SINGAPORE: Philippine President Ferdinand Marcos Jr is counting on Singapore to turn Asean’s landmark digital economy agreement into reality when it takes over the regional grouping’s chairmanship in 2027, with artificial intelligence (AI) a key priority.
Marcos said the Digital Economy Framework Agreement (DEFA), which Asean is expected to formally sign in November under Manila’s chairmanship, would lay the groundwork for closer digital integration across South-East Asia.
“With the DEFA in place, with the roadmap in place, I’m hoping Singapore will pick up the ball, and I know that they will pick up the ball and run with it,” he told The Straits Times in an exclusive interview on Thursday (Oct 8).
The aim, he said, was to make the agreement “more than just a roadmap” for Asean and its dealings with the rest of the world, particularly in AI.
The 69-year-old son of late strongman Ferdinand Marcos Sr is in Singapore on a five-day working visit from Oct 7 to 11, during which he is meeting political and business leaders to deepen economic cooperation between the two countries.
His remarks come as South-East Asia seeks to tap the economic potential of AI while navigating growing competition between the United States and China over advanced technologies and their supply chains.
Marcos said he had discussed with Prime Minister Lawrence Wong the importance of ensuring that regional initiatives continued beyond the one-year chairmanship of any single Asean member state.
He recalled a similar conversation with Malaysian Prime Minister Anwar Ibrahim before the Philippines assumed the chairmanship, during which Anwar encouraged him to pursue agreements that might take several years to implement.
The DEFA, one of the Philippines’ major priorities as Asean chair, seeks to establish common rules for digital trade, cross-border data flows, electronic payments and other aspects of the digital economy.
Marcos said Singapore, which he described as a regional leader in digitalisation and AI, was well-placed to lead the next stage of implementation.
“You and I both know that that is now the elephant in the room: it’s AI and how you deal with it, how you take advantage of it, how you safeguard against the dangers of it,” he said.
He also hopes Singapore will use its position as a regional financial and commercial hub to boost trade among Asean economies.
He noted that intra-Asean trade accounts for only about 24% of the grouping’s total trade, leaving considerable room for the region to strengthen its internal market.
Closer economic integration has become more important, he said, as the region grapples with Covid-19-related disruptions, wars in Ukraine and the Middle East, and shifts in US trade policy.
But as Asean embraces AI, Marcos acknowledged that the technology would inevitably reshape labour markets and put jobs at risk.
He said governments must invest in retraining workers and work closely with the private sector to ensure that training programmes meet industry needs.
The Philippines, with its large overseas workforce, is particularly vulnerable to shifts in the global job market.
Marcos said his administration has rolled out social support programmes to help workers transition to new jobs.
“While they are still transitioning, while they are still in training, while they are not yet working, the government is there to continue to support them,” he said.
Beyond Asean, Marcos hopes to deepen economic ties with Singapore in emerging industries, including AI, healthcare and digital infrastructure, and to establish partnerships that will outlast his presidency, which ends in 2028.
Singapore is the second-largest foreign investor in the Philippines, just behind South Korea. But Singapore and Philippines are now exploring opportunities in sectors where Singaporean companies have traditionally had less involvement, such as healthcare and the digital economy.
Marcos attributed the growing interest in part to his administration’s efforts to attract foreign businesses to the Philippines.
“We have worked very hard to make the Philippines a more investment-friendly destination,” he said.
He cited changes to foreign ownership restrictions in selected industries, longer land leases, tax incentives and efforts to improve the ease of doing business.
He said foreign investors had been reluctant to commit to long-term projects in the Philippines because they lacked assurances that they could remain in the country long enough to recover their investments.
Marcos had in 2025 signed a law allowing foreign investors to lease land in the Philippines for up to 99 years, replacing the old policy of an initial 50-year lease with a one-time renewal of up to 25 years.
In 2026, he signed an executive order allowing 100% foreign ownership in renewable energy projects and certain sectors like airports, railways, expressways and transport services.
Foreign ownership of telecommunications services is also permitted at up to 100% where reciprocity exists, while foreign equity in smaller retail enterprises is capped at 40%.
His administration has also encouraged public-private partnerships and joint ventures to attract investments in major infrastructure projects.
Marcos said the goal was to encourage foreign companies to make long-term commitments rather than seek quick profits.
Looking towards the end of his term in 2028, he said he hoped the basic elements of a business-friendly environment would be firmly in place by then.
The Philippine leader also backed the prospect of a potential Asean European Union free trade agreement, saying the Philippines-EU trade pact, signed just in September, could help pave the way for a broader region-to-region deal.
“The Philippines’ free trade agreement with the EU is going to be very, very important,” he said, adding that it could open up new markets for Filipino businesses.
He said such bilateral pacts would be increasingly important as countries sought to protect their economies from global uncertainty. - The Straits Times/ANN
