KOTA TINGGI, Mar 1 — Malaysia, as Asean chair, is optimistic the bloc will substantially conclude the Digital Economy Framework Agreement (DEFA) in time for the Asean Leaders’ Summit at the end of the year.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said discussions on DEFA have made positive progress.
“We should be on track. What was agreed upon today is to ensure we conclude it this year and for Asean members to be more flexible in their approach,” he said at a press conference after chairing the 31st Asean Economic Ministers (AEM) Retreat in Desaru today.
Tengku Zafrul said the economic ministers expressed confidence about the importance of DEFA to provide the necessary impetus to spur Asean digital transformation.
“We know the immense benefits of DEFA, particularly for Asean micro, small, and medium enterprises and Asean members,” he said.
The minister also noted that the bloc’s members expect the signing of the upgraded Asean Trade in Goods Agreement during the year-end 47th Asean Summit.
Tengku Zafrul said the ministers also had a productive discussion on Asean’s economic relations with external partners.
These include having Asean’s second Summit with the Gulf Cooperation Council (GCC) at the Asean Summit in May 2025 and convening the inaugural Asean GCC-China Summit at the sidelines of the same event.
“This is seen as a good way of engaging Asean’s external partners, by forging new collaborations that will be able to open up new opportunities in driving our economy,” he said.
Furthermore, Tengku Zafrul added that the retreat discussed the status of a few remaining issues under the Asean-China FTA 3.0 negotiations.
“This is followed by the announcement of substantial conclusions by Asean leaders last year. We are optimistic that we will be able to sign the Upgrade Protocol later this year as one of the Priority Economic Deliverables (PEDs) for our Asean hairmanship,” he said.
Tengku Zafrul said that Malaysia, as the country coordinator for India as well as the Asean co-chair for the Asean-India Trade in Goods Agreement (AITIGA) review, has updated the AEM on the progress of negotiations.
“As one of the PEDs for 2025, the AITIGA is set for a substantial conclusion this year,” he said.
Furthermore, as Timor-Leste’s accession is a priority for Malaysia’s chairmanship in 2025, Tengku Zafrul said Malaysia strongly views that with its entry as full 11th member, the regional potentials and economic growth can be further strengthened.
He added that during the retreat today, the delegations engaged with the Asean Business Advisory Council, the Economic Research Institute for Asean and East Asia, and McKinsey.
“We discussed their work, suggestions, and inputs regarding specific aspects of economic integration in the region,” he said.
— Bernama
