Kuala lumpur: Malaysia's micro, small and medium enterprises (MSMEs) are in a strong position to access ASEAN's 680-million-consumer market through the proposed Digital Economy Framework Agreement (DEFA), driven by their extensive digital adoption, Deputy Investment, Trade and Industry Minister Sim Tze Tzin stated.

According to BERNAMA News Agency, local MSMEs have made notable advancements in digitalisation, with QR code payments becoming widely accepted, even by small rural vendors. Sim highlighted that MSMEs' digital literacy positions them well to penetrate the vast ASEAN market, as evidenced by the widespread adoption of digital payments among even the smallest village businesses.

Sim addressed concerns from Senator Tiew Way Keng about potential burdens of cross-border digitalisation costs, including e-Invoicing implementation. He noted Malaysia's progress in e-Invoicing as part of aligning with global digital standards, while also acknowledging that the government has introduced threshold-based exemptions to ease the transition for businesses.

In response to Senator Datuk Ng Keng Heng's inquiry about DEFA's role in facilitating ASEAN cross-border trade, Sim referred to the agreement as a "digital highway" designed to eliminate bureaucratic hurdles and reduce non-tariff barriers (NTBs) among ASEAN nations. The harmonisation of digital regulatory frameworks is expected to enhance market efficiency and competitiveness, aiming to create a US$2 trillion regional digital economy by 2030.

Sim also addressed ASEAN's NTB monitoring mechanisms, affirming Malaysia's commitment to these tools, which have improved transparency and encouraged dialogue among ASEAN members. He pointed out that ASEAN has several mechanisms for handling NTBs, such as the ASEAN Trade Facilitation Joint Consultative Committee and the ASEAN Single Window (ASW), which aid in resolving trade issues and reducing delays and compliance costs for Malaysian products and services.