Micro, Small and Medium Enterprises (MSMEs) will be the acid test for the Digital Economy Framework Agreement (DEFA) and the Regional Comprehensive Economic Partnership (RCEP), two of the most important regional economic integration initiatives. A process that works for MSMEs is seen to likely provide a foundation for broader trade facilitation and DEFA interoperability. 

“What works for the smallest businesses can also work for the largest companies,” said ASEAN Business Advisory Council (ASEAN-BAC) chair Jose Ma. “Joey” Concepcion III. “If we can make cross-border trade simple, efficient, and secure enough for MSMEs, we create a foundation that can benefit businesses of every size,” he said.

Concepcion made this statement at the conclusion of the ASEAN MSME Trusted Trade Interoperability Forum, held last October 20, 2026, convened by Sec. Benhur Abalos of the Office of the Cabinet Secretary with the cooperation of the Department of Finance and the Bureau of Customs. Here, concerned government agencies and relevant private-sector stakeholders sought to identify how existing government systems, regulatory processes, and digital infrastructure can be streamlined and interconnected to facilitate end-to-end cross-border MSME transactions.

The Forum was organized in support of the Philippines’ priorities under the DEFA and the objective of enabling Philippine MSMEs to participate more effectively in cross-border trade within ASEAN. DEFA, set to be signed this November, will be the world’s first region-wide and binding agreement dedicated to digital economy governance, while RCEP is the world's largest free trade agreement, bringing together 15 Asia-Pacific economies aiming to reduce trade barriers and lower tariffs. 

Concepcion explained that discussions during the forum focused on MSMEs because they face the greatest barriers to cross-border trade, often lacking in-house compliance, customs, logistics, and technology capabilities. The goal, he said, is not to ease government requirements, but to make compliance more accessible through verified, reusable information and shared commercial services.

The forum pegs MSMEs as the starting point, rather than a sector that will require a separate system. The same basic seller, product, transaction, payment, logistics, and Customs information for MSMEs is also relevant to larger commercial transactions. A process that works for MSMEs is seen to be able to provide a foundation for broader trade facilitation and DEFA interoperability. 

In response, ASEAN-BAC is proposing the ASEAN MSME Trusted Trade and Shared Services Initiative. “We are not seeking to replace government systems or create another marketplace. We want to connect what already exists,” Concepcion said. The initiative seeks to build on existing government programs and infrastructure by promoting practical interoperability across the MSME trade process, including business and product verification, cross-border payments, customs and logistics, delivery, and consumer redress.

An initial output from the forum will be the Philippine MSME Cross-Border Trade Implementation Map showing what exists, what must change, which agency owns the action, and what evidence will be available by the 49th ASEAN and Related Summits on November 16 to 18, and ASEAN-BAC’s ASEAN Business and Investment Summit on November 14 and 15.