ASEAN seeks digital economic integration through interoperability

ASEAN member states are working toward deeper digital economic integration, highlighted by the substantial conclusion of negotiations on the ASEAN Digital Economy Framework Agreement (DEFA) in October 2025. This framework aims to cover digital trade, electronic payments, digital identity, data protection, and cybersecurity.

Experts note that while the ASEAN digital economy is projected to reach US$1 trillion by 2030, comprehensive implementation of DEFA could increase that value to US$2 trillion. However, significant challenges remain regarding the fragmentation of digital identity, payment, and document systems across the region. Current national systems are often designed for domestic use, forcing businesses to repeat compliance checks when operating across borders.

To address this, industry leaders suggest focusing on interoperability through common standards rather than identical laws. Proposed solutions include the use of open APIs, retail payment standards, and fast-payment infrastructure. Initiatives like the ASEAN Single Window, which allows customs authorities to exchange trade documents electronically, serve as existing models for cross-border cooperation.