Kuala Lumpur: The impact of enhancing the digital economy via the ASEAN Economic Community (AEC) Strategic Plan 2026-2030 will be immense because the region’s digital economy is projected to reach US$1 trillion by 2030, an economist said.

According to BERNAMA News Agency, KSI Strategic Institute for Asia Pacific economic advisor Dr. Anthony Dass emphasized that this will be a key priority, and the newly binding Digital Economy Framework Agreement (DEFA) plays a significant role in increasing regional economic integration.

“The digital economy contributes by facilitating cross-border trade, promoting innovation, enhancing connectivity, and attracting investments into the region. A robust digital infrastructure fosters innovation, leading to new digital services, platforms, and business models that drive economic growth,” Dass stated. He further explained that DEFA aims to address cross-border challenges and tackle issues like online fraud and misinformation, ensuring a safer and more trustworthy digital environment. Digitalisation is expected to streamline business processes, enhance productivity, and reduce operational costs across various sectors.

Nevertheless, Dass pointed out that significant differences in development levels, regulatory capacity, infrastructure, and digital skills across ASEAN member states pose challenges to the effective implementation and widespread benefits of DEFA. “Ensuring data free flow with trust while balancing data protection and national sovereignty is also a complex task,” he noted.