Meeting. However, Tengku Zafrul cautioned that the outlook faces downside risks due to ongoing global uncertainties, citing revised projections by the International Monetary Fund and the World Trade Organisation. While no new targets for intra-Asean trade have been set, he expressed optimism that meaningful progress on the Asean Trade in Goods Agreement and the Digital Economy Framework Agreement would significantly boost regional trade. Meanwhile, the ministry's Deputy Secretary-General (Trade) and Chief US Tariff Negotiator, Mastura Ahmad Mustafa, said issues concerning goods in transit would be addressed by the coordinating committee under the upgraded agreement. She said Asean maintains a shared discipline to avoid implementing measures that could lead to non-tariff barriers among member states. Mastura was responding to questions regarding market protection by some Asean countries, particularly Thailand, in relation to goods in transit. "Matters such as implementation and transit restrictions will be discussed technically through existing agreement channels, including dedicated committees," she said.
