ASEAN Digital Economy Framework Agreement substantially concludes, key agreements and MOU signed

27 November 2025

On 24 October 2025, the Ministry of Trade and Industry (“MTI”) announced outcomes from the 26th ASEAN Economic Community Council, marking a milestone year for the ASEAN Economic Community (“AEC”) amid global uncertainty and structural shifts.

ASEAN is a key economic partner for Singapore. In 2024, ASEAN was Singapore’s largest trading partner, with two-way trade reaching US$220 billion. Singapore’s foreign direct investment inflows into ASEAN totalled US$14.5 billion, underscoring the strong and growing economic ties between Singapore and the ASEAN region.

Substantial conclusion of ASEAN DEFA

ASEAN Member States announced the substantial conclusion of the ASEAN Digital Economy Framework Agreement (“DEFA”), following nearly two years of negotiations. As ASEAN’s first comprehensive regional digital economy agreement and most ambitious digital initiative to date, the DEFA will, once signed in 2026, mark a new chapter in ASEAN’s digital integration. It introduces commitments on cross-border data flows, end-to-end digital trade, and emerging issues such as artificial intelligence, source code protection, and cybersecurity.

Other key highlights

Beyond the substantial conclusion of DEFA, the meeting also delivered several other important outcomes:

  • AEC Blueprint 2025 completion and agreement to implement the AEC Strategic Plan 2026-2030, launched at the 46th ASEAN Summit in May 2025, to guide ASEAN’s next phase of economic integration.
  • Signing of key agreements, including the ASEAN Trade in Goods Agreement Upgrade, which enhances trade facilitation and market access, and deepens economic integration within ASEAN, and the ASEAN-China Free Trade Area 3.0 Upgrade, which marks the second upgrade of the agreement and will strengthen connectivity and facilitate greater trade between ASEAN and China.
  • Conclusion of enhanced ASEAN Power Grid Memorandum of Understanding by ASEAN Energy Ministers to advance regional energy cooperation and lay the groundwork for further implementation of the ASEAN Power Grid.

Reference materials

The press release is available on the relevant webpage on the MTI website www.mti.gov.sg.