Key Digital Economy Initiatives for ASEAN Discussed at the DEFA Exclusive Stakeholder Roundtable in Bali

Bali, 9 September 2024: The ASEAN Digital Economy Framework Agreement (DEFA) Exclusive Roundtable, held alongside the Sixth Meeting of the ASEAN Digital Economy Framework Agreement Negotiating Committee (6th ASEAN DEFA NC Meeting) and Related Meetings, brought together industry leaders, government officials, and other stakeholders to develop effective and inclusive digital policies for the region. The discussions focused on digital payments, digital talent mobility, and digital identity.

In the session on digital payments, the roundtable highlighted issues such as the underbanked population and regulatory fragmentation. Recommendations included standardising customer and merchant verification processes, creating a unified approach to prevent fraud, and integrating payment systems with invoicing platforms to enhance economic connectivity.

The discussion on digital talent mobility centred on addressing the gap between current skills and digital demands. Rashesh Shrestha, ERIA Economist, set the scene for this session, emphasising the need for expanded skill development, improved labour market efficiency, and enhanced social protection. His presentation also underscored the importance of professionalisation, entrepreneurship, and balancing regulation with flexibility. Investing in early education, upskilling, and aligning training with market needs was highlighted as crucial.

Regarding digital identity, the need for standardised data and alignment with global standards was emphasised. Recommendations included establishing clear guidelines for data sharing, promoting consent-driven practices, and exploring sustainable funding models to ensure the effectiveness of digital identity systems.

As the knowledge partner for the DEFA Exclusive Roundtable, ERIA provided valuable insights and data-driven perspectives on key aspects of the digital economy within DEFA. ERIA's expertise guided discussions on critical issues and contributed to shaping policy recommendations that align with global best practices, ensuring a forward-looking approach to regional digital integration.

The DEFA Exclusive Roundtable underscored the importance of collaboration and strategic innovation in advancing ASEAN's digital economy. The insights and recommendations from this event will contribute to shaping effective DEFA provisions, ensuring that ASEAN remains at the forefront of global digital transformation. The series will continue with sessions on key areas such as digital trade, cross-border e-commerce, and cybersecurity, aiming to deepen understanding, assess existing agreements, and align DEFA with global best practices to build a robust, inclusive, and competitive digital ASEAN.

About DEFA

DEFA aims to accelerate ASEAN's transformation into a leading digital economy by fostering greater digital cooperation and paving the way for regional digital integration and inclusive growth. DEFA provides a comprehensive roadmap to empower businesses and stakeholders across ASEAN, focusing on accelerating trade growth, enhancing interoperability, creating a safe online environment, and increasing the participation of MSMEs. Key areas of focus include digital trade, cross-border e-commerce, cybersecurity, digital identity, and digital payments, alongside emerging topics such as artificial intelligence, to ensure a future-proof framework that addresses both current and evolving digital challenges [1].