Singapore sees further cooperation between ASEAN and EU on digital economy, deputy PM says

In the face of escalating trade tensions, Singapore is committed to advancing a multilateral and rules-based trading framework, emphasizing the potential for enhanced cooperation between ASEAN and the European Union. This message was delivered by Deputy Prime Minister Gan Kim Yong during his remarks at the Singapore Fintech Festival. During a discussion with DBS CEO Tan Su Shan, Gan expressed optimism that fostering dialogue on a digital economic agreement could lead to significant progress. "If we can unite the EU and ASEAN to explore a digital economic agreement, it could mark a major breakthrough," he stated. Gan acknowledged the unique positions of both regions, noting, "The EU will not be part of ASEAN, nor will ASEAN be part of the EU, but that doesn't prevent us from collaborating on common interests." He cautioned, however, that this process would require time, starting with foundational discussions on digital economic collaboration. The aim is to establish basic rules before determining subsequent steps. The digital economy in Southeast Asia is projected to exceed $300 billion by 2025, as reported by the 2025 Google e-Conomy SEA. Gan is hopeful for a digital economy agreement between ASEAN and the EU, as well as opportunities for Southeast Asia to engage with the Gulf Cooperation Council and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). He highlighted that despite the challenges, ample opportunities remain. Additionally, Gan indicated Singapore's intention to collaborate with international partners to rethink the World Trade Organization's role. He underscored the WTO's significance as a foundation for the rules-based trading system, while recognizing the need for transformation to adapt to contemporary challenges. "The current structure of the WTO may not be viable anymore, and it is crucial for us to unite in discussing the future and necessary changes," he concluded.