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Fostering Inclusive Growth in ASEAN’s Digital Economy Through the DEFA and Regional Cooperation

Fostering Inclusive Growth in ASEAN’s Digital Economy Through the DEFA and Regional Cooperation
Date:
18 February 2025
Authors:
Mahirah Mahusin, Hilmy Prilliadi
Tags:
digital economy, DEFA

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Digital transformation of the Association of Southeast Asian Nations (ASEAN), particularly its rapidly evolving digital economy, could create significant socio-economic transformation, yet persistent obstacles limit widespread and equitable digital engagement across the region. Amongst others, unequal connectivity, high broadband costs, limited digital literacy, and disparities in access for underserved groups such as women, persons with disabilities, and rural communities may exacerbate the digital divide. This policy brief highlights the digital divide, its impact on financial inclusion, the challenges faced by underserved groups, and the unequal distribution of benefits from digital trade across ASEAN. Despite progress under regional frameworks and external agreements, achieving digital inclusion requires more targeted, development-oriented approaches. The Digital Economy Framework Agreement (DEFA) presents an opportunity to harmonise policies, support capacity-building initiatives, and align national and regional objectives for inclusive growth. Policy recommendations include provisions to enhance access, improve digital literacy, and foster public–private partnerships to address the needs of underserved populations.

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