The ASEAN region is poised to see significant benefits for its micro, small, and medium enterprises (MSMEs) through the Digital Economy Framework Agreement (DEFA), which is projected to create an economic value of US$2 trillion by 2030. Negotiations for the DEFA began in 2023 and are expected to conclude in 2025 under Malaysia's chairmanship. Tengku Datuk Seri Zafrul Abdul Aziz, the Minister of International Trade and Industry, emphasized the importance of bridging the digital divide among ASEAN nations to ensure equitable growth [ced4aedd].
Currently, internet penetration rates vary significantly across the region, with countries like Singapore and Malaysia exceeding 90%, while Myanmar and Laos lag behind at around 50-60%. This disparity highlights the need for targeted initiatives to enhance digital access and capabilities among all ASEAN member states [ced4aedd].
The overall GDP of ASEAN is projected to reach US$3.8 trillion in 2023, making it the fifth-largest economy globally, with aspirations to become the fourth-largest economy by 2030. The digital economy within ASEAN is expected to grow to US$1 trillion by the same year, underscoring the critical role of digital transformation in driving economic growth [ced4aedd].
In line with these developments, the Malaysia Digital Economy Corporation (MDEC) is actively exploring new international markets to bolster Malaysia's position as a digital economy hub. MDEC's GAIN programme facilitates entry into 17 global markets, with nine new markets identified, including Brazil, Kenya, Tanzania, and Spain. This initiative aligns with the broader goal of attracting investments in key areas such as artificial intelligence, blockchain, and cybersecurity [24964c15].
As Malaysia prepares to lead ASEAN economic initiatives in 2025, the focus will be on leveraging digital technologies to empower MSMEs, enhance trade, and foster investment across the region. The Ministry of Digital is also emphasizing the importance of digital infrastructure, cybersecurity, and talent development, with over 15 institutions designated as Premier Digital Tech Institutions for talent production [24964c15].
However, the region also faces challenges, particularly from cybercrime, which costs ASEAN economies over US$100 billion annually. Addressing these security concerns will be vital for the sustainable growth of the digital economy [ced4aedd].
The ENS 2024 event in Dubai, taking place from October 13-16, will feature 6,500 companies and 1,800 startups, showcasing Malaysia's commitment to expanding its digital economy on a global scale [24964c15].