Jakarta. The UK backs ASEAN’s digital economy pact as the group awaits its signing later this year.

ASEAN -- home to tens of thousands of startups -- recently wrapped up the negotiations to the DEFA, short for digital economy framework agreement. The DEFA is the world’s first region-wide binding agreement on the internet economy, including e-commerce, electronic payments, and many more. The UK --  whose tech sector has reached a valuation of 1.2 trillion pounds (around $1.6 trillion) -- is happy to see how far the DEFA has progressed.

“The digital economy is growing fast. It’s going to be a priority for everyone. We are really pleased to hear that the DEFA has now been agreed,” UK Ambassador to ASEAN Helen Fazey told the press on the margins of the King’s Birthday Party reception in Jakarta on Wednesday.

Fazey went on to say how London had trained the DEFA negotiators early on.

“We look forward to supporting ASEAN and the individual member states when they come to implement the agreement,” she said.

ASEAN estimates that the DEFA will double its digital economy to $2 trillion by 2030, compared to the $1 trillion outlook under the business-as-usual scenario. The group will likely sign the DEFA when the leaders gather in Manila this November.

From a trade and investment standpoint, the UK’s cooperation with ASEAN put emphasis on their economic integration program valued at 25 million pounds (around $33.4 million). This initiative sees the UK providing technical assistance and capacity building for ASEAN members, including the bloc’s newcomer Timor-Leste, on regulatory reforms to support trade activities. 

“The [economic integration] program also focuses on open economies, which include customs, [as well as] improving banking and financial services,” Fazey said.

ASEAN reported having registered a $38.8 billion two-way merchandise trade with the UK throughout 2024. The grouping also reported that British investors had put around $18.8 billion in ASEAN, making up 8.2% of the region’s total foreign direct investment inflows the same year.

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