Amb. Ted Osius
President & CEO
US-ASEAN Business Council
The past month has been a productive one, with a number of high-level engagements:
- Our Asia Pacific Presidents Mission visited Indonesia and Malaysia, where our delegation met with officials including:
- President Jokowi of Indonesia
- United States Trade Representative Michael Froman
- Malaysian International Trade and Industry Minister Mustapa Mohamed
- I traveled to Chicago May 6 to meet with President Aquino of the Philippines and his economic cabinet along with a group of Council Members.
- The Council met with Prime Minister Samdech Hun Sen during our annual Cambodia Business Mission.
- In Washington, D.C., we hosted:
- Myanmar Speaker of the Lower House Thura U Shwe Mann
- Thailand’s Deputy Minister of Foreign Affairs Don Pramudwinai
We are heading towards a busy summer as always, and next up is the Council’s annual Business Mission to the Customs Directors-General meeting. The Trans Pacific Partnership is moving forward quickly as is Trade Promotion Authority, which was a major reason why Ambassador Froman was in Malaysia during our Asia Pacific Presidents’ Meeting.
As always, you can check out the calendar at the Council website to get a sense of our many coming events in Southeast Asia and Washington, D.C.
Highlights
Advocacy
The Council has prepared a paper for the Myanmar President’s office on “Quick Wins” for Business in Myanmar. An official launch event will be held on May 19 at UMFCCI in Yangon. For more information, please contact Jay Martin at jmartin@usasean.org.
In April the Council joined two Trade Benefits America business coalition letters to members of the House Ways and Means and Senate Finance Committees urging support for passing the Trade Promotion Authority (TPA) bill.
The Government of Japan recently submitted a proposal, based on recommendations found in the Council’s paper Beyond AEC: SME Competitiveness, to include negotiations on a chapter on E-commerce in the 16-member country Regional Comprehensive Economic Partnership (RCEP) FTA.
Intelligence
The Export-Import Bank of the United States has requested the Council’s help in conducting an ASEAN Market Demand Assessment Survey, which will help the Bank with its annual Competitiveness report to Congress. By feeding into the report, we can help ensure the needs of Council members are reflected in ExIm’s priorities and budgets.
Our Energy and Philippines teams cover the resignation of the energy secretary of the Philippines.
President Obama nominated Glyn Davies as Ambassador to Thailand. Davies is a Senior Adviser in the State Department’s Bureau of East Asian and Pacific Affairs, and he served as Special Representative for North Korea Policy from 2012 to 2014. Ambassador Designate Davies awaits confirmation from the U.S. Senate. His bio can be found here.
The Defense & Security Committee has published a guidebook which complements the ongoing activities of the Committee. To access the 2015 Defense & Security Guidebook Q2, please click here. Members who are either new to ASEAN or the defense and security industry may gain an overview of the markets in advance of engagements organized by the Committee.
Relationship Building
The Council has confirmed June 22-24 for our Myanmar Business Mission to Naypyitaw and Yangon. Full details will be released shortly. Please contact Anthony Nelson at anelson@usasean.org for more information.
The US-ASEAN Business Alliance for Competitive SMEs is a powerful way to support the growth of small businesses in ASEAN. The Business Alliance was created at the request of the ASEAN Economic Ministers, and the AEM receives regular updates on its progress. Please contact Mario Masaya at mmasaya@usasean.org for more information.
Promotion
The Council has revamped the press and media section of our website to make it easier for you to see more press releases and mentions of the Council in the media. Check out the press and media section here.
Membership
We are pleased to welcome Newmont Mining Corporation and Albright-Stonebridge Group, bringing total Council Membership to 151 companies.
Newmont Mining Corporation is primarily a gold producer. The company is also involved in exploration of minerals, production and processing and refining of gold, silver and copper. Newmont operates in the United States, Australia, Peru, Indonesia, Ghana, New Zealand and Mexico. Newmont is headquartered in Denver, Colorado, and employed 13,700 people as of December 31, 2014.
Albright-Stonebridge Group operates as a business consulting and strategy firm. Albright Stonebridge Group was founded in 1997 and is based in Washington, D.C., with additional offices in Shanghai and Beijing, China.
APEC
The second Senior Officials Meeting (SOM) and related meetings will be held in Boracay, Philippines from May 10-21. To see full list of events please click here.
View the Council’s latest APEC updates
ASEAN
There are a number of future opportunities for engagement with the US-Business Alliance for Competitive SMEs. Please contact Mario Masaya at mmasaya@usasean.org to discuss opportunities.
The Council is supporting SME Corp’s efforts to create a U.S. Pavilion at the ASEAN SME Showcase May 26-28 in Kuala Lumpur. Members who are interested in participating should contact Mario Masaya at mmasaya@usasean.org.
View the Council’s latest ASEAN updates
Customs
The Customs Committee is preparing for its annual mission to the ASEAN Directors-General of Customs Meeting, set for May 20-22 in Brunei. Our schedule will consist of two days of bilateral meetings and a formal consultation. During the formal consultation, members will have the opportunity to discuss issues related to the implementation of the ASEAN Economic Community (including rules of origin, the single window, and the customs transit system) and make recommendations for the post-2015 Agenda in trade facilitation, anti-smuggling and customs modernization. The bilateral meetings will cover country-level customs and trade facilitation issues.
Philippine Customs Commissioner and noted reformer John Philip “Sunny” Sevilla resigned over mounting political pressure on his agency on April 21. Following Mr. Sevilla’s resignation, President Aquino appointed Alberto Lina to the post effective April 24. Mr. Lina is a successful business leader and political insider with strong ties to the government. He founded the Lina Group and is heavily involved in the logistics industry with a firm grasp of information technology issues. Observers greeted Mr. Lina’s appointment with skepticism given the politicized nature of his appointment, but he has promised to continue the reforms begun by his predecessor.
Thailand’s Ministry of Finance (MOF) has begun circulating a draft to replace the country’s Customs Act. While details remain unclear, the draft is said to be an improvement to Thailand’s customs regime. The new Customs Act will be important to conforming to the needs of the ASEAN Economic Community and should include additional measures on transfers between member states. Most notably, the new act would see the MOF significantly scale back its anti-bribery reward program.
View the Council’s latest Customs updates
Defense & Security
Our Defense team recently tracked key emerging threats in the region:
- Rise of Piracy in Southeast Asia
- Islamic Militancy in Southeast Asia
- ASEAN’s Response to Chinese actions in the South China Sea
View the Council’s latest Defense & Security updates
Energy
On May 7, President Jokowi approved the selection of five top level (Echelon 1) positions in the Ministry of Energy and Mineral Resources. The positions include the Director General (DG) of oil and gas, the DG for mineral and coal, the DG for electricity, the DG of new-renewable and conservation of energy, and the Secretary-General at the National Energy Council. The new DG of oil and gas is I Gusti Nyoman Wiratmaja Puja (otherwise known as IGN Wiratmaja). Wiratmaja formerly served as expert staff for strategic planning and had also been serving as acting DG for Oil and Gas for several months after the previous DG, Edy Hermantoro, was dismissed. The new DG for Mining and Coal is Bambang Gatot Ariyono, who formerly served as special staff in finance for the Ministry. The DG for new-renewable and conservation of energy (Rida Mulyana) and the DG for Electricity (Jarman) stayed the same. The new Secretary-General of the National Energy Council is Satry Nugraha.
The open and protracted recruitment process for these new DGs began in December 2014. The selection of these five important positions is significant and part of ongoing efforts to reform the energy sector in Indonesia and root out corruption. Former Energy and Mineral Resources Minister Jero Wacik is currently on trial for corruption as is the former head of Commission VII Sutan Bhatoegana. In April 2014, the former head of SKKMigas, Rudi Rubiandini, was sentenced to seven years in prison and ordered to pay a fine for his involvement in corruption.
- May 14: Roundtable with Jonathan Goh, Singapore Energy Market Authority. Please join the Council for a roundtable discussion with Singapore Energy Market Authority Director for External Relations Jonathan Goh.
- May 18: Roundtable with Indonesian Minister for Energy and Mineral Resources, H.E. Sudirman Said. Please join us for an off-the-record roundtable discussion with Minister Sudirman. Participants will have the opportunity to exchange perspectives with the Minister on key recent developments in the Indonesian power, oil and gas, and mining sectors. Space is limited - RSVP early. Please email Alex Stuart at astuart@usasean.org.
- June 4: Infrastructure Industry Mission to Indonesia. For more information, please contact the Council’s Infrastructure Manager, Sunita Kapoor, at skapoor@usasean.org.
- June 15: The U.S. Department of State and USAID will lead a Renewable and Clean Energy Business Delegation to the Asia Clean Energy Forum 2015. The event will include an opening plenary on June 15, to be followed by a full agenda of panel discussions on June 16. For more information please click here.
View the Council’s latest Energy updates
Financial Services
On April 30 the Financial Services Committee held its second quarterly conference call of 2015. Members discussed key outcomes from the ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM), as well as opportunities for continued engagement.
Following the 26th Annual ASEAN Summit in Malaysia on April 29, Southeast Asian leaders issued a joint statement reiterating their commitment to economic integration. A substantial portion of the statement focused on ASEAN’s plans for financial sector reform. Delegates noted considerable progress in the realm of capital market integration through a number of initiatives, such as the adoption of the Principles for Product Transparency and Disclosure on Cross-Border Trade Settlement. They also applauded the region’s finance ministers for unanimously approving a protocol to implement ASEAN’s Sixth Package of Financial Services Liberalization. The sixth package, which was formulated under the ASEAN Framework Agreement on Services, contains the enabling provisions for the regional bloc’s reciprocal banking plan, which at present does not apply to global banks. With respect to macroeconomic trends, the delegates acknowledged the importance of prudently enhanced integration to mitigate the negative externalities of global financial turbulence. The delegates endorsed – and indeed, borrowed heavily from the language of – the joint ministerial declaration issued by policymakers at the ASEAN Finance Ministers' and Central Bank Governors' Meeting on March 21. While these are encouraging signs, significant challenges remain to successful financial integration. It is left to be seen how ASEAN will adapt to a rapidly changing global financial landscape without undermining its ability to implement reform and integration initiatives. More fundamentally, ASEAN needs to ensure that the quality of integration contributes to inclusive growth throughout the region both between and within countries. The Chairman’s Statement of the 26th Annual ASEAN Summit can be found here. The Joint Statement of the First AFMGM can be accessed here.
View the Council’s latest Financial Services updates
Food & Agriculture
On April 16, a prohibition on convenience stores selling beer in Indonesia went into effect. The decree prevents convenience stores from selling drinks with an alcohol content higher than one percent. The regulation does not pertain to sales of alcohol in supermarkets and restaurants, and foreigners on the tourist islands of Bali and Lombok will be exempt from the restrictions. The Ministry of Trade reportedly initiated the ban to curb underage drinking in residential neighborhoods and school areas. The regulation may significantly curtail consumer sales as minimarkets and small retailers account for about 60 percent of the beer market. According to ISWR, an alcohol research group, consumer demand in Indonesia’s beer, wine and spirits sector is expected to grow 5-6 percent annually. Retailers argue that the ban will exacerbate black market distribution of bootlegged alcohol and deter additional foreign investment. Some analysts say the ban is a reflection of conservative Islamic groups’ growing influence over politics. Two Islamic parties recently proposed a bill to criminalize the distribution and consumption of alcohol. It is unlikely the bill will get through Parliament. On the sidelines of the World Economic Forum-Asia in April, Coordinating Minister for the Economy Sofyan Djalil said, “If we want to attract tourists to Indonesia, the availability of alcoholic beverages is a must. I believe the Parliament will agree with the government that there’s no need to ban alcohol totally.” Members of the Indonesian Brewers Association, which represents four official beer producers, are concerned about the minimarket ban and expressed their intent to work with the government to discuss alternative measures to address underage drinking.
View the Council’s latest Food & Agriculture updates
Health & Life Sciences
The Indonesian government has started distributing health cards to low-income Indonesians. The cards, known by their Indonesian acronym KIS (Kartu Indonesia Sehat), are meant to provide the nation’s poor and near-poor with access to healthcare. The government plans to distribute KIS to 88.2 million people over the course of the year, possibly extending it to more than 100 million. The distribution of KIS was a campaign promise of President Jokowi and was initially expected to be delivered in late 2014. However, budget debates that were not resolved until January 2015 pushed the schedule back. Cardholders are entitled to treatment at public primary care clinics (puskesmas) and in third-class hospitals. Benefits provided under KIS will be managed by the Social Security Agency (BPJS) and funded by insurance premiums of IDR 19,225 (US$1.60) per person, paid by the Ministry of Health.
The Council’s Health & Life Sciences (HLS) Committee has carried out a number advocacy and relationship-building activities over the past quarter. In Vietnam, the Council is drafting an MOU formalizing partnership between the Council and the Ministry of Health to address healthcare priorities outlined by Minister of Health Nguyen Thi Kim Tien during our Vietnam Business Mission in March. In Indonesia, the Council is working with the U.S. Embassy to set up a commercial health working group comprising representatives from the Ministry of Health, the National Food and Drug Control Agency (BPOM), AmCham Indonesia, the Council, the U.S. Embassy, and U.S. companies. This initiative has buy-in at the highest level: Minister of Health Nila Moeloek agreed during a recent meeting with U.S. Ambassador Robert Blake to the formation of this group, and has assigned Director General of Health Service Prof. Dr. Akmal Taher to represent the ministry. The Council is now registering executives for our inaugural HLS Industry Mission to the Philippines on July 8. For questions on any of the above activities, please contact Shay Wester or Fatimah Alsagoff in Singapore or Carr Slayton and Kim Yaeger in Washington, D.C.
View the Council’s latest Health & Life Sciences updates
ICT
On May 13 the Council will engage with the Vietnam government as a follow up to the Vietnam Business Mission and Forum on “Policies and Regulations Governing the Management of Data in Vietnam,” both held in March. Seven companies will be attending meetings to engage government officials on the importance of cross-border data flows and other policies affecting the use of technology. Meetings requested include the Ministry of Information and Communication as well as Industry and Trade and the National Assembly. Recent policies that will be addressed are the new draft Cross Border Circular and draft Regulation on Used Technology Equipment. If you would like to submit input for comments on either regulation or have questions regarding the follow-up meetings, please contact Kim Yaeger at kyaeger@usasean.org.
Indonesia’s Ministry of Communication and Informatics (MCIT) has released a draft regulation on local content for LTE devices. The draft regulation requires 30 percent local content for base stations and 20 percent for subscriber stations, which will be increased to 40 percent for base stations and 30 percent for subscriber stations within two years. Public comments will be accepted until May 18, 2015. The Council invites comments from members for a joint submission with AmCham Indonesia. We request members submit comments by May 14 to Shay Wester at swester@usasean.org and Ian Saccomanno at isaccomanno@usasean.org. The press release can be accessed here. The following two draft attachments related to technical requirements on Base Station Long-Term Evolution (BS LTE) are also relevant: Attachment 1 and Attachment 2 (both in Bahasa).
View the Council’s latest ICT updates
Infrastructure
Vietnam’s success in capturing investment on a number of projects from neighboring East Asia is fueling its ambition for world-class transportation infrastructure. South Korea is loaning the country US $100 million to upgrade its 60 highway bridges. The government in Ho Chi Minh City believes the project can be finished within four years with a remaining US $30 million to be financed domestically. Similarly, Japan is contributing US $2.2 billion in assistance loans to develop Ho Chi Minh City’s metro system with the remaining US $290 million paid for by the city’s administration. The Ben Thanh-Suoi Tien metro line began in August 2012 and is slated for completion by 2020. Japanese companies are further interested in Vietnam’s plan to develop an underground shopping area. The 60-meter-wide and 700-meter-long shopping area is estimated at nearly US $326 million. Prime Minister Nguyen Tan Dung wants to start construction this year with completion expected by 2023. As of now, one Japanese investor has suggested funding 30 percent of the project.
One of the Infrastructure Committee’s key advocacy message is on the value of using technology in the design and construction of hard infrastructure projects. By using technological software and processes, a government infrastructure owner can save significant costs and time in completing a project, as well as increase the visibility and transparency in the project for all stakeholders. In alignment with this message and following up from the Council’s Infrastructure Industry Mission to the Philippines in October 2014, the committee will be organizing an “Infrastructure Technology Seminar in Philippines” on July 1. Please convey your interest in participation and provide topics to Sunita Kapoor at skapoor@usasean.org.
View the Council’s latest Infrastructure updates
Manufacturing
Prime Minister Nguyen Tan Dung expressed his hope for a swift conclusion to negotiations of the Trans Pacific Partnership (TPP) following a meeting with USTR Michael Froman in Vietnam in April. More than any other prospective signatory, Vietnam, and particularly its manufacturing sector, stands to reap enormous economic benefits from accession to the TPP. The United States is already the primary destination for Vietnamese goods, which will become even more competitive in a zero-tariff or minimized-tariff scenario. Adoption of the TPP’s structural requirements – removal of foreign equity restrictions, reduced state participation in the economy and greater transparency – will also serve to increase Vietnam’s economic competitiveness as East Asian neighbors compete to secure critical components of manufacturing supply chains. Equally as important, the TPP promises to reduce the country’s economic dependence on China. Vietnam faces significant challenges in implementing an agreement that requires strict adherence to rules concerning labor and rule-of-origin restrictions. It also faces obstacles in maintaining a business environment that permits flexibility and facilitates long-term investment. Regardless, Vietnam’s participation in the TPP is well-founded. Along with several other experts, the Council’s Vietnam Representative, Vu Tu Thanh, was recently interviewed by local media regarding Vietnam's projected benefits under a completed TPP. His comments can be read here.
Cambodia
The Council recently conducted its annual business mission to Cambodia. Please click here to read the press release.
View the Council’s latest Cambodia updates
Indonesia
On May 5-6, the US-ASEAN Business Council brought a delegation of Asia-Pacific Presidents to Jakarta for meetings with President Joko Widodo, senior cabinet ministers and Indonesian business leaders. The delegation also met with Deputy Secretary General Lim of the ASEAN Secretariat. The mission focused on long-term U.S. business investment in Indonesia and support for increased ASEAN economic integration. The companies in the delegation have substantial investments in Indonesia which support millions of jobs, and are collectively planning or considering more than US $1 billion in new investment in the next 3-5 years. To read the press release please click here.
Indonesia’s Ministry of Communication and Informatics (MCIT) has released a draft regulation on local content for LTE devices. The draft regulation requires 30 percent local content for base stations and 20 percent for subscriber stations, which will be increased to 40 percent for base stations and 30 percent for subscriber stations within two years. Public comments will be accepted until May 18, 2015. The Council invites comments from members for a joint submission with AmCham Indonesia. We request members submit comments by May 14 to Shay Wester at swester@usasean.org and Ian Saccomanno at isaccomanno@usasean.org. The press release can be accessed here. The following two draft attachments related to technical requirements on Base Station Long-Term Evolution (BS LTE) are also relevant: Attachment 1 and Attachment 2 (both in Bahasa).
May 18: Roundtable with Indonesian Minister for Energy and Mineral Resources, H.E. Sudirman Said. Please join us for an off-the-record roundtable discussion with Minister Sudirman. Participants will have the opportunity to exchange perspectives with the Minister on key recent developments in the Indonesian power, oil and gas, and mining sectors. Space is limited - RSVP early. Please email Alex Stuart at astuart@usasean.org.
June 4: Infrastructure Industry Mission to Indonesia. For more information, please contact the Council’s Infrastructure Manager, Sunita Kapoor at skapoor@usasean.org.
View the Council’s latest Indonesia updates
Malaysia
On May 6-7, the US-ASEAN Business Council brought a delegation of Asia-Pacific Presidents to Kuala Lumpur, where they met with key Ministries including Trade, Health, Youth, and Finance as well as meeting with the Minister of the Economic Planning Unit. Delegates engaged the Malaysian government on key issues including the ASEAN Economic Community, Trans Pacific Partnership and data management. Delegates also had a chance to discuss investment opportunities and explore ways to drive further growth in the country. In addition to discussions with the Malaysian Government, delegates had an opportunity to engage USTR Michael Froman, and U.S. Ambassador to Malaysia Joseph Yun.
The Asia Pacific Presidents’ Mission and the Council’s promotion of the ASEAN Economic Community came on the heels of Annual ASEAN Summit, which was held on April 27. During the summit, which was hosted by Malaysia, leaders discussed various issues facing the region including the threat of climate change and natural disasters as well as China’s actions in the South China Sea. In response to the recent Chinese activities in the Spratly Islands, which also are claimed by Brunei, Malaysia, the Philippines and Vietnam, ASEAN leaders called for the speedy conclusion of a Code of Conduct with China to better manage the situation. The leaders also adopted a resolution to combat the rising threat to extremism in the region. The Langkawi Declaration on the Global Movement of Moderates intends to reduce extremism in the region through the promotion of moderation and tolerance. Prime Minister Najib has been a champion of Islamic moderation and tolerance and has expressed his commitment to addressing Islamic extremism through Malaysia’s seat on the U.N. Security Council.
View the Council’s latest Malaysia updates
Myanmar
On April 23, the U.S. Treasury Department announced the removal of U Win Aung, the President of the Union of Myanmar Federated Chambers of Commerce International (UMFCCI) and his Dagon Group of companies from the Specially Designated Nationals (SDN) list maintained by Treasury's Office of Foreign Assets Control (OFAC). U Win Aung is the first major business figure to be removed from the list since the suspension of sanctions. As the President of UMFCCI, he has been a key interlocutor for foreign companies, and the Council has sought and been granted licenses from OFAC to engage with him on multiple occasions. When the U.S. government indicated it would offer those SDN-listed individuals who made clear changes to their behavior an opportunity to be de-listed, many speculated U Win Aung would be a possible early candidate. Although the wait has been longer than anticipated by some, the de-listing is significant as it represents the first move towards a fuller rehabilitation and engagement with key members of Myanmar society. Listed individuals often directly or indirectly control large portions of the Myanmar market across almost all industry sectors, thus making engagement with them difficult to avoid for those planning major investments in the country. Also notable is the fact that media reaction to the de-listing has thus far been relatively muted. The Council will continue to watch for any further developments.
The Council has scheduled its annual Myanmar Business Mission for June 22-24. Please contact Anthony Nelson at anelson@usasean.org for more information.
The Council has prepared a paper for the Myanmar President’s office on “Quick Wins” for Business in Myanmar. An official launch event will be held on May 19 at UMFCCI in Yangon. For more information, please contact Jay Martin at jmartin@usasean.org.
View the Council’s latest Myanmar updates
Philippines
President Aquino made an official visit to Canada in early May. The trip also included a working day stop in Chicago, an agenda which included meetings with the Filipino community and local government leaders. President Aquino also held a roundtable meeting with members of the Council, NCAPEC and the U.S Chamber of Commerce. He was accompanied by Cabinet Secretary Jose Rene Almendras, Finance Secretary Cesar Purisima, Labor Secretary Rosalinda Baldoz, Trade Secretary Gregory Domingo, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan, Presidential Management Staff Secretary Julia Abad, Communications Secretary Herminio Coloma, Jr., and Foreign Affairs Undersecretary Laura del Rosario.
President Aquino will begin preparing for his final State of the Nation Address in July. Investors seeking to capitalize on the reform momentum created by the administration continue to engage Cabinet members in a bid to hone the reform focus of the administration as it enters the homestretch. Key pieces of legislation that are hoped to move before Aquino leaves office include: cutting Foreign Investment Negative List (FINL) restrictions; establishment of a Department of Information and Communication Technology to better address Web connectivity and data protection issues; adoption of a comprehensive energy road map; and approval of the proposed Customs Modernization and Tariff Act to upgrade practices and better curb smuggling.
Philippine and U.S. forces conducted the “Balikatan” war games as part of a new U.S. military initiative called Pacific Pathways. Pacific Pathways consists of 29 exercises across 12 Asia Pacific countries. “Balikatan” was the largest Philippine-U.S. combined exercises in 15 years and involves more than 11,000 American and Filipino troops, who rehearse bombing runs and live fire drills across three islands. The exercises come at a time of heightened tension between the Philippines and China over territorial disputes in the South China Sea.
Sadness and disappointment gripped Filipinos after Manny Pacquiao's defeat in his much-anticipated fight against American Floyd Mayweather. Although dismayed by the results of the fight, Filipinos stand by their fighter, who is also a congressman with potential presidential aspirations, and widely consider him a role model.
View the Council’s latest Philippines updates
Singapore
On April 14, the Singaporean Ministry of Trade and Industry revealed a first quarter GDP growth rate of 2.1 percent. Singapore’s manufacturing contracted by 3.4 percent on a year-on-year basis. Meanwhile, construction expanded by 3.3 percent and services by 3.1 percent on a year-on-year basis. The positive data is due in part to the export-reliant country’s price stability and small increases in European demand. In 2014, Singapore had a GDP growth rate of 2.4 percent. With collapsing oil prices posing deflationary risks and a global decline in imports, many feared that Singapore’s economy would suffer. An earlier Reuters poll of 17 economists forecast a smaller first quarter growth rate of 1.8 percent. The Monetary Authority of Singapore (MAS) took bold actions in January, loosening its monetary policy to thwart deflation. At the time, the unexpected action stoked concerns among investors. However, Daniel Martin, senior Asia economist of Capital Economics, suggested that MAS’s actions succeeded in regaining price stability. The Eurozone’s recent recovery further benefited Singapore with consumer sentiment and spending data in the European Union exceeding expectations. Stefan Hofer, Chief Investment Advisor of Investment Services of BNP Paribas, noted that if the positive data becomes a trend, it can relieve the weak global demand. Europe’s small recovery demonstrates how important trade is relative to Singapore’s domestic economy. The city-state is the 15th largest trading partner of the United States. As Asian markets increase in domestic demand, Singapore is well positioned to feed this consumption. MAS will continue setting a monetary policy that positions the country to take advantage of any increases in global demand.
View the Council’s latest Singapore updates
Thailand
The Constitution Drafting Committee (CDC) submitted the first draft of the new constitution to the National Reform Council (NRC) in late April. The new charter has been hailed as a critical step to moving Thailand forward out of political uncertainty.
President Obama nominated Glyn Davies as Ambassador to Thailand. Davies is a Senior Adviser in the State Department’s Bureau of East Asian and Pacific Affairs, and he served as Special Representative for North Korea Policy from 2012 to 2014. Ambassador Designate Davies awaits confirmation from the U.S. Senate. His bio can be found here.
The Council and its members organized a discussion with Deputy Foreign Minister Don Pramudwinai during his April trip to Washington, D.C. The Deputy Foreign Minister traveled to the United States to consult with the Department of State on the Trafficking-in-Persons challenges which Thailand is seeking to overcome. Deputy Foreign Minister Don, having served as Thailand’s Ambassador in Washington before, felt welcomed by old friends and engaged with members.
View the Council’s latest Thailand updates
Vietnam
The General Secretary of the Communist Party of Vietnam (CPV), Nguyen Phu Trong, recently concluded a high-level visit with Chinese leaders in April. Ostensibly a commemoration of the 65th anniversary of mutual diplomatic recognition, the summit was characterized as an attempt to strengthen ties with Vietnam’s most important trading partner. Similarly, the U.S. Government hopes to welcome the General Secretary to the United States later this year, the first visit of its kind, to commemorate the 20th anniversary of diplomatic relations between the two countries.
The Provincial Competitiveness Index 2014 (PCI 2014), released in April, shows that optimism is improving among foreign invested enterprises (FIEs). Da Nang earned the highest score in the PCI 2014 report. For a copy of the report, please click here.
Vietnam’s success in capturing investment on a number of projects from neighboring East Asia is fueling its ambition for world-class transportation infrastructure. South Korea is loaning the country US $100 million to upgrade its 60 highway bridges. Similarly, Japan is contributing US $2.2 billion in assistance loans to develop Ho Chi Minh City’s metro system with the remaining US $290 million paid for by the city’s administration. The Ben Thanh-Suoi Tien metro line began in August 2012 and is slated for completion by 2020. Elsewhere in the country, more opportunities are available to foreign investors. Thu Ha Construction and Trading Ltd. Co., a private firm based in Bà Ria–Vũng Tàu Province, has announced it is looking for partners for a US $3.57 billion expressway project.