ASEAN member states sign first regional Digital Economy Framework Agreement in Manila

ASEAN member states signed the first legally binding Digital Economy Framework Agreement (DEFA) in Manila on November 14, 2026. The signing took place during the 28th ASEAN Economic Community Council Meeting held alongside the 49th ASEAN Summit. This landmark agreement establishes common rules and standards to enable interoperability between the digital systems of member states.

Framework objectives and scope

The DEFA aims to create a unified digital landscape across the region to benefit small and medium-sized enterprises (SMEs) by reducing cross-border trade barriers and transaction costs. Key initiatives included under the agreement cover paperless trade, electronic payments, and digital identity verification. The framework also addresses critical modern regulatory areas including cross-border data flows, cybersecurity, and artificial intelligence.

Negotiations for the agreement commenced in 2023, with Thailand serving as the chair of the DEFA negotiation committee. Coordinating Minister for Economic Affairs Airlangga Hartarto said the DEFA is a significant achievement from Indonesia's 2023 ASEAN Chairmanship to ensure inclusive digital integration.

Economic projections and implementation

The regional digital economy is expected to see massive growth, with a projected value of 2 trillion USD by 2030, according to Prachachat. Currently, the projected value of the ASEAN digital economy stands at 1 trillion USD. The scale of the regional market is supported by an ASEAN population of 680 million people.

Individual member states are also seeing significant digital expansion. JawaPos reported that Indonesia's digital Gross Merchandise Value (GMV) is projected to reach 100 billion USD in 2025, representing a 14% year-on-year growth rate. While the agreement is finalized, officials differ slightly on the exact timeline for its full activation. Singaporean officials stated the agreement is expected to come into force by early 2027, while Thai officials estimated the timeline for implementation will be mid-2027.

Diplomatic negotiations and ceremony

The process of reaching a consensus involved complex multilateral discussions. Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong said negotiating an ambitious yet acceptable agreement for all members was difficult. The successful conclusion of these talks marks a major step in regional economic integration.

Following the signing, a formal ceremony was held on November 15, 2026, to deliver the agreement documents to the ASEAN Secretary-General. This ceremony was witnessed by ASEAN leaders to mark the official conclusion of the negotiation process. This development follows previous regional efforts, such as the ASEAN Trade in Goods Agreement, which is expected to come into force by the end of 2026.

Glossary

• ASEAN — The Association of Southeast Asian Nations (ASEAN) is an intergovernmental forum of all 11 states in Southeast Asia. It focuses on Southeast Asian economic development, peaceful coexistence, and adherence to international norms.
• ASEAN Economic Community Council Meeting — This is a meeting held by ASEAN member states. It is a forum where discussions regarding membership and regional economic matters occur.
• ASEAN Summit — The ASEAN Summit is a biannual meeting held by the members of the Association of Southeast Asian Nations (ASEAN). It addresses the economic, political, security, and socio-cultural development of Southeast Asian countries.
• small and medium-sized enterprises (SMEs) — These are businesses that can benefit from a unified digital landscape through the reduction of cross-border trade barriers and transaction costs.