Foreword 4

Executive summary 5

Introduction 6

1 The state of ASEAN’s digital economy integration 7

1.1 ASEAN’s digital integration snapshot 8

1.2 The foundation layer 10

1.3 The transaction layer 11

1.4 The trust layer 12

1.5 The capability layer 12

2 Business adoption and digital participation 13

2.1 Awareness of key digital issues and tools 13

2.2 Adoption of digital tools in business operations 15

2.3 Participation in cross-border digital trade 17

2.4 Benefits perceived by firms 20

2.5 Awareness and preparedness for the ASEAN DEFA 21

3 Barriers and constraints 25

3.1 Barriers to digital participation 25

3.2 MSME gaps and barriers 27

3.3 Challenges faced by firms using digital technologies 29

4 Policy priorities for ASEAN DEFA implementation and deeper digital integration 31

4.1 From digital readiness to deeper digital participation 31

4.2 Policy Priority 1: Accelerate trusted, end-to-end digital trade 32

4.3 Policy Priority 2: Build trusted digital transaction ecosystems 33

4.4 Policy Priority 3: Strengthen trusted digital transaction infrastructure 34

4.5 Policy Priority 4: Make data governance practical and predictable for firms 35

4.6 Policy Priority 5: Support MSMEs in cross-border digital participation 36

Conclusion 37

Annex: Survey sampling guidelines 38

Contributors 43

Endnotes 44