Pasig city: Stronger public-private collaboration for inclusive digitalization and scaled upskilling of workers across the region are needed as the Association of Southeast Asian Nations (ASEAN) prepares to conclude a landmark digital economy pact under the Philippine chairship this year. Two leading business groups in the United States and Southeast Asia -- US-ASEAN Business Council (USABC) and the ASEAN Business Advisory Council Philippines (ASEAN-BAC Philippines) -- made the recommendations during a high-level roundtable on ASEAN digital economy and workforce development in Pasig City on March 19.

According to Philippines News Agency, USABC's Philippines chief representative Herminio Bagro highlighted the rapid expansion of ASEAN's digital economy, which is outpacing the current policy environment. Bagro emphasized the opportunity to transform Digital Economy Framework Agreement (DEFA) commitments into interoperable rules, enhance digital infrastructure, and align workforce development with industry demand, enabling businesses to scale and ensuring that growth leads to quality jobs across the region.

The member states of ASEAN are negotiating the DEFA, which is anticipated to become the world's first region-wide digital economy arrangement, addressing data flows, cybersecurity, e-payments, paperless trading, as well as artificial intelligence and blockchain. In preparation for the pact, stakeholders have been encouraged to advocate for interoperable and trusted digital infrastructure, and to establish clear and predictable rules for cross-border data flows.

Technical Education and Skills Development Authority Secretary Kiko Benitez, who attended the roundtable, stated that the Philippines will leverage its chairship to guide the regional direction towards digital transformation. He stressed the importance of workforce development in determining the success of the digital economy.

In a recent interview, Foreign Affairs Secretary Ma. Theresa Lazaro mentioned that the DEFA is expected to be signed in November during the second ASEAN leaders' summit in Manila.

The USABC-ASEAN BAC Philippines' series will conclude with a final roundtable on Artificial Intelligence on April 14, with insights contributing to a Strategic Action Plan set to be launched ahead of the May ASEAN Leaders' Summit.