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Experts from the ASEAN Plus Three economies urged governments to prioritize the implementation of frameworks that are already in place to enhance digital trade systems and strengthen supply chains across the region
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The push arises from a dialogue held as the Philippines advances the ASEAN Digital Economy Framework Agreement
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Barriers to realizing the agreement include uneven digital readiness among countries, fragmented regulations, different technical standards, cybersecurity concerns, and digital skills gaps
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Expanding opportunities with digital adoption support for micro, small, and medium enterprises was also highlighted
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Other key recommendations are: harmonize legal and technical standards, expand technical assistance for economies with lower digital readiness, and deepen collaboration on cybersecurity, artificial intelligence governance, digital payments, and resilient digital public infrastructure
Experts from the ASEAN Plus Three (APT) economies called on governments to prioritize the implementation of frameworks that are already in place – such as the ASEAN Single Window and the Regional Comprehensive Economic Partnership (RCEP) – before pursuing new initiatives to enhance digital trade systems, strengthen supply chains across the region, and expand opportunities for micro to medium businesses.
The experts tackled the current digital trade environment and practical steps forward during a recent policy dialogue convened by the Philippine Institute for Development Studies (PIDS), which serves as the Secretariat of the Network of East Asian Think-Tanks (NEAT) Philippines, in partnership with FACTS Asia as knowledge partner.
The dialogue was held as the Philippines advances the ASEAN Digital Economy Framework Agreement (DEFA), one of the country’s Priority Economic Deliverables under its ASEAN chairship this year.
READ: ASEAN finalizes agreement to unlock $2T digital economy
Dialogue participants observed that the Association of Southeast Asian Nations (ASEAN) has developed a strong policy foundation for digital trade, but implementation remains the main challenge.
APT is composed of the 11 ASEAN members – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Timor-Leste, and Vietnam – plus China, Japan, and South Korea.
Dr. Philip Arnold Tuaño, PIDS president, highlighted how recent global disruptions have reinforced the need to bolster the region’s digital foundations.
“These developments have highlighted the need not only for stronger physical infrastructure, but also for more effective and interoperable digital systems that facilitate trade, improve transparency, and strengthen resilience across borders,” he said in a statement.
Barriers
The DEFA seeks to establish a comprehensive regional framework covering digital trade, cross-border data flows, digital payments, e-commerce, and interoperable digital systems.
However, the experts said there are several barriers to achieving this, citing uneven digital readiness among the APT economies, fragmented regulations, different technical standards, cybersecurity concerns, and digital skills gaps.
They stressed that interoperable digital trade systems are becoming indispensable to resilient supply chains. These include paperless customs procedures, electronic trade documents, digital payment platforms, trusted digital identities, and integrated logistics systems.
They noted that stronger digital connectivity can lower transaction costs, improve trade efficiency, and expand opportunities for businesses to participate in regional value chains, despite disruptions from pandemics, geopolitical tensions, and other global risks.
Boosting the participation of micro, small, and medium enterprises (MSMEs) in the trade and supply chain environment was another priority taken up, underscoring their need for wider support in digital adoption.
READ: Faster cargo clearance, MSME opportunities in 2 upgraded ASEAN trade pacts
“While digital trade offers significant efficiency gains, participants noted that smaller businesses continue to face higher adoption costs and limited access to digital platforms,” PIDS said.
The country representatives presented varying stages of digital transformation while highlighting common priorities for future collaboration.
Brunei presented interoperable digital trade systems as regional public infrastructure anchored on trust, while Cambodia showcased its blockchain-enabled verify.gov.kh platform for secure document authentication.
China, Japan, and South Korea shared experiences in digital trade governance and international standards, while Malaysia, Myanmar, Singapore, Thailand, and Vietnam discussed reforms, implementation challenges, and capacity-building initiatives to strengthen digital trade and supply chain resilience.
READ: DTI forms supply chain & logistics ‘guild’ to assist MSMEs
Dr. Ramonette Serafica, senior research fellow at PIDS who represented the Philippines in the dialogue, cited the country’s progress in digital trade facilitation, particularly the newly launched National Single Window-Integrated Trade Facilitation Platform (NSW-ITFP).
The NSW-ITFP is intended to eventually connect to the ASEAN Single Window, as outlined in the Philippine Trade Facilitation Committee Roadmap.
Recommendations
The dialogue output will be raised for consideration through the NEAT process.
Among the key recommendations are:
- Accelerate the implementation of existing regional commitments
- Harmonizing legal and technical standards
- Expand technical assistance for economies with lower digital readiness
- Promote MSME inclusion
- Deepen collaboration on cybersecurity, artificial intelligence governance, trusted cross-border data flows, digital payments, and resilient digital public infrastructure
“The ideas generated through this working group can contribute directly to NEAT’s continuing role of providing research-based recommendations to support ASEAN Plus Three cooperation,” Tuaño said.
