Government to further strengthen ASEAN's readiness in finalising DEFA

KUALA LUMPUR: Malaysia, as the ASEAN chair this year, will continue its strategic efforts to ensure ASEAN member states are prepared to finalise the Digital Economy Framework Agreement (DEFA).

Ministry of Investment, Trade and Industry (MITI) Deputy Minister Liew Chin Tong said these efforts are crucial to keeping ASEAN, including Malaysia, globally competitive while securing sustainable economic and socioeconomic benefits.

He noted that under Malaysia's ASEAN 2025 chairmanship, DEFA is one of the key economic achievements identified by MITI, with negotiations targeted for completion by the end of this year.

"As ASEAN chair, Malaysia plays a key role in advancing regional economic integration under the ASEAN Community Vision 2025, which prioritises equitable development and narrowing the development gap.

"To achieve this, Malaysia is focusing on two main approaches to facilitate the DEFA negotiation," he said during the question-and-answer session in the Dewan Rakyat today.

Liew was responding to a question from Syerleena Abdul Rashid (PH-Bukit Bendera) on the government's plans to ensure DEFA negotiations concluded by 2026, given the varying levels of digital readiness across ASEAN.

He shared that the first approach involves basic capacity-building programs among ASEAN member states.

"In 2024, over ten technical workshops, training sessions, and dialogues were conducted for the DEFA Advisory Committee in collaboration with experts in the digital economy and international organisations such as the United Nations Conference on Trade and Development, World Economic Forum, and Organisation for Economic Co-operation and Development.

"This year, the program will expand to more advanced areas of digitalisation, focusing on digital technology adoption, data management, and cybersecurity in trade," he said.

Liew added that the second approach is the phased implementation of DEFA, similar to ASEAN's Economic Community and Free Trade Agreements.

According to him, this approach includes grace periods or flexible timelines to allow certain member states to develop relevant legislation or policies before full implementation.

He also emphasised that DEFA aligns with Malaysia's national agenda to position the country as a regional leader in the digital economy.

"It supports key national policies such as the Malaysia Digital Economy Action Plan as well as sectoral policies managed by MITI, namely the National Trade Action Plan and the New Industrial Master Plan 2030," he said.

-- BERNAMA

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