ASEAN digital pact seen widening regional market access for SMEs

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ASEAN digital pact for SMEs

Highlights

ASEAN's Digital Economy Framework Agreement aims to harmonize digital trade rules across 11 member-states, improving cross-border market access for SMEs.
DEFA, expected to be signed at the ASEAN Summit in the Philippines on Nov. 15-17, could propel the region’s digital economy to $2 trillion by 2030.
The agreement introduces standardized security, partner verification, and data safeguards, reducing fraud risk and strengthening trust for online business expansion.

Regional rules and signing timeline

As reported by BusinessWorld Online, the Association of Southeast Asian Nations' Digital Economy Framework Agreement, or DEFA, is expected to help small and medium enterprises expand beyond local markets by aligning digital economy rules across the bloc's 11 member-states.

Piti Srisangnam, executive director of the ASEAN Foundation, said the pact can help SMEs reach cross-border markets by creating a more consistent legal and regulatory environment for digital trade. Speaking to reporters during the TikTok Shop and ASEAN SOAR Together event on Friday, he said businesses operating online need a clear legal framework across markets.

He added that the agreement would improve security and trust in digital transactions by helping companies verify the legitimacy of business partners, reducing exposure to scams. DEFA also includes safeguards for company, SME and consumer data, with access limited to authorized individuals.

The agreement is expected to be signed during the ASEAN Summit in the Philippines on Nov. 15 to 17. ASEAN projects the pact could double the region's digital economy to $2 trillion by 2030.

Trade ecosystem and business expansion

Mr. Srisangnam said DEFA could support a stronger digital trade ecosystem within ASEAN and eventually serve as a model for updating the digital trade provisions in the bloc's existing free trade agreements with external partners, including China, Japan, South Korea, Australia and New Zealand.

That broader alignment could give smaller companies a clearer path to regional expansion at a time when more brands are looking beyond their home markets. For Filipino sports nutrition and lifestyle brand Wheyl Nutrition Co., the initiative supports a growing push by local businesses to export to other countries in the region.

Jason C. Reyes, co-founder of Wheyl Nutrition Co., said it is encouraging to see the government recognize the need to connect businesses across Southeast Asia. He said many companies like Wheyl want to expand into overseas markets.

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