June 2016

The Council continued to move forward at lightning speed over the last month and we are looking to take our engagement up a gear in the next eight weeks.
 
I leave on Sunday for Southeast Asia where I will visit members in Jakarta, Singapore and Hong Kong.   In Jakarta, I am scheduled to see ASEAN Secretary General Le Loong Minh, Indonesia Trade Minister Tom Lembong as well as our two U.S. Ambassadors stationed in Jakarta.  I will also be speaking at the Joint Service Academies Summit on June 24^th.   If you would like more information on the Summit or to attend please click here.
 
Last month we were honored to be able to participate, along with our Chairman of the Board of Directors Keith Williams, our Senior Vice President Mike Michalak (who was formerly the U.S. Ambassador to Vietnam) and the Chairman of the Council’s Vietnam Committee, Wouter Van Wersch who is also CEO for GE in ASEAN, in President Obama’s historic visit to Vietnam.  We were included in several events with the President including the official State Banquet which was rather small as these things go with only approximately 30-35 invited guests outside the two governments – by this estimate, the Council had over 10 percent of the seats.

Although we did not request a meeting with the Prime Minister during the President’s visit, we were thrilled that the Prime Minister’s office reached out to us and scheduled a meeting with Vietnam’s new Prime Minister Nguyen Xuan Phuc.  The Council officers named above had a private meeting with the new Prime Minister at the official Office of the Prime Minister.   It was a great introduction to the head of the new Government and an important step in establishing the Council’s relationship early with the new government.  Among other topics, we discussed the Council’s recently established MOU with the Vietnam Chamber of Commerce and Industry on establishing an SME Center in Vietnam, the digital economy and the importance of access to data, renewable energy, and of course, the importance of TPP.
 
I want to give a special thank you to those members who provided input into the economic leg of the visit through our Vietnam committee.  Our white paper titled Vietnam Sense of Business was provided to the NSC prior to the trip for the President’s background. 
 
Earlier this month, we also held our annual ASEAN Ambassadors’ Tour, which brought eight ASEAN Ambassadors and representatives of all 10 ASEAN Embassies based in Washington, DC to Louisville, KY to spread the word about ASEAN.  Among others, the Ambassadors had a chance to meet Kentucky Governor Matt Bevin, and Louisville Mayor Greg Fischer.  We are grateful to UPS and Yum! Brands for hosting and sponsoring our delegation in Louisville.

Looking Ahead

I am pleased to announce that on July 12^th the Council will be hosting Ben Rhodes, Assistant to the President and Deputy National Security Advisor who will be speaking on recent and upcoming initiatives around ASEAN.  This is yet another example of the many ways in which the Council is at the forefront of intelligence for our members.
 
Following very quickly on the heels of Mr. Rhodes’ visit will be a dinner in honor of Prime Minister Lee of Singapore.  Prime Minister Lee invited for an State visit, which will include an official White House arrival ceremony, an official lunch and State Dinner, by President Obama to celebrate 50 years of bi-lateral relations. This is the first State Visit by a Singapore leader since 1985 and the first State Visit by an ASEAN leader during President Obama’s administration. Business Dinner will be co-hosted with the U.S. Chamber on August 1^st.  Details are to follow.
 
As summer arrives, we are entering one of our busiest seasons. The next three months will see four major country missions, our annual mission to the ASEAN Economic Ministers Meeting, and sector specific mission to Malaysia and Vietnam. We are also looking forward to some major events here in Washington D.C. and New York.
 
We are also excited to announce that we will be partnering with the U.S. State Department to organize an Innovation Roadshow to Myanmar August 8-9. The Roadshow will be co-led by myself and Assistant Secretary of State Charles Rivkin, and will be open to senior executives interested in engaging with the Myanmar government and showcasing U.S. innovation, technology, and support for entrepreneurs. 

HIGHLIGHTS Advocacy After several years of multi stakeholder engagement and advocacy with the Government of the Philippines, Philippines President Aquino signed a law creating the Department of Information and Communications Technology (DICT) on May 23.  The DICT Act mandates that the Department of Information and Communications Technology will be the primary policy, planning, coordinating, implementing and administrative agency of the Executive Branch of the Philippine Government, and is tasked to plan, develop, and promote the national Information and Communications Technology ("ICT") development agenda.  All communication related agencies under the former Department of Transportation and Communication such as, National Computer Center (NCC), National Telecommunications Training Institute (NTTI), Information and Communications Technology Office (ICTO), Telecommunications Office (TELOF), and the National Computer Institute (NCI) are now under the DICT.  In addition, existing agencies pertaining to ICT, such as the National Telecommunications Commission (NTC), National Privacy Commission (NPC), and Cybercrime Investigation and Coordination Center (CICC) are also attached to the DICT for policy and program coordination. The Council joined with the U.S. Chamber of Commerce in an effort to advocate that the USG evolve US economic policy towards Myanmar by eliminating or reducing economic sanctions which currently hinder U.S. business competitiveness in Myanmar.  On May 17, the USG announced a further relaxation of some economic sanctions on reporting requirements for U.S. firms and allowing U.S. nationals and companies to do business with ten state owned companies and banks. The Council is in the process of initiating an advocacy effort with the Government of Indonesia’s Ministry of Religious Affairs in response to their proposed new implementing regulations for Indonesia’s Halal Products Assurance law.  The effort will include a meeting with officials from the ministry and transmission of written comments on the proposed regulations.  Members interested in joining this effort should contact Desi Indrimayutri at desi@usasean.org Intelligence Our Philippines team examined President Rodrigo Duterte’s proposed economic agenda. Analysis of the eight-point agenda can be found here. Relationship Building Please save the date for the following Business Missions: June 21 – Health & Life Sciences Vietnam July 21 – 22, Thailand July 25 – 26, Cambodia July 28 – Energy and Infrastructure Malaysia August 3 – 5, ASEAN Economic Ministers Meeting August 8 – 9, Myanmar Innovation Roadshow August 10 – 12, Philippines August 24 – 26, Vietnam Promotion The Council’s ASEAN Ambassadors Tour brought eight ASEAN Ambassadors of all ten embassies that were represented to Louisville, Kentucky to spread the word about the importance of ASEAN. Great thanks to UPS and Yum! Brands for their sponsorship. You can read the press release here. On May 31 the Council supported the launch of the ASEAN SME Academy, an online venture that significantly expands the reach of the US-ASEAN Business Alliance for Competitive SMEs. You can read more about the Academy here.

REGIONAL HIGHLIGHTS

APEC

Major Developments

• From May 17-18, the APEC Ministers Responsible for Trade (MRT) met in Arequipa, Peru.  The MRT met to discuss liberalizing and facilitating trade and investment to regain economic momentum and achieve prosperity for the Asia-Pacific region.  The outcomes of the MRT includes joint actions to be taken in the areas of enhancing regional economic integration, promoting the internationalization of micro, small and medium enterprises, developing human capital, and strengthening economic and technical cooperation.  To read the APEC Ministers Responsible for Trade Statement please click here.  The MRT meeting was chaired by Magali Silva Velarde-Alvarez, Peru’s Minister of Foreign Trade and Tourism.  Minister Silva also released a Chair’s Statement on supporting the multilateral trading system.
• In late May, the Asia Pacific Energy Research Center released the 6^th Edition of the APEC Energy Demand and Supply Outlook.  On June 7 the National Bureau of Asian Research hosted leading specialists Cecilia Tam and James Kendell of the Asia-Pacific Energy Research Centre (APERC) to discuss high-level trends and key challenges facing the twenty-one Asia-Pacific Economic Cooperation (APEC) economies as they seek to advance more sustainable and collaborative energy systems in the region.  The 6^th Edition of the APEC Energy Demand and Supply Outlook can be accessed here.
• The APEC Climate Center (APCC) has developed the Multi-Model Ensemble (MME), a climate predicting tool that will help economies in the Asia-Pacific manage the effects of extreme weather. To read more, click here.

Looking Ahead

• The third APEC Business Advisory Council (ABAC) meeting will be held August 1 in Shenzhen, China.
• The third Senior Officials’ Meeting will be held beginning August 15 in Lima, Peru.
• For a full list of upcoming APEC events please click here.  

View the Council's latest APEC updates

ASEAN

Major Developments
 
The Council held a conference call with Special Representative Ziad Haider of the State Department on US-ASEAN Connect. The Council is collecting company input on how US-ASEAN Connect can be most effectively addressed by filling out our survey, which can be accessed here. For an overview of the US-ASEAN Connect program, please Click Here and Click Here.

Looking Ahead

• The Council’s annual Business Mission to the ASEAN Economic Ministers meeting will take place August 3-5 in Vientiane, Laos. For more information, contact Anthony Nelson at anelson@usasean.org
• The ASEAN Online SME Academy is a fantastic opportunity to share content with a wide variety of SMEs and contribute to the lasting success of the US-ASEAN Business Alliance for Competitive SMEs.  To contribute to the Academy, please contact Mario Masaya at mmasaya@usasean.org to discuss opportunities and check out the Alliance on the web here. 

View the Council's latest ASEAN updates

TPP

The Council signed a TPP Business Coalition letter to the Obama Administration, welcoming the recent announcement of the Administration’s new approach to the movement and storage of data for financial services firms in U.S. trade and investment agreements.  Addressing the concern of the financial services industry with respect to TPP countries and in future agreements is a positive step and adds momentum for approval of the TPP Agreement.  One of the most important elements of the TPP agreement to the American business community is that it promotes the freer movement of cross border data and information flows.   The Administration’s solution would ensure that financial services would not be excluded from similar commitments in future trade negations (TISA and TTIP) and hope to finalize a proposal to “fix” this issue in the TPP in the next 30 days. ?

View the Council's latest TPP updates

INDUSTRY HIGHLIGHTS

Customs

Major Developments

• From May 24-27, ASEAN’s Customs Directors-General (DG) gathered in Phnom Penh, Cambodia, to discuss their customs integration agenda, update some of their +1 FTA partners on implementation efforts, and consult with private sector stakeholders.
• On May 30, Philippine President Aquino signed the Customs Modernization and Tariff Act into law.  The act can be found here.  Current Customs Commissioner Alberto D. Lina hopes to complete the implementing rules and regulations before he leaves office at the end of June.
• On May 31, Nicanor Faeldon was announced as the new Commissioner of Bureau of Customs (BOC) by President-elect Rodrigo Duterte.  Duterte himself has called the BOC corrupt and once suggested disbanding it altogether, along with the Bureau of Internal Revenue (BIR) and Land Transportation Office (LTO).  Faeldon, who is a former marine captain, first gained fame when he and a group of junior officers led the Oakwood Mutiny in protest against corruption in the military during the Arroyo administration.
• On April 6, Vietnam’s National Assembly passed Law No. 107/2016/QH13, the "Law on Export and Import Duties 2016" (available here in Vietnamese).  The law takes effect on September 1.  The law introduces a new separate chapter on safeguard duties and expands the list of goods exempted from duties.
• Following the ASEAN-Russia Summit in Sochi, which took place on May 19-20, ASEAN is considering a Free Trade Agreement with the Eurasian Economic Union (EAEU), which consists of Belarus, Kazakhstan, Kyrgyzstan, Armenia, and Russia.  ASEAN has not yet decided if it will pursue this FTA multilaterally or as a set of bilateral agreements.

Advocacy

The Committee again joined the Customs DG Meeting and used this year as an opportunity to propose deeper engagement on e-commerce facilitation, supply chain tracking tools, and valuation challenges from related-party transactions.  The briefing paper presented to the DGs by the Council can be accessed here.  The Committee is exploring the following proposals as follow-up activities:

• Workshop with the ASEAN Customs Procedures and Trade Facilitation Working Group's fall meeting, to discuss cross-border e-commerce, valuation, and other relevant issues.
• Global Data Standards information sharing sessions and pilot projects.
• Advocating on behalf of specific ASEAN customs integration and trade facilitation projects to relevant stakeholders in ASEAN member states.
• Proposing and supporting projects for the ASEAN Trade Facilitation Joint Consultative Committee.
• Engagement specifically with Vietnam customs department to continue discussions on valuation and other issues of interest.
• Engagement specifically with Indonesia customs department to discuss customs and trade facilitation issues.

Looking Ahead

The Customs Committee will hold a quarterly call on July 12 to review the Customs DG Mission and discuss the proposed follow-up activities. Click here to register.

View the Council's latest Customs updates

Defense & Security

Major Developments
 

 
Most of Vietnam’s military equipment and weapons today are Russian-made, with 82 percent of Vietnam’s defense spending having gone to Russia in 2015.   Foreign military financing for equipment sales to Vietnam has been available since 2009, and the presumption of denial for any defense export ended in 2007, yet major deals have not occurred.  Currently, Vietnam’s procurement “wish-list” amounts to approximately $13 billion worth of military equipment, including combat jets, patrol aircraft, drones, attack helicopters, radar, coastal patrol boats and anti-submarine capabilities including aircraft.  Potential for large defense contracts to emerge in the near or immediate future, however, will be limited as Vietnam’s 2016 defense budget of around $5 billion has only earmarked approximately $1.5 billion for new procurement, amounts that will increase to $6 and $2 billion respectively by 2020, according to IHS. 

View the Council's latest Defense & Security updates

Energy

Major Developments

• In response to growing doubts from within his administration and the private sector over the viability of his ambitious program to increase Indonesia’s power generation capacity by 35GW by 2019, President Joko Widodo has called for a review of the program and the associated electrification scheme.  More information on the review of the program can be found here.
• The preponderance of agreements related to the energy sector that were signed during U.S. President Barack Obama’s official visit to Vietnam May 23-25 underscored the government of Vietnam’s focus on meeting the country’s growing energy needs.  More information on the agreements and how the fit into the government of Vietnam’s Power Development Plan VII can be found here.
• On May 18, Philippine President Benigno Aquino III signed Climate Change Commission (CCC) Resolution No. 2016-001.  A central aspect of the resolution is a comprehensive review of government energy policy that will focus on how the Philippines can reduce its dependence on coal and more rapidly transition to renewable energy sources.
• On May 23, the Dewan Rakyat passed the Gas Supply (Amendment) Bill 2016, which aims to increase competition in Malaysia’s gas supply industry via a third-party access (TPA) system.  More information on the Gas Supply (Amendment) Bill 2016 can be found here.

Advocacy

View the Council's latest Energy updates

Financial Services

Major Developments

• On June 6, the Monetary Authority of Singapore (MAS) circulated a consultation paper to gather feedback on the level of appropriate regulatory support for FinTech experimentation.  MAS has advocated for a regulatory “Sandbox” approach.  This approach creates an environment for FinTech companies to experiment and innovate, while containing the impact of failed experiments. 
• New Bank Negara Governor Datuk Muhammad Ibrahim has stated his support for the adoption of financial technology.  In his keynote speech during the Global Islamic Forum 5.0, the new governor called for all Islamic finance sectors to embrace FinTech, as it is currently challenging the status quo of the financial industry.  Governor Ibrahim also stated that FinTech is not without potential risks, and Bank Negara is currently reviewing the changes that need to be made to its regulatory framework in order to ensure that it is able to manage risks while being able to encourage productive innovation.
• The OJK has recently published the English version of their Master Plan of Indonesian Financial Service, outlining development objectives through 2019.  In addition to optimizing the supporting role of the financial services sector in accelerating national economic growth, the OJK hopes to improve financial system stability and create financial independence.

Advocacy

On May 13, members met with Eugene Wong from the Securities Commission of Malaysia, who also chairs the ASEAN Capital Markets Forum (ACMF) Deputies Committee.  The meeting was held to explore the potential for deepening engagement between the Financial Services Committee and the ACMF.  The Committee agreed with the ACMF to develop a plan for collaboration on the ASEAN Trading Link, Collective Investment Scheme, and cross-border fundraising.

Looking Ahead
 
On June 16, there will be a Council members’ meeting with Bank Negara Malaysia's recently established FinTech Enabler Group (FTEG). The FTEG is responsible for formulating and enhancing regulatory policies to facilitate the adoption of FinTech innovations within the financial services industry. For more information, please contact Ezani Mansor at emansor@usasean.org or Shay Wester at swester@usasean.org. 

View the Council's latest Financial Services updates

Food & Agriculture

Major Developments
   
Advocacy
 

 
Looking Ahead
 
In July, the Council will be organizing a roundtable discussion between the private sector, Coordinating Ministry of Economic Affairs (CMEA), Ministry of Trade (MOT), and other key ministries and agencies, as part of a follow up action item from the 2016 Food & Agriculture (F&A) Industry Mission to Indonesia.

View the Council's latest Food & Agriculture updates

Health & Life Sciences

Major Developments
     
Looking Ahead

• On June 21, the Council is planning a Health & Life Sciences Industry Mission to Vietnam.  The first Joint Working Group Meeting called for under the Council’s Memorandum of Understanding with the Ministry of Health will be scheduled during this mission.
• The Council is planning to hold a Health & Life Sciences Industry Mission to Indonesia in Q3 of this year.  Further information will be provided soon. 

View the Council's latest Health & Life Sciences updates

ICT

Major Developments

• Vietnam’s Ministry of Information and Communication (MIC) has fast tracked two draft decrees that will implement the Law on Network Information Security (signed November 2015).  The decrees cover the Issuance of Business Licenses for Information Security Products and Services and Security Categorization of Information Systems.  Both decrees are officially open for public comment until mid-July, despite being fast tracked.
• On April 26, Thailand’s National Assembly approved amendments to the Computer Crime law.  The law grants more government control over content on blogs, websites and social media platforms.  More information with a link to an unofficial English translation of the amendments can be found here.
• Indonesia’s Ministry of Trade (MOT) has signed the third amendment to MOT Regulation 82/2012, regarding local content provisions for LTE devices.  This means that MOT 41/2016 is now an official regulation and will go into effect on July 1.  The final regulation is largely the same as the previous draft we have seen, except for the removal of some labeling requirements.
• The Government of Malaysia is considering new tax policies for online businesses to generate additional tax revenues.  Online based businesses in Malaysia would be taxed the same as conventional businesses beginning next year, according to the Inland Revenue Board (IRB).  For companies carrying out online businesses, the rate imposed will be between 19 percent and 24 percent—consistent with the tax rate for conventional businesses.
• On April 29, Indonesia's Ministry of Communication and Information Technology (Kominfo) released a draft regulation regarding the provision of internet-based applications and/or content.  The draft regulation requires foreign over-the-top (OTT) mobile service providers to register as permanent Indonesian business units and also includes requirements for OTT providers to partner with telecommunications providers.
• After 15 years since the first Department of Information and Communications Technology (DICT) bill was filed in the Philippines’ Congress, the proposed government department has finally been signed into law by President Aquino on May 23.  The Information and Communications Technology Office (ICTO); National Computer Center (NCC); National Computer Institute (NCI); Telecommunications Office (TELOF); National Telecommunications Training Institute (NTTI); and all operating units of the Department of Transportation and Communications (DOTC) with functions and responsibilities dealing with communications will now be covered by the new DICT.

 Advocacy

• The Council submitted a letter to Vietnam’s Ministry of Information and Communications (MIC) asking them to honor the full 60-day comment period for their draft decrees to implement the Law on Network Information Security.   Unfortunately, the drafts have since been approved by the Ministry of Justice and now sit with the Prime Minister’s office.  The Council quickly submitted the following preliminary comments to Minister Tuan of MIC and Minister Dung, Minister and Head of the Government Office regarding the decree on business licensing.
• Vietnam’s Ministry of Defense’s Government Committee on Cipher (GCC) has been working on a draft decree to implement the Law on Network Information Security.  On May 31, the Council met with GCC to discuss implementation of the law.  Notes from the meeting can be found here.  GCC has shared two appendices to their decree (Appendix 1 | Appendix 2), but the draft of the decree itself has not been provided.
• Indonesia’s MOT has circulated a draft regulation regarding e-commerce.  The draft is open for public comment until Friday, June 17 and the Council has submitted an extension request until July 15.  Please submit any input on the draft to Kim Yaeger at kyaeger@usasean.org and Matt Solomon at msolomon@usasean.org.
• In response to Indonesia’s draft OTT regulation, the Council:
  • Held a joint meeting with DG Geryantika and BRTI on May 18
  • Held an industry meeting to update, and discuss possible solutions with USTR, State and Commerce on May 19
  • Attended a public consultation hosted by Kominfo on May 24
  • Attended an industry meeting with Ambassador Budi Bowoleksono on May 26 to brief him and his team on the issue
  • Submitted joint comments to Kominfo on May 26
  • Comments from the U.S. government were also sent to Kominfo.

Looking Ahead
 

• The 57-member China-backed Asian Infrastructure Investment Bank (AIIB) started operations in January under the leadership of former Chinese Finance Minister, Mr. Jin Liqun. Mr. Jin was appointed as President for a five-year term, and his official biography can be found here. China is the largest stakeholder of the AIIB with 26.06 per cent voting shares. India is the second-largest with 7.5 percent, followed by Russia 5.93 percent and Germany 4.5 percent.
• While the AIIB initially met with international skepticism, given China's geopolitical position in the region, its willingness to capitalize on high-risk and low-return infrastructure ventures has proven to be increasingly accepted and welcomed especially by the US Treasury, which announced it as a 'constructive addition' to the international economy. The success of the AIIB, however, remains to be seen as infrastructure financing demands a long gestation period to bear fruit.
• According to Singapore’s Institute of Southeast Asian Studies (ISEAS), “China’s management of the AIIB will indicate to Southeast Asia how China exercises its large and still growing power. Whether China will opt for just and benevolent leadership or one exercised with an iron fist will decide the region’s perception of China. In addition, the U.S. decision to stay out of the AIIB gives ASEAN pause to contemplate U.S. commitment to its rebalancing strategy.”  To learn more about key developments in the AIIB since January, read our latest infrastructure update here

Looking Ahead

• The Council’s inaugural Energy and Infrastructure Industry Mission to Malaysia will take place on July 28.  This one-day event will take place in Kuala Lumpur, and offer members an opportunity to engage key public and private sector stakeholders which make up Malaysia's energy and infrastructure ecosystem.  Click here to register for the mission. For more information, contact Sunita Kapoor at skapoor@usasean.org and Jack Myint at jmyint@usasean.org.
• 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 both 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
 

View the Council's latest Brunei updates

Cambodia

Major Developments
 
The World Bank’s Executive Board of Directors re-introduced direct financing programs for Cambodia in its 2016-2017 Country Engagement Note to help the country reach its developmental goal of reducing poverty by one percentage point annually.  This comes after a five-year funding freeze in 2011, in which the Bank’s engagement in the country was limited to fund disbursement under pre-existing projects.  Executives reached the decision after consultation with leadership from national and local governments, private sector stakeholders, academia, and development partners.  This re-entry into the country is focused on four main projects which strive to bring tangible improvements to the lives of everyday Cambodians.  They include: making high quality healthcare more affordable and accessible, establishing more reliable water sources, building resilient and sustainable roads, and allocating land for social and economic development through agricultural extension.  These projects will be jointly financed by the national government, various international donors, and the World Bank amounting to $130 million worth of loans that will be repaid within a 25 to 40-year time frame.  The success of these projects may signal to the international community how Cambodia has taken ambitious measures to become a more viable and competitive developing economy.

Looking Ahead

The Council’s annual Business Mission to Cambodia will take place in Phnom Penh on July 25-26. To register, please click here.  This year, the following overarching themes will be used to frame industry and company-specific messages and policy advocacy priorities:

• Seeking greater understanding of the challenges and opportunities facing Cambodia following the formation of the ASEAN Economic Community.
• Supporting and encouraging the Government of Cambodia to implement better governance and transparency
• Supporting capacity building efforts, including human resource development, CSR, SME training, youth leadership and cultural exchange programs.

 
If you have any questions, please contact Jack Myint at jmyint@usasean.org. 

View the Council's latest Cambodia updates

Indonesia

Major Developments

• On May 24, Indonesia released revisions to its Negative Investment List (DNI) via Presidential regulation No. 44 of 2016.  The DNI is a list of business fields which are closed or conditionally open to foreign investment.  The 2016 DNI is available in Bahasa.  The government had previously made an announcement about revisions to the DNI as part of the 10^th economic stimulus package released earlier this year (analysis here), and in keeping with the earlier announcement, restrictions on foreign ownership were generally scaled back in most sectors compared to the 2014 version of the DNI.  New sub-business fields were also created in a variety of sectors.  To read more about the DNI, please click here.
• On May 25, the Council convened a multi-stakeholder forum on Human Capital Development in Indonesia.  The forum brought together 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 day’s discussion delivered a clarion call for enhanced public private collaboration for workforce and human capital development. To read the press release, please click here.
• The Financial Service Authority of Indonesia (OJK) has recently published the English version of their Master Plan of Indonesian Financial Service, outlining development objectives through 2019.  In addition to optimizing the supporting role of the financial services sector in accelerating national economic growth, the OJK hopes to improve financial system stability and create financial independence.

Advocacy

• On May 24 the Council attended a public hearing on draft regulation issued by Ministry of ICT (kominfo) regarding the provision of internet-based applications and/or content (“OTT”) held at the Ministry of ICT and hosted by commissioners from BRTI (the telecommunications regulator).  On May 26, input on this draft regulation was submitted jointly by the Council, along with AmCham Indonesia, the Software Alliance (BSA), and the U.S. Chamber of Commerce.  The Council is monitoring the response from MCIT.
• In May, the Indonesian Ministry of Religious Affairs (MoRA) released an updated draft implementation regulation on Law No. 33/2014 on Halal Products Assurance (“Halal Law”).  The Council attended a meeting with the Ministry of Religious Affairs on Thursday, June 2 as well as a coordination meeting on June 7 hosted by the EuroCham and attended by international joint chambers, embassies and associations.  The Council is currently receiving input from members and planning next steps.  For more information, please contact Desi Indrimayutri or Hai Pham.
• The Ministry of Trade (MOT) has circulated a draft regulation regarding e-commerce.  The draft is open for public comment until Friday, June 17.  The Council is requesting an extension, but in the meantime please submit input to Kim Yaeger at kyaeger@usasean.org and Matt Solomon at msolomon@usasean.org.

Looking Ahead

• On June 15, the Council hosted a direct video conference (DVC) with Mastel- the Indonesia ICT Association.  The DVC focused on internet regulation.  For more information, please contact Kim Yaeger at kyaeger@usasean.org
• On June 27, the Indonesian Consulate General in San Francisco will host a Business Roundtable with H.E. Franky Sibarani, Chairman of the Indonesian Investment Coordinating Board (BKPM).  For more information, please click here.

View the Council's latest Indonesia updates

Laos

Major Developments

During the 22nd International Conference on The Future of Asia, Minister of Industry and Commerce Khemmani Pholsena recently endorsed region-wide free trade, stating that it would benefit Asia by expanding market access, promoting specialization and expanding economies of scale.  Prime Minister Thongloun Sisoulith has also recently expressed support for the TPP, in an interview with Nikkei.  He shared that Laos is considering joining the TPP, and is even “conducting a study with interest” to analyze the potential benefits that TPP can bring for the country.

View the Council's latest Laos updates

Malaysia

Major Developments

• Malaysia was the first among ASEAN countries and the fifth in Asia to ratify the International Labor Convention on minimum wage.  This Convention is an international instrument which outlines the method of determining the minimum wage and related matters.  Minimum wage has been in place in Malaysia since 2013.  The move, a part of Malaysia’s efforts to implement the Trans Pacific Partnership (TPP), will strengthen existing measures on minimum wage.
• The Government of Malaysia is considering new tax policies for online businesses to generate additional tax revenues.  Online based business in Malaysia would be taxed the same as conventional businesses beginning next year, according to the Inland Revenue Board (IRB).  For companies carrying out online businesses, the rate imposed will be between 19 percent and 24 percent—consistent with the tax rate for conventional businesses.  Guidelines for taxing electronic commerce were approved by the Malaysian tax authority in 2013 and they are just now looking to implement.
• Datuk Seri Abdul Wahid Omar & Tan Sri Dr. Rebecca Fatima Sta. Maria, two key figures in Malaysian Economics are leaving their posts.  Datuk Seri Abdul Wahid Omar’s will end tenure as Senator and Minister in the Prime Minister’s Department on June 4th, and Tan Sri Dr. Rebecca Fatima Sta. Maria will be retiring from her role as Secretary General of the Ministry of International Trade and Industry.  The Council and AmCham Malaysia hosted a farewell dinner in Dr. Rebecca’s honor on June 14.
• The Council will met with Bank Negara’s recently established FinTech Enabler Group (FTEG) on June 16.  The FTEG is responsible for formulating and enhancing regulatory policies to facilitate the adoption of FinTech innovations within the financial services industry.
• The Council’s inaugural Energy and Infrastructure Industry Mission to Malaysia will take place on July 28.  This one-day event will take place in Kuala Lumpur, and offer members an opportunity to engage key public and private sector stakeholders which make up Malaysia's energy and infrastructure ecosystem.  Click here to register for the mission. For more information, contact Sunita Kapoor at skapoor@usasean.org and Jack Myint at jmyint@usasean.org.      

View the Council's latest Malaysia updates

Myanmar

Major Developments

• On May 26 the Council co-hosted a briefing with senior U.S. government officials to discuss the recent changes to the Myanmar sanctions regime (for more information on the new sanctions policies, view our recent update here), featuring DAS Patrick Murphy, DAS Andrew Keller, and Michael Mosier (OFAC).
• The Myanmar Investment Commission (MIC) was reshuffled on June 7 to add eleven new members.  Minister of National Planning and Finance U Kyaw Win was appointed chairman, and Minister of Commerce U Than Myint was appointed vice chairman.  The re-organized MIC faces a backlog of investment applications—more than one hundred since April, including $2.3 billion in proposed foreign investment projects.  Projects already approved by MIC will go forward as planned.

Looking Ahead

• On June 16, the Council hosted a roundtable in Washington, DC with the U.S. Chamber of Commerce, featuring Manoj Desai, Senior Commercial Officer, U.S. Embassy in Yangon.
• The Council is an official supporting organization for the Economist’s Myanmar Summit, which took place in Yangon on June 16. 

View the Council's latest Myanmar updates

Philippines

Major Developments

• On May 12, President-elect Rodrigo Duterte’s transition team released his eight-point economic agenda.  During the campaign, Duterte focused largely on crime and safety issues, so the agenda gives the clearest glimpse thus far into his economic priorities.  Analysis of the eight-point agenda can be found here.
• On June 3, the Philippine Competition Commission published the final version of the Philippine Competition Act's (PCA) implementing rules and regulations (IRR), which will outline the agency’s authority to ensure efficient market competition, protect consumer welfare, and enhance foreign and domestic trade.  More information on the IRR for the PCA, including a link to a copy of the final IRR, can be found here.
• On June 8, local news sources reported that Duterte has secured a “supermajority” of support in both the House of Representatives and the Senate.  On top of a clear win in the May 9 presidential election, solid support in Congress will give him increased leverage to pursue his legislative agenda.  More information on how Duterte and his Partido Demokratiko Pilipino-Lakas ng Bayan (PDP-Laban) have consolidated support in the Congress can be found here.

Advocacy
  Looking Ahead

• On May 3, the Monetary Authority of Singapore (MAS) took another step towards its goal of promoting Singapore as a financial technology (FinTech) hub by announcing that it was partnering with the National Research Foundation (NRF) to establish a FinTech Office.  The main purpose of the FinTech Office will be to coordinate efforts from across the government to foster a vibrant FinTech ecosystem in Singapore and work towards realizing MAS’ goal of creating a Smart Financial Centre.  More information on the FinTech Office and the Singapore government’s other efforts to build up the country’s FinTech sector can be found here.
• On May 18, the Council released the report for its 2016 Singapore Business Mission.  The business mission notes and photos can be found here.
• Over the course of the 2016 fiscal year, the Singapore government plans to call up to SGD2.82 billion (USD2.05 billion) of Information and Communications Technology (ICT) tenders.  Most of this spending reportedly will go towards infrastructure-related projects to support the Digital Government goal of its Smart Nation Initiative as well as increase both the number and capacity of its data centers, the latter of which will strengthen Singapore’s role as a regional data center hub.  More information on the planned increased in ICT infrastructure spending can be found here.

Advocacy

• After a period of sluggish growth, Thailand’s GDP expanded by 3.2 percent in the first quarter of 2016 compared to the year before, the highest boost in three years.  Growth exceeded analysts’ prediction of 2.8 percent growth.  Deputy Prime Minister Somkid Jatusripitak said that the figures “show that the Thai economy has recovered,” and “will be a turning point for confidence toward Thailand.”  For more information, see our recent update here.
• Thailand continued to nurture homegrown high-tech innovation, including through a new $570 million startup fund, while the Ministry of Finance will offer a ten-year tax exemption on capital gains and dividends for venture capital and private equity funds, as well as for their individual investors.
• On April 26, Thailand’s National Assembly approved amendments to the Computer Crime law.  The law grants more government control over content on blogs, websites and social media platforms.
• In order to oversee these different elements of Digital Economy development, the Thai National Legislative Assembly has unanimously voted in favor of the creation of a new Ministry of Digital Economy and Society, the first new ministry in ten years.  The Council will continue to monitor the formation of the ministry as its mandate—especially in relation to the ICT Ministry—comes into clearer focus.

Looking Ahead

The 2016 Thailand Business Mission will take place in Bangkok on July 21-22.  Registration is now open.  This year’s mission to Bangkok is timely for a number of reasons.  The Ministries are pushing forward with economic reforms that are of specific and direct interest to the business community, and the Cabinet leaders are seeking engagement with companies to best understand how these proposed reforms will impact the business environment in Thailand.  Please contact Matt Solomon at msolomon@usasean.org with any questions.
 
The public referendum on Thailand’s new Constitution is scheduled for August 7.

View the Council's latest Thailand updates

Vietnam

Major Developments  
Advocacy

• The Council submitted a letter to Vietnam’s Ministry of Information and Communications (MIC) asking them to honor the full 60-day comment period for their draft decrees to implement the Law on Network Information Security.   The drafts have since been approved by the Ministry of Justice and now sit with the Prime Minister’s office.  The Council quickly submitted the following preliminary comments to Minister Tuan of MIC and Minister Dung, Minister and Head of the Government Office regarding the decree on business licensing.
• Last month, the Vietnamese Ministry of Agriculture and Rural Development (MARD) signed off on Circular 06 to replace Circular 81 on antibiotics in animal feed.  The new Circular 06 includes guidelines and approval list of growth promotion antibiotics dosage in animal feed, effective July 15.  The Council is planning to meet with MARD Minister Phat to raise concerns about the new circular before it takes effect.
• On the occasion of President Obama’s visit to Vietnam, the Council organized a mission to Vietnam to meet with the country’s new leaders.  During the mission, the Council held bilateral meetings with Prime Minister H.E. Nguyen Xuan Phuc and H.E. Dr. Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI).  Council delegation included Keith Williams, Chairman of USABC and President & CEO of UL, Alexander C. Feldman, President & CEO of USABC, Ambassador Michael Michalak, Senior Vice President and Regional Managing Director of USABC, and Wouter Van Wersh, Chair of the Council’s Vietnam Committee and President & CEO of GE, ASEAN.

Looking Ahead

• On June 21, the Council is planning a Health & Life Sciences Industry Mission to Vietnam.  The first Joint Working Group Meeting called for under the Council’s Memorandum of Understanding with the Ministry of Health will be scheduled during this mission.  To indicate interest in participating in this mission, please contact Hai Pham at hpham@usasean.org
• In May, the U.S. Senate passed the vote to scrap the catfish regulations issued by the U.S. Department of Agriculture (USDA) in December 2015 for foreign supplies, including Vietnam which is the main exporter of catfish to the U.S. The bill has now been sent to the House of Representatives for approval before President Obama signs on. 

View the Council's latest Vietnam updates