Singapore is looking to deepen cooperation between the Association of Southeast Asian Nations (ASEAN) and the European Union (EU) to support a multilateral, rules-based trading system.

Deputy Prime Minister Gan Kim Yong said this during his speech at the Singapore Fintech Festival on Wednesday.

Despite rising global trade tensions, Gan stated that Singapore remains committed to promoting open trade and sees opportunities for both ASEAN and the EU to work together in the digital economy.

Gan Kim Yong Says Digital Economy Agreement Would Be a “Major Breakthrough”

Gan, who is also Singapore’s Minister for Trade and Industry, said that an ASEAN-EU digital economy agreement could represent significant progress.

“If we are able to bring both the EU and ASEAN together to discuss a digital economic agreement between the EU and ASEAN, I think there will be a major breakthrough,” he said in a fireside chat with DBS CEO Tan Su Shan.

He added that “the EU will not be part of ASEAN. ASEAN will not be part of the EU, but it doesn’t stop [the] EU and ASEAN [to] come together to discuss areas that we can work together.”

ASEAN and EU Begin Discussions on Digital Collaboration

Gan noted that such cooperation would take time. Both sides would first need to discuss how to establish the foundation for digital economic collaboration.

“The two sides will first discuss a digital economic collaboration, how we can set out basic rules, and then consider next steps,” he said.

According to the 2025 Google e-Conomy SEA report, Southeast Asia’s digital economy is valued at over $300 billion in gross merchandise value.

Gan also said he hopes ASEAN can reach a digital economy agreement with the EU, as well as with the Gulf Cooperation Council (GCC) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), to facilitate trade and investment.

“So I think there are a lot of opportunities still, despite the headwinds and the uncertainties we are seeing,” Gan said.

Singapore Supports Transformation of the World Trade Organization

Gan said Singapore would like to work with international partners to discuss how the World Trade Organization (WTO) can be transformed.

“WTO is still [an] important foundation for this rules-based trading system,” he said.

He added, “We will need to transform because the current design architecture of WTO may no longer be workable, and it’s important for us to come together to discuss what the way forward is, what are areas require transformation.”

PHOTO:BH FILE/BUSINESS TIMES

This article was created with AI assistance.