Kuala Lumpur:The ASEAN Digital Economy Framework Agreement (DEFA), anticipated for signing this November, is set to offer robust opportunities for Malaysian companies to expand their reach and export their products across the ASEAN market, which encompasses a population of 690 million.

According to BERNAMA News Agency, Deputy Investment, Trade and Industry Minister Sim Tze Tzin stated that the government is actively urging local businesses to export their services within ASEAN, targeting countries like the Philippines, Indonesia, Thailand, and Vietnam. This push is particularly focused on sectors such as banking and information technology.

Minister Sim highlighted that while Malaysian businesses are encouraged to expand, they must also brace for increased competition as other ASEAN countries introduce their products and services to the Malaysian market. He advised Malaysian companies in the services and manufacturing sectors to embrace these changes, elevate their value chain, explore new markets, and confidently export their offerings.

During the ASEAN International Fair for Trade in Services (AIFTIS) 2026, held alongside the China-Malaysia Intelligent Industry Expo (CMIIE), Sim mentioned that Malaysia’s trade in services is expected to continue its strong growth trajectory into 2026, driven by data centre-related activities. In 2025, Malaysia's total trade in services reached RM550.5 billion, with service exports growing by 15.6% to RM277.9 billion, creating a trade surplus of RM5.3 billion, the first since 2011.

Looking forward, Sim emphasized the importance of Malaysia developing deeper domestic expertise, nurturing specialized technical talent, and elevating its enterprises to the highest levels of complex, knowledge-based service activities. He stressed that Malaysia should not remain merely a consumer of advanced technologies but should become a hub where these technologies are evaluated, adapted, and commercialized by local talent for regional and global deployment.

Sim also advocated for deeper regional integration, reduction of regulatory barriers, harmonization of professional standards, and the creation of digital corridors to facilitate the free movement of talent across ASEAN and China. He concluded by urging that Malaysia's economy should focus on high-value, high-complexity services, moving beyond basic transactional processes to areas like engineering, data governance, artificial intelligence, intellectual property, and strategic consultancy.