ASEAN’s response to a fracturing world is to move towards more integration: DPM Gan

ASEAN is strengthening its economic ties as the world becomes increasingly divided, according to Deputy Prime Minister Gan Kim Yong. During a panel discussion at the Singapore Business Federation ASEAN Conference 2026, Gan highlighted ASEAN's unified response to the Covid-19 pandemic and the recent upgrade of its Trade in Goods Agreement, even as the US imposed tariffs.

The deputy prime minister stressed that ASEAN's ability to integrate and maintain its central role is built on trust, not economic similarity among its diverse member economies. The Digital Economy Framework Agreement (DEFA), set to take effect in 2027, aims to simplify digital trade, data flows, payments, and online transactions for businesses, particularly small and medium-sized enterprises.

However, the future of ASEAN will depend not only on government participation but also on active involvement from the business community. Looking ahead, AI will be the next major digital agenda for ASEAN, focusing on capability development, interoperability, standards, governance principles, and practical applications. Meanwhile, projects such as the Green Economy Agreement and the ASEAN Power Grid will require more time to reach consensus or make significant progress.

When Singapore assumes the ASEAN chairmanship in 2027, priorities will include maintaining internal integration while expanding engagement with the rest of the world. Meanwhile, tech companies like Amazon Web Services (AWS) have invested heavily in AI infrastructure across Southeast Asia, with plans to invest over $33 billion (S$42.3 billion) in cloud and AI infrastructure by 2039, supporting thousands of jobs annually and adding $64 billion to the region's collective GDP.