COVID-19 Update
Brunei
On November 13, 2020, the Ministry of Health reported 0 active cases, 3 deaths, 145 recovered individuals, and 148 total number of cases. As of September 28, the authorities have further eased local restrictions. This includes some sports events being able to resume with no spectators if they have a permit, including badminton, golf, sepak takraw, squash, table tennis, and tennis. Additionally, swimming pools can reopen with a user limit of 100 people. Additionally, playgrounds and arcades can operate at 80% capacity. Travel to Brunei is still restricted, and anyone seeking to enter or exit Brunei must apply for a permit from the Prime Minister’s Office. However, on October 30, it was announced that Japan will lift its entry ban on Brunei, along with a few other nations, for non-tourist arrivals and government officials. Travelers from Brunei will no longer need to observe a 14-day quarantine period, as long as they take similar preventative measures such as limiting overseas travel seven days within entering Japan and providing a negative test upon their return.
Cambodia
After several months of zero confirmed cases, Cambodia’s COVID-19 tally is increasing again and has a total of 301 confirmed cases. The increase in numbers is due to imported cases. Mainly after the Hungarian Foreign Minister tested positive during the visit to Cambodia on November 3, several Cambodian officials and citizens who came in contact with the minister also tested positive for COVID-19. In a statement issued by Prime Minister Hun Sen, he called for tightening preventive measures and requiring utmost caution from all citizens to prevent a second wave of transmission. The government advised strict quarantine measures and immediately closed all karaoke bars, nightclubs, cinemas, and museums across the country. Both public and private schools in Phnom Penh and Kandal provinces are to be closed for on-site learning until November 22. The government has also reordered the temporary closure of gyms and fitness centers across the country until further notice. However, Cambodian air traffic remains open with specific regulations, and people will not be barred from travel. The COVID-19 testing and treatment requirements for arrival passengers remain unchanged as of November 16.
Indonesia
With nearly 470,000 confirmed cases of COVID-19 as of November 15, Indonesia continues to be the worst-affected ASEAN country by the coronavirus pandemic. The nation registered an increase of 120,000 new infections between mid-October and mid-November – roughly on par with the 125,000 new cases that were tallied between mid-September and mid-October. Friday, November 13, saw the biggest daily jump in cases since the pandemic began, with 5,444 new infections being recorded. Indonesia’s death toll now stands at 15,211. The worst-impacted provinces are West, Central, and East Java, as well as the Special Capital Region of Jakarta. In a bit of bright news, however, Indonesia and Singapore recently established a reciprocal “green lane” travel corridor, allowing for a resumption of cross-border business and official travel between the two countries. Applications to use the corridor opened on October 26, and approved travelers will need to abide by strict health protocols, such as receiving COVID-19 tests both prior to and after arriving at their destinations. Furthermore, the Indonesian government has announced plans for a “mass vaccination campaign” slated to begin in December. The first stage of the campaign will use two Chinese-developed vaccines, which are set to be issued to health workers, police, and members of the armed forces. The campaign will commence once both vaccines receive approval from the Indonesian Food and Drug Agency.
Laos
Laos continued to report zero new COVID-19 cases through November. So far, 23 patients have recovered and been discharged, with one remaining patient of all confirmed cases currently being treated in Vientiane. Under an agreement with China, Chinese nationals from COVID-free provinces were permitted to enter Laos starting November 1. The fast-track service is confined to the Boten border gate between Luang Namtha province in Laos and Yunnan province in China and allows travelers who tested negative to quarantine for only 48 hours upon arrival in Laos. Despite the harsh economic impact of the pandemic, the Lao government is expecting GDP to grow by 3.3% this year, bolstered by growth in the agriculture and industry sectors. The government is also optimistic that growth will continue in 2021 due to the uninterrupted construction of large-scale development projects like the Laos-China railway.
Malaysia
On November 16, the Malaysian Health Ministry reported 1,103 new COVID-19 cases, bringing the national total to 48,520. There have been 35,606 cured and discharged individuals, representing 73.4% of all cases. However, the deal toll has reached 313. On November 7, Senior Defense Minister Datuk Seri Ismail Sabri Yaakob announced that all but three states in the Peninsular will be placed under the Conditional Movement Control Order (CMCO) from November 9 to December 6, 2020. States under the CMCO also have to adhere to the previous standard operating procedures (SOP). The three states excluded from the CMCO are Perlis, Pahang and Kelantan. While Perlis, Pahang and Kelantan do not fall under the CMCO, they are under the Recovery Movement Control Order (RMCO), which only allows inter-district travel within the three states. One of the major changes that has come along with these recent CMCOs is the work from home order that started on October 22. While there were numerous confusions initially as to what this order entailed, it is now clear that those individuals who work in the private and public sectors, at the management and supervisory levels must work from home. If these groups of employees need to be present at the office, only 10% of them are allowed to do so, starting from 10:00AM to 2:00PM for three days a week. There are specific industries, such as finance department employees, enforcement and other individuals whose jobs require being present at the workplace. Exemptions apply for those employees who are allowed to be in the office. However, if they live in a COIVD-19 red zone, they must take a COVID-19 swab test.
Myanmar
According to the Ministry of Health and Sports, Myanmar continues to report high numbers of confirmed COVID-19 cases, now exceeding 70,000 cases throughout the country. Myanmar has surpassed Singapore’s total cases of over 50,000 and now has the third-highest number of COVID-19 cases in the ASEAN region. The government is still suspending international commercial passenger flights, and this restriction has been further extended through November 30. The national curfew, ban on gatherings of 30 or more people and stay-at-home restrictions in major cities remain in place. However, even with safety restrictions, cases have spiked since the General Election on November 8 mostly due to post-election mass gatherings in Yangon and Mandalay. In fact, Mandalay has reported record-high numbers of COVID-19 cases. To ease the burden on government hospitals overloaded with patients, the government has allowed private hospitals and clinics to treat the virus. Additionally, Myanmar is planning to adopt a new community-based containment strategy on the idea of “Know Early, Report Early, Benefit early.” On the economic side, the economic impact of the second wave of COVID-19 has been more severe on Myanmar businesses than the first wave. According to the survey conducted by the World Bank, 83% of firms in Myanmar reported a negative impact on their businesses. The government’s new medium to long-term economic recovery plan, MERRP is currently still underway.
Philippines
On November 16, the Philippines’ Department of Health (DOH) reported 1,739 new COVID-19 cases, pushing Philippine’s national total to 409,574 cases. Among the regions, Davao City recorded the greatest number of new COVID-19 cases with 140, followed by Cavite with 117, Rizal with 89, Laguna with 87 and Batangas with 79. Although the Philippines has been hit by a series of super typhoons this past month, the aftereffect of these extreme weathers does not create a significant increase in the nation’s COVID-19 cases. On October 27, President Rodrigo Duterte has issued an extension of general community quarantine (GCQ) towards the National Capital Region, the provinces of Batangas and Lanao del Sur as well as the cities of Iloilo, Bacolod, Iligan and Tacloban. These areas will remain in GCQ until November 30. Since November 1, Filipino authorities have reopened the country’s doors for certain foreigners, particularly those with investor visas, visas issued by the Department of Justice as well as visas issued by the Aurora Pacific Economic Zone and Freeport Authority and the Subic Bay Metropolitan Authority. However, they still need to abide by the national COVID-19 protocols set by the Inter-Agency Task Force for the Management of Infectious Diseases (IATF) such as having valid and existing visas as well as a pre-booked quarantine facility.
Singapore
As of November 13, Singapore has discharged 58,008 cases with 78 remaining active cases. 50 patients are under hospitalization with stable conditions while the rest 28 patients are assigned to community facilities. No critical hospitalized patients are recorded so far. No deaths have been recorded since November with the number of deaths so far staying at a low of 28. In November, Singapore has seen several consecutive days with no new cases of locally transmitted COVID-19 infection. Recently, Singapore’s Ministry of Health appointed a 14-member Expert Committee on COVID-19 to make recommendations on Singapore’s COVID-19 vaccination strategy.The Expert Committee will monitor the dynamic of global vaccine development, assess the vaccines, and provide recommendations. In addition, Singapore will begin to receive visitors from Hong Kong starting with the inaugural Air Travel Bubble (ATB) flights on November 22. Under the ATB, visitors will not be required to observe a 14-day quarantine or Stay-Home Notice. Instead, visitors from the two cities will be only required to undergo COVID-19 tests. Moreover, to be eligible for travel under the Air Travel Bubble, visitors must travel on designated ATB flights. For now, the plan is to fly one flight per day with a quota of 200 travelers per flight. From December 7, 2020, the flight number will increase to two flights a day.
Thailand
Thailand has continued to record small numbers of imported cases daily, with a current case total of just over 3,800 cases (an increase of 200 cases from last month) and 60 deaths.In a bid to revive the battered tourism sector, the Association of Thai Travel Agents (ATTA) has submitted an open letter to the Ministry of Tourism and Sports to allow quarantine-free entry to Chinese tourists by January 2021. 2 million workers in the tourism industry are expected to lose their jobs if international arrivals are still restricted by the first quarter of 2021. The first batch of Chinese tourists under the current Special Tourist Visa (STV), which requires a 90-day minimum stay, arrived in the country on October 20. Health experts have also proposed shortening the mandatory quarantine from fourteen to ten days to bolster long-term efforts to reopen the country.
Vietnam
As of November 16, Vietnam has gone 75 consecutive days without a single community transmission case of COVID-19. The country is currently treating 178 active patients with none in critical health conditions. Riding on a successful public health response, Vietnam recorded a GDP growth of 2.12 percent in the first nine months of 2020, one of the few countries in the world to post positive growth during the pandemic. The Ministry of Planning and Investment is also preparing a second stimulus package that will focus on affected sectors including the aviation and tourism industry, in addition to a support package worth VND3.6 trillion (US$155 million) to vulnerable groups. On November 13, newly appointed Minister of Health Nguyen Thanh Long called for COVID-19 prevention and control measures to be tightened amid the swift and complicated evolution of the pandemic around the world. Vietnam pledged to contribute US$100,000 to the ASEAN COVID-19 Response Fund and US$5 million worth of medical supplies to the ASEAN Regional Reserve of Medical Supplies at the 37th ASEAN Summit in a collective effort to contain the COVID-19 pandemic and promote comprehensive recovery. |
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Country, Industry and Advocacy Updates |
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Key Developments
- U.S.-China Techno-Nationalism and the Impact on ASEAN
As he assumes the stewardship of U.S. foreign policy vis-à-vis China in January of 2021, President-elect Joe Biden will undoubtedly encounter a host of challenges that will have profound implications for ASEAN. Since 2018, the Trump administration has exacerbated an already tense strategic relationship through the U.S-China trade conflict. However, this represents one piece of a broader “national security” led process of U.S.-China decoupling that has occurred under the Trump administration, from international trade and investment to travel and academic exchange. In the ICT sector, decoupling often comes in the form of “techno-nationalism,” which ties technological innovation and enterprise directly to the nation – its security, prosperity and culture become intertwined with technological capacity. As such, techno-nationalist policies can range from government-directed industrial policies and anti-competitive mercantilist trade policies to outright prohibitions on business activities with an aim to block other perceived adversaries from accessing and potentially exploiting vulnerabilities in one’s national digital infrastructure, which may inadvertently detriment neutral third parties. To read more on this, click here.
- Philippines National Budget 2021 Approved by House, Mulled by Senate
On October 16, the House of Representatives approved the third and final reading of the P4.506-trillion (USD 93 billion) 2021 General Appropriations Bill (GAB). The submission of the GAB came earlier than the initial October 28 deadline, noting that the extra time shall give the Senate sufficient time to deliberate the national budget. The 2021 General Appropriations Bill includes:
- P5.5 billion (USD 113.6 million) for the procurement of COVID-19 vaccine once available for mass use
- P4 billion (USD 82.7 million) for the Department of Labor and Employment to give assistance to displaced workers
- P2 billion (USD 41.4 million) for pandemic assistance to afflicted families
- P2 billion (USD 41.4 million) for the Health Facilities Enhancement Program of the Department of Health (DOH)
- P2 billion (USD 41.4 million) for the Armed Forces of the Philippines' acquisition of C-130 airplanes
- P2 (USD 41.4 million) billion for the Department of the Interior and Local Government to mobilize the assets of the Philippine National Police
- P1.7 billion (35.1 million) for the Department of Education to address the internet needs of schools amid the distance learning scheme
- P400 million (USD 8.3 million) for the Philippine National Oil Company's development of renewable energy
- P300 million (USD 6.2 million) for the DOH's mental health programs
- P100 million (USD 2.1 million) for the modernization of the Energy Regulatory Commission
To read more, click here.
- Philippines Lifts Oil Exploration Ban in West Philippine Sea
On October 13, President Rodrigo Duterte approved the lifting of the moratorium on oil and gas exploration between the Philippines and China in the West Philippines Sea, a contested area in the South China Sea. With this decision, petroleum exploration in the West Philippines Sea would resume. According to Energy Secretary Alfonso Cusi, DOE has issued a ‘resume-to-work’ order notice to service contractors in the areas of service contract (SC) 59, 72 and 75; operated by The Philippines National Oil-Company Corp. Forum Ltd., and PXP Energy Corp respectively. Secretary Cusi further stated that the lifting of the ban will create employment and stimulate the economy through Foreign Direct Investments (FDI). The urge to lift the ban came from the acknowledgment that the energy source in Malampaya is expected to run out in 2030. Hence, various companies involved in the Malampaya project have been reported to request exploring other gas resources. In 2014, the administration of former President Benigno Aquino III suspended the exploration activities in the West Philippines Sea. However, in 2018, Duterte’s administration resumed the proposed cooperation through a memorandum on joint exploration, but to date, the service contracts have not been implemented.
- Malaysia's 2021 Budget Officially Tabled
On November 6, 2020, the Malaysian Parliament tabled the 2021 Budget. The 2021 Budget is centered on four key areas and is projected to be worth RM 330 billion, 10% higher than the RM 297 billion 2020 Budget. The first key area targets support for economically vulnerable groups during the COVID-19 pandemic. The second area will focus on supporting industries through specific incentives once recovery measures are implemented. The other two areas include empowering service delivery and developing sustainable living. The 2021 Budget will also focus on revitalizing the economy, protecting the lives and livelihood of Malaysian citizens, and building on the current economic recovery momentum from the recent RM 205 billion economic stimulus packages. The 2021 Budget will have a combination of business-friendly policies, constructive fiscal management, and effective transformation tools to help with building Malaysia’s resilience against future economic shocks. To read the Council’s analysis of the budget proposal, click here.
- Indonesia Pushes for Diversification of Local Commodities
The COVID-19 pandemic has acted as a catalyst for the Indonesian government to re-focus on the diversification of local food consumption. Despite the wide variety of locally produced foods, dietary diversification remains small. Campaign efforts to promote the consumption of local foods has proven to be essential in the midst of lockdowns, as locally grown produce can help supplement the nation’s food security. For example, the administration of Riau, Pekanbaru has made increased consumption of local foods a key element of its strategy to enhance food security. This strategy consists of the establishment of two special zones for food sovereignty and food sustainability, as well as a food barn. The food sovereignty and sustainability zones are created to incentivize local farmers to utilize private land to grow horticultural crops through stimulus packages. The food barn will function as a food storage facility as a way of stockpiling products to respond to natural disasters or emergencies. To read more, click here.
- Vietnam’s Agriculture Ministry to Develop National Program on Agricultural Processing
In Vietnam, fruit and vegetable exports are expected to increase after a big drop in the first three quarters of the year. With signs of recovery in sight, a program developed by the Ministry of Agriculture and Rural Development (MARD) to improve vegetable and fruit processing is set to be submitted to the Government for approval. The focus of the national program will be on farming zones and processing facilities. The objective of the program is to address how the agriculture processing and market development industry only contributes a small increase in the production of added-value products because it only processes 10% of the annual vegetable and fruit output. The program aims to improve agricultural output by encouraging the use of advanced processing and preservation technologies as well as technology transfer and research & development (R&D). Moreover, the program hopes to incentivize the adoption of high-tech agriculture and farming practices. This program aims to increase exports of fruits and vegetables by USD $10 billion in 2030, 30% of which come from processed items. It is expected that by 2030, businesses will able to optimize production towards high value-added and variant products.
- U.S. Department of Commerce Imposes Duties on Vietnamese Tires Over Undervalued Currency
After a four-month investigation, on October 29 the U.S. Department of Commerce imposed preliminary countervailing duties of 6.23 percent to 10.08 percent on imported light vehicle tires from Vietnam, applying for the first time a new rule to combat undervalued currencies. The new duties will apply to imported passenger vehicle and light truck tire imports of US$469.6 million annually, with a final injury determination due by April 30 next year, Commerce said in a statement. The duties come as USTR has also initiated the Section 301 Investigation into Vietnam’s policies related to currency valuation on the ground that the Treasury Department placed Vietnam on a “watch list” as a currency manipulator because of its trade surplus with the U.S and a perception that Vietnam’s central bank, the State Bank of Vietnam, has been actively buying foreign currency to consistently undervalue its currency. Vietnamese officials have repeatedly stated that Vietnam does not use an exchange rate policy to help its exports. Deputy Foreign Ministry Spokesperson responded that Vietnam would continue to coordinate with U.S. authorities to clarify and better understand the situation and protect the legitimate interests of Vietnamese businesses in accordance with World Trade Organization regulations. To read more, click here.
- Vietnam Aims for 6 Percent GDP Growth in 2021 and 3 Percent in 2020
On October 20 Vietnam’s Prime Minister delivered the Government’s socio-economic reports of 2020 and of 2016-20, as well as the plan for 2021 and tasks towards 2025 to the 10th Session of the National Assembly. He said the Government is committed to maintaining control of the COVID-19 pandemic as a basis for continued socio-economic growth and aims for a GDP growth rate of 6 percent in 2021. Following this statement, in an October 30 Government meeting, the Prime Minister said the economy had bottomed out in the second quarter and started to recover following a V-shaped trend in the third quarter. He asked the entire political system to speed up the economic recovery in order to gain a growth rate of 2.5-3 percent this year. Citing an IMF report, the Prime Minister said that Vietnam is the only country in ASEAN forecasted to have a positive growth at 1.6 percent in 2020 and would reach 6.7 percent by 2021. At that rate, Vietnam’s GDP would hit US$340.6 billion in 2020, making it the fourth-largest economy in Southeast Asia. Standard Charter Bank forecasts that Vietnam would post a growth rate of 3 percent this year and surge to 7.8 percent in 2021, while the World Bank expected Vietnam’s economy to grow 2.5-3 percent this year. To read more, click here.
- Singapore Launches the “Singapore Green Finance Centre”
On October 13, 2020, Singapore launched the Singapore Green Finance Centre (SGFC), its first institute dedicated to green finance research and talent development. This institute was launched by the Imperial College Business School and Lee Kong Chian School of Business at Singapore Management University. The Singapore Green Finance Centre will focus on researching climate science, financial economics and sustainable investing. The research and training within this centre will enable financial institutions, corporates, and policymakers to improve the management of environmental risks, develop financial solutions to promote environmental sustainability and to design policies for a sustainable future. SGFC will also work to bridge the gap between investors and policymakers on climate change and could help lead the world into a low carbon future. To learn more about SGFC, click here.
- International Telecommunication Union (ITU) Digital World 2020 Virtually Opens in Vietnam, 5G Pilot Commercial Run Permitted
The International Telecommunication Union (ITU), the United Nations specialized agency for information and communication technologies, in collaboration with the Vietnam Ministry of information and Communications (MIC), organized the ITU Virtual Digital World 2020 on October 20-22. The 3-day event served as a platform for high-level debate and knowledge-sharing resources on the role of digital technologies in the COVID-19 era. It also hosts a virtual exhibition showcasing national and private sector’s technology, innovative solution, and SMEs, open until November 30. Speaking at the opening event, Deputy Prime Minister Vu Duc Dam affirmed the importance of digitalization, especially in the context of the pandemic, and affirmed the Vietnam Government’s commitment to digital transformation by highlighting the National Digital Transformation Program (Vietnamese) as the work plan. Related to this commitment, MIC has permitted local telecoms Viettel and MobiFone to launch the pilot commercial running of the 5G network. Military-owned Viettel has been allowed to test 5G in Hanoi with a maximum of 140 base transceiver stations while state-owned MobiFone can do so in Ho Chi Minh City with 50 stations. Their licenses will be expired on June 30 next year. The commercial pilot will help the telecom carriers assess their technology and the market size before officially providing 5G commercial operations.
- Roundup of Indonesia Defense Minister Prabowo Subianto's Visit to the United States
On October 16, Indonesia’s Defense Minister, Prabowo Subianto, attended a series of bilateral security talks with top Pentagon officials in Washington, DC. According to a press release issued by the U.S. Department of Defense, Minister Prabowo and his American counterpart, Secretary Mark Esper, discussed a range of issues, among which included “regional security, bilateral defense priorities, and defense acquisitions.” Secretary Esper also underscored the significance of upholding human rights and the rule of law as the two countries expand their engagement, while Defense Minister Prabowo expressed his appreciation for the United States' support of Indonesia’s defense modernization efforts. Additionally, the two promised to boost military-to-military ties and activities, as well as to collaborate on enhancing regional maritime security. Also in attendance throughout the meetings were Indonesia’s Defense Attaché, First Marshal Age Wiraksono, and the newly arrived ambassador, Muhammad Lutfi. To read more about Minister Prabowo Subianto's visit, please click here.
- Singapore’s October Ministerial Statement on Fiscal Policy Overview
On October 5, 2020, Minister of Finance Heng Swee Keat announced Singapore’s fiscal policy plan for several months ahead during the October Ministerial Statement. The government affirmed its priority to continue investing decisively on Singapore's national priorities. In so doing, the government plans to make “difficult choices” including imposing higher taxes, and more effective spending to help lift the economy from further contraction. The government so far has been heavily implementing fiscal policies through tax and budget reallocation, redistributing under-utilized projects such as policlinics and MRT lines to avoid the need to draw down from the national reserve. However, the Singapore government signaled the possibility of using reserves whenever necessary. This pledge to help its citizens and business by using reserves can be “challenging” as the country’s economy is in its worst recession since its independence. Moreover, this year’s government revenue is predicted to be 16% lower than what was estimated in February. The Monetary Authority of Singapore estimated that the country’s economic growth in 2021 will remain modest due to cross-border restrictions and cautious external demand. For now, Deputy Minister Heng Swee Keat will focus on effectively using the S$8 billion (US$5.8 billion) stimulus budget that was announced back in August. To read more, click here.
- Myanmar Develops New Reinsurance Directive
Beginning in 2019, Myanmar has progressed in its market reform efforts by liberalizing the insurance industry, regulating the reinsurance market and allowing participation for foreign players, while giving flexibility in product development and enabling bancassurance. Two new directives were released by the government, which took effect commencing October 1, 2020. The first directive includes allowing private insurance companies to expand into Commercial Lines, which are general insurance products for corporations and businesses, which generally include large construction or national infrastructure projects. Even though the range of Commercial Lines is still limited due to the possibility of higher risks, this is still considered a step in the right direction. The new directive now ensures a portion of premiums to be retained and obtain higher profits and revenues in the country. Secondly, the other insurance directive permits private insurance companies to reinsure risk to overseas reinsurance companies. By having direct access to international reinsurance companies, domestic insurance companies are able to grow their revenue further without being constrained by risk management. This development is expected to incentivize international corporations to invest in Myanmar and source insurance protection domestically. Domestic companies will also have more competition in the global and regional markets.
Current Advocacy
- Call for Input: Philippines Public Service Act Amendment
The Council seeks member input to the proposed amendment to the Public Services Act authored by Senator Grace Poe pending with the Philippine Senate Committee on Public Services. The bill aims to distinguish and define “public utility” from public service (section 5) and proposes a national security review provision (section 19). This piece of legislation is largely viewed as the next best thing to a constitutional amendment in liberalizing investment sectors closed to foreigners and opening sectors to more foreign direct investment. The Senate is in the process of drafting a committee report on the bill. The Council views making a submission at this time is proactive and opportune to advocate member priorities in multiple sectors that need more liberalization and foreign investment. Members are therefore requested to submit comments to the Council by December 1. The Council hopes to make a submission to the Senate before Congress breaks for recess over the Christmas holiday. Please send your inputs or questions you may have to the Philippines team: Kim Yaeger kyaeger@usasean.org, Elizabeth Magsaysay-Crébassa em.crebassa@usasean.org, Lilibeth Almonte-Arbez lalmonte@usasean.org, Norika Pineda npineda@usasean.org.
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Alexander Feldman Speaks about the Implications of RCEP on Trade Relations in ASEAN on CNBC Asia's Squawk Box
On the eve of the signing of RCEP, the Council’s Chairman, President & CEO Alex Feldman appeared on CNBC Asia's Squawk Box to discuss the implications of the new agreement on trade relations in ASEAN.
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Country and Industry Updates |
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See our most recent Updates and Analysis for more detail:
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