Singapore is playing a crucial role in promoting inclusive trade across ASEAN, particularly for the region’s lower-income economies. As global trade evolves, Singapore leads efforts to ensure equitable participation through digital trade initiatives and policy reforms. One key initiative is the ongoing negotiation of the ASEAN Digital Economy Framework Agreement (Defa), aimed at creating a harmonized digital economy across Southeast Asia. If successful, Defa will reduce barriers in cross-border digital payments, boost e-commerce for SMEs, and set standards for AI, enhancing regional trade participation.
ASEAN’s reliance on digital channels is growing, with around 90% of micro, small, and medium enterprises (MSMEs) using social media for business and over a third operating online stores. By streamlining digital trade policies, Singapore can enable greater economic integration and open up new opportunities for businesses across the region.
Singapore’s Permanent Representative to the WTO, Tan Hung Seng, emphasized the need for commercially meaningful and globally integrated digital trade rules, including improved payment system interoperability and enhanced cybersecurity.
The Defa is expected to conclude by 2025 and aims to further facilitate regional trade, attracting investments in digital infrastructure and education. A more inclusive trade environment will benefit Singapore by expanding regional markets and increasing demand for its goods and services. Moreover, it will promote economic convergence, reducing risks linked to volatility and enabling sustained growth.
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