(Kuala Lumpur, 26th) After nearly two years of negotiations, ASEAN member states have announced that they have substantially reached the "ASEAN Digital Economy Framework Agreement". At the same time, ASEAN has signed the Singapore-led "ASEAN Trade in Goods Agreement (Upgraded Version)".
ASEAN achieved these two latest milestones at the 26th ASEAN Economic Community Council (AECC) meeting held on Friday (October 24), marking a significant step forward in advancing regional economic integration and digital cooperation.
Singapore’s Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong, said after attending the meeting in Kuala Lumpur that negotiations for the "ASEAN Digital Economy Framework Agreement" (DEFA) were challenging and time-consuming, as this is a brand-new digital agreement, and member states vary in their levels of digital development and preparedness for the agreement.
At a press conference, Gan Kim Yong said that digitalization has become a key driver of economic growth, and ASEAN needs unified standards and guidelines to achieve system interoperability—in turn promoting digitization of trade documents, digital trade, and other new opportunities; the completion of DEFA negotiations will lay the foundation for regional digital cooperation.
Singapore’s Ministry of Trade and Industry said in a statement on Friday that DEFA is the first comprehensive regional digital economy agreement and is the most ambitious digitalization initiative in ASEAN to date. The agreement aims to address forward-looking issues such as cross-border data flows and end-to-end digital trade. ASEAN aims to finalize and sign DEFA by 2026.
On the other hand, ASEAN member states have signed the "ASEAN Trade in Goods Agreement (Upgraded Version)" (ATIGA). This agreement aims to strengthen trade facilitation, expand market access, and deepen economic integration within ASEAN.
Singapore is the chair country of the negotiation committee for this agreement. Gan Kim Yong emphasized that the upgraded ATIGA will benefit all ASEAN member countries. In addition to tariff concessions, the reduction of non-tariff barriers will also make business transactions more convenient.
He said that in the past, customs procedures in various countries were cumbersome, but with the upgraded ATIGA, processes between ASEAN countries will be simplified. "All member states have made commitments—to relax regulations for ASEAN neighbors and to streamline procedures for ASEAN trade partners—so that businesses can enjoy greater convenience when trading within the region."
Next, ASEAN will continue to explore new cooperation models, no longer limited to the traditional "ASEAN Plus One" cooperation with individual countries but expanding to "ASEAN Plus Other Organizations" forms of partnerships. Gan Kim Yong revealed that ASEAN is currently exploring cooperation opportunities with the Gulf Cooperation Council, the European Union, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
A reporter asked how the Johor-Singapore economic zone fits in with ASEAN’s economic integration goals. Gan Kim Yong responded that, while the Johor-Singapore economic zone is a bilateral project, its success benefits from the overall cooperative atmosphere in ASEAN, which fosters closer cooperation between Singapore and Malaysia.
He revealed that Singapore will join Malaysia and Indonesia to revisit the “Singapore-Johor-Riau” (SIJORI) triangle cooperation, exploring the possibilities of trilateral cooperation among Singapore, Johor, and Indonesia’s Batam, Bintan, and Karimun Islands.
Gan Kim Yong admitted that tripartite cooperation is more complex, but Singapore has begun initial discussions with Malaysia and Indonesia and has agreed to continue exploring feasible fields of cooperation to build a more comprehensive and competitive regional investment ecosystem, create greater economic value, and bring benefits to all three parties.
Malaysian Minister of Investment, Trade, and Industry, Zafrul, pointed out at another press conference that among the 18 priority economic deliverables of this AECC meeting, seven have been completed, five are expected to be completed at the upcoming ASEAN Summit, and the remaining six will be achieved within this year.
Malaysia is this year’s rotating chair of ASEAN. The 47th ASEAN Summit and related meetings will be held at the Kuala Lumpur Convention Center from Sunday (26th) to next Tuesday (28th).
ASEAN achieved these two latest milestones at the 26th ASEAN Economic Community Council (AECC) meeting held on Friday (October 24), marking a significant step forward in advancing regional economic integration and digital cooperation.
Singapore’s Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong, said after attending the meeting in Kuala Lumpur that negotiations for the "ASEAN Digital Economy Framework Agreement" (DEFA) were challenging and time-consuming, as this is a brand-new digital agreement, and member states vary in their levels of digital development and preparedness for the agreement.
At a press conference, Gan Kim Yong said that digitalization has become a key driver of economic growth, and ASEAN needs unified standards and guidelines to achieve system interoperability—in turn promoting digitization of trade documents, digital trade, and other new opportunities; the completion of DEFA negotiations will lay the foundation for regional digital cooperation.
Singapore’s Ministry of Trade and Industry said in a statement on Friday that DEFA is the first comprehensive regional digital economy agreement and is the most ambitious digitalization initiative in ASEAN to date. The agreement aims to address forward-looking issues such as cross-border data flows and end-to-end digital trade. ASEAN aims to finalize and sign DEFA by 2026.
On the other hand, ASEAN member states have signed the "ASEAN Trade in Goods Agreement (Upgraded Version)" (ATIGA). This agreement aims to strengthen trade facilitation, expand market access, and deepen economic integration within ASEAN.
Singapore is the chair country of the negotiation committee for this agreement. Gan Kim Yong emphasized that the upgraded ATIGA will benefit all ASEAN member countries. In addition to tariff concessions, the reduction of non-tariff barriers will also make business transactions more convenient.
He said that in the past, customs procedures in various countries were cumbersome, but with the upgraded ATIGA, processes between ASEAN countries will be simplified. "All member states have made commitments—to relax regulations for ASEAN neighbors and to streamline procedures for ASEAN trade partners—so that businesses can enjoy greater convenience when trading within the region."
Next, ASEAN will continue to explore new cooperation models, no longer limited to the traditional "ASEAN Plus One" cooperation with individual countries but expanding to "ASEAN Plus Other Organizations" forms of partnerships. Gan Kim Yong revealed that ASEAN is currently exploring cooperation opportunities with the Gulf Cooperation Council, the European Union, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
A reporter asked how the Johor-Singapore economic zone fits in with ASEAN’s economic integration goals. Gan Kim Yong responded that, while the Johor-Singapore economic zone is a bilateral project, its success benefits from the overall cooperative atmosphere in ASEAN, which fosters closer cooperation between Singapore and Malaysia.
He revealed that Singapore will join Malaysia and Indonesia to revisit the “Singapore-Johor-Riau” (SIJORI) triangle cooperation, exploring the possibilities of trilateral cooperation among Singapore, Johor, and Indonesia’s Batam, Bintan, and Karimun Islands.
Gan Kim Yong admitted that tripartite cooperation is more complex, but Singapore has begun initial discussions with Malaysia and Indonesia and has agreed to continue exploring feasible fields of cooperation to build a more comprehensive and competitive regional investment ecosystem, create greater economic value, and bring benefits to all three parties.
Malaysian Minister of Investment, Trade, and Industry, Zafrul, pointed out at another press conference that among the 18 priority economic deliverables of this AECC meeting, seven have been completed, five are expected to be completed at the upcoming ASEAN Summit, and the remaining six will be achieved within this year.
Malaysia is this year’s rotating chair of ASEAN. The 47th ASEAN Summit and related meetings will be held at the Kuala Lumpur Convention Center from Sunday (26th) to next Tuesday (28th).