Singapore is driving talks for a groundbreaking digital economy agreement between ASEAN and the European Union, a move that could reshape $300 billion in Southeast Asian digital trade. Deputy Prime Minister Gan Kim Yong called the potential pact a "major breakthrough" during Wednesday's Singapore Fintech Festival, signaling ambitious plans despite rising global trade tensions.
Singapore just threw down the gauntlet for what could become the most significant digital trade agreement of the decade. Deputy Prime Minister Gan Kim Yong used Wednesday's Singapore Fintech Festival as his platform to push for an unprecedented digital economy agreement between ASEAN and the European Union, calling it a potential "major breakthrough" that could reshape how two economic powerhouses collaborate.
The timing isn't coincidental. Southeast Asia's digital economy has exploded to over $300 billion in gross merchandise value this year, according to the 2025 Google e-Conomy SEA report. That's real money flowing through fintech platforms, e-commerce sites, and digital services - exactly the kind of cross-border activity that needs clearer rules and frameworks.
"EU will not be part of ASEAN. ASEAN will not be part of EU, but it doesn't stop [the] EU and ASEAN [to] come together to discuss areas that we can work together," Gan told attendees during a fireside chat with DBS CEO Tan Su Shan. The comment reveals Singapore's pragmatic approach to building bridges even as other nations retreat into protectionism.
Gan, who also serves as Singapore's minister for trade and industry, acknowledged the complexity of what he's proposing. The two sides will start with digital economic collaboration discussions, focusing on "how we can set out basic rules, and then consider next steps." It's a measured approach that recognizes the political and regulatory hurdles ahead.
The push comes as Singapore doubles down on multilateral trade despite what Gan called "headwinds and uncertainties." The city-state is positioning itself as a bridge-builder at a time when trade wars and economic nationalism are fracturing global commerce. Beyond the EU talks, Singapore wants ASEAN to explore agreements with the Gulf Cooperation Council and the 11-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
That CPTPP reference carries particular weight. The partnership formed after President Trump pulled the US out of the original Trans-Pacific Partnership during his first term - a reminder that trade deals can survive even when major players step away. Now, with Trump returning to office, Singapore's multilateral strategy looks prescient.
The digital economy focus makes sense for both regions. European companies are hungry for access to Southeast Asia's booming digital markets, while ASEAN nations want clearer frameworks for data flows, digital payments, and cross-border e-commerce. A formal agreement could standardize everything from privacy regulations to digital payment systems.
