ASEAN Data Governance: Implications for the Digital Economy Framework Agreement

Keita Oikawa

No 2025-RPR-10 in Books from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: ASEAN is embarking on an accelerated path of digital transformation through the Digital Economy Framework Agreement (DEFA), a binding pact designed to establish an open, secure, interoperable, competitive, and inclusive regional digital economy. Achieving the right balance between the free flow of data and effective data protection is crucial for advancing regional digital integration. This study provides recommendations on the content of DEFA and practical measures to promote a coherent digital economy across ASEAN Member States (AMS), with a particular focus on enabling cross-border data flows while safeguarding data privacy and security. Key proposals include the creation of a comprehensive and regularly updated data regulation repository to enhance transparency and reduce compliance costs for businesses. Such a repository would aid in monitoring regulatory developments, identifying capacity-building needs, and driving reform. The study also recommends that DEFA establish minimum standards for personal data protection and address sensitive issues such as government access to both personal and non-personal data, with the aim of building trust in cross-border data exchanges. Moreover, DEFA should promote regulatory interoperability and discourage unnecessary data localisation, drawing on lessons from agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement. The proposed ASEAN Data Governance Hub – powered by operator-led research and AMS engagement – could serve as a pivotal mechanism for supporting digital integration. This model may also offer valuable insights for other regions seeking to advance data governance and foster trusted digital trade.

Date: 2025
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