Singapore is calling for deeper cooperation between the Association of Southeast Asian Nations (ASEAN) and the European Union (EU) to build a shared digital economic framework, as the city-state renews its commitment to a multilateral and rules-based global trading system amid rising protectionism and technological fragmentation.

Speaking at the Singapore FinTech Festival on Wednesday, Deputy Prime Minister and Trade Minister Gan Kim Yong said that Singapore sees “a major breakthrough” potential in forging a digital economic agreement between the EU and ASEAN, two of the world’s most integrated regional blocs.

Building a Bridge Between Two Regional Giants

“If we are able to bring both the EU and ASEAN together to discuss a digital economic agreement, I think there will be a major breakthrough,” Gan said in a discussion with DBS CEO Tan Su Shan. While acknowledging the differences between the two regions — “EU will not be part of ASEAN, ASEAN will not be part of EU,” he noted — Gan emphasized that this should not prevent cooperation on shared digital priorities.

The envisioned agreement would begin as a digital collaboration framework, laying out “basic rules” before expanding into a more comprehensive digital trade pact. Analysts say such an initiative could harmonize standards across two major trade blocs, streamlining data governance, cybersecurity cooperation, and cross-border e-commerce — areas seen as vital to the next phase of global economic growth.

According to the Google e-Conomy SEA 2025 Report, Southeast Asia’s digital economy is projected to reach $300 billion in gross merchandise value (GMV) by 2025. Gan said this presents “a timely opportunity for ASEAN to strengthen its digital infrastructure and position itself as a bridge between advanced and emerging economies.”

Strategic Collaboration Beyond ASEAN

Gan also called for broader partnerships beyond Europe, urging ASEAN to engage with the Gulf Cooperation Council (GCC) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to expand digital trade and investment channels.

The CPTPP, which includes 11 members from both sides of the Pacific, was created after former U.S. President Donald Trump withdrew from its predecessor, the Trans-Pacific Partnership (TPP). “There are a lot of opportunities still, despite the headwinds and uncertainties we are seeing,” Gan said, highlighting that ASEAN’s ability to work flexibly with multiple partners could help the region navigate geopolitical and technological shifts.

Such cross-regional collaboration is expected to support Singapore’s strategy of economic diversification, positioning the city-state as a facilitator for digital and trade linkages at a time when the global trading environment faces increasing fragmentation.

Reforming the WTO for the Digital Era

Gan also addressed the need to modernize the World Trade Organization (WTO), which he described as “an important foundation for the rules-based trading system.” He argued that the WTO’s current architecture is outdated and needs structural reform to address the realities of digital trade, sustainability, and emerging technologies.

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

Analysts say Singapore’s call for WTO reform echoes growing concerns among smaller open economies that global trade governance has not kept pace with digitalization, automation, and artificial intelligence — all of which are reshaping global value chains.

A Multilateral Future in a Fragmented World

Despite global trade tensions and economic uncertainty, Singapore continues to position itself as a champion of open, rules-based commerce and a key intermediary between advanced economies and developing markets. Gan’s remarks signal that while the world faces geopolitical headwinds, Singapore sees digital cooperation as a powerful tool to sustain long-term economic growth.