The recently launched e-Conomy SEA 2023 by Google, Temasek, and Bain & Company highlighted the opportunities of ASEAN’s digital economy. It reported that the digital economy in six ASEAN Member States (AMS), namely Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam, is set to deliver USD 100 billion in revenue with growth of 27% CAGR since 2021 and Gross Merchandise Value (GMV) is expected to grow by 11% to USD 218 Billion in 2023.
To further strengthen digital economy in the region, ASEAN Leaders agreed to accelerate the negotiation of the ASEAN Digital Economic Framework Agreement (DEFA) at the 41st ASEAN Summit in 2022. Following this, the 23rd ASEAN Economic Community Council officially launched the negotiations in September 2023. The DEFA is expected to impact the region’s more than 671,6 million population, 70-80% (adult population) of whom are active internet users and to offer compelling opportunities for businesses. Prior to the launch of the ASEAN DEFA negotiations, ASEAN Economic Ministers endorsed the Study on the ASEAN DEFA. The Study undertaken by the Boston Consulting Group (BCG) provided perspectives on Digital Economy in the region and estimated the potential benefits of a robust, forward- looking and effective DEFA. The highlights of the study are featured in the succeeding part of this bulletin.
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