SINGAPORE: Theg of a landmark regional digital economy agreement at the 49th Association of Southeast Asian Nations (ASEAN) Summit in November will allow for a roadmap for different countries to abide by, especially in sectors such as artificial intelligence (AI), said Philippine President Ferdinand Marcos Jr on Thursday (Oct 8).

He stressed that discussions surrounding important industries like AI could not be limited to “just one region or just one sector”.

“The (agreement) tries to put together a roadmap, a guide as to what we would like to achieve, how the different countries will play (their part) … (and) how then this fits in with the rest of the world,” Marcos said in a dialogue with Forbes Media chairman and editor-in-chief Steve Forbes.

The Philippines is this year’s ASEAN chair, and negotiations for the ASEAN Digital Economy Framework Agreement (DEFA) concluded in May.

DEFA was first announced in 2023 and, among other things, establishes common rules and frameworks that facilitate digital trade, supports trusted cross-border data flows, enhances digital payments and electronic transactions, and strengthens online consumer protection.

Philippine President Ferdinand Marcos Jr and Forbes Media chairman and editor-in-chief Steve Forbes during the Forbes Global CEO conference at Shangri-La on Oct 8, 2026.

Marcos said that when the Philippines took over the ASEAN chairmanship, he noticed the bloc “was not talking about AI enough”.

He said that he took the idea of the ASEAN Power Grid– an initiative to connect member countries' electricity networks – and floated the idea of a similar concept for AI.

“I'm happy to be able to report that we now have what is the DEFA … which we are going to formalise in November when we have the 49th summit,” Marcos said at a lunch dialogue on the second and last day of the Forbes Global CEO Conference.

ON TARIFFS Asked by Forbes about tariffs, Marcos said his country would have to “deal with whatever comes down the pike” – be it tariffs imposed by the United States, the European Union or other entities.

In July, the US imposed a fresh 12.5 percent tariff on Philippine exports after President Donald Trump approved penalties on trading partners that Washington said failed to adopt adequate safeguards against goods made with forced labour. Prior to that, Philippine exports to the US were subject to a 10 per cent baseline tariff from February until July. Exports to the US made up 15.9 per cent of the Philippines’ total exports in 2025, clocking the highest export value among its trading partners, according to the Philippine Statistics Authority.

Goods and services trade between the US and Philippines totalled US$40.9 billion in 2025, an increase of 10.9 per cent from 2024, according to the Office of the US Trade Representative.

The US’ goods trade deficit with the Philippines was US$8.5 billion in 2025, an increase of 73.6 per cent from 2024.

Its services trade deficit with the Philippines was US$3.6 billion in 2025, an 8.6 per cent decrease from 2024.

Cranes and stacks of containers at the Manila International Container Terminal at the Port of Manila in Manila, Philippines, Aug 11, 2025.

Trade has been the key element to successful economies, Marcos said, and the Philippines would do whatever it takes to encourage trade.

“Whatever adjustments that we have to make, whatever negotiations we have to undertake, whatever agreements we have to come to, whatever compromises we might have to make (when it comes to tariffs), let us make them, and in a way so that trade continues to be encouraged,” he said. The Philippine economy is expected to grow by 3.7 per cent this year, according to the World Bank.

ON THE SOUTH CHINA SEA Asked by Forbes about the South China Sea and progress on the code of conduct that ASEAN and China are working towards, Marcos said parties are making “good progress” on the code but did not provide further updates on the negotiations.

Since the 1990s, ASEAN and China have been trying to negotiate a framework to manage disputes in the South China Sea. China claims much of the waterway via its nine-dash line and has overlapping claims with the Philippines, Malaysia, Vietnam and Brunei.

The Philippines had said it aimed to advance the long-delayed code of conduct when it assumed the ASEAN chairmanship this year.

“We must maintain the freedom of navigation, not only for ourselves but also for the rest of the world. And so, the code of conduct takes on that very particular importance, and that is why we still continue to be optimistic,” said Marcos.

Philippine and Chinese armed forces have had confrontations in the disputed waters. On Oct 4, the Philippine Coast Guard said Chinese vessels obstructed a Philippine law enforcement operation against a foreign fishing vessel suspected of dynamite fishing near the Manila-held Thitu Island in the South China Sea.

At the dialogue, Marcos expressed his concern that a mistake by personnel on the ground may lead to something “that goes out of control”. “But we are determined to come to an agreement and to hopefully de-escalate the situation,” he said.

Marcos is on his fifth visit to Singapore from Oct 7 to 11 at the invitation of Singapore Prime Minister Lawrence Wong. Both leaders are expected to discuss bilateral cooperation and regional developments, and Marcos has also been invited to attend the Formula 1 Singapore Grand Prix from Oct 9 to 11.