The value of the country’s digital economy is expected to grow with the signing of the Digital Economy Framework Agreement (DEFA), which would mark the world’s first region-wide digital economy pact, according to the Department of Trade and Industry (DTI).

Once signed, Trade Secretary Cristina Roque said the DEFA will help encourage the entry of new investments into the Philippines, while fostering innovation and improving productivity nationwide.

"For the Philippines, the DEFA is set to bring real benefits to everyday Filipinos,” she said. “It will help ensure that the digital transformation is inclusive—so that more Filipinos can take part in and benefit from a safer, more connected digital economy."

Roque said the entry into force of the agreement comes at an opportune time for the local digital economy, which continues to grow year-on-year.

The Philippine digital economy’s value expanded by 5.8 percent to ₱2.74 trillion in 2025 from ₱2.59 trillion in the previous year, according to the Philippine Statistics Authority (PSA).

PSA data showed that last year’s value was equivalent to 9.8 percent of the country’s gross domestic product. The digital economy also accounted for 21.2 percent of the country’s total employment size, with a total of 10.39 million workers.

Roque said the DEFA will enable businesses and consumers to participate more confidently in the digital economy, further stimulating economic growth.

“The DEFA is expected to empower local businesses, especially MSMEs (micro, small, and medium enterprises), by opening up more opportunities and supporting job creation across the country,” she added.

Negotiations for the DEFA were successfully concluded in Manila last week during the second senior economic officials’ meeting of the Association of Southeast Asian Nations (ASEAN).

The DTI said this is a major milestone for the Philippines’ chairship of ASEAN, as it has identified the signing of the DEFA as one of its priority economic deliverables.

The agreement is expected to be signed by the regional bloc’s member states in November, coinciding with the 49th ASEAN Summit in Manila.

Envisioned as a regional framework for ASEAN’s digital economy ecosystem, the DEFA is projected to double the value of the region’s digital economy to as much as $2 trillion by 2030.

The regional pact is expected to promote economic integration by improving cooperation in digital trade, cross-border e-commerce, electronic payments, digital identities, cybersecurity, data governance, and emerging technologies.

“By strengthening digital connectivity, enhancing trust in online transactions, and reducing barriers to cross-border digital trade, the ASEAN DEFA will help create a more seamless and enabling digital environment for business of all sizes,” an ASEAN statement read.