Economic ministers from the Association of Southeast Asian Nations (ASEAN) on Monday (Nov 12) signed an agreement to facilitate cross-border e-commerce transactions within the region.

ASEAN economic ministers at the signing ceremony of an e-commerce agreement in Singapore on Monday (Nov 12). (Photo: Jeremy Long)

The agreement, finalised after nine rounds of negotiations which started last June, is the grouping's first agreement on e-commerce.

Apart from aiming to facilitate cross-border e-commerce transactions, the newly signed pact will look to foster an environment of trust and confidence in the use of e-commerce, said Singapore Trade and Industry Minister Chan Chun Sing at the signing ceremony held on the sidelines of the 17^th ASEAN Economic Community (AEC) Council Meeting.

It also aims to deepen cooperation among ASEAN member states so as to spur the use of e-commerce as a way of driving regional economic growth.

Chan said the agreement will encourage paperless trading between businesses and governments, which can generate more rapid and efficient transactions in ASEAN.

Businesses can access and move data across borders more easily, subject to appropriate safeguards, he added.

On that, ASEAN has taken steps to promote better consumer and personal data protection through the use of online dispute resolution mechanisms to facilitate the resolution of e-commerce claims, said Chan.

Trade and Industry Minister Chan Chun Sing at the signing ceremony of an e-commerce agreement held on the sidelines of the 17^th ASEAN Economic Community (AEC) Council Meeting. (Photo: Jeremy Long)

Sustained economic growth and a young, digitally-savvy population are among factors driving ASEAN's Internet economy, which is expected to hit USD 200 billion by 2025. Of which, e-commerce is set to grow to USD 88 billion.

Chan said the region's potential has attracted many foreign players, such as Amazon and Alibaba.

On top of that, Southeast Asia has seen the rise of ASEAN-based unicorns, like Singapore-based Lazada and Indonesia's Tokopedia, that now have a sizable presence in the region's e-commerce market.

However, adoption remains in its infancy compared to China and the United States, said Mr Chan.

Trade and Industry Minister Chan Chun Sing delivering opening remarks at the Chan Chun Sing opening remarks at 17^th ASEAN Economic Community Council meeting. (Photo: Jeremy Long)

He referred to non-tariff barriers, including logistics and cross-border digital regulations, that remain as challenges for small- and medium-sized enterprises looking.

"This agreement will help bolster the trust and confidence of ASEAN consumers in e-commerce and drive adoption. In doing so, we will enable ASEAN businesses to grow domestically, regionally and globally," he said.

At a parallel business summit, Singapore's Prime Minister Lee Hsien Loong called for greater integration among Southeast Asian nations at a time when multilateralism is under threat from protectionist measures by Washington and Beijing.

The United States-China trade war is expected to be a major topic on the ASEAN Summit agenda with participation of member countries Malaysia, Indonesia, Brunei, Vietnam, Cambodia, Laos, Myanmar, Singapore, Thailand and the Philippines.

The summit will also have the presence of the U.S., China, Russia, Japan and South Korea.

U.S. President Donald Trump will be represented by Vice President Mike Pence who will also participate in the Asia-Pacific Economic Cooperation (APEC) forum in Papua New Guinea later./.

VNF/CNA