ASEAN to Sign World's First Digital Economy Pact in Manila This November

ASEAN concluded negotiations on the Digital Economy Framework Agreement (DEFA), the world's first region-wide digital economy treaty, with signing expected at the ASEAN Summit in Manila in November 2026. The pact covers cross-border data flows, digital payments, e-commerce, consumer protection and AI standards across 11 member states. A Google, Temasek and Bain study estimated ASEAN's digital economy surpassed $300 billion in gross merchandise value in 2025. ASEAN projects the figure could reach $1 trillion by 2030, or $2 trillion if DEFA rules are implemented quickly. World Data Lab forecasts ASEAN's middle class will expand by 112 million people by 2032. The agreement aims to reduce compliance burdens for companies navigating 11 separate regulatory regimes, particularly small and medium enterprises. Implementation, rather than signing, remains the key test, with enforcement requiring coordination among policymakers, industry and civil society.