What is Asean’s Defa, and what is in it for Singapore businesses?

Detailed summary

The regional pact aims to cut digital trade barriers, but benefits may take time to materialise

The regional pact aims to cut digital trade barriers, but benefits may take time to materialise

[SINGAPORE] Singapore companies could find it easier to do business in South-east Asia under a proposed regional agreement that aims to reduce paperwork, simplify digital transactions and make it easier to transfer data between countries.

The Asean Digital Economy Framework Agreement (Defa) is expected to be signed at the 49th Asean Summit in Manila, which runs from Sunday (Nov 15) to Tuesday.

The agreement is among Asean’s efforts to strengthen economic integration, as leaders of the 11-member grouping gather in the Philippine capital to discuss regional cooperation and other challenges.

But what exactly is Defa, and how will it benefit Singapore businesses?

Put simply, it aims to make it easier for companies to conduct business digitally across Asean.

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This means a Singapore company operating in several Asean markets would have to fall in with the varying requirements in these markets. Defa seeks to bring these rules closer together, and reduce the complexity of doing business across borders.

A 2023 study commissioned by Asean member states and endorsed by their economic ministers estimated that the region’s digital economy could reach almost US$1 trillion by 2030 on its existing growth trajectory.

Opening of the article, excerpted from The Business Times. To read the rest, open the article on the publisher's site.