MALAYSIA has reiterated its commitment to the successful implementation of the ASEAN Digital Economy Framework Agreement (DEFA), highlighting the need for its benefits to be felt broadly across society and the regional business community.
Speaking at the ASEAN Digital Economy Business Dialogue held in conjunction with the 57th ASEAN Economic Ministers (AEM) Meeting this week, Datuk Hairil Yahri Yaacob, Secretary-General of Malaysia’s Ministry of Investment, Trade and Industry (MITI), emphasised the importance of regional cohesion in accelerating digital transformation.
“As a rapidly developing region, ASEAN must work collectively to drive its digital transition,” he said. “Flagship regional initiatives such as the ASEAN Digital Economy Framework will lay the foundation for a more united and inclusive digital community.”
Echoing this, ASEAN Secretary-General Dr Kao Kim Hourn described DEFA not merely as a cooperative blueprint but as a strategic enabler for ASEAN to enhance its global competitiveness and appeal to international investors and innovators.
“With a population of nearly 700 million, a fast-growing digital infrastructure, and a youthful, tech-savvy workforce, ASEAN is already well positioned to emerge as a global digital power,” said Dr Kao.
He cited a Boston Consulting Group study which estimates that a well-crafted DEFA could unlock up to US$2 trillion in added value for ASEAN’s digital economy by 2030.
“ASEAN has made notable strides in areas such as digital trade, e-commerce, cybersecurity and digital authentication systems,” he noted. “This fast-growing market has already proven its capacity to leapfrog development challenges by embracing digital solutions.”
However, Dr Kao also cautioned that the region continues to face challenges, particularly in bridging the digital skills gap. He stressed the need for robust governance frameworks to manage advanced technologies such as artificial intelligence.
“This digital landscape reflects the current global reality, where disparities in access and capability are widening,” he said. “Yet ASEAN has a unique opportunity to demonstrate unity by adopting harmonised rules and fostering mutual trust.”
He added that DEFA provisions must target the areas with the greatest cross-border impact, serving as the foundation for deeper regional economic integration.
“In doing so, we will not only strengthen ASEAN’s competitiveness but also help shape the norms of the global digital economy in the years to come,” said Dr Kao.- September 26, 2025
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