The ASEAN Economic Community (AEC) envisions ASEAN as a single, integrated market through the process of regional economic integration. The free flow of goods, services, investments, capital, and labour will allow the development of production networks in the region, and enhance ASEAN’s capacity as a global supply chain. With a market size estimated at US$3.6 trillion in 2024, the 10-member bloc ranks as the fifth largest economy worldwide, after traditional powerhouses the US, China, Germany and Japan.
At the 25th ASEAN Economic Community Council Meeting on May 25 in Kuala Lumpur, Malaysia, the ASEAN member-states endorsed the new AEC Strategic Plan 2026–2030. The plan charts the first five-year roadmap towards the ASEAN Community Vision 2045, where full integration is expected to be completed.
Singapore was represented at the meeting by Deputy Prime Minister (DPM) and Minister for Trade and Industry Gan Kim Yong, where ASEAN reaffirmed its commitment to open, rules-based trade, focused on deeper regional economic integration, region-to-region partnerships, as well as digital transformation and sustainable growth.
The key highlights of the meeting include:
Businesses stand to benefit from an improved regional ecosystem for the flow of goods within ASEAN, when the upgraded ATIGA enters into force. Following the concluded negotiations, ASEAN member-states agreed to sign the upgraded ATIGA at the 47th ASEAN Summit in October 2025.
Member-states aim for a substantial conclusion to the ongoing negotiations on the ASEAN Digital Economy Framework Agreement (DEFA) by end-2025. The ASEAN DEFA signals ASEAN’s collective intent to harness the potential of the digital economy to shape the future of trade and digital cooperation.
There is good progress in the implementation of the Bandar Seri Begawan Roadmap (BSBR) on ASEAN Digital Transformation, which continues to drive ASEAN’s ambition for an inclusive digital economy. The completion of the Roadmap on Digital Trade Standards in ASEAN, and the Study on the New Generation ASEAN Single Window (ASW), sets out the next steps for both initiatives, which seek an interoperable regional digital trade ecosystem.
ASEAN advanced efforts to catalyse energy resilience and green finance, and accelerate its climate transition through clear milestones to realise the ASEAN Power Grid, and move ahead to implement ASEAN’s Strategy for Carbon Neutrality.
Member-states endorsed the Joint Declaration on Economic Cooperation between ASEAN and the Gulf Cooperation Council (GCC), reinforcing region-to-region collaboration in trade, digital economy, food security, and private-sector partnerships. Both sides also agreed to study and discuss a possible Free Trade Agreement. Further, ASEAN recognised the value of closer collaboration with the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) members through dialogue.
Member-states welcomed the inaugural meeting of the ASEAN Geoeconomic Task Force, aimed at anticipating global shifts and delivering policy foresight for long-term competitiveness and resilience.
“Singapore was pleased to chair and work with our ASEAN partners to successfully conclude the ATIGA Upgrade negotiations,” said DPM Gan. “This demonstrates ASEAN’s commitment to building a more seamless and resilient economic region, as well as to preserve a rules-based trading environment to better support businesses’ operations in the ASEAN region amid an uncertain global economic climate.”
“ASEAN’s focus on digitalisation, sustainability and expanding global cooperation ensures our region remains open, connected, and future-ready. As we deepen region-to-region cooperation and harness opportunities in digitalisation and sustainability, Singapore will continue to work with our ASEAN and global partners to secure long-term growth, competitiveness, and shared prosperity.”
© 2024 Institute of Singapore Chartered Accountants
