Amb. Ted Osius
President & CEO
US-ASEAN Business Council
March has been another successful month at the Council.
We just completed our Vietnam Business Mission with 30 member companies in attendance. The mission spanned three full days and included a full hour meeting with the Prime Minister Phuc where each member company on the mission was able to address their issues directly to the Prime Minister. Vietnam remains committed to expanding the overall relationship with the United States especially around trade, investment and the economy.
Our Vietnam mission was followed up by another event in the Council’s stellar SME training program, the US-ASEAN Business Alliance for Competitive SMEs, held this time in Yangon, Myanmar with a focus on Digital Tools for SMEs in the Agriculture and Tourism sectors.
Next week our annual Business Mission to Malaysia will take place March 27-29. We have confirmed a great slate of meetings including a meeting with Prime Minister Najib. The Prime Minister arranged a meeting with us despite the fact that he is hosting President Holland of France during the same period.
The Council’s 17th annual mission to the ASEAN Finance Ministers and Central Bank Governors Meetings will take place on April 6-7 in Cebu, Philippines.
The deadline to be part of the 2nd edition of our important publication ASEAN Matters, a joint effort with the East West Center and ISEAS, is approaching. This partnership will be the main focus of an advocacy campaign on Capitol Hill that will include the launch of the ASEAN Congressional Caucus and several educational events aimed at Hill staffers. ASEAN Matters for America is a vital tool in our advocacy work and is one of the most high profile, often quoted things we do. Companies interested in being involved in this important effort should contact Kathi Lunardi at klunardi@usasean.org to learn about sponsorship options. Sponsorship of ASEAN Matters is one of the best value opportunities we offer our members as our key stakeholders will be using the documents for at least a year and probably more into the future. Exposure is offered for sponsors online, in print and through our events. Please seriously consider supporting this effort.
I also hope that you will keep in mind that our Gala Dinner is schedule for May 25 at the Four Seasons Hotel in Washington, DC. Although I can’t yet reveal the name of our key note speaker, I hope that all of you will be able to join us for the yearly celebration made all the more exciting this year as we celebrate the 50th anniversary of ASEAN and the 40th anniversary of diplomatic relations between the US and ASEAN. Keep an eye on your email for more information.
Looking ahead, April looks to offer the first visit by a senior member of the Trump Administration to Southeast Asia. Since nothing official has been announced, I will leave it at that, but I think the visit, assuming it happens, will offer our first real detailed insight to how the Administration in Washington looks at ASEAN.
We are also excited that April will offer the Council our first chance to sit down with the co-Chairs of the ASEAN Congressional Caucus, Congressman Castro of Texas and Congresswoman Wagner of Missouri.
Highlights
Advocacy
- In early March, through direct intervention with the Government of the Philippines, the Council was able prevent the implementation of a ban on the import of high fructose corn syrup. The Government of the Philippines agreed with the Council that there had been insufficient stakeholder consultations before the ban was devised.
- Last month in a joint letter to the Government of Singapore, the Council joined the Business Software Alliance in advocating that the Infocomm Media Development Authority (IMDA) of Singapore not use a local cloud computing guideline as the basis for creating a domestic standard for cloud computing services in city-state. This month, the Council received a reply from Mr. Tan Kiat How, the CEO of the IMDA, that the guidelines would be developed as a voluntary standard and that the IMDA would hold a two-month-long public consultation—from May 5 to July 6—once the revised guidelines are available.
Relationship Building
Please save the date for the following:
- Malaysia Business Mission, March 27-29
- 17th Annual Business Mission to the ASEAN Finance Ministers and Central Bank Governors Meeting, Cebu, Philippines, April 6-7
- Digital Economy Mission to Indonesia, April 26-27
- ASEAN Matters Launch, Capitol Hill, Washington, DC, May 16
- US-ASEAN Annual Dinner Celebrating the 50th Anniversary of ASEAN and the 40th Anniversary of the formal establishment of US-ASEAN Relations, May 25th, Washington, DC.
Promotion
The Council is exploring different ways to promote ASEAN’s 50th anniversary and the 40th anniversary of U.S.-ASEAN relations. If you feel your company has a good story to tell as part of this effort, please contact Marc Mealy at mmealy@usasean.org.
Membership
We are pleased to welcome our newest member to the Council: Organica Water.
Our membership currently stands at 156 members.
Regional Highlights
ASEAN
Major Developments
- The US-ASEAN Business Council’s E-Commerce Working Group, located within the ASEAN Committee, has developed its 2017 Work Plan. The Working Group will coordinate amongst the Council’s country and sector committees (particularly ICT, Financial Services, and Customs) to streamline all internal planning and external engagement on e-commerce. Please review the draft work plan, and contact Matt Solomon at msolomon@usasean.org with any feedback.
Looking Ahead
Please mark your calendars for the 2017 AEM, tentatively scheduled for September 4-8 in Manila.
View the Council's latest ASEAN updates
Industry Highlights
Customs
Major Developments
The Philippine Bureau of Customs (BOC) is continuing to release implementing regulations for the Customs Modernization and Tariff Act. The most recent calls for input were on draft Customs Administrative Orders (CAOs) Customs Jurisdiction and Exercise of Police Authority and Relief Consignment. One CAO is posted every Thursday, with a public hearing on the following Thursday. BOC has also recently issued the final CAOs for de minimis values of goods not subject to duties and taxes, an advance ruling system for valuation and rules of origin, Balikbayan Box shipping, and tax procedures for returning Philippine residents. Details of the drafts, consultation procedures, and a publication schedule can be found on the BOC website here.
View the Council's latest Customs updates
Defense & Security
Major Developments
Cobra Gold, the largest multilateral exercise in Asia, took place from February 14-24 with the Commander of the United States' Pacific Command, Admiral Harry Harris, in attendance. This marked the participation of the highest-ranking military official since the 2014 coup, and an indication of warming bilateral ties.
Looking Ahead
The Council is a supporting organization for PROTECT 2017, which will be held March 29-30 at the SMX Convention Center in Metro Manila. PROTECT is an annual international exhibition and conference and is the only government-private sector partnership in the Philippines devoted to security and safety. Launched in 2005, the PROTECT series is the largest and longest running security event in the Philippines.
View the Council's latest Defense & Security updates
Energy
Major Developments
- On February 13, the Council’s Energy Committee held a planning call on the Committee’s 2017 Work Plan. The call featured a briefing by Ms. Katy Clarke, Energy Efficiency Officer in the Office of Electricity and Energy Efficiency at the U.S. State Department’s Bureau of Energy Resources (ENR). The briefing covered ENR's initiative to encourage the adoption of harmonized minimum energy performance standards (MEPS) for air conditioners in Southeast Asia as a way to improve energy efficiency in ASEAN countries. Notes from the call can be found here.
- Singapore’s Budget for 2017 introduces a new carbon tax aimed at reducing greenhouse gas emission. The tax will not come into force until 2019, before which the government intends to consult widely with stakeholders. The Government anticipates that the tax, which will be applied to large-scale emitters like power stations and refineries, will be between S$10 (US$7.13) and S$20 (US$14.25) per ton of greenhouse gas emissions. The Council’s analysis of Singapore’s Budget 2017, including the proposed carbon tax, can be found here.
Looking Ahead
On April 25, Singapore's Energy Market Authority (EMA) is organizing a Workshop on “Workforce Resilience in the Energy Sector”. This Workshop will serve as a platform for greater discussion on the key human resource challenges in the energy industry and facilitate dialogue on the best practices in strengthening energy workforce resilience among the APEC economies. The Council is assisting EMA with the event and Senior Vice President and Regional Managing Director Michael Michalak will moderate one of the panels. More information on the workshop can be found here.
View the Council's latest Energy updates
Financial Services
Major Developments
- On January 18, the Thailand’s Ministry of Finance issued two new circulars allowing up to 100% foreign ownership with permission from the finance ministry. There are regulations still in place that limit the ability of companies to compete based on price or policy criteria, so the investment relaxation may not immediately lead to increased competitive pressure. Thailand previously loosened their ownership rules in February 2016 for both insurance companies (from 25% to 49%) and banks, which allowed for more foreign directors to sit on boards.
- On March 13, the Indonesian Financial Services Authority (OJK) Commissioner Selection Team submitted the names of 21 candidates to President Joko “Jokowi” Widodo. President Jokowi has until March 29 to pick 14 individuals to recommend to the House of Representatives for confirmation hearings, and the Supreme Court is expected to swear in the new OJK commissioners on July 20. All seven incumbent commissioners participated in the selection but only one made it to this phase, Commissioner for Capital Markets Supervision, Nurhaida.
- Under the 2011 OJK Law, the structure of OJK Board of Commissioners consists of seven selected commissioners and two ex officio commissioners appointed by the Ministry of Finance and the Board of Governors of Bank Indonesia. The Selection Team’s pick has been criticized for the lack of candidates from non-bank financial sector experts to which the Selection Team noted that there was a very limited number of applicants from such sector in the first place.
View the Council's latest Financial Services updates
Food & Agriculture
Major Developments
- In Vietnam on March 11, the Ho Chi Minh City (HCMC) People’s Committee announced Prime Minister Nguyen Xuan Phuc’s decision to establish the Food Safety Management Board of HCMC, making the city the first locality in Vietnam to pilot food safety management run by a sole agency.
- Earlier this month in Singapore, the Agri-Food and Veterinary Authority (AVA) suspended shipments of chicken, eggs and other poultry products from parts of the United States, a day after news of reported outbreaks of H7 high pathogenic Avian Influenza (HPAI) in Tennessee and H5 low pathogenic Avian Influenza (LPAI) in Wisconsin. Processed products such as canned chicken and pasteurized eggs were exempt from the suspension, as they are heat-treated for safety before export. The temporary restriction was imposed on March 7.
Advocacy
In the Philippines, the Sugar Regulatory Administration (SRA) has begun to regulate the importation of High Fructose Corn Syrup (HFCS). Products from many of our member companies and many domestic Filipino companies currently use HFCS in food preparation for domestic consumption. The Council is currently working with the Philippines Department of Agriculture and SRA to further understand this regulation and provide industry input on its effects and implications on trade.
On March 9, the Council concluded its annual Vietnam Business Mission. During the mission, the delegation met with Minister of Agriculture and Rural Development H.E. Nguyen Xuan Cuong to discuss the food & agriculture sector in Vietnam and challenges the U.S. business community currently faces. As a follow-up to this, the Council will organize a Food & Agriculture Industry Mission to Vietnam later in 2017 – more details to follow. Please contact Sunita Kapoor at skapoor@usasean.org and Hai Pham at hpham@usasean.org if you have any questions.
View the Council's latest Food & Agriculture updates
Health & Life Sciences
Major Developments
In the Philippines, Iloilo Representative Ferjenel Biron is seeking to amend RA 9502 to provide for the creation of a regulatory board that will determine the maximum retail prices of drugs and medicines (To read the law, please click here). He wants a comprehensive review of the implementation process as the law has not yet fully attained its core objectives. The Act had two purposes: 1) to reduce the cost of medicines especially those commonly bought by the poor to 50% of their 2001 prices and make them available nationwide; 2) to require and ensure the production of adequate supply, distribution, use and acceptance of generic medicines, which are priced much lower than patented drugs mainly produced by multinational corporations. The Act also authorizes the President to regulate the prices of drugs and medicines on the recommendation of the health secretary, but Biron said this power has not been used.
Advocacy
The Council is currently working with Indonesia’s National Agency of Procurement Policy (LKPP) regarding the suspension of registration of imported medical devices in the e-catalogue, following the issue of Presidential Decree 06. The Council met with LKPP on March 17 to seek a better understanding of the agency’s plans and discuss challenges faced on this issue. The Council’s Health & Life Sciences committee has engaged BKPM on this issue.
Looking Ahead
In March/April in Vietnam, prior to the 7th APEC High Level Meeting on Health and Economy, the Vietnam Ministry of Health will be organizing a technical meeting to discuss the agenda in detail. MOH is currently seeking support in areas including being a speaker or moderator, building the content and theme for each session during the meeting and attending.
View the Council's latest Health & Life Sciences updates
ICT
Major Developments
- Vietnam’s Ministry of Information and Communications (MIC) has issued the second draft circular "Detailing the Procedures and Documents for Granting Import Licenses for Cyber Information Security (CIS) Products." Changes in the updated version include a more detailed description of the CIS products subject to import permits, that only products whose core function is its cyber information security function, as described by the circular, would be subject to these permits.
- Pantaleon Alvarez, Speaker of the House of Representatives of the Philippines, recently filed Bill 5021 that would prohibit social media users from opening online accounts using another person’s name and presenting themselves as other people online. The proposed bill, which is also called the “Social Media Regulation Act,” would require that social media companies be responsible for verifying the identity of users on their platform.
Advocacy
The Council, alongside AmCham Indonesia, submitted a letter to MOI Director General I Gusti Putu Suryawirawan in response to continuing concerns regarding the implementation of Indonesia’s Ministry of Industry Regulation No. 65/2016 on local content formulation for the import of 4G/LTE devices (TKDN). The letter recommends that MOI grant exceptions to the local content requirements for small quantity imports as well as on a case-by-case basis considering additional factors such as taxes/duties paid, direct and indirect local employment, and cost differentiation for products to be produced locally.
Looking Ahead
The Council is holding a Digital Economy Industry Mission to Indonesia, April 26-27. Click here to register for the Mission. A planning call for the mission was held on March 2-3 and a discussion was held with members in Jakarta on February 20 on issues facing ICT and financial services companies.
View the Council's latest ICT updates
Infrastructure
Looking Ahead
- Global Infrastructure Investors Summit 2017
Supported by Preqin, LTIIA and large names in infrastructure investment, the Global Infrastructure Investors Summit (GIIS) is an annual private C-level event serving as an exclusive platform for large institutional investors, fund managers, asset managers, banks, government representatives and advisers representing Americas, Asia, Europe and Australia for networking and establishing partnerships for future projects. The Summit will be held on June 1 in London. Interested parties can register here. - Global Think Tank Summit 2017
The Asian Development Bank Institute (ADBI) and the Think Tanks and Civil Societies Program (TTCSP) of the University of Pennsylvania will be holding the Global Think Tank Summit 2017 in Yokohama, Japan on May 2-3. Interested parties may contact Dr. Stefan Angrick here.
Country Highlights
Brunei
Major Developments
- The Brunei Darussalam Accounting Standards Council (BDASC) recently announced the adoption of Brunei Darussalam Accounting Standards for all non-public interest entities, to ensure a higher level of uniformity and consistency in financial reporting. The Accounting Standards are to take effect starting January 1, 2018. BDASC was established under the Ministry of Finance in 2011 based on Brunei’s Accounting Standards Order 2010 and is responsible for prescribing consistent accounting standards to improve the credibility of financial reporting in the sultanate.
- Malaysia Deputy Prime Minister Datuk Seri Dr Ahmad Zahid bin Hamidi recently met with Bruneian Sultan Hassanal Bolkiah on his first official visit to the sultanate since his appointment in July 2015. The two leaders discussed bilateral economy issues, touching on the Malaysia-Brunei border issues which will be further discussed in an officer-level meeting planned in March. Deputy Prime Minister Zahid stated that the meeting in March will finalize the standard operating procedures to increase the efficiency of immigration and security checks at the border, which will encourage more economic activities between the two countries. Deputy Prime Minister Zahid and Sultan Bolkiah also agreed to strengthen the long-standing friendship between the two neighbors through the June 2021 target completion of the Pan Borneo Highway, a significant infrastructure project which is expected to expand commercial ties between Brunei, and Sabah and Sarawak of Malaysia.
View the Council's latest Brunei updates
Cambodia
Advocacy
The Council’s 2017 Business Mission to Cambodia took place in Phnom Penh from February 21-22. This year’s mission had 14 participating member companies; 3M, Chevron, ConocoPhillips, Citi, Coca-Cola, Dow, Ford, GE, Lily, Herbalife, Microsoft, MasterCard, RMA Group, and Visa.
During its visit, the delegation consulted with the Royal Cambodian Government on its efforts to “Rebrand Cambodia” and ways to expand stakeholder consultation during policy formulation. The delegation expressed interest in the Royal Government’s initiatives to promote better governance and transparency, technological development, corporate governance, financial inclusion, human resource development and SMEs.
Notes from the mission will be distributed soon. Please contact Jack Myint at jmyint@usasean.org with any questions or concerns.
View the Council's latest Cambodia updates
Indonesia
Major Developments
- Indonesia and Australia have agreed to continue with a free trade pact, referred to as the Indonesia-Australia Comprehensive Economic Partnership Agreement, with the goal of concluding an agreement by the end of 2017. The decision came after years of discussion beginning in 2010 during President Susilo Bambang Yudhoyono’s administration, and more recently, the Indonesian and Australian Trade Ministers reactivating negotiations in March 2016. The agreement is expected to create the framework for a new era of closer economic engagement between the two countries, and open new markets and opportunities for businesses and investors. For example, Indonesia has pledged to lower its tariff on Australian sugar in response to Australia removing tariffs on Indonesian pesticides and herbicides. Indonesia has also agreed to grant longer term permits for Australian cattle farmers regarding their exports to Indonesia. In return, Indonesia is asking Australia to remove barriers on Indonesian exports such as paper and palm oil. The agreement will also incorporate existing commitments under the ASEAN-Australia-New Zealand trade pact.
- From March 5-7, President Joko “Jokowi” Widodo hosted the first leaders’ summit of the Indian Ocean Rim Association (IORA) in Jakarta, attended by heads of state and other government officials. IORA was established in the mid-1990s and now consists of 21 countries bordering the Indian Ocean, including four ASEAN countries; Indonesia, Malaysia, Singapore and Thailand. At the summit, the member states agreed to forge the “Jakarta Concord” outlining several commitments such as advancing maritime security and safety; increasing trade and investment cooperation; promoting sustainable fisheries management and development; enhancing disaster risk management in the region; strengthening academic, science and technology cooperation; fostering tourism and cultural exchanges; marine-based economic development; and empowering women in the economy. President Jokowi stated that “the Indian Ocean is the region of the future. Indonesia believes that the Indian Ocean is poised to assume greatness.”
- Trade Minister Enggartiasto Lukita recently announced the simplification of business permits and company registration certificates across industries in Indonesia. As of February 22, business permits now have perpetual validity, subject to extraordinary circumstances such as a change in the nature of business, which would require an amendment to its business permit. Meanwhile the company registration certificate can now be completed electronically and is free of charge. Previously, the two documents needed to be renewed every five years, a process that is not costly, but is time-consuming.
View the Council's latest Indonesia updates
Laos
Major Developments
- The U.S. and Laos held their first meeting under their Trade and Investment Framework Agreement (TIFA), which was signed in February 2016. According to the Office of the U.S. Trade Representative, which co-chaired the meeting, the meeting covered “the importance of expeditiously addressing key bilateral issues, including digital trade, agriculture and sanitary and phytosanitary standards, intellectual property, autos, investment, good governance, labor, and illegal logging and wildlife trafficking.”
- A half-dozen Laotian exporters are participating in a pilot project, sponsored by ASEAN and supported by USAID, that will enable them to self-issue certificates of origin. Previously all exporters were required to obtain the certificates, which enable them to take advantage of preferential trade agreements, from a government agency or trade association. The self-certification is expected to lower administrative costs. ASEAN started piloting self-certification in 2010, and by 2018 all ASEAN countries are expected to adopt the practice.
Looking Ahead
Please save the date for the 2017 Laos Business Mission, taking place on August 31-September 1. More information is forthcoming. Please contact Matt Solomon at msolomon@usasean.org with any questions.
View the Council's latest Laos updates
Malaysia
Major Developments
Ahead of meeting with other TPP partners in Chile, Minister of International Trade and Industry Mustapa, has stated that Malaysia is not interested in pursuing the TPP as it does not meet primary objectives of gaining access to markets, in light of the U.S. decision to pull out of the TPP. Minister Mustapa will not be attending the Chile meeting himself, but Malaysia’s Ambassador to Chile will participate. Minister Mustapa says the RCEP is the next best option to the TPP, as it will “help fill the vacuum” and has a larger population base. Mustapa added that ASEAN trade ministers will meet in Vietnam in May to further discuss RCEP, noting that “we are looking at a concept of ASEAN centrality where it will play the prime role in driving the RCEP.” In addition to RCEP, Malaysia is currently negotiating free trade agreements with Iran, Sri Lanka and the European Union. Minister Mustapa added that the U.S. remains an important trading partner.
Advocacy
- On March 14, the Council met with Mr. Azman Mat Ali, Director of the Foreign Exchange Administration for Bank Negara. Members received an update on Bank Negara’s measures and had the opportunity to express their concerns.
- The Council hosted the new Malaysian Ambassador Zulhasnan Rafique in Washington on March 15 for a welcome roundtable. Members introduced their companies’ interest in Malaysia to the new Ambassador and explored ways to improve Malaysia’s business environment.
Looking Ahead
The 2017 Malaysia Business Mission will take place on March 27-29. Meetings have been confirmed with the Minister of International Trade and Industry, Minister of Finance II, Bank Negara and others. The deadline to register was March 13. Contact Kim Yaeger at kyaeger@usasean.org for more information.
View the Council's latest Malaysia updates
Myanmar
Major developments
The draft Myanmar Companies Law of 2017, which was initially expected to be passed in April 2017, is being delayed by at least two months. Subsequently, it is expected that the implementing rules associated to the law may not be finalized until September 2017. As it currently stands per the Myanmar Companies Act of 1914, foreign companies cannot own a single share in locally owned Myanmar companies. Furthermore, foreigners also cannot buy stocks in companies listed on the Yangon Stock Exchange. The Myanmar Companies Act is much anticipated as it will allow foreign investors to acquire up to 35% of shares in a locally owned Myanmar company. With the emergence of the new Myanmar Companies Act in the near future, it is expected that foreign mergers and acquisitions in Myanmar will increase substantially.
View the Council's latest Myanmar updates
Philippines
Major Developments
- Pantaleon Alvarez, Speaker of the House of Representatives of the Philippines, recently filed Bill 5021 that would prohibit social media users from opening online accounts using another person’s name and presenting themselves as other people online. The proposed bill, which is also called the “Social Media Regulation Act,” would require that social media companies be responsible for verifying the identity of users on their platform. Users who violate the law by passing themselves off as someone else on social media would face between six and 12 years of jail time and a fine of between P30,000 (US$596) and 50,000 US$(994). The Council is currently considering submitting a letter regarding Bill 5021. Please contact Riley Smith at rsmith@usasean.org with any feedback. More information on the proposed “Social Media Regulation Act” can be found here.
- The Bangko Sentral ng Pilipinas released the Guidelines for Virtual Currency (VC) Exchanges which recognizes the effectiveness of Bitcoin and cryptocurrencies as a tool for faster and more convenient trades and transactions. Under the Guidelines, “virtual currencies” are defined as any digital units used as a medium of exchange or electronically stored value, although it is different from e-money, which is also on BSP’s watch. Thus, it will regulate Bitcoin startups as remittance companies, with Anti-Money Laundering (AML) and Know Your Customer (KYC) policies tightened. The Philippines is currently third in the world in terms of Bitcoin use, and the number of users have more than doubled since the first half of 2015. More information on the BSP’s Guidelines for Virtual Currency Exchanges can be found here.
- On March 6, President Rodrigo Duterte approved the Philippines National Broadband Plan (NBP), which envisions a north-to-south broadband network that would extend high-speed internet services to rural areas of the country. The Department of Information and Communications Technology has issued a call for input on the working draft of the NBP on its website. Comments and input will be accepted until March 24.
Looking Ahead
The Council is a supporting organization for PROTECT 2017, which will be held March 29-30 at the SMX Convention Center in Metro Manila. PROTECT is an annual international exhibition and conference and is the only government-private sector partnership in the Philippines devoted to security and safety. Launched in 2005, the PROTECT series is the largest and longest running security event in the Philippines.
Advocacy
- On February 22, the Council hosted a roundtable discussion with Ms. Nora K. Terrado, Undersecretary, Industry Promotion Group, at the Department of Trade and Industry. Undersecretary Terrado provided an update on Philippine-U.S. economic relations, the Philippines’ agenda as Chair of ASEAN for 2017, and the priority sectors for investment promotion.
- The Philippines recently submitted its application to join the APEC Cross-border Privacy Enforcement Arrangement, the first step towards participation in the APEC Cross Border Privacy Rules (CBPR) system. The CBPR was developed to build consumer, business and regulator trust in cross border flows of personal information. It requires participating businesses to develop and implement data privacy policies consistent with the APEC Privacy Framework. The Council plans to sign on to a letter along with the Information Technology Industry Council (ITI) and other stakeholder advocacy associations urging the Philippines to participate in the APEC CBPR. We are also working to have local stakeholder advocacy associations, such as the IT & Business Process Association of the Philippines (IBPAP) and the Philippines chapter of the Internet Society, sign on as well.
View the Council's latest Philippines updates
Singapore
Major Developments
- On February 9, Singapore’s Committee on the Future Economy (CFE) released its final report, which included a set of broad economic policy recommendations intended to help Singapore weather external and domestic economic challenges, boost economic growth to between 2-3%, and map out the country’s economic development path for the next 10 years. The Council’s analysis of the CFE’s final report, including a list of the 11 Council recommendations that, to at least some degree, were included in the CFE’s final recommendations, can be found here.
- On February 20, Minister for Finance Heng Swee Keat presented the Government of Singapore’s (GoS) Budget statement (Budget 2017) for fiscal year 2017 (FY2017). Budget 2017 is a direct follow up to the Committee on the Future Economy’s (CFE) deliberations last year and its recently released recommendations. It focuses on the three main themes of economy, environment, and society, and broadly lays out plans to encourage increased innovation in the domestic economy and implement the CFE’s recommendations. The Council’s analysis of Budget 2017 can be found here.
Looking Ahead
- The Economist Health Care Forum: War on Cancer 2017 will be held on March 30 in Singapore. The summit will explore how best to build affordable cancer care in low- and middle-income countries in Asia and ask which cancer interventions make best sense, and how best they can be financed. Council members are eligible for a reduced registration fee. More information on the event can be found here.
- On April 25, Singapore's Energy Market Authority (EMA) is organizing a Workshop on “Workforce Resilience in the Energy Sector”. This Workshop will serve as a platform for greater discussion on the key human resource challenges in the energy industry and facilitate dialogue on the best practices in strengthening energy workforce resilience among the APEC economies. The Council is assisting EMA with the event and Senior Vice President and Regional Managing Director Michael Michalak will moderate one of the panels. More information on the workshop can be found here.
Advocacy
In response to the Council’s recommendations on priorities for Singapore’s Budget 2017, the Ministry of Health has requested more information on the recommendations that were healthcare-specific. These recommendations included increasing access to innovative medicines, and expanding the scope of Medishield Life to include primary care coverage. The Government of Singapore’s Budget Statement for 2017 can be found here.
View the Council's latest Singapore updates
Thailand
Major Developments
- Cobra Gold, the largest multilateral exercise in Asia, took place from February 14-24 with the head of the United States' Pacific Command, Admiral Harry Harris, in attendance. This marked the participation of the highest-ranking military official since the 2014 coup, and an indication of warming bilateral ties. For more information, see our recent update here.
- Thailand’s Ministry of Commerce has released data indicating a year-over-year increase in January’s exports of 8.8%, up from 5.17% in January 2016. This follows a rise of 6.2% in December, marking the third consecutive month of customs-cleared export expansion. The Ministry has forecast export growth for 2017 to range from 2.5-3.5%, with the Fiscal Policy Office indicating potential revisions as export numbers improve later in the year. For more information, see our recent update here.
Looking Ahead
- On April 21, the Council will host an intimate roundtable discussion with Thai Finance Minister H.E. Apisak Tantivorawong at the World Bank in Washington, DC. Click here to register. Space is limited.
- Please save the date for the annual Thailand Business Mission, taking place June 21-23 in Bangkok. Registration information is forthcoming. Please contact Matt Solomon at msolomon@usasean.org with any questions.
View the Council's latest Thailand updates
Vietnam
Advocacy
On March 6-9, the Council organized its annual Vietnam Business Mission. The delegation of 30 companies engaged with Prime Minister Nguyen Xuan Phuc, key Ministers including Minister of Agriculture and Rural Development Nguyen Xuan Cuong for the first time, the Head of the APEC 2017 National Secretariat, local business leaders and other stakeholders. The mission was led by US-ASEAN Business Council Senior Vice President and Regional Managing Director Ambassador Michael Michalak, Vice President for Government Affairs & Policy for ASEAN, Australia, New Zealand, & PNG of Council Vietnam Committee Chair GE Christian Bennett, and Council Vice President for Policy Marc Mealy.
Looking Ahead
During the mission, the delegation met with Minister of Agriculture and Rural Development H.E. Nguyen Xuan Cuong to discuss the food & agriculture sector in Vietnam and challenges the U.S. business community currently faces. As a follow-up to this, the Council will organize a Food & Agriculture Industry Mission to Vietnam later in 2017 – more details to follow. Please contact Sunita Kapoor at skapoor@usasean.org and Hai Pham at hpham@usasean.org if you have any questions.