Timor-Leste advances digital economy and ASEAN integration

Timor-Leste is accelerating its digital transformation to support economic diversification and regional integration. The country is preparing to sign the ASEAN Digital Economy Framework Agreement (DEFA) in Manila this November. Efforts to join the framework include connecting customs systems, developing electronic payments, and establishing legal frameworks for data security and interoperability.

Digital development is a key component of the ‘Timor Digital 2032’ initiative, aimed at strengthening the economy following the nation’s accession to the WTO and its upcoming ASEAN membership in 2025. Internet penetration is projected to reach 62% by 2026, supported by mobile connectivity, Low Earth Orbit satellite services, and the Timor-Leste South Submarine Cable System, which began commercial operations in July 2026.

The European Union is supporting these integration efforts through the International Trade Centre, providing initial funding of 3 million USD with plans to increase assistance to approximately 6–7 million USD to bolster institutional capacity and digital infrastructure.