He said intra-trade within Asean currently stands at 20%, and DEFA is expected to boost intra-trade between member states, particularly for small and medium enterprises (SMEs).

“One way to increase Asean’s intra-trade is through increasing digital e-commerce and this would help SMEs, especially when we trade more between the Asean members,” he told reporters on the sidelines of the 8th Selangor Asean Business Conference (SABC) 2024.

He noted that the negotiations for DEFA, which would foster inclusive growth and development have started in Indonesia and have been progressing since then.

Touching on data centres, Tengku Zafrul said he plans to announce the energy and water efficiency standards for data centres by September 2024.

“In September, we will announce the electricity and water efficiency standards for all data centres operating in Malaysia,” he added.

Earlier in his opening speech, Tengku Zafrul said that digital transformation is central to the reindustrialisation efforts and has pushed Malaysia to invest in automation, artificial intelligence, and the Internet of Things to boost industrial capabilities nationwide, including in Selangor.

“Asean’s digital transformation will also depend on a vibrant semiconductor supply chain.

“Additionally, Malaysia’s National Semiconductor Strategy will allow us to greatly leverage Malaysia’s existing strengths to position the country, including Selangor, as the region’s semiconductor hub,” he added.