ASEAN intensifies regional push to advance supply chain resilience alongside green, digital initiatives

ASEAN leaders have intensified regional push to advance supply chain resilience alongside green and digital initiatives amid Middle East tensions. The Ministry of Trade and Industry Singapore said in a statement on Thursday that during the 27th AECC, ministers have discussed the ASEAN Digital Economy Framework Agreement (DEFA), and reaffirmed that the Agreement remains on track for full conclusion and signing this year. The ASEAN DEFA will be the region’s first comprehensive digital economy agreement and signals ASEAN’s collective intent to harness the potential of the digital economy to shape the future of trade and digital cooperation. When implemented, the agreement will introduce commitments to facilitate trusted, cross-border data flows, end-to-end digital trade and protection of key proprietary information. The ASEAN DEFA will also help digital businesses scale up regionally and beyond, especially for micro, small and medium enterprises (MSMEs), opening more opportunities for digital trade in the region. Ministers have also set out next steps to take forward priority carbon neutrality initiatives, including commissioning a feasibility study for a potential rules-based ASEAN Green Economy Framework Agreement (GEFA) to tap into the opportunities arising from the green economy. Ministers also made progress on the ASEAN Power Grid (APG), including urging ASEAN to accelerate the development of a framework on submarine power cables, which is essential for energy imports. The ministers have also reaffirmed commitments to uphold open trade and resilient supply chains in response to the Middle East situation. They took forward recommendations to address economic implications from the Special AECC Meeting on April 30, 2026, including exploring next steps to expedite the entry-into-force of the Upgraded ASEAN Trade in Goods Agreement (ATIGA) within the year where possible. This will allow ASEAN Member States (AMS) to implement the relevant cooperation and crisis-related commitments amidst the ongoing crisis. “Singapore is working actively with our ASEAN partners in championing a region with resilient supply chains, whilst growing the digital and green economies. Singapore will continue to monitor global developments closely and remain a constructive partner to advance regional integration priorities, “We are committed to deepening partnerships in ASEAN, to ensure the region maintains its position as a trusted, connected and open trading partner,” said Singapore’s Deputy Prime Minister Gan Kim Yong said. According to the statement, ASEAN remains a key economic partner for Singapore. ASEAN continues to be a strategic and attractive location, with its importance and potential set to grow. While global gross domestic product (GDP) growth was 3.4 percent in 2025, the region remained ahead with GDP growth of 4.9 percent, demonstrating ASEAN’s relatively robust economic fundamentals. The region’s GDP is expected to grow 4.4 percent in 2026, presenting a strong baseline in face of economic headwinds, said the statement. ASEAN endorses Malaysia-led regional framework on cross border cloud computing