May 2016

ASEAN’s year of political transition continues as planned on May 9 with the Philippines joining Laos, Myanmar, and Vietnam as countries welcoming new government leaders.

We offer our congratulations to the people of Philippines for the highest voter turnout in recent memory with over 80 percent of the registered voters casting ballets.  We also offer our congratulations to President-elect Rodrigo Duterte who won a five candidate race with over 38 percent of the votes, far ahead of his nearest rival.  The President-elect will be sworn into office on June 30.  We look forward to working with him and his cabinet and to learning more about his administration’s priorities. Our Philippine Business Mission is slated to visit Manila and meet with the new government from August 10-12. 

President Obama will make his first visit to Vietnam from May 22-25 to work toward locking in a significantly improved bilateral relationship. The Council provided input into his preparations for the visit through an updated Sense of Business Paper and letter to the President (see Advocacy below for details).  The Chairman of the Council’s Board of Directors, Keith Williams of UL, Our Senior Vice President, Michael Michalak, who formerly was the U.S. Ambassador to Vietnam, and I will be in Vietnam during the President’s visit.   We will hold members’ meetings on May 23 and 25 in Hanoi and Ho Chi Minh City respectively and hope you will join us if you are in town.  We will also be holding our first Board of Directors Meeting in Singapore on May 26.

Back in Washington, we hosted a farewell today for Ambassador Jose L. Cuisia, who has represented the Philippines in the United States for over five years.  As a former businessman (working for Council members P&G and AIG among others) as well as the Central Bank Governor of the Philippines, Ambassador Cuisia brought a unique background to his role here in Washington.  He was tireless in his advocacy for the US-Philippines relationship and as a result the President Aquino will leave office next month with relations extremely strong.   He was also a great friend of the Council and American business, and was always ready to work with companies who had challenges or opportunities in the Philippines.   He always made time for U.S. companies and as a result many of our members found their businesses moving forward due to Ambassador Cuisia’s support, advice and counsel.  He will be missed.

We are excited to report that 9 of the 10 ASEAN Ambassadors have agreed to join the Council’s 2016 ASEAN Ambassadors’ Tour which this year will take us to Louisville, KY from June 1-3 to meet with local business, government and academia.  We are grateful for lead sponsor UPS’s support along with city sponsor Yum! Brands who will both host the Ambassadors.  We still have room for one more sponsor should any members have facilities in the Louisville area.  Please contact Kathi Lunardi at klunardi@usasean.org for more details.

Finally, I want to send our prayers and hopes for a speedy recovery to Singapore’s Finance Minister Heng Swee Keat who suffered a stroke during a cabinet meeting on May 12. Our thoughts are with him and his family.

Highlights

Advocacy

• The Council successfully advocated to the Government of Indonesia for an extension of time for receiving comments on their draft regulation on over the top (OTT) foreign investments.  With the extension, the U.S. business community will now have sufficient time to transmit a comprehensive set of comments and recommendations to the GOI on policies and reforms which would support the development of an innovation ecosystem in Indonesia.
• In the lead up to President Obama’s visit to Vietnam, May 22 to 25, the Council transmitted a U.S. Sense of Business Paper to the White House.  The paper highlights the current views of American companies on Vietnam’s domestic business environment and investment climate.  In addition, the Council transmitted a number of talking points on issues of value to the U.S. business community which we recommend the President raise during his meetings with the Government of Vietnam (GOV).  The suggested topics included: administrative reform, freer cross border flows of data, reforms to support obtaining Market Economy Status; the lethal weapon arms embargo; and the GOV’s proposal for establishing a U.S.-ASEAN SME center in Vietnam.
• The Council joined a TPP Business Coalition letter which was sent out on May 17 to Members of Congress in all fifty states. The content of the letter highlights the following messages:
  • TPP is critical to closing the gap and leveling the competitive playing field for US companies doing business in Asia.
  • TPP will produce the following economic benefits to each state, i.e. increasing exports via lower tariffs and cutting red tape.
  • Not joining TPP will hurt the state’s economy, the U.S. economy, U.S. leadership in global trade and will cede leadership to China in setting trade rules.

If you have questions about the Council’s advocacy efforts, please reach out to Marc Mealy at mmealy@usasean.org.

Intelligence

• Our Myanmar team reviewed the upshot of yesterday’s White House announcement regarding revised U.S. sanctions on Myanmar. Their update can be found here.
• Our Vietnam team looks at President Obama’s upcoming trip to Vietnam. Their analysis can be found here.
• Our Philippines team examined the results of the elections, won by Rodrigo Duterte. Their analysis can be found here.
• Our Energy and Myanmar teams looked at the merger of Myanmar’s ministries of Energy and Electric Power.  More information on the implications of the merger can be found here.

Relationship Building

Please save the date for the following Business Missions:

• May 25 and 26: ASEAN Customs Directors General Meeting, Laos
• July 21 and 22: Thailand
• July 25 and 26: Cambodia
• August 3 to 5: ASEAN Economic Ministers Meeting
• August 10 to 12: Philippines
• October 18 to 20: Indonesia
• October 21:  ASEAN (Jakarta)
• November 14-18:  Myanmar
• November 29 to December 2: Asia-Pacific Presidents Mission, Vietnam & the Philippines

Promotion

The ASEAN Online SME Academy will be officially launched May 31 in Singapore. Find more information and register to join here.

Regional Highlights

APEC

Major Developments

• Trade Ministers from the 21 APEC member economies will convene in Arequipa, Peru on May 17-18 for the annual APEC Ministers Responsible for Trade (MRT) meeting.  The meeting agenda will include modernizing economic integration and trade in the modern era against a backdrop of global uncertainty.  Attendees will also discuss enhanced job creation and living standards via next generation trade and economic policy.  The proceedings will build on a cluster of APEC technical working group exchanges here over the next week and inputs from APEC Senior Officials on May 14-15.
• The APEC Business Advisory Council (ABAC) held its second meetings of the year in Port Moresby, Papua New Guinea from April 24-27. There were also a number of side events including an executive forum hosted by ABAC PNG on growth in the APEC region through extractive industries, and an e-commerce summit hosted by ABAC China geared towards SMEs of PNG.

Looking Ahead

On May 25 the U.S. APEC Business Coalition will host a SOM II and ABAC II Briefing in Washington, D.C. at the Council of the Americas. For more information and to register please click here.

View the Council's latest APEC updates

ASEAN

Advocacy

The Council is soliciting input on the US-ASEAN Connect program. If you have thoughts on how the initiative can be most successfully implemented, please contact Anthony Nelson at anelson@usasean.org

Looking Ahead

• The Council’s annual business mission to the ASEAN Economic Ministers Meeting will be held on August 3-5.  More information will be available soon.
• The ASEAN Online SME Academy will be officially launched May 31 in Singapore. Find more information and register to join here.  

View the Council's latest ASEAN updates

Industry Highlights

Customs

Major Developments

• New Zealand will host the next round of negotiations for the Regional Comprehensive Economic Partnership on June 12-18 in Auckland.  Negotiations remain slow with little apparent progress at the April 22 round in Perth, Australia, where the parties discussed their preliminary offers for trade and investment access for goods and services.  On April 19, a working draft of the intellectual property chapter was leaked to the media.
• Thailand’s Council of State is deliberating amendments to Thailand’s customs enforcement laws.  The rules may raise the punishment for under-declaration of import prices to ten times the value of the goods and duties, up from the current four times.  The amendments would reduce, though not eliminate, financial rewards given to customs officers for their enforcement actions.
• On April 29, Laos launched an electronic certificate of origin system as part of its ASEAN customs integration commitments.  Shippers can apply for the new certificate at http://ecolao.gov.la.
• The Philippine Customs Modernization and Tariff Act was transmitted to the Office of the President on May 3 for signing by President Aquino.  Speaking to the press after its submission, Deputy Customs Commissioner Agaton Uvero said that the bill has widespread across all sectors and will likely be signed soon.

Looking Ahead

• The Customs Committee looks forward to bringing a delegation to the 2016 ASEAN Directors General of Customs Meeting on May 25 and 26 in Phnom Penh, Cambodia.  The delegation will hold bilateral meetings with ASEAN customs leaders and an annual formal consultation where we will seek platforms for sustained engagement.  This year’s themes are:
• Adapting to the Challenges of Rising Cross-Border E-Commerce
• Innovations in Supply Chain Security and Efficiency
• Transfer Pricing in a Post-BEPS Environment

View the Council's latest Customs updates

Defense & Security

Major Developments

• The Obama Administration is reviewing the United States’ thirty-year-old lethal arms export embargo on Vietnam, which was partially lifted in October 2014.  The full removal of the weapons ban will create new opportunities to further advance the normalization of relations and forge closer U.S.-Vietnam military ties.  The Council will continue to monitor progress on this development.
• The Royal Malaysian Navy (RMN) recently purchased 18 Littoral Mission Ships (LMS) to replace its aging patrol ships.  The LMS will be used for surveillance purposes, in addition to humanitarian aid and disaster relief work.  Additionally, six new Littoral Combat Ships (LCS) have also been purchased and are expected to be operational between 2019 and 2023.  The six ships would be equipped with superior four-dimensional warfare capabilities for electronic, air, surface and underwater threats integrated with state-of-the-art systems.  They will have stealth capability, which includes reduced radar reflection, rapid launch and recovery of boats.  The procurement is part of RMN transformation plan under the 11th Malaysia Plans ending 2020, and provide new opportunities for international defense technology suppliers of 4 dimensional warfare capabilities for electronic, air, surface and underwater threats. 

Looking Ahead

The Council’s next Defense Attache Speaker Series event will be held on May 31. The event will feature guest speaker Sam LaGrone, Editor of U.S. Naval Institute News, for a discussion on U.S. Freedom of Navigation Operations. Please contact Jack Myint at jmyint@usasean.org for more information.

View the Council's latest Defense & Security updates

Energy

Major Developments

• On April 14, Russian state nuclear corporation Rosatom and the Ministry of Energy and Mines of Laos signed a memorandum of cooperation in the field of nuclear energy for peaceful purposes during the visit of Laos’ Deputy Prime Minister Somsavat Lengsavad to Moscow.  More information on what the memorandum means for Laos’ energy mix can be found here.
• On April 22, 175 countries—including all 10 members of ASEAN—signed the Paris Agreement on Climate Change at UN headquarters in New York.  The agreement was previously approved by the 196 Parties to the UN Framework Convention on Climate Change (UNFCCC) at COP21 in Paris last December.  Signatories to the agreement pledged to take actions necessary to attempt to keep the rise in global average temperature to below 2⁰C and to aim for a temperature rise below 1.5⁰C.  More information on the agreement can be found here.
• On April 25, the Energy Market Authority (EMA) of Singapore and the U.S. Department of Energy (DOE) signed a Joint Statement of Intent on Clean Energy Cooperation that will deepen bilateral cooperation on identifying and achieving shared energy goals.  More information on the Joint Statement can be found here.
• As of May 1, the merger of Myanmar’s Ministry of Electric Power and Ministry of Energy is reportedly complete.  The merger is intended to increase efficiency and coordination between the prior ministries’ various departments.  The structure of the new combined ministry—the Ministry of Electricity and Energy—will be submitted to President U Htin Kyaw’s cabinet for approval.  More information on the implications of the merger can be found here.

Looking Ahead

• The Council will hold a workshop on human capital development the energy sector in ASEAN on June 3 in Singapore. This workshop will be held on the sidelines of the ASEAN Regional Energy Policy and Planning Sub-sector network (REPP-SSN) meeting.  The first planning call for the workshop took place on May 16.
• On June 6, the ADB will host the 11th Asia Clean Energy Forum at its headquarters in Mandaluyong, Metro Manila.
• The National Bureau of Asian Research's annual Pacific Energy Summit will be held in Singapore on June 22–24, 2016, and will convene 200 leaders from government, industry, and research from across the Asia-Pacific.

View the Council's latest Energy updates

Financial Services

Major Developments

• Indonesia’s Financial Services Authority (OJK) has issued a circular letter reminding insurance companies to comply with the 80 percent foreign equity cap in the 2008 government regulation (PP) until its new regulations are completed.  The OJK expects that the government’s new implementing PP for the 2014 Law on Insurance will not be ready until 2017.
• OJK is also preparing new rules on financial technology companies, which are intended to support the development of startups.  OJK hopes to complete the regulations by the end of the year.
• Thailand’s Office of Insurance Commission is developing a regulatory framework for digital distribution of insurance products, with public hearings on the rules expected to take place in the second half of 2016.  The new rule, which is part of the implementing regulations for the Electronic Transactions Act, is meant to ensure electronic insurance transactions include equivalent consumer protections to traditional channels.

Looking Ahead

Following up on the Council’s Mission to the 2016 ASEAN Finance Ministers and Central Bank Governors Meeting, the Financial Services Committee is exploring three potential areas for deepened engagement:

1. Deepened engagement with the ASEAN Capital Markets Forum (ACMF)
   • Members met with Eugene Wong from SC Malaysia, chair of the ACMF Deputies Committee, during the Mission and agreed to investigate collaboration related to the ASEAN Trading Link, cybersecurity, ASEAN Collective Investment Scheme, infrastructure finance, and bond market transparency.
   • On May 13, members met with Eugene Wong again in Hong Kong to narrow the list of proposed topics.
   • The Council hopes to present a plan of engagement during the ACMF Deputies Meeting in July.
2. Cybersecurity
   • The Council is exploring programs to promote best practices in cybersecurity, public-private information sharing, and the development of cyber risk insurance.
   • The program will likely begin with a forum in Singapore, before expanding to other parts of ASEAN.
3. Financial Inclusion and Literacy program
   • The Council would like to explore ways to expand engagement on financial inclusion and literacy work in the region.
   • Leveraging the strength of Council members in digital finance.

Please contact Ian Saccomanno at isaccomanno@usasean.org and Shay Wester at swester@usasean.org to discuss the proposals further.

View the Council's latest Financial Services updates

Food & Agriculture

Major Developments

• On April 21, the Department of Animal Husbandry (DAH) of the Vietnam Ministry of Agriculture and Rural Development (MARD) announced that the MARD will sign a circular affecting the guidelines of antibiotic use in the animal husbandry sector, including banning antibiotic use starting in 2018.  A date for the signing of the circular was not announced, but MARD is looking to move this forward soon.  For more information on this development, please refer to the news article linked here. 
• The Trade Ministry of Indonesia announced on April 1 that the Government of Indonesia (GOI) may soon issue rules that will allow feed mills, with approval from the Ministry of Agriculture, to import corn directly instead of through BULOG, a government-owned procurement agency.  This comes after imports of grains were disrupted in July 2015, when GOI announced that it would temporarily ban corn imports for an unspecified amount of time in a bid to boost local corn production, as part of the government's broad push for food self-sufficiency.  Following this announcement, GOI stopped issuing corn import permits to feed mills, resulting in various disruptions to the global supply chain of international agricultural trading companies, and the accumulation of exorbitant shipping charges as vessels carrying tons of imported corn were left stranded in domestic ports.  Currently, the Council is engaging with GOI and the Trade Ministry to seek clarification on the conflicting news reports on the government's intentions to shift imports of agricultural commodity products (corn, rice, sugar, meat) under the oversight of BULOG, and issue rules that will allow feed mills to import directly with approval of the Agriculture Ministry. 

Looking Ahead

• In June, the Council will be organizing a roundtable discussion between the private sector and the Coordinating Ministry of Economic Affairs (CMEA), Ministry of Trade (MOT), and other key Indonesia ministries and agencies in Jakarta as part of a follow up action item from the 2016 Food & Agriculture (F&A) Industry Mission to Indonesia.  For more information and sponsorship opportunities, please contact Sunita Kapoor at skapoor@usasean.org and Desi Indrimayutri at desi@usasean.org.
• The Council will be organizing a roundtable with the 10 ASEAN Agricultural Attachés for the purpose of exchanging views and identifying a roadmap for improving the business environment in ASEAN and supporting our ASEAN colleagues with their efforts in the United States.  This year, the roundtable will take place in Washington, D.C. on June 30, from 2:00-3:00 PM.  For additional details or to provide topics of discussion, please contact Hai Pham at hpham@usasean.org.
• The 38th ASEAN Ministerial Meeting on Agriculture and Forestry (AMAF) is tentatively scheduled on October 6-7, 2016 in Singapore.  The Council will be organizing a business mission to the 38th AMAF this year, providing the Council’s delegation with an opportunity to update regional leaders with snapshots of American business investments in the agricultural sector, focus areas, and plans for expansions in the region.  Please contact Sunita Kapoor at skapoor@usasean.org or Hai Pham at hpham@usasean.org with questions or interest in participating.

View the Council's latest Food & Agriculture updates

Health & Life Sciences

Major Developments

• Local clinical trial requirements in Vietnam will now be removed for those medicines where global clinical trial data already exists under the amended Pharmacy Law passed in April.  Containing 14 chapters and 116 articles, it will take effect January 2017.  Prior to this amendment, the additional clinical trials meant delayed approval of new pharmaceutical products by approximately 2-5 years.  Other amendments lauded by the Pharma Group Vietnam include the introduction of “Patient Assistance Programmes” and the prioritization of “Orphan Drugs”.  The Pharmacy Law also clarifies the principle of managing medicine prices in accordance with market rules, and allows for the state to intervene when essential drug prices fluctuate abnormally.  Overall, the amendments are indicative of the government’s more open policy on the pharmaceutical industry, management of medicines at healthcare facilities, and management of medicine quality, among other things.
• On May 2, the Public Health Ministry of Thailand announced that it has put together a comprehensive national health services plan covering 2018-2022, aimed at improving nationwide access to healthcare.  The new plan, with a budget of almost Bt 11.7 billion (US$ 332 million), aims to reduce the number of people with illnesses, the national death rate, and ease public access to health services.  The plan will also ensure the harmonious implementation of the existing national master plans in regard to the infrastructure development of support services, medical supplies and equipment, and human resource development.

Looking Ahead

• The Council is planning a Health & Life Sciences Industry Mission to Vietnam on June 21, 2016.  An invitation will be sent to members soon.
• The Council is also planning a Health & Life Sciences Industry Mission to Indonesia in the first week of August (specific date to be confirmed).

To indicate interest in participating in either of these missions, please contact Hai Pham at hpham@usasean.org. 

View the Council's latest Health & Life Sciences updates

ICT

Major Developments

On April 29, Indonesia's Ministry of Communication and Information Technology (MCIT) released a draft regulation regarding the provision of internet-based applications and/or content.  According to MCIT’s Minister Rudiantara, this new regulation is part of the government’s efforts to protect and encourage the development of national over the top (OTT) internet applications.

Advocacy

• The Council and partners received an extension to the original May 12 deadline for public comment to MCIT’s draft OTT regulation.  The Council is currently working to draft joint comments to submit to MCIT by the new deadline of May 26.  Please submit any edits to Kim Yaeger at kyaeger@usasean.org.
• As part of an MOU with Indonesia’s ICT Society (Mastel), the Council organized a digital video conference (DVC) on TV digitalization on May 11.  Council and Mastel members, as well as officials from the MCIT, participated.  Speakers from the FCC covered regulatory policy, consumer education and engineering/technical aspects of the transition.  The next DVC is to be on data privacy and security.  Contact Kim Yaeger at kyaeger@usasean.org if you are interested in the planning.

Looking Ahead

In response to Vietnam’s Law on Network Information Security, the Council is organizing a knowledge sharing workshop with the Vietnamese government on U.S. perspectives on regulating encryption products and services, targeted for early June.  For more information, please contact Matt Solomon at msolomon@usasean.org.

View the Council's latest ICT updates

Infrastructure

Major Developments

On April 26, more than one hundred ASEAN transport officials met in Manila, Philippines to discuss this year's action plans for air, land, transport facilitation and sustainable transport.  Last year's meeting saw the adoption of the Kuala Lampur Transport Strategic Plan which "placed greater emphasis for greater connectivity, efficiency, integration, safety, and sustainability of ASEAN transport.".  This year's meeting placed an emphasis on the ASEAN Open Sky Agreement (ratified last April), which will have a significant impact on enhancing regional integration through liberalizing air travel across all ASEAN member states.  Potential for future air agreements between ASEAN, Russian, China, U.S., Korea, and Japan were also raised during the discussions.  The Philippines will chair the 42nd Senior Transport Officials Meeting and the 22nd Asean Transport Ministers Meeting during the last quarter of the year.  The Council is exploring an opportunity to conduct an inaugural business mission to these meetings. 

Looking Ahead

• The Council will be rescheduling its Inaugural Energy and Infrastructure Industry Mission to Malaysia to either July or August.  This one-day event will take place in Kuala Lumpur.  This sector focused mission will offer members an opportunity to engage key public and private sector stakeholders which make up Malaysia's domestic infrastructure ecosystem.  More details to follow.  Please contact Sunita Kapoor (skapoor@usasean.org) and Jack Myint (jmyint@usasean.org) for more information.
• The Council will be hosting the 2016 Infrastructure Technology Seminar in the Philippines in September. This is a one- day seminar style conference where companies can offer and raise awareness of technological solutions available in the market to an audience of key Philippines government officials.  By leveraging the expertise of participating companies, this seminar aims to position itself as a trusted advisor to key ministries and officials that oversee infrastructure development.  Please contact Sunita Kapoor(skapoor@usasean.org) and Jack Myint (jmyint@usasean.org) for more information.
• The Council is exploring opportunities to conduct an inaugural business mission to the 22^nd ASEAN Transport Ministers Meeting which will be held in the Philippines later this year.  Please contact Sunita Kapoor (skapoor@usasean.org) and Jack Myint (jmyint@usasean.org) for more information.

View the Council's latest Infrastructure updates

Country Highlights

Brunei

Major Developments

The International Monetary Fund (IMF) has predicted Brunei's economy will contract two percent this year, a downward trend that began in 2013.  However, a rebound is expected in 2017 with three percent growth.  The prediction was made as a part of the IMF's latest Regional Economic Outlook for Asia and Pacific report.  With more than 60 percent of Brunei's economic activity tied to the oil and gas industry, the government has ratcheted up efforts to diversify its economy, including creating incentives for businesses looking to invest in Brunei. Click here to learn more.

Advocacy

The Council hosted the new Brunei Ambassador to the U.S., Dato Serbini Ali, for a welcome roundtable on May 12 in Washington, DC.  Members introduced their companies and interests in Brunei to the new Ambassador, heard a presentation on investment opportunities in Brunei, and discussed Brunei's implementation of the TPP.

View the Council's latest Brunei updates

Cambodia

Major Developments

According to the World Bank’s latest economic update report, growth remains robust in Cambodia, estimated at around 6.9 percent for fiscal year 2016. Construction and garment sectors continue to remain the main engines of growth, further driven by sustained foreign direct investments in said industries.  To read the full report, please click here.

Looking Ahead

The Council’s annual Business Mission to Cambodia is set to take place July 25-26. Invitation to members will follow soon. If you have any questions, please contact Jack Myint at jmyint@usasean.org.

View the Council's latest Cambodia updates

Indonesia

Major Developments

• The Indonesian economy expanded at 4.92 percent (year on year) in the first quarter of 2016.  Most analysts expected growth to register at about 5.05 percent while Bank Indonesia had forecasted 5.1 percent.  This rate is slightly below the 2015 quarter four rate of 5.04 percent but it still beats the 2015 quarter one growth, which was 4.7 percent.  The numbers show that growth since the first quarter of 2015 has been mostly supported by higher government spending, while household consumption and private investment have been subdued.
• On April 28, President Jokowi released the 12th economic package, which aims to simplify permits for and ease the establishment of small and medium enterprises (SMEs).  The package contains ten policies that will reduce the number of procedures to start a business from 94 to 49 and will decrease the required permits from nine to six. Coordinating Minister for Economic Affairs Darmin Nasution said this package will reduce the time needed to start a business in Indonesia from 1566 days to 132 days.  President Jokowi has set a target of improving Indonesia’s place in the World Bank’s Ease of Doing Business rankings to 40th, up from 109th place, where it is currently.  The Council will continue to monitor news about the government’s economic packages and deregulation efforts.  To read more about previous packages please click here.
• On April 15, Bank Indonesia (BI) announced a new framework for guiding interest rates that will be implemented in August.  BI is expected to abandon its current reference rate, which is meant to be an anchor for the Interbank Overnight Rate but is not directly tied to the money market.  The new benchmark will be a seven-day reverse repurchase rate.  BI Senior Deputy Governor Mirza Adityaswara said that BI is still holding consultations about the new framework and emphasized that it would be based on global best practices.  To read more, please click here.

Advocacy

• The Council is currently collecting input on the Ministry of Communication and Information Technology’s draft regulation on over the top services (OTT).
• The Ministry of Public Works and Public Housing issued Regulation No. 03/PRT/M/2016 on technical guidelines for the granting of construction business licenses for foreign investment.  This regulation lays out the technical guidelines related to the implementation of Ministerial Regulation No. 22/PRT/M/2014 on the delegation of authority to grant business licenses in the fields of public works and public housing through the One-stop-Integrated-Services Facility at the Indonesian Investment Coordinating Board (BKPM). This regulation has been in effect since February 4, 2016. Click here to read the regulation in Bahasa.

Looking Ahead

The Council is hosting a Human Capital Development Forum in Jakarta on May 25.  The aim of the forum is to bring a select group from industry, academia and government together to discuss ways of strengthening the industrial and innovation elements of Indonesia’s economy by improving the domestic ecosystem for human capital and workforce development.  The forum is timely, given the Jokowi Administration's heightened focus on developing Indonesia's innovative ecosystem and promoting trade modernization.  To learn more about this initiative, please contact Alex Stuart at astuart@usasean.org and Desi Indrimayutri at desi@usasean.org.

View the Council's latest Indonesia updates

Laos

Major Developments

On April 20, the new Government of Lao PDR was officially approved during the 8th Legislature of the National Assembly.  H.E Bounnhang Volachit was named the new President and H.E Thongloun Sisoulith as Prime Minister, in addition to several other cabinet leaders who received new roles.  Prime Minister Thongloun Sisoulith previously served as Deputy Prime Minister and Minister of Foreign Affairs.  In his previous roles, he promoted strengthening international cooperation and was the first senior Lao official to visit the United States in 2010.  President Bounnhang Volachit previously served as Vice President. President Bounhang is a party veteran with longstanding ties to Vietnam.

View the Council's latest Laos updates

Malaysia

Major Developments

• On April 27, Bank Negara Deputy Governor Muhammad Ibrahim was appointed as the Bank’s New Governor, replacing Zeti Akhtar Aziz. The appointment of Ibrahim, whose term began on May 1, comes at a crucial moment for Malaysia’s economy.  The default on the bond payment by the 1MDB in recent weeks has hurt sentiment on Malaysia’s currency and assets.  According to Prime Minister NajibRazak, he is confident that Ibrahim will continue assisting the government through administering monetary policy continuity and certainty as well as overseeing Malaysia’s financial industry.  Appointing Ibrahim from within the Bank Negara is a positive sign that the Bank will remain independent.  Ibrahim has been with Bank Negara for 32 years and has been its Deputy Governor since 2010 and previously served as Managing Director of Danamodal Nasional Bhd., which was a bank recapitalization agency created during the Asian financial crisis in the 1990s.
• Sarawak, Malaysia's largest state, held elections on May 7.  The ruling coalition, Barisan Nasional (BN), won an overwhelming victory with 72 out of 82 seats in the legislative assembly, maintaining its two-thirds majority in the state assembly.  The victory is a sign that the coalition still has a chance of holding parliament in national elections expected by August 2018.

Advocacy

The Council and members participated in a roundtable discussion with Minister of Communications and Multimedia YB Datuk Seri Dr. Mohd Salleh Tun Said Keruak on May 12, hosted by the Asia Strategic Leadership Institute.  The purpose of the roundtable was for the Minister to meet with the private sector to discuss the proposed amendments to the Multimedia and Communications Act.  The draft amendments are currently with the Attorney General prior to tabling in the next Parliamentary session, possibly in mid-June. During the roundtable, Minister Salleh indicated his openness to partner with industry players in the amendments and avoid future changes once ratified by Parliament. The Council is pursuing opportunities to follow up with the Minister on this topic.

View the Council's latest Malaysia updates

Myanmar

Major Developments

• On May 17, President Obama announced an extension of the underlying authority for U.S. sanctions, while at the same time extending and expanding some general licenses and removing 10 State Owned Enterprises and banks from the list. Read the Council’s full take here.
• On April 29, the NLD government released its list of precedent for the new government. President U Htin Kyaw is listed first, followed by the State Counselor position of Daw Aung San Suu Kyi, above both Vice Presidents. The Commander in Chief of the military is listed 8, behind the Chief Justice of the Supreme Court.
• On May 12, Myanmar approved the creation of a Ministry in the State Counselor’s Office, to be headed by former Permanent Representative to the United Nations, U Kyaw Tint Swe.

Advocacy

The Council is finalizing two important advocacy tools, one targeted at the incoming NLD government, and the other geared towards U.S. policymakers: (1) an update to last year’s “Quick Wins for Myanmar’s Economy” paper, including highly specific policy or procedural fixes that will increase efficiency and transparency, thus leading to new and increased investments by U.S. companies and (2) a report offering a side-by-side analysis of the time and financial costs of doing business as a U.S. company in Myanmar, for use in U.S. government advocacy.  Click here for more information on both projects.  If you have any questions, or to submit final input, contact Matt Solomon at msolomon@usasean.org. 

View the Council's latest Myanmar updates

Philippines

Major Developments

• Unofficial results from the May 9 general election indicate that Rodrigo “Rody” Duterte, the controversial mayor of Davao City, won the presidential election by a significant margin, garnering 38.6 percent of the vote.  In the vice presidential race, Camarines Sur Representative Maria Leonor “Leni” Robredo was ahead of Senator Ferdinand “Bongbong” Marcos, Jr., by over 200,000 votes, as of May 18.  The official election results will not be available until the Philippine Congress reconvenes to conduct the official vote count on May 23.  The presidential inauguration is slated for June 30.  More information on the election can be found here.  Previous analyses of the 2016 Philippine presidential and vice presidential elections can be found here and here.
• In late April, National Telecommunications Director Edgardo V. Cabarios announced that National Telecommunications Commission, the National Economic and Development Authority, and the Information and Communications Technology Office are drafting for the next administration a five-year interim national broadband plan to improve the quality of Internet service available in the country.  More information on the interim broadband plan, including a link to a Council-supported policy brief with recommendations on how to improve broadband service in the Philippines, can be found here.
• On May 10, the Philippine Competition Commission (PCC) released a draft of the implementing rules and regulations (IRR) for Republic Act 10667, also called the Philippine Competition Act (PCA).  The PCC is inviting all interested stakeholders to submit their comments on the draft IRR no later than 5:00 PM May 25.  More information on the draft IRR and the PCA can be found here.

Advocacy

• On April 28, The US-ASEAN Business Council and the U.S. Chamber of Commerce presented a debrief by Christine Brown, Director of Southeast Asia at USTR, on the Philippine Trade and Investment Framework Agreement (TIFA) meeting held March 14-15.
• On May 18, the Council hosted a Farewell Luncheon in honor of H.E. Jose Cuisia, Jr., Philippine Ambassador to the United States, who is leaving his post.

Looking Ahead

Please mark your calendars for the 2016 Business Mission to the Philippines August 10-12.  The official invitation with registration details will be sent out soon.

View the Council's latest Philippines updates

Singapore

Major Developments

• The Singapore Committee of Supply (COS) Debate for 2016 took place from April 6-14.  During the debate, various government ministries presented budget adjustment proposals and highlighted engagement activities for 2016. More information on the COS can be found here.
• On April 12, Minister for Foreign Affairs and Minister-in-Charge of the Smart Nation Initiative Dr. Vivian Balakrishnan announced the launch of the Big Analytics Skills Enablement (BASE) initiative that will help train Singaporeans in the use of big data analytics to bridge a significant projected shortfall in the number of data professionals in the labor market over the next several years.  More information on the BASE initiative can be found here.
• On April 27, the Competition Commission of Singapore (CCS) announced that it intends to develop an ASEAN Competition Policy and Law (CPL) Programme that would promote closer collaboration between businesses, competition authorities, and relevant government agencies in ASEAN.  The CCS plans to develop the program over the course of 2016.  More information on the CPL can be found here.
• In late April, CEO-designate of the Government Technology Agency (GovTech) Jacqueline Poh announced that the new agency, which will be officially legislated in the latter half of 2016, will play a key role in the next stage of Singapore's Smart Nation Initiative.  More information of GovTech’s role in the Smart Nation Initiative can be found here.

Advocacy

The Council hosted a Senior Executives Roundtable with Ambassador Cameron Munter, CEO and President of the EastWest Institute, on May 5 in Singapore.

Looking Ahead

On May 23 in Singapore, the Council will host a Senior Executives Roundtable with Former U.S. Secretary of State Madeleine Albright.

View the Council's latest Singapore updates

Thailand

Major Developments

• On April 20-21, Thai Commerce Minister Apiradi Tantraporn traveled to Washington, DC for the first ministerial-level meeting under the U.S.-Thailand Trade and Investment Framework Agreement (TIFA) in 13 years.   Minister Apiradi met with U.S. Trade Representative Michael Froman to discuss a wide range of trade and investment-related issues.  Priority topics included intellectual property, customs, agriculture, labor, environment, and financial services.  In addition to addressing current bilateral issues, the U.S. delegation offered a detailed chapter-by-chapter briefing on the requirements and potential benefits of the Trans-Pacific Partnership (TPP).  Following previous statements of interest from the Thai government on possibly joining the TPP (see our recent updates here and here), a decision is still forthcoming.
• The Office of the United States Trade Representative (USTR) released its updated Special 301 Report (available here) on intellectual property rights protection and enforcement worldwide.  In it, Thailand is listed as one of 11 countries on the “Priority Watch List”— those countries presenting the “most significant concerns this year regarding insufficient IPR protection or enforcement or actions that otherwise limited market access for persons relying on intellectual property protection.”  Thailand has been on the list since 2007.  Pursuant to the Trade Facilitation and Trade Enforcement Act of 2015, USTR must develop internal action plans for each Priority Watch List country.  A bilateral plan to address IP issues is also under development.

Looking Ahead

• The 2016 Thailand Business Mission will take place on July 21-22. Please mark your calendars, and stay tuned for details and registration instructions. Contact Matt Solomon at msolomon@usasean.org with any questions or to express interest.
• The public referendum on Thailand’s new constitution will take place on August 7.

View the Council's latest Thailand updates

Vietnam

Major Developments

• On May 10, The White House announced that President Obama will make his 10th trip to Asia from May 21-28.  During this trip, the President will stop in Vietnam before continuing on to Japan to attend the G-7 Summit.  This trip will highlight the Obama Administration’s key re-balancing US foreign policy towards Asia and the Pacific in terms of increased US diplomatic, economic and security engagement with the countries and people of the region. 
• According to Vietnam’s Ministry of Foreign Affairs, President Obama will visit both Hanoi and Ho Chi Minh City between May 23-25.  While in Vietnam, the President’s schedule will include meetings with the newly elected leaders of the Government of Vietnam (GOV), members of the civil society, the Vietnamese members of the Young Southeast Asian Leadership Initiative (YSEALI), entrepreneurs and the business leaders. 
• According to the White House, President Obama will use the visit to discuss ways to deepen the US-Vietnam Comprehensive Partnership (launched in 2013) and advance cooperation across a wide range of areas, including economic, people-to-people, security, human rights, and global and regional issues.  The President will also discuss the importance of approving the Trans-Pacific Partnership agreement this year, a topic highlighted by US Secretary of Agriculture Tom Vilsack during his visit to Vietnam just two weeks ago. 
• The President’s visit, following last year’s 1st ever visit to the U.S by the General Secretary of Vietnam’s Communist Party, comes at a time when the Obama Administration is reviewing the United States’ thirty-year-old lethal arms export embargo on Vietnam, which was partially lifted in October 2014.  The full removal of the weapons ban, something the Government of Vietnam has long sought, would likely create new opportunities to further advance the normalization of relations and forge closer military ties with Vietnam amid China’s growing assertiveness in the South China Sea.

Looking Ahead

• On May 22, Vietnam will hold elections for the new National Assembly.  In the coming months, the elected 14th National Assembly will confirm a new government during its first session.
• The Council is planning a Health & Life Sciences Industry Mission to Vietnam on June 21 and its annual Business Mission to Vietnam on August 24-26, 2016 and. An invitation will be sent to members soon.  

To indicate interest in participating in either of these missions, please contact Hai Pham at hpham@usasean.org.

View the Council's latest Vietnam updates