In short
- The ASEAN Digital Economy Framework Agreement (DEFA) is described by Singapore’s Ministry of Trade and Industry as the first comprehensive, region-wide agreement dedicated to the digital economy.
- It is not signed yet. Negotiations were concluded at the ASEAN Senior Economic Officials’ Meeting in Manila from 27 to 29 May 2026, and signing is targeted for the sidelines of the 49th ASEAN Summit in November 2026.
- No region-wide equivalent in the EU or the Middle East was identified in the sources reviewed. The closest comparisons are DEPA (Chile, New Zealand, Singapore and the Republic of Korea), the bilateral EU-Singapore Digital Trade Agreement, and the Digital Cooperation Organization, which is an intergovernmental organisation rather than a trade agreement.
- A study published on asean.org, prepared by the Boston Consulting Group, projects that DEFA could double the value of ASEAN’s digital economy from about US$1 trillion to about US$2 trillion by 2030. This is a preliminary projection, not a measured result.
This article summarises what DEFA is, how it came about, how it compares with similar agreements, what each ASEAN member state has done, a discussion checklist for ministries, and the milestones so far. Facts are taken from official ASEAN and government sources listed at the end and were checked on 8 November 2026. The status of DEFA may change after the ASEAN Summit.
What DEFA is and how it came about
What it is. The ASEAN Economic Community Council describes DEFA as expected to be the most comprehensive regional agreement on the digital economy in the world. Its stated aim is a modern, comprehensive and coherent digital transformation strategy in which goods, services and data move seamlessly and securely, supported by enabling rules, regulation, infrastructure and talent, with stronger cooperation on cybersecurity and frameworks to protect data privacy. It is intended to connect ASEAN-based businesses, including micro, small and medium enterprises, to regional and global markets. ASEAN Economic Community Council statement.
How it came about. ASEAN’s digital integration work built up in steps: the ASEAN Digital Integration Framework (finalised in 2018), the ASEAN Agreement on Electronic Commerce (signed in 2019) and, in 2021, the Bandar Seri Begawan Roadmap on ASEAN digital transformation. ASEAN Leaders’ 2021 statement on advancing digital transformation agreed to begin negotiations on DEFA, as committed in that roadmap. A study of what DEFA could contain, prepared by the Boston Consulting Group with support from the Australian Government, then served as the basis for launching negotiations on a without-prejudice basis. ASEAN key documents page.
Read the milestones here.
What it covers. The study recommended nine core elements: digital trade; cross-border e-commerce; payments; digital ID and authentication; online safety and cybersecurity; cross-border data flows and data protection; cooperation on emerging topics such as AI and blockchain; competition policy; and talent mobility and cooperation. DEFA study, public summary. In its statement of 31 May 2026, Singapore’s Ministry of Trade and Industry (MTI) says the agreement establishes common rules and frameworks that facilitate digital trade, support trusted cross-border data flows, enhance digital payments and electronic transactions, strengthen online consumer protection and promote digital interoperability, and that it also addresses AI, financial technology and source code protection. MTI press release. At the time of writing, no final legal text was found in the sources reviewed, so the detail of each obligation should be checked against the signed text.
What it means. MTI states that the agreement will make it easier for businesses, especially small and medium enterprises, to access opportunities in Southeast Asia’s digital economy, and for consumers to transact with greater confidence. The study notes that ASEAN member states start from different levels of digital readiness and recommends capacity building and flexible arrangements, such as differentiated or staggered commitments and periodic review, which earlier agreements have used.
How DEFA compares with similar agreements
The table sets DEFA beside the closest comparable arrangements identified in the sources reviewed. It compares scope and impact; it is not a ranking.
| Agreement | Who is involved | Type | What the agreement is about | Impact |
|---|---|---|---|---|
| ASEAN DEFA | Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam, the ten ASEAN members named in the 2023 Leaders’ Statement. Timor-Leste became ASEAN’s eleventh member on 26 October 2025; Indonesia’s Coordinating Minister for Economic Affairs has said it may need more time to complete its domestic legal framework before joining. (ASEAN; Viet Nam Trade Portal) | Region-wide agreement among ASEAN member states. Negotiations concluded; signing targeted for November 2026. | Common rules and frameworks on digital trade, cross-border data flows, digital payments, online consumer protection and interoperability, with new provisions on AI, fintech and source code protection, according to MTI. Negotiations began on 3 September 2023 and concluded in May 2026. (MTI) | A Boston Consulting Group study published on asean.org projects that the digital economy could reach about US$2 trillion by 2030 with DEFA, against about US$1 trillion on the current trajectory. This is a preliminary projection that depends on implementation. (ASEAN) |
| DEPA (Digital Economy Partnership Agreement) | Chile, New Zealand, Singapore and the Republic of Korea. (NZ MFAT) | Standalone digital economy agreement among a small group of economies, open to accession. | New Zealand’s trade ministry describes it as the world’s first standalone digital trade agreement, organised in modules covering different aspects of the digital economy. Signed 12 June 2020; in force for New Zealand and Singapore on 7 January 2021, Chile on 23 November 2021 and Korea on 3 May 2024. (NZ MFAT) | No official quantified economic impact figure was found. Documented outcomes: Korea joined in 2024, and accession discussions concluded substantially for Costa Rica (January 2025) and Peru (January 2026). (NZ MFAT) |
| EU-Singapore Digital Trade Agreement | Singapore and the European Union’s 27 member states: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden. (European Commission) | Bilateral standalone digital trade agreement. | The European Commission says it builds on the EU’s approach to digital and data rules that puts people and their rights at the centre. Negotiations were launched in July 2023 and concluded on 25 July 2024; the agreement was signed on 7 May 2025 and entered into force on 1 February 2026. The Commission describes it as the first of its kind for the EU. (European Commission; Commission statement) | No official quantified impact figure was found. The Commission says the agreement enables seamless, secure and efficient digital trade, with benefits for businesses and consumers. (Commission statement) |
| Digital Cooperation Organization (DCO) | Bahrain, Bangladesh, Cyprus, Djibouti, The Gambia, Ghana, Greece, Jordan, Kuwait, Morocco, Nigeria, Oman, Pakistan, Qatar, Rwanda and Saudi Arabia (16 member states). (DCO) | Intergovernmental organisation for digital cooperation, not a trade agreement; no binding digital trade rules comparable to DEFA’s were identified. | The DCO describes itself as a standalone international organisation dedicated to accelerating inclusive and sustainable growth of the digital economy. Its 2025 to 2028 agenda covers digital policy, digital public infrastructure, AI governance, skills, startups, cross-border data flows and digital economy measurement. (DCO) | No trade-impact figure was found. The DCO states that its members account for nearly US$3.5 trillion in GDP and nearly 800 million people. In August 2026 its council approved the candidacy of eight more countries (Albania, Azerbaijan, Kazakhstan, Kenya, Lebanon, Palestine, Syria and Zambia), which would take membership to 24. (DCO; DCO news) |
How DEFA is meant to support cooperation, and where each country stands
According to MTI and the ASEAN Economic Community Council, DEFA supports cooperation by setting common rules that link the digital economies of all ASEAN member states, so that businesses, especially smaller ones, face more consistent rules for digital trade, payments and data. The DEFA study found that members start from different points, with the region ahead of the global average in areas such as paperless trade and connectivity but behind in areas such as digital ID, payments and talent, and recommended capacity building alongside the rules. Country-level impact estimates were not found in the official sources reviewed; the projection above is regional. The table lists what each member has done or contributed, with sources.
| Country | Role, contribution and latest development | Sources |
|---|---|---|
| Brunei Darussalam | Chaired ASEAN in 2021. The ASEAN Economic Ministers’ Meeting it chaired endorsed the Bandar Seri Begawan Roadmap, the digital transformation agenda under which DEFA was developed. No Brunei-specific DEFA development in 2026 was found in the official sources reviewed. | AEM-53 statement; ASEAN |
| Cambodia | In March 2026 Cambodia’s Ministry of Commerce and the Cambodia Academy of Digital Technology held, with ERIA, a national validation workshop on AI in trade in the context of DEFA. ASEAN’s Secretary-General discussed preparations for the conclusion and signing of DEFA with Cambodia’s Minister of Commerce in Phnom Penh in 2026. | ERIA; ASEAN |
| Indonesia | Chaired ASEAN in 2023, when the negotiations were launched in Jakarta and ASEAN Leaders issued their DEFA statement. In 2026 Indonesia’s Coordinating Minister for Economic Affairs said the target is signing in November 2026 after legal scrubbing and domestic consultations, with ratification by each member targeted within 180 days of signing, and that the agreement aligns with Indonesia’s National Digital Economy Strategy 2030. | ASEAN; Phnom Penh Post; Antara |
| Lao PDR | Chaired ASEAN in 2024, while negotiations were under way. In 2025 its Ministry of Industry and Commerce held DEFA capacity-building workshops with ERIA (May and December), and at the December workshop presented Lao PDR’s timeline towards signing. In 2026 the Ministry reported internal preparations to seek authorisation for signing. | ERIA, May 2025; ERIA, Dec 2025; Vientiane Times |
| Malaysia | Chaired ASEAN in 2025. The substantial conclusion of DEFA was one of Malaysia’s Priority Economic Deliverables and was announced at the 26th ASEAN Economic Community Council in Kuala Lumpur on 24 October 2025. | ASEAN |
| Myanmar | One of the ten ASEAN members named in the 2023 Leaders’ Statement on DEFA and a participant in the negotiations. No Myanmar-specific DEFA development was found in the official sources reviewed. | Leaders’ Statement |
| Philippines | Chairs ASEAN in 2026 and made the signing of DEFA one of its Priority Economic Deliverables. The negotiations were concluded in Manila on 29 May 2026, and the 58th ASEAN Economic Ministers’ Meeting, held in Manila on 19 September 2026, reaffirmed the commitment to signing at the 49th ASEAN Summit in November, which the Philippines hosts. | PIA; ASEAN |
| Singapore | MTI states that Singapore played an active role in the negotiations. Singapore is also a party to DEPA and to the EU-Singapore Digital Trade Agreement compared above, and takes over the chair of the ASEAN Economic Ministers’ Meeting, and the ASEAN chairmanship, in 2027. | MTI; Viet Nam MOIT |
| Thailand | Chaired the DEFA Negotiating Committee, which held fourteen rounds up to October 2025. MTI thanked Thailand for its leadership when the negotiations concluded in May 2026. | ASEAN; MTI |
| Viet Nam | At the 31st ASEAN Economic Ministers’ Retreat in February 2025, Viet Nam put forward proposals related to developing DEFA, according to Viet Nam News. A Ministry of Industry and Trade delegation attended the 26th ASEAN Economic Community Council at which the substantial conclusion was announced. | Viet Nam News; Viet Nam Trade Portal |
| Timor-Leste | ASEAN’s eleventh member since 26 October 2025. Indonesia’s Coordinating Minister for Economic Affairs has said it may need more time to complete its domestic legal framework before joining DEFA. | ASEAN; Viet Nam Trade Portal |
A discussion checklist for ministries
This checklist is not a standard tool and has not been approved by any government or by ASEAN. It is not an official DEFA compliance test. It reflects Blak Rice’s own opinion, drawn from the areas that the DEFA study and official statements say the agreement is expected to cover, and it should be reviewed against the final signed text once available.
The items below are a few areas, not limited to these, that a ministry may wish to look into when considering DEFA. The right areas and their order will differ by ministry and country.
| # | Area | Question to ask | Why this matters |
|---|---|---|---|
| 1 | Ownership | Is one ministry or agency named as DEFA lead, with a cross-agency group covering trade, ICT, finance, justice and data protection? | DEFA’s expected scope spans trade, payments, data, cybersecurity and digital ID, which usually sit with different agencies. |
| 2 | Legal gap review | Once the text is available, have national laws on e-transactions, consumer protection, data protection and cybersecurity been compared with it? | The DEFA study identifies differing legal frameworks across ASEAN as a gap in digital trade and e-payments. |
| 3 | Cross-border data rules | Can the rules that apply to moving data out of the country, including any localisation requirements, be stated in one place? | The study reports that restrictive rules on data sharing and transfer hinder trade, and cross-border data flows are one of the expected areas. |
| 4 | Government data governance | Are key government datasets classified, and does each have a named owner and sharing rules? | The study’s data element refers to common data classifications and personal data protection. |
| 5 | Digital identity | Can people and businesses prove who they are online to government services, and is cross-border recognition on the roadmap? | Digital ID and authentication is one of the study’s nine elements, and the study cites a potential value of 3 to 6 percent of GDP from digital ID and related systems. |
| 6 | Payments and e-invoicing | Do digital payment and e-invoicing arrangements work across borders, or only at home? | The study notes that different payment standards complicate cross-border transfers, and lists interoperable payments and e-invoicing among DEFA topics. |
| 7 | Paperless trade | Are e-signatures, e-contracts and electronic trade documents legally recognised and accepted by the agencies that handle them? | The study lists paperless trade, electronic transferable records and e-invoices under digital trade, and notes that trade infrastructure is not yet end-to-end in all member states. |
| 8 | Cybersecurity | Is there a national incident-response capability, and do agencies know how to report and share incidents? | The study reports gaps between member states in cybersecurity and lists online safety and cybersecurity as a core element. |
| 9 | AI governance | Is there guidance on how public bodies use AI, with a named accountable officer? | MTI says DEFA addresses AI, and the study lists AI under cooperation on emerging topics. See the related article on AI readiness. |
| 10 | Source code and technology rules | Do any rules or procurement practices require access to software source code, and is the legal basis known? | MTI says DEFA addresses source code protection, and the study recommended not requiring access to source code except for regulatory or judicial investigations. |
| 11 | Skills | Do the officers who will apply DEFA (trade, legal, ICT, data protection, procurement) have training planned? | Talent mobility and cooperation is one of the study’s nine elements, and the study identifies talent scarcity as a gap. See building an AI-ready civil service. |
| 12 | Business outreach | Do businesses, especially small ones, know what DEFA changes for them and where to ask? | MTI says the agreement is meant to make it easier for small and medium enterprises to use regional opportunities, and the study found limited cybersecurity awareness among MSMEs. |
| 13 | Monitoring | Is there a baseline, and a way to tell whether DEFA is working, for example how many firms trade digitally across borders? | The study recommends periodic review of the agreement, and ASEAN already publishes a Digital Integration Index that can serve as a reference point. |
Milestones
| Date | Milestone | Source |
|---|---|---|
| 2018 | ASEAN finalises the ASEAN Digital Integration Framework, with five policy areas for digital integration. | ASEAN |
| 2019 | The ASEAN Agreement on Electronic Commerce is signed. | ASEAN |
| 2021 | The Bandar Seri Begawan Roadmap on ASEAN digital transformation is endorsed by ASEAN Economic Ministers (September) and the ASEAN Economic Community Council (October), under Brunei Darussalam’s chairmanship. ASEAN Leaders’ statement the same year agrees to begin DEFA negotiations. | AEM-53; AEC Council; ASEAN |
| 2023 | The DEFA study, prepared by the Boston Consulting Group, is endorsed by ASEAN Economic Ministers. | MTI |
| 3 Sept 2023 | The ASEAN Economic Community Council launches the DEFA negotiations, in Jakarta. | ASEAN; Phnom Penh Post report |
| 5 Sept 2023 | ASEAN Leaders issue the Leaders’ Statement on the Development of the ASEAN DEFA at the 43rd ASEAN Summit in Jakarta. | ASEAN; Statement |
| 2023 to 2025 | The DEFA Negotiating Committee, chaired by Thailand, holds fourteen negotiating rounds. | ASEAN |
| 24 Oct 2025 | The 26th ASEAN Economic Community Council, in Kuala Lumpur, announces the substantial conclusion of the negotiations. | ASEAN |
| 26 Oct 2025 | Timor-Leste becomes ASEAN’s eleventh member state. | ASEAN |
| 27 to 29 May 2026 | Negotiations are concluded at the Second Meeting of the 57th ASEAN Senior Economic Officials’ Meeting in Manila. MTI announces the outcome on 31 May. | MTI; Philippine Information Agency |
| 19 Sept 2026 | The 58th ASEAN Economic Ministers’ Meeting in Manila reaffirms its commitment to signing DEFA at the 49th ASEAN Summit in November. | ASEAN |
| November 2026 | Signing is targeted on the sidelines of the 49th ASEAN Summit, alongside the 28th ASEAN Economic Community Council meeting. Not yet signed as at 8 November 2026. | ASEAN; PIA |
Sources
Facts and dates in this article were checked on 8 November 2026. Where official sources did not report a point, this article says so.
- ASEAN, “Key Documents” (ASEAN e-commerce): asean.org
- ASEAN, “Study on the ASEAN Digital Economy Framework Agreement (DEFA)”, public summary, prepared by the Boston Consulting Group with support from the Australian Government (8 November 2024): asean.org
- ASEAN, “ASEAN Economic Community Council Statement on the Substantial Conclusion of the ASEAN DEFA Negotiations” (24 October 2025): asean.org
- ASEAN, “Leaders’ Statement on the Development of the ASEAN DEFA” (5 September 2023): asean.org
- ASEAN, Joint Media Statement of the 58th ASEAN Economic Ministers’ Meeting (19 September 2026): asean.org
- ASEAN, “20th ASEAN Economic Community Council Meeting” (18 October 2021): asean.org
- ASEAN, “Secretary-General of ASEAN meets with Minister of Commerce of Cambodia”: asean.org
- ASEAN Economic Ministers, Joint Media Statement of the 53rd Meeting (2021), copy hosted by Malaysia’s Ministry of Investment, Trade and Industry: miti.gov.my
- Singapore Ministry of Trade and Industry, “Singapore and ASEAN Member States Conclude Negotiations on Landmark ASEAN DEFA” (31 May 2026): mti.gov.sg
- Singapore Ministry of Trade and Industry, press release on the 26th ASEAN Economic Community Council Meeting (24 October 2025): mti.gov.sg
- Philippine Information Agency, “ASEAN Drives Regional Cooperation and Philippine Priorities at Senior Economic Officials’ Meetings in Metro Manila” (3 June 2026): pia.gov.ph
- Antara News, “ASEAN targets digital economy pact DEFA signing by Nov 2026”: antaranews.com
- Viet Nam Ministry of Industry and Trade, Viet Nam Trade Portal, “ASEAN announces substantial conclusion of negotiations on the ASEAN DEFA”: vntr.moit.gov.vn
- Viet Nam Ministry of Industry and Trade, Viet Nam Trade Portal, “ASEAN expected to sign DEFA in 2026, Timor-Leste may need more time to participate”: vntr.moit.gov.vn
- Viet Nam Ministry of Industry and Trade, “58th ASEAN Economic Ministers’ Meeting”: moit.gov.vn
- Viet Nam News, “Viet Nam makes active contributions to AEMR-31”: vietnamnews.vn
- ERIA, “ERIA Supports Cambodia’s AI in Trade Readiness with National Validation Workshop Ahead of ASEAN DEFA” (16 March 2026): eria.org
- ERIA, “ERIA–MOIC Workshop Advances Lao PDR’s Preparedness on AI and Digital Trade under ASEAN DEFA” (10 December 2025): eria.org
- ERIA, “ERIA Workshop Builds Lao PDR’s Technical Readiness for ASEAN’s Digital Economy Agreement” (30 May 2025), via e-Trade for All: etradeforall.org
- Vientiane Times, report on preparations for the 58th ASEAN Economic Ministers’ Meeting (2026): vientianetimes.org.la
- Phnom Penh Post, “ASEAN initiate talks on digital economy framework agenda” (September 2023), via Open Development Cambodia: opendevelopmentcambodia.net
- New Zealand Ministry of Foreign Affairs and Trade, “DEPA text and resources” and “Overview of the DEPA”: mfat.govt.nz; overview
- European Commission, “EU-Singapore Digital Trade Agreement enters into force” (2 February 2026): policy.trade.ec.europa.eu
- European Commission, EU-Singapore agreements page: policy.trade.ec.europa.eu
- IEU Monitoring, “EU-Singapore Digital Trade Agreement enters into force” (carries the European Commission statement): ieu-monitoring.com
- Digital Cooperation Organization, “Governance” (member states): dco.org
- Digital Cooperation Organization, “Eight Countries to Join the Digital Cooperation Organization in Landmark Expansion” (28 August 2026): dco.org