The Philippines has urged its trade counterparts in the ASEAN region to conclude and sign the Digital Economy Framework Agreement and establish a framework for regional payment interconnectivity.

The ASEAN Digital Economy Framework Agreement (DEFA) is the world's first region-wide digital economy pact, designed to create a binding, harmonized framework for digital trade across Southeast Asia.

It aims to accelerate regional digital transformation, aiming to increase the ASEAN digital economy to $2 trillion by 2030, covering areas like e-commerce, artificial intelligence, cybersecurity, and digital payments.

“The online platform is one equalizer for our MSMEs to access foreign markets. And I think to come up with a set of rules that would govern transactions online would be highly welcome, including our initiative on regional payment interconnectivity,” said Philippine Trade Undersecretary Allan Gepty during a press conference at the 48th ASEAN Summit and Related Meetings in Mactan, Lapu-lapu City, Cebu.

More MSME participation

Meanwhile, Gepty said ASEAN member states have agreed to have more participation from the local micro, small, and medium enterprises (MSME), even if large enterprises remain at the forefront of global trade.

Gepty highlighted the economic goal of ASEAN to keep trade going amid the Middle East crisis.