Malaysian Prime Minister Anwar Ibrahim (L) hands over the rotating chair gavel to Philippine President Ferdinand Marcos Jr at the 47th ASEAN Summit in Kuala Lumpur, last October. (Cheng Yiheng/Xinhua via Getty Images)
On January 6, as ASEAN chair, the Philippines is advancing an ambitious economic agenda centred on deeper regional integration and digital transformation. Two priorities stand out: the completion of ASEAN’s Digital Economy Framework Agreement (DEFA) by early 2026, and the conclusion of a free-trade agreement between ASEAN and Canada. DEFA aims to harmonise digital trade rules across the bloc, covering areas such as e-commerce, digital payments, cybersecurity and cross-border data flows, at a time when ASEAN’s digital economy is projected to approach US$1 trillion by 2030. Meanwhile, the ASEAN–Canada FTA would mark the bloc’s first trade deal with a North American country, reflecting growing urgency amid global trade tensions and geopolitical uncertainty.
Business implications
If delivered, DEFA could significantly reduce regulatory friction for tech firms, fintechs, e-commerce players and multinationals operating across ASEAN, making cross-border digital operations more efficient and scalable. The ASEAN–Canada FTA would open new opportunities for exporters, manufacturers and service providers, while helping diversify trade ties away from the US. However, execution risks remain, as domestic economic pressures in the Philippines and uneven readiness across ASEAN members could slow implementation.
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