ASEAN Economic Ministers have been urged to sustain momentum and provide strategic guidance to ensure the successful conclusion of the ASEAN Digital Economy Framework Agreement (DEFA) by 2026, as Malaysia chairs the 26th ASEAN Economic Community Council (AECC) Meeting.
Delivering opening remarks at the AECC’s special session on DEFA, AECC Chair Tengku Zafrul Abdul Aziz said the gathering provided a crucial platform to review progress and address two key policy issues requiring ministerial direction — the treatment of customs duties on electronic transmissions and the application of financial services commitments regarding the location of computing facilities.
“This special session provides a timely platform for us to take stock of the progress made in the DEFA negotiations and, more importantly, to deliberate on two critical issues that require policy guidance from the AECC,” he said.
Zafrul noted that the negotiations have made “steady and tangible progress” since the first special session in August, reflecting ASEAN’s shared commitment to delivering DEFA as one of Malaysia’s Priority Economic Deliverables this year.
“The ongoing work of the Negotiating Committee reflects our shared commitment to deliver DEFA. It is heartening to note the growing convergence among ASEAN Member States across several chapters, driven by the strong coordination of the DEFA Negotiating Committee and the valuable support of the ASEAN Secretariat,” he said.
He, however, acknowledged that several issues remain complex and require “strategic guidance and political direction” to ensure that talks move forward in a balanced, pragmatic and future-focused manner.
Zafrul emphasised that DEFA is not merely about accelerating digital trade and innovation, but about ensuring inclusivity and equitable participation across the region.
“DEFA is not only about accelerating digital trade and innovation, but also about ensuring inclusivity and equitable participation, so that our MSMEs, start-ups and communities across ASEAN can fully benefit from a trusted, secure and interoperable digital ecosystem,” he said.
He urged ASEAN members to uphold the grouping’s core principles of consensus, inclusivity and mutual benefit while remaining ambitious and forward-looking in shaping a high-quality, future-ready DEFA.
“In this spirit, let us be guided by ASEAN’s enduring principles of consensus, inclusivity and mutual benefit, while remaining bold and forward-looking in our ambition to deliver a high-quality, future-ready DEFA that reflects both the dynamism and diversity of our region,” he said.
Zafrul expressed confidence that through “collective wisdom and leadership”, the discussions would pave a clear and actionable path towards DEFA’s timely signing in 2026.
“This will not only reaffirm ASEAN’s leadership in shaping the global digital economy, but also ensure that our people and businesses remain at the heart of this transformation,” he said, before concluding the session and moving to the next agenda item. - October 24, 2025
