August 2016

Greetings from Washington, D.C.!

The Council’s lively summer has continued, with business missions to Thailand, Cambodia, and the Philippines, the ASEAN Economic Ministers meetings, the American Innovation Roadshow to Myanmar and a special program here in Washington for Prime Minister of Singapore Lee Hsien Loong as part of the Prime Minister’s official State Visit. Additionally, we said goodbye this week to longtime friend of the Council Ambassador U Kyaw Myo Htut, who is moving on after three years as Myanmar Ambassador to the United States.

Up next, on August 24-26, the Council will be taking its largest delegation this year to engage the new Government of Vietnam during its annual Senior Executives Business Mission to Vietnam. In September, the Council will participate in the ASEAN Business and Investment Summit in Laos, which will coincide with President Obama’s visit to the East Asia Summit, where will be the first sitting U.S. President in history to visit Laos. We will also engage the ASEAN Capitol Market Forum and the Energy Ministers in September.  Additionally, we are keeping a close eye on delegations traveling to the U.N. General Assembly, and will provide information soon on possibilities for engagement.

HIGHLIGHTS

Advocacy

• The Philippines Optical Media Board (OMB) final licensing and registration requirements were announced on June 28 for importers of optical media devices, including the hard disk drives (HDDs), and went into force in mid-July.  This time frame did not allow many legitimate importers sufficient time to obtain licenses, causing delays and disruption of commercial activities.  The Council used its recent business mission to the Philippines to advocate that the Customs Department delay enforcement of the new requirements to enable importers to obtain licenses and release existing shipments of such equipment currently being held in ports.
• On July 28, Indonesia’s House of Representatives (DPR) passed the Law on Patents.  The law will govern patent rights across a wide range of industries in Indonesia, including biotechnology, pharmaceuticals, agriculture and food, defense, chemicals and the ICT industry.  The law includes several provisions which investors have noted are potentially damaging to Indonesia’s ability to attract FDI in Intellectual Property Rights (IPR) sensitive industries.  Most notably, it includes granting the government broader legal authority to exercise control over patent rights via the use of compulsory licenses in situations involving national security and the needs of the Indonesian people.  The Council convened a meeting with a group of members to obtain their thoughts on how to develop an advocacy strategy with the GOI as they begin to create the IPRs for the law.  In addition, the Council published an Analytical Update on the law and will add it to our list of agenda items for the 2016 Business mission to Indonesia in mid-October.

Intelligence

• The Council’s Indonesia team examined the recent cabinet reshuffle. Please click here for the full update.
• The Council’s Myanmar team took a look at the long-awaited release of the NLD government’s economic policy. Click here for the full update.
• Our Thailand team discussed the successful referendum on Thailand’s new constitution. Read the full update here.

Promotion

• The Council worked with the U.S. Department of State to organize the American Innovation Roadshow to Myanmar August 8 and 9, co-led by Assistant Secretary of State Charles Rivkin and me. The Innovation roadshow showcased how American companies can support Myanmar’s development. More info on the Innovation Roadshow program is available here.
• The Council is a supporting partner for Get Global 2016 in Los Angeles October 20 and 21. Council Members are entitled to a 25 percent discount with the code “USABC”. Please click here for more info.

Relationship Building

Please save the date for the following Business Missions:

• August 31: Health & Life Sciences Industry Mission to Indonesia
• September 8: Delegation to ASEAN Capitol Market Forum
• September 20-22:  Mission to the ASEAN Ministers of Energy Meeting (Myanmar)
• October 3-7:  Mission to the ASEAN Ministers of Agriculture and Forestry (Singapore)
• October 17: Annual Business Mission to the ASEAN Secretariat
• October 18-20: Annual Business Mission to Indonesia
• October 24: Annual Business Mission to Brunei

MEMBERSHIP

We are pleased to welcome our newest member, Tyson Foods, to the Council.  Headquartered in Springdale, AR, Tyson has joined us at the Corporate Level.

This brings our current membership to 154 total members, with 74 Chairman’s members and 80 Corporate.

REGIONAL HIGHLIGHTS

TPP

In the first half of August, the Obama Administration submitted to Congress a procedural notification letter on the TPP, a requirement under the Trade Promotion Authority (TPA) law.  The Council continues to support the efforts of the TPP Business Coalition and have amplified the Coalition’s dissemination of pro-TPP messages by placing video speeches by the CEOs of Qualcomm and UPS on the Council’s social media platforms and website.

View the Council's latest TPP updates

APEC

Major Developments

Vietnam’s Minister of Health will engage U.S. companies in Lima, Peru at the 6th APEC High Level Meeting on Health and the Economy in August.  The Council has an MOU with Vietnam’s Ministry of Health, which serves as a platform for the Council’s Health & Life Sciences (HLS) members to engage in discussions on reforms and public-private partnerships.  As the Council prepares to conduct our 2016 Business Mission to Vietnam next week, we hope to include HLS-related advocacy items in the overall mission agenda, including urging the Government of Vietnam to hold the 7th APEC High Level Meeting on Health and the Economy when it hosts APEC in 2017.  Given the growth potential of HLS industries in Vietnam and their inclusion in the TPP, we believe the 2017 APEC Summit could serve as an important and mutually beneficial platform for promoting greater investment in Vietnam.

View the Council's latest APEC updates

ASEAN

Major Developments

The Council participated in the AEM-USTR Dialogue August 4 in Laos as part of our 17^th annual delegation to the ASEAN Economic Ministers Meeting.  During our participation we presented the Council’s annual white paper, the Council’s e-Commerce Report and a preview of the Council’s Data Management Report.  We also brought the ministers up to date on the US-ASEAN Business Alliance for Competitive SMEs.  Please click here to read the US-ASEAN joint statement.

Looking Ahead

The ASEAN Business and Investment Summit will take place September 5-7 in Vientiane, Laos, alongside the East Asia Summit. Please click here for more information.

View the Council's latest ASEAN updates

INDUSTRY HIGHLIGHTS

Customs

Major Developments

• The ASEAN Economic Ministers meeting (AEM), hosted in Vientiane, Laos on August 3, praised the elimination of most of ASEAN’s tariff lines and backed continued efforts to reduce non-tariff barriers.  The ministers issued a joint statement saying there is a need to continue implementing the ASEAN Single Window, ASEAN Trade Repository, ASEAN Self-Certification, and ASEAN Customs Transit to ease non-tariff barriers.  The joint statement can be found here.  The ministers also commended the efforts of the ASEAN member states to prepare for the full operationalization of ASEAN Solutions for Investments, Services and Trade (ASSIST).  Through the portal, the private sector can voice their concerns about trading products in ASEAN.  ASSIST is accessible at this link.
• On June 27, the Philippine Bureau of Customs unveiled a new regulation, Customs Memorandum Order (CMO) No. 17-2016, to implement an electronic Certification of Origin System (eCOS).  The eCOS will first only certify rules of origin under the ASEAN Trade in Goods Agreement.  Implementation of the eCOS for other free trade agreements will be established in a future order. CMO No. 17-2016 can be found at this link.
• Vietnam has announced a new customs reform plan, Decision 1614/QD-BTC, to be implemented from 2016-2020.  The plan aims to modernize Vietnam’s Customs, allowing it to take the lead in providing public services, promoting domestic and foreign relations, and facilitating operations of partners.  Alongside these broader reforms in the Customs Department and Finance Ministry, the Customs Department is also continuing its efforts to develop the Vietnam Single Window and interconnect it with the ASEAN Single Window.

Looking Ahead

• Notes from the Customs Committee’s July 12-13 call, which discussed future engagement opportunities, may be found here.
• The Council’s next customs event will be a workshop with the ASEAN Customs and Trade Facilitation Working Group on September 26 or 30 in Vietnam.  The exact time and location are still to be determined.  Please contact Ian Saccomanno at isaccomanno@usasean.org if you have any initial suggestions.  A full invitation with sponsorship details will be distributed soon.

View the Council's latest Custom updates

Defense & Security

Advocacy

On August 18, the Council hosted its Defense Attaché Speaker Series featuring Rear Admiral Michael McDevitt (Ret.) for a talk titled, “Becoming a Great Maritime Power: A Chinese Dream.”  This presentation addressed Chinese thinking on what a maritime power is, why Beijing wants to become a maritime power, what shortfalls it believes it must address in order to become a maritime power, and when it believes it will become a maritime power.  The presentation looked at the component pieces of China’s maritime power—its navy, coast guard, maritime militia, merchant marine, and shipbuilding and fishing industries.  It also addressed the impact that this would have for U.S. interests.

About the Defense Attach Speaker Series

The Council's Defense Attach Speaker Series provides members with the opportunity to engage in meaningful dialogue on defense and security issues surrounding the region today. Additionally, it provides an excellent networking opportunity by bringing together industry experts from various sectors, including government, business and academia.To learn more, please contact Jack Myint at jmyint@usasean.org.

View the Council's latest Defense & Security updates

Energy

Major Developments

On July 12-15, ASEAN held the Senior Officials Meeting on Energy (SOME) in Nay Pyi Taw, Myanmar.  The U.S. government’s participation in the SOME meeting focused on providing a broad overview of the Energy Connect initiative, focused on integration, harmonization and commercial support. Ambassador Michael Michalak also participated in the SOME with member delegates from Mercer, to update senior officials on the goals and objectives of the Council’s Energy Committee and to promote a Study on Managing Human Capital in ASEAN's Oil & Gas Sector.  The U.S. delegation was the largest U.S. delegation to SOME yet, and it was noticed positively by ASEAN Senior Officials. Click here for more information on the U.S. participation in the SOME.

Looking Ahead

• The Council will hold its Mission to the ASEAN Ministers of Energy Meeting (AMEM) September 20-22 in Nay Pyi Taw, Myanmar.  Members interested in attending this year’s AMEM should contact Riley Smith at rsmith@usasean.org.  A full invitation with details will be distributed soon.
• Leverage International is hosting PowerTrends 2016 September 21-23 in Manila.  First organized in 1995 and co-organized by the Philippine Department of Energy and Leverage International, PowerTrends is the most significant energy event in the Philippines, with top government officials, members of the diplomatic community, and international guests from the industry in attendance. To register for PowerTrends 2016, please click here.

View the Council's latest Energy updates

Financial Services

Major Developments

• On August 3, Bank Negara Malaysia (BNM) unveiled stronger corporate governance standards for financial institutions.  The revised standards place a greater emphasis on creating a sounder risk corporate governance culture and address issues arising from larger and more complex modern financial institutions.  They take effect immediately with transition periods granted for some of the standards.  The new standards may be found here.
• On July 27, the Monetary Authority of Singapore (MAS) issued updated Risk Management Guidelines on outsourcing of financial institutions’ operations.  The updated Guidelines consider cloud services operated by service providers as a form of outsourcing and issued guidance for it.  The relevant documents are available here. 
• On July 1, the Government of Vietnam issued Decree No. 73/2016/ND-CP, instructing the implementation of Vietnam's insurance laws.  One of the Decree’s provisions imposes new domestic retention rules for reinsurance, capping foreign reinsurance coverage at a maximum of 90 percent of insurance companies’ total liabilities.  A Vietnamese language version of Decree No. 73/2016/ND-CP is available here.
• Vietnam's commercial banks have started their second phase of restructuring, which will shift the focus from cleaning up bad debts to improving governance and competitiveness between 2016-2020.  The first phase, which settled bad debts and merged banks, helped lower the bad debt ratio to 2.7 percent by the end of 2015, though trouble in some banks remains.  The second phase of the restructuring process entails improving and expanding the financial capacity and operational efficiency of banks, as well as encouraging more mergers and acquisitions among weak domestic banks that were not restructured during the first phase. 

Advocacy

• The Council is gathering input for a submission on the Bank Negara Malaysia FinTech Regulatory Sandbox Discussion Paper.  The paper and some background information may be found here.  Please submit your input on the Discussion Paper to Ian Saccomanno at isaccomanno@usasean.org. 
• The Council’s Financial Services Committee is working with the ASEAN Capital Markets Forum (ACMF) to deepen engagement around the development of the ASEAN Trading Link, the Collective Investment Scheme, and cross-border fundraising.  Members may join the ACMF’s annual meeting September 7 and 8 in Jakarta to discuss the proposals further.  Please contact Ian Saccomanno at isaccomanno@usasean.org and Shay Wester at swester@usasean.org if you are interested in the project.

View the Council's latest Financial Services updates

Food & Agriculture

Major Developments

Following the recent National Assembly election in Vietnam, H.E. Nguyen Xuan Cuong, former Deputy Minister of Agriculture and Rural Development (MARD) became the new minister of MARD in place of H.E. Cao Duc Phat.  Before his last position at MARD as Deputy Minister, Minister Cuong served as Chairman of Ha Tay province (merged with Hanoi since 2008), Deputy Minister of Natural Resources and Environment, Party Chief of Bac Kan Province, and Vice Head of the Central Economic Committee.  Minister Cuong also has a PhD in Agriculture.  According to Minister Cuong, measures to develop agriculture in Vietnam should be considered in the context of global integration. He has pointed out major shortcomings in the agricultural sector including outdated processing technology in seafood and forestry as well as a backward system of logistics and distribution networks.  The new minister recommends more attention on reviewing policies to encourage efficient production and attract businesses to invest in rural areas.  He also proposes to draft policies focusing on developing a safe agro-forestry-fisheries production value chain and encouraging joint efforts between businesses and local farmers to build a safe farm production supply chain in line with international standards.

Advocacy

The Council hopes to engage Vietnam’s new Minister of Agriculture and Rural Development H.E. Nguyen Xuan Cuong during the upcoming Vietnam Business Mission August 24-26.  We will address the issue of antimicrobial resistance and the management of antibiotics in commercial animal feed.  We will reiterate the importance of adopting and implementing a science-based risk analysis process to address antimicrobial resistance, and outline a range of key recommendations for consideration such as developing a technical document addressing antibiotics for therapeutic use in commercial animal feed and augmenting the list of antibiotics for growth promotion.  Going forward, the Council will be pleased to convene a workshop to review the U.S. approach on the classification of medically important and not medically important antibiotics, and the corresponding permitted usages. Please contact Hai Pham at hpham@usasean.org with any questions.

Looking Ahead

• In October, the Council will organize a Business Mission to the 38^th ASEAN Ministerial Meeting on Agriculture and Forestry (AMAF).  More detailed registration information and updates are forthcoming. Please contact Sunita Kapoor at skapoor@usasean.org or Hai Pham at hpham@usasean.org with any questions.
• The Council is planning its second Food & Agriculture Industry Mission to Myanmar in September.  More details will follow.

View the Council's latest Food & Agriculture updates

Health & Life Sciences                            

Major Developments

President Joko Widodo of Indonesia recently signed the President Directive No. 6 of 2016 that instructs the formulation of policies to boost the competitiveness of the domestic pharmaceuticals and medical-equipment industries.  The President Directive is addressed to nine Ministers and three Head-of-Government Institutions, and is aimed at developing standards and increasing the quantity of local pharmaceutical and medical-equipment companies while decreasing reliance on imported medical goods, aligning with the government’s goal to provide universal healthcare coverage by 2019.  President Jokowi has laid out strategies, including making pharmaceutical products and medical equipment more readily available, calling for support of the National Public Health Insurance Program (JKN), encouraging the use of technologies and innovation, expediting domestic production of medical ingredients, and decreasing reliance on imported raw materials.  In particular, the President has instructed the Ministry of Health to formulate an action plan and actively facilitate the development of the biopharmaceuticals, vaccines, natural ingredients, active pharmaceutical ingredients, chemical ingredients, and the medical equipment industry.  The development of integrated data and information systems and the expansion of the Social Assurance Agency (BPJS) are also stated priorities. Currently, the country faces weak healthcare infrastructure, regional disparities in accessibility of services, and a low healthcare budget.

Advocacy

During the Council’s upcoming Health & Life Sciences Mission to Indonesia, members will engage the Ministry of Health and related agencies on advocacy issues including the Halal Law, the new President Directive No. 6, and the new Patent Law. Please contact Hai Pham at hpham@usasean.org with any questions.

Looking Ahead

On August 31, the Council will take a delegation to Jakarta to engage the Indonesian Ministry of Health and related agencies during its inaugural Health & Life Sciences Mission to Indonesia. To register for the mission, please click here.

View the Council's latest Health & Life Sciences updates

ICT

Major Developments

On August 2, a Memorandum of Understanding (MOU) was signed between Singapore and the United States to foster greater collaboration and promote technology partnerships between our companies in third-party markets, at the sidelines of Prime Minister Lee Hsien Loong’s visit to Washington, D.C.  Under the MOU, a Singapore-U.S. Collaboration Platform will be established to focus on opportunities in the infrastructure sector, which includes smart city solutions as well as the digital infrastructure that supports the e-commerce and Financial Technology (FinTech) sectors.

Advocacy

• On July 22, the Council submitted joint comments on the draft Implementing Rules and Regulations for the Philippines’ Data Privacy Act (2012).  The Act seeks to provide protection for sensitive information in both public and private IT systems.  Comments were followed up in a meeting with Department of Information and Communications Technology Secretary Rodolfo Salalima and head of the National Privacy Commission Gamaliel Cordoba, on August 12, during the Council’s Philippines Business Mission.
• On August 4 a Council delegation met with the Vietnam Ministry of Information and Communications and the Government Committee on Cipher under the Ministry of Defense to discuss the current status of implementing decrees drafted by those Ministries.

View the Council's latest ICT updates

Infrastructure

Major Developments

• On July 19, Singapore Prime Minister Lee Hsien Loong and his Malaysian counterpart Prime Minister Najib Razak witnessed the launch of the ambitious Singapore-Malaysia High Speed Railway that aims to integrate both economies more closely.  Both Singapore Coordinating Minister for Infrastructure and Minister for Transport Khaw Boon Wan and Malaysian Minister in the Prime Minister's Department Abdul Rahman Dahlan signed the Memorandum of Understanding (MOU).  The 350-kilometer bullet-train line from the regional financial hub of Singapore to Malaysia's capital city of Kuala Lumpur is expected to significantly reduce the traveling time from an initial five to six hours to a mere 90 minutes.  Further statements have revealed that 335 kilometers of the rail line will be built in Malaysia while 15 kilometers will rest in Singapore's territory. The customs, immigration and quarantine facilities will be located in Jurong East (Singapore), Iskandar Puteri (Johor Bahru, Malaysia) and Kuala Lumpur.  Initially proposed in 2013, the MOU details key agreement points including technical parameters, commercial model, customs, immigration and quarantine clearance, safety and security matters, regulatory framework, as well as project management structures.  The rail line is expected to start operations in 2026, a six-year delay from the initial proposed 2020 due to the scale and complexity of the project.
• On August 2, a Memorandum of Understanding (MOU) was signed between Singapore and the United States to foster greater collaboration and promote technology partnerships between our companies in third-party markets, at the sidelines of Prime Minister Lee Hsien Loong’s visit to Washington, D.C.  Under the MOU, a Singapore-U.S. Collaboration Platform will be established to focus on opportunities in the infrastructure sector, which includes smart city solutions as well as the digital infrastructure that supports the e-commerce and Financial Technology (FinTech) sectors. 

Looking Ahead

The Asian Development Bank Transport Forum will take place in Manila September 12-16.  Asia and the Pacific are pivotal in mainstreaming sustainable transport. Home to a majority of the world's population, the region is facing challenges in poverty, pollution and climate change.  In a bid to address these issues, the theme of this year's forum is “Sustainable Transport for All” - how to make transport available for everyone in Asia and the Pacific, and how to make it affordable, accessible and green.  Expected participants for the forum will include leaders, senior officials and managers from the transport and international development sector, government officials from ADB's developing member countries, as well as relevant private sector agencies. For more information, please click here.  A registration link for the event can be accessed here.

View the Council's latest Infrastructure updates

COUNTRY HIGHLIGHTS

Brunei

Major Developments

Brunei will be the first ASEAN country to introduce a collateral registry system.  Registered users such as financial institutions and other agencies will be able to use the online registry to view information on debtors, secured parties and collateral.  According to the central bank, Autoriti Monetari Brunei Darussalam (AMBD), this will reduce the risk of offering credit and the cost of obtaining a loan.  In particular, ease of securing loans for SMEs will be improved, as companies will be able to secure their assets against their loans to the bank.  AMBD also hopes the CSR will improve Brunei’s Ease of Doing Business ranking (currently 84 out of 189 economies).

View the Council's latest Brunei updates

Cambodia

Major Developments

Cambodia’s information and communications technology (ICT) sector is receiving an encouraging boost with the retooling of the ICT Federation of Cambodia, a partner of the government focused on sector development and policy making.  The growing industry is estimated to bring 30,000 new jobs and is valued at $800 million.  Specific engagement opportunities include ICT capacity building, data and research center development, STEM educational initiatives, and enhancing industry competitiveness to global standards. E-commerce, with a growing middle class in the country, is beginning to take form.  Mobile phone and smartphone use in the country is also gaining traction, despite only three of the six major telecommunications operators in the country (Smart, Viettel and Cam GSM) having the capacity of 4G service in primarily centralized commercial areas.  The upward path of the ICT sector in Cambodia is one that is running parallel to the global tech surge, and indications of private and public sector coordination towards market development is a good sign.

Advocacy

The Council’s annual Business Mission to Cambodia took place in Phnom Penh on July 25-26.  The delegation met with the Prime Minister, the Ministry of Commerce, Ministry of Economy and Finance, Council for the Development of Cambodia, Ministry of Health, Ministry of Mines and Energy, Ministry of Posts and Telecommunication, Ministry of Public Works and Transport, Ministry of Education, Youth and Sports, the National Bank of Cambodia, in addition to prominent local and international institutions.

Please contact Jack Myint at jmyint@usasean.org with any questions.

View the Council's latest Cambodia updates

Indonesia

Major Developments

• On July 27, President Jokowi announced an overhaul of his cabinet in an attempt to enhance its effectiveness and boost efforts to stimulate economic growth.  The second reformation of the cabinet since the beginning of his administration, this overhaul appoints members of the Golkar and PAN political parties into the cabinet after they joined Jokowi’s coalition earlier this year and adds several experienced technocrats, including Sri Mulyani Indrawati.  The Council’s commentary on the reshuffle can be found here.
• On August 5, the Central Statistics Agency announced that Indonesia's economy grew at a stronger-than-expected rate of 5.18 percent (y/y) in the second quarter of this year.  This represents a promising increase from 4.92 percent in the first quarter.  As government spending increases, the Bank of Indonesia expects to see the country's economy grow by 5.2 percent in 2016 and yield another decent result in the third quarter.  Though the uptick in growth is positive, the Finance Ministry has also recently lowered its 2017 GDP forecast from 5.3-5.9 percent to 5.3-5.6 percent.
• On July 15, the Indonesian Ministry of Finance released Regulation No. 118/PMK.03/2016 to implement Law No. 11 of 2016 on the Tax Amnesty.  This implementing regulation sets forth the procedures for obtaining an amnesty, including the official forms and documents that must be submitted.  This regulation also entered into force on July 15.

Advocacy

On July 28, the House of Representatives of Indonesia (DPR) passed the Law on Patents with the support of all parties.  The law appears to have changed little from earlier drafts, despite public feedback, and include provisions on local manufacturing and compulsory licensing that worry investors.  The new law replaces Law No. 14 of 2001 on Patents.  The law can be found here and explanations can be found here.  The Council is exploring avenues to engage the government on the development of the implementing regulations.

Looking Ahead

The Council’s Indonesia Business Mission will take place in Jakarta October 18-20. A full invitation will be distributed in late August. Please contact Ian Saccomanno at isaccomanno@usasean.org or Desi Indrimayutri at desi@usasean.org with any questions or comments.

View the Council's latest Indonesia updates

Laos

Major Developments

Laos has chaired a number of ASEAN meetings in the last month, playing host to the ASEAN Foreign Ministers’ Meeting (AMM), the ASEAN Plus Three Foreign Ministers’ Meeting (APT FMM), the East Asia Summit Foreign Ministers Meeting (EAS FMM) and the ASEAN Regional Forum (ARF) July 21-26, which was then followed by the ASEAN Economic Ministers’ Meeting August 3-5.  Laos also hosted the 30th ASEAN Free Trade Area (AFTA) Council and 19th ASEAN Investment Area Council Meeting August 3-7.

Looking Ahead

• Laos will host the ASEAN Summit and East Asia Summit next month (September 6-8), including visits from U.S. President Obama and Indian Prime Minister Narendra Modi. President Obama will be the first sitting U.S. president to visit Laos.
• Laos will also host the ASEAN Business and Investment Summit September 5-7 in Vientiane.

View the Council's latest Laos updates

Malaysia

Major Developments

In August, Malaysia’s National Security Act 2016 (Act 776) came into effect.  The Act grants new powers to the National Security Council, which is chaired by the Prime Minister, including the power to take charge of security forces and declare security areas for up to six months within which authorities can arrest, search or seize without warrants.  In response, human right activists have questioned what will constitute a threat to national security or justify the declaration of a security area, under the new Act.  Prime Minister Najib has defended the law stating that it is needed in order to combat terrorism.

Advocacy

On July 29, Bank Negara Malaysia released its Regulatory Sandbox Discussion Paper for public comments.  The Sandbox will allow financial institutions and startups to experiment with fintech solutions, subject to certain safeguards and regulatory requirements.  It is part of BNM's plan to promote financial technology innovation.  The Council's Financial Services Committee plans to submit a response to the paper, as part of our wider strategy to engage BNM and the Financial Technology Enabling Group on digital finance development.  Please submit any input to Ian Saccomanno at isaccomanno@usasean.org.

Looking Ahead

The Council met with Malaysia’s Minister of Communications and Multimedia (KKMM) Datuk Seri Salleh Said Keruak August 18 to discuss concerns regarding the anticipated amendments to the Communications and Multimedia Act, as a follow-up to the May 12 briefing by the Minister hosted by the Asian Strategy & Leadership Institute (ASLI).

View the Council's latest Malaysia updates

Myanmar

Major Developments

The National League for Democracy’s (NLD) long-awaited detailed economic policy was released on July 29 in a 12-point overview document.  While the document does not offer any concrete plans or timeline for implementation, it lays out priority issues for the new government, such as transparent fiscal management, infrastructure development, tax reform and job creation.  For more information, see our recent update here.

Advocacy

On August 8-9, the Council and the U.S. Department of State co-organized the American Innovation Roadshow to Myanmar.  The Roadshow was co-led by Assistant Secretary of State Charles Rivkin and me. The delegation met with a range of government and private sector stakeholders to identify opportunities for increased economic ties between the United States and Myanmar.  In Yangon, the delegation met with the Yangon Region Chief Minister, the Joint Secretary of the Directorate of Investment and Company Administration and representatives from the Union of Myanmar Federation of Chambers of Commerce and Industry, and heard pitches from applicants for Myanmar’s first startup incubator at tech hub Phandeeyar.  The group was hosted at a reception by U.S. Ambassador to Myanmar Scot Marciel.  In Naypyitaw, the delegation met with the Ministers of Commerce, Construction, Electric Power and Energy, and Transport and Communications.

Looking Ahead

• State Counsellor and Foreign Minister Daw Aung San Suu Kyi accepted an invitation from President Obama to visit the United States before his presidency ends. Daw Aung San Suu Kyi’s spokesperson U Zaw Htay has confirmed that her visit will be planned to coincide with the 71st session of the UN General Assembly in New York.  This will be her first official visit to the United States since the National League for Democracy won a landslide election in November 2015.
• On July 18, U Aung Lynn was appointed the new Ambassador of Myanmar to the United States.  He most recently served as Permanent Secretary of the Ministry of Foreign Affairs.  Outgoing Ambassador H.E. U Kyaw Myo Htut was feted by the Council on August 18 at a luncheon in Washington, DC.  He had served since December 2013.

View the Council's latest Myanmar updates

Philippines

Major Developments

On July 25, President Rodrigo Duterte gave his first State of the Nation Address (SONA), in which he strengthened his positions against criminality and corruption while also expanding on his Presidential agenda of domestic and international issues facing the country.  Business leaders welcomed the proposal to lower the personal and corporate income tax and relax bank secrecy rules for enhanced transparency.  A full text of the SONA can be found here.

Advocacy

The 2016 Business Mission to the Philippines was held in Manila August 10-12. The business mission presented an opportunity for members to meet officials in the new government and hear about their goals and priorities firsthand.  A full report from the mission will be available in the coming days.

View the Council's latest Philippines updates

Singapore

Major Developments

• On August 1, the Council and the U.S. Chamber of Commerce co-hosted Prime Minister Lee Hsien Loong for a reception in Washington, DC, where he discussed the future of U.S.-Singapore trade relations and the larger implications of the TPP.  Watch video of Prime Minister Lee’s address at the reception.  The event came before the start of his official State Visit on August 2, which marked 50 years of diplomatic relations between the United States and Singapore.  In addition to being the first State Visit by a Singapore Prime Minister in over 30 years, it was also the only State Visit by an ASEAN head of government, thus far, during U.S. President Barack Obama’s time in office.  Prime Minister Lee and President Obama discussed the economic benefits of the TPP during an August 2 press conference, the transcript for which can be found here.  The United States and Singapore also adopted a Joint Statement that affirmed the two countries’ continued commitment to advancing their strategic partnership.  A copy of the Joint Statement can be found here.
• On July 19, Singapore's Coordinating Minister for Infrastructure and Minister for Transport, Khaw Boon Wan, and Malaysian Minister in the Prime Minister's Department, Abdul Rahman Dahlan, signed a Memorandum of Understanding (MOU) to create a Singapore-Malaysia High-Speed Rail (HSR) that aims to better integrate both country’s economies.  The 350-kilometer bullet-train line from the regional financial hub of Singapore to Malaysia's capital city of Kuala Lumpur is expected to reduce travel time from the initial five to six hours travel with traffic to a mere 90 minutes.  The rail line is expected to start operations in 2026, a six-year delay from the initial proposed 2020 due to the scale and complexity of the project.

Advocacy

On August 1, the Council and the U.S. Chamber of Commerce hosted a reception and discussion for Prime Minister Lee Hsien Loong during his official state visit to commemorate 50 years of diplomatic relations between Singapore and the United States.  Prime Minister Lee provided a keynote address to the audience of more than 200 American policymakers and members of the business community, followed by a WEF-style discussion moderated by former U.S. Trade Representative Susan Schwab.  In his remarks, the Prime Minister applauded the growth of Singapore-U.S. economic ties since the 2004 Bilateral Free Trade Agreement, stressed the need for the United States to ratify the Trans-Pacific Partnership, and urged the U.S. to engage with Southeast Asia more broadly. Video from the event can be found here.

Looking Ahead

The Council is hosting IP Week at SG 2016: “Global Symposium on IP-driven Innovation” in Singapore from August 22-24.  Focusing on “Powering the Innovation Cycle through IP,” this year’s anchor event, “Global Symposium on IP-driven Innovation,” will be devoted to the understanding of the new possibilities brought forth by IP as a new asset class and how IP portfolios are being used as a means to produce new innovations.  Members interested should contact Kwang Hwee Seah at kwanghwee.SEAH@iposinternational.com.

View the Council's latest Singapore updates

Thailand

Major Developments

On August 7, Thailand voted definitively to adopt a new constitution, its 20^th in 84 years.  The referendum passed with support from 61.4 percent of voters.  Voter turnout was 59 percent.  A second question on the ballet, on whether the Senate should join the House of Representatives in selecting the Prime Minister, was approved by 58 percent of voters.  Next, a suite of foundational laws will need to be drafted and approved before elections can take place.  These laws relate to the election of parliament, the selection of senators and political parties, among other topics. The promised elections are still expected to take place in 2017. 

Looking Ahead

The Council held its annual business mission to Thailand July 21-22, with 26 leading U.S. companies visiting Bangkok to build on longstanding commercial ties between the two countries.  The delegation was received by Prime Minister General Prayut Chan-o-cha and Deputy Prime Minister Somkid Jatusripitakon, and met with the Ministers of Commerce, Energy, Finance, Foreign Affairs, ICT, Industry, and other senior officials.  For more information, see the press release here.

View the Council's latest Thailand updates

Vietnam

Major Developments

The Ministry of Finance has recently announced the approval of Decision 1614/QD-BTC, a new customs reform plan to be implemented from 2016-2020 which has not yet been released to the public.  According to the government’s online newspaper, the plan aims to modernize Vietnam Customs, allowing it to take the lead in providing public services, facilitating partners’ operations and promoting domestic and foreign relations.  With a view to establishing an incorruptible system equipped with the latest technologies and meeting the requirements set by Vietnam’s international commitments, the plan is composed of three key aspects:

1. Managing and enhancing customs enterprises, organizations and individuals to facilitate international trade
2. Improving customs management by advocating information sharing with domestic and foreign government ministries, agencies and organizations
3. Improving general competence of the customs offices and building e-customs systems.

In addition, the reforms entail revision of customs regulations to ensure compliance with the import and export duty law as well as customs law embedded in free trade agreements signed by Vietnam.Vietnam began its customs development 2016-2020 plan in 2011, and has been working towards a more modernized customs system.Since 2015, its administrative procedures have been improved and contributed positively to the business environment and heightened overall national competitiveness.

Looking Ahead

• On August 24-26, the Council will take a delegation to engage the new Government of Vietnam during its annual Business Mission to Vietnam.
• On September 6, the Council will host Vietnam’s new Minister of Planning and Investment H.E. Nguyen Chi Dung in Washington, D.C., for an exclusive roundtable followed by a public forum. For more details, please contact Hai Pham at hpham@usasean.org.

View the Council's latest Vietnam updates