As Malaysia assumes the ASEAN chairmanship in 2025, it is poised to navigate the region through a critical economic transition while steering the completion of key trade agreements. With the final year of the ASEAN Economic Community (AEC) Blueprint 2025 and the upcoming ASEAN Community Vision 2045, Malaysia’s leadership will be instrumental in shaping ASEAN’s long-term economic trajectory. A key priority is advancing the Digital Economy Framework Agreement (DEFA), which aims to strengthen regional digital cooperation and enhance economic resilience. Malaysia’s focus on inclusivity and sustainability aligns with its commitment to narrowing the development gap among ASEAN member states while securing long-term trade and investment benefits.
ASEAN is also spearheading negotiations for an ASEAN-Canada Free Trade Agreement and upgraded trade agreements with Dialogue Partners such as the ASEAN-China Free Trade Agreement (ACFTA) and the ASEAN-India Free Trade Agreement (AIFTA), ensuring stronger regional coalition amid rising global trade uncertainties. Recognizing the diverse levels of digital readiness across ASEAN, Malaysia is implementing a two-pronged approach to DEFA—capacity-building programs and a phased implementation strategy—to foster digital transformation equitably. With growing global interest in ASEAN’s digital economy, Indonesia is pushing for swift DEFA implementation to enhance regional integration and competitiveness. DEFA covers crucial areas such as digital talent, cybersecurity, and infrastructure, and its successful adoption could significantly boost ASEAN’s digital economy. Indonesia projects that its own digital economy could expand fourfold by 2030, with digital payments surging to $760 billion.
