Malaysia calls for stronger cooperation to complete ASEAN Digital Economy Framework by 2026

Discussions have made significant progress since the first special AECC session held in August, reflecting the region’s strong commitment to advancing the ASEAN Digital Economy Framework Agreement (DEFA), one of Malaysia’s top economic priorities in 2025, said a Malaysian official.

Malaysian Minister of Investment, Trade, and Industry Tengku Datuk Seri Zafrul Abdul Aziz speaks at the October 24 press conference following the 26th meeting of the ASEAN Economic Community Council (AECC) and the AECC special meeting on ASEAN Digital Economy Framework Agreement (DEFA). (Photo: VNA)
Malaysian Minister of Investment, Trade, and Industry Tengku Datuk Seri Zafrul Abdul Aziz speaks at the October 24 press conference following the 26th meeting of the ASEAN Economic Community Council (AECC) and the AECC special meeting on ASEAN Digital Economy Framework Agreement (DEFA). (Photo: VNA)

Kuala Lumpur (VNA) – Malaysia has urged ASEAN member states to strengthen cooperation and define clear strategic directions to ensure the completion of the ASEAN Digital Economy Framework Agreement (DEFA) by 2026.

Speaking at a special meeting of the ASEAN Economic Community Council (AECC) on DEFA, Malaysian Minister of Investment, Trade, and Industry Tengku Datuk Seri Zafrul Abdul Aziz said ASEAN aims to substantially conclude negotiations this year and proceed to the signing in 2026.

He underscored that the meeting served as an important platform for ASEAN to assess negotiation progress and address major policy matters, including taxation on online transactions, digital content transmission, cross-border data and software flow, and financial commitments related to server locations.

According to Zafrul, discussions have made significant progress since the first special AECC session held in August, reflecting the region’s strong commitment to advancing DEFA, one of Malaysia’s top economic priorities in 2025.

He noted the growing consensus among ASEAN member states, effective coordination by the DEFA Negotiating Committee, and continued support from the ASEAN Secretariat.

Despite the progress, the minister highlighted that several complex issues still require strategic guidance and political will to ensure a balanced, practical, and forward-looking approach to the negotiations.

He emphasised that DEFA should not only enhance trade and digital innovation but also foster inclusiveness and equitable participation across all economic sectors. This includes enabling micro, small, and medium-sized enterprises (MSMEs), startups, and citizens to benefit from a reliable and secure digital ecosystem.

Expressing confidence in ASEAN’s collective strength, the minister said he believes economic ministers will develop a clear and feasible roadmap to finalise the DEFA signing by 2026.

He said that such an achievement will reinforce ASEAN’s leadership role in shaping the global digital economy while ensuring that people and businesses remain at the core of the region’s digital transformation.

The special AECC session, hosted by Malaysia’s Ministry of Investment, Trade, and Industry, took place ahead of the 47th ASEAN Summit and related summits, scheduled for October 26–28 at the Kuala Lumpur Convention Centre.

The event provided a venue for ASEAN countries to exchange views and strengthen collaboration across the ASEAN Community’s pillars, thereby reinforcing the bloc’s centrality and contributing to regional peace, stability, and prosperity./.

VNA

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