September 2017

The last month proved to be another exciting and consequential month for ASEAN and the Council.  The Trump Administration continued to place a high priority on engaging the region.   Malaysia’s Prime Minister Najib Razak was invited to the White House last week, and the Council co-hosted him for dinner after his meeting with President Trump.  Prime Minister Najib offered his support for the U.S. economy, highlighting Malaysian Airlines’ MOU signing that evening in which it committed to purchase 33 Boeing airplanes valued at over $4 billion.  GE engines are in the running to power these aircraft.  Malaysia’s Employees Provident Fund, a pension fund with close to $7 billion invested in the U.S., and the sovereign fund Khazanah with approximately $400 million invested in U.S. high-tech companies were also highlighted by the Prime Minister as ways Malaysia is contributing to the U.S. economy.

The Council is watching events in Rakhine State in Myanmar carefully as the plight of the Rohingya people has taken the world stage.  State Counsellor Daw Aung San Suu Kyi spoke to her nation and the world in a major address on the issue on Tuesday night.  We will be staying in touch with the Myanmar Embassy in Washington, as well as the U.S. Embassy in Yangon, and will let our members know if there are specific humanitarian needs where we might be helpful.

The Council led our 17th annual delegation to the ASEAN Economic Ministers Meeting in Manila, Philippines.  As an official part of the fall meeting of the ASEAN trade and commerce ministers,  we joined USTR in our annual US-ASEAN round table with all 10 ASEAN Economic Ministers where we presented highlights from our annual AEM White Paper, entitled “ASEAN Integration: U.S. Business Recommendations in Support of AEC Blueprint 2025 Goals,” a sector-by-sector analysis of challenges, opportunities, and recommendations for implementing the ASEAN Economic Community and improving the overall business environment in Southeast Asia.  The delegation also held bilateral meetings with seven of the ten Ministers where we were able to raise individual country issues of concern.

Prior to the AEM, we had a successful Business Mission to Laos, where we identified opportunities to further develop U.S.-Laos commercial ties, as well as remaining regulatory barriers to increased bilateral trade and investment.  The Council delegation of seven member companies, our largest Lao mission to-date, also discussed ways to best leverage American companies’ resources and expertise to support the development Lao SMEs, particularly in the field of digital economy, through programs such as the US-ASEAN Business Alliance for Competitive SMEs.

The Council is supporting the first visit to ASEAN by U.S. Secretary of Commerce, Wilbur Ross.  Secretary Ross will visit Thailand and Laos and will be accompanied by a small delegation of senior Council members led by Council Chairman Keith Williams beginning on September 27.

Thailand Prime Minister Prayut Chan-o-Cha is scheduled to visit Washington in early October and the Council will co-host a dinner for him on Tuesday, October 3.  The Council will be attending the ASEAN Energy Ministers Meeting (September 26-27 in Manila) as well the ASEAN Agriculture and Forestry Ministers Meeting (September 28-29 in Chiang Mai, Thailand).   Registration is still open for each of these events.

We will also be leading a delegation to the ASEAN Transport Ministers (ATM) Meeting (October 12-13 in Singapore).  This mission will be our second engagement with the ATM. The Council has been invited to host the ASEAN Ministers for Transport, Senior Transport Officials and ASEAN Secretary General, H.E. Le Luong Minh for a working luncheon on October 12.  This is an excellent opportunity for members to engage key decision makers in ASEAN’s infrastructure landscape.

Highlights

Looking Ahead

•  The Council is now registering executives for its Annual Mission to the ASEAN Ministers on Energy Meeting (AMEM) on September 26-28 in Manila, Philippines. Click here to register.  For more information, please contact Riley Smith at rsmith@usasean.org.  
• The Council is now registering executives for its 2017 business mission to the ASEAN Ministerial Meeting on Agriculture and Forestry on September 28-29 in Chiang Mai, Thailand. Please click here to register.  For more information, please contact Sunita Kapoor at skapoor@usasean.org.
• The Council will co-host Thailand’s Prime Minister Prayut Chan-o-cha for dinner on October 3 in Washington, DC.  Sponsorships are still available.  For more information, please contact Matt Solomon at msolomon@usasean.org.
• The Council is now registering executives for its second Mission to the ASEAN Transport Ministers Meeting (ATM) on October 12-13 in Singapore.  Click here to register.  For more information, please contact Sunita Kapoor at skapoor@usasean.org.
• The Council is now registering executives for its Annual Business Mission to Brunei on October 17-18 in Bandar Seri Begawan.  Click here to register.  For more information, please contact Artha Sirait at asirait@usasean.org.

Advocacy

• On September 1, the Council achieved an important advocacy win in Vietnam when Vietnam’s Deputy Minister of Agriculture and Rural Development Le Quoc Doanh signed a decision on continuing to import Dried Distillers Grains with Solubles from the United States. Earlier this year, the Government of Vietnam abruptly issued a regulation which restricted such imports, interrupting business for U.S. firms at a significant commercial cost. The Council aggressively launched an advocacy effort including face to face meetings and letters to the government on the potential significant negative impact on US-Vietnam agricultural trade relations. Vietnam’s Plant Protection Department has been assigned to notify the U.S. Plant Quarantine Authority about the import quarantine requirements and quarantine enhancements to ensure the complete containment of the plant quarantine on export DDGS to Vietnam.  In implementation of the decision of the Ministry of Agriculture and Rural Development, the Director of the Plant Protection Department Hoang Trung also sent a letter to the relevant US agencies about the implementation of plant protection regulations in the process of continuing to import US Dried Distillers Grains with Solubles.
• The Council continued its advocacy efforts with the Government of the Philippines regarding the proposed implementation of an excise tax on sugar sweetened beverages (SSBs) as outlined under Section 150A of TRAIN or House Bill 5636.  The Council transmitted a letter in response to the Senate’s public hearings on August 24 on a range of tax reform proposals.  The letter noted the potential negative economic and fiscal impacts of the tax proposal on the domestic economy.  As a next step, the Council is organizing a member’s meeting with the Embassy of the Philippines.
• The Council joined several other associations (AmCham, ITI, U.S. Chamber, BSA) in developing comments to the Government of Indonesia in response to the government’s release of new draft regulations governing Over the Top (OTT) services which requires foreign providers of application services and content services over the Internet to have a physical presence in Indonesia.  The letter will reiterate a range of concerns about the regulations related to Indonesia’s economic competitiveness, foreign investment attractiveness and Indonesia’s ICT ecosystem development.
• During the recent visit of Malaysia’s Prime Minister and Minister of Trade and Industry to Washington, the Council advocated that the government explore joining the WTO plurilateral agreement on Government Procurement by noting that in the post TPP environment, Malaysia’s ability to attract FDI from the US MNC’s could be strengthened by becoming the 2nd ASEAN member to become a party to this agreement.

Intelligence

• With the statutory implementation deadlines rapidly approaching, the Government of Indonesia is preparing to release a series of regulations to direct the implementation of Law of the Republic of Indonesia Number 33 of the 2014 Halal Product Assurance (HPA) Law.  The process, however, has faced numerous challenges and may see further delays or changes.  The regulations will present new challenges for agriculture, food processing, consumer goods, and pharmaceutical companies.  According to the Ministry of Religious Affairs (MORA), the law is the culmination of the House of Representative’s (DPR) and the Government of Indonesia’s efforts to provide a guarantee of halal foods for the Muslim population in Indonesia.  Deliberation took two parliamentary terms, 2004-2009 and 2010-2014, and was enacted on October 17, 2014.  Implementing regulations are now under development and the Halal Product Assurance Organizing Agency (BPJPH), the body responsible for halal product assurance, has now been established.  MORA has been leading the overall effort. Please click here for a summary of the current situation, informed by meetings and other advocacy efforts supported by the Council.
• In advance of Prime Minister Najib Razak’s visit to Washington, the Council provided an updated ‘Sense of Doing Business in Malaysia’ paper to the National Security Council to brief President Trump’s team on the experience of the U.S. private sector in Malaysia.  Click here to access the paper that was shared.
• On September 5, Prime Minister Lee announced that he was again reshuffling his Cabinet and nominating Social and Family Development Minister Tan Chuan-Jin to be the next Speaker of Parliament.  This decision by the Prime Minister has very likely reduced the number of “fourth-generation” leaders vying to be Singapore’s fourth prime minister.  In order to take the position of Speaker of Parliament, which became open when former Speaker Halimah Yacob resigned last month to run in this month’s presidential election, Tan will have to resign from his Cabinet post, which removes him from playing a role in formulating policy.  The three Cabinet members who apparently are still in the running to be the fourth Prime Minister of Singapore are Minister in the Prime Minister’s Office Chan Chun Sing, Minister for Education (Higher Education and Skills) Ong Ye Kung, and Minister for Finance Heng Swee Keat.  More information on the recent Cabinet reshuffle and its implications can be found here.

Relationship Building

• Please save the date for the Council’s Health & Life Sciences Industry Mission to the Philippines on October 25-26.  An official invitation with registration details will follow.  For more information or questions, please contact Ying Hui Tng at yhtng@usasean.org.
• Please save the date for the Council’s Business Mission to the ASEAN Telecommunication and IT Ministers Meeting (TELMIN) November 30-December 1 in Siem Reap, Cambodia.  For more information, please contact Shay Wester at swester@usasean.org or Mario Masaya at mmasaya@usasean.org.
• Please save the date for the Council's annual Business Mission to Myanmar on December 6-8.  An official invitation with registration details will follow.  For more information or questions, please contact Jack Myint at jmyint@usasean.org.

Promotion

The Council is proud to be a supporting partner for the US-Indonesia Women's CEO Summit taking place October 11 in Washington, DC.  The Summit will bring together C-Suite women from both public and private sectors for a series of lively, open, and uniquely personal conversations focused on how they did it, how they do it and how they are planning for the future. Click here to purchase a ticket.

Council in the News

• The Manila Times did a feature piece on the Council’s meeting with the Philippines Finance Secretary during our annual Business Mission to the Philippines: PH ‘making right investments, moving ahead’ – Dominguez | The Manila Times, August 30
• Council Senior Vice President and Regional Managing Director Ambassador Michael Michalak was quoted in a Borneo Bulletin feature piece as a postlude to our mission to the ASEAN Economic Ministers Meeting (AEM): US businesses engage AEM, offer support for continued regional integration | Borneo Bulletin, September 10

Membership

The Council is pleased to welcome Kimberly Clark as a Chairman’s Council member as of October 1.  AstraZeneca and Novartis have upgraded to Chairman’s Council, bringing total membership to 155, 85 of which are at the Chairman’s Council level.  The membership team continues to work to strengthen relationships with our current members, as well as identify new companies that may benefit from the Council’s services.

Regional Highlights

APEC

Major Developments

• In late August, APEC held its High-Level Policy Dialogue on Agricultural Biotechnology (HLPDAB) in Can Tho, Vietnam.  The agenda was focused on biotechnology policy, public-private partnerships for research and applications, and response to climate change.  Dr. Nguyen Thi Thanh Thuy, this year’s HLPDAB chair and the Director General of Vietnam’s Ministry of Agriculture and Rural Development’s Department of Science, Technology and Environment, highlighted climate change's exacerbation of agricultural challenges for vulnerable economies and geographies, and the need for global agricultural production to adapt to ensure food security.  She added that the use of biotechnology in modern agriculture “provides a set of powerful tools for the sustainable development of agriculture, fisheries, and forestry, as well as the food industry,” such as the successful micropropagation of virus-free plants, plant disease diagnostic kits, and marker-assisted selection.  This allows for improvements in a country’s ability to meet the needs of an expanding, increasingly urbanized population, but there remain concerns regarding environmental and health risks of genetically-modified organisms (GMOs).
• During the same week, the APEC Health Working Group met in Ho Chi Minh City as part of APEC’s Senior Officials Meeting (SOM 3) to discuss the priorities and indicators of the “Healthy Asia Pacific 2020” plan.  Members discussed a draft of the plan for the Leader’s Declaration and Joint Statement of Ministerial Meetings.  The five priorities were first endorsed by the first APEC Health Working Group in late February and include: universal health coverage in APEC economies; strengthening of communicable disease control and antimicrobial resistance; an integrated approach to healthy aging and non-communicable diseases; sustainable healthcare financing; and multi-sectoral action to achieve health-related sustainable development goals by 2030.  Part of the meeting’s agenda included discussion on how to best harness public and private innovations to expand across healthcare services.  The APEC Health Working Group specifically addressed the health financing issues and need to strengthen health systems against growing epidemics such as multidrug-resistant tuberculosis (MDR TB), which has become a growing concern in the region.  Furthermore, it acknowledged the difficulties of raising sufficient public revenue for health care and the challenges of expanding universal health care to improve rates of care and reduce overall costs.

Looking Ahead

• Registration for the APEC CEO Summit 2017 in Da Nang, Vietnam is now open.  To register, please click here.  The registration deadline is September 30 and confirmed ASEAN speakers include President Joko Widodo of Indonesia and President Tran Dai Quang of Vietnam.  If you have not received your personal invitation, click here.  Please note that it may take up to a week to receive your invitation and code after submitting the form.

View the Council's latest APEC updates

ASEAN

Major Developments

On September 7-9, the Council mounted its annual Business Mission to the ASEAN Economic Ministers Meeting (AEM) in Manila, Philippines.  The delegation of 11 companies participated in the AEM-USTR Consultation with all ten ASEAN delegations, presenting highlights from its annual AEM White Paper, entitled “ASEAN Integration: U.S. Business Recommendations in Support of AEC Blueprint 2025 Goals,” a sector-by-sector analysis of challenges, opportunities, and recommendations for implementing the ASEAN Economic Community and improving the business-enabling environment.  Additionally, the delegation held bilateral meetings with ASEAN Secretary-General Le Luong Minh; U.S. Mission to ASEAN Chargé d'affaires Daniel Shields; U.S. Ambassador to the Philippines Sung Kim; Assistant USTR Barbara Weisel; Cambodia Minister of Commerce Pan Sorasak; Indonesia Minister of Trade Enggartiasto Lukita; Myanmar Minister of Planning and Finance U Kyaw Win; Philippines Secretary of Trade and Industry Ramon Lopez; Brunei Permanent Secretary for Foreign Affairs and Trade Dato Paduka Lim Jock Hoi; Malaysian Ministry of Trade and Industry Secretary-General Datuk Jayasiri Jayasena; and members of the ASEAN Business Advisory Council (ASEAN BAC) Philippines.

Looking Ahead

• September 26-28 Mission to the ASEAN Ministers on Energy Meeting (AMEM): The Council is now registering seniorlevel executives for its Business Mission to the 35th ASEAN Ministers on Energy Meeting (AMEM) in Pasay, Metro Manila.  The mission schedule will consist of bilateral meetings with the ASEAN Energy Ministers, as well as relevant AMEM Dialogue Partners.  We are also attempting to organize a luncheon dialogue with the ASEAN Energy Ministers and the ASEAN Secretariat to discuss regional energy issues.  Click here to register.
• September 28-29  Mission to the ASEAN Ministerial Meeting on Agriculture and Forestry (AMAF): The Council will be leading a business delegation to the 39th ASEAN Ministerial Meeting on Agriculture and Forestry (AMAF) in Chiang Mai, Thailand.  This annual mission provides a platform for members to engage with the ten ministers of agriculture, senior agricultural officials, and the ASEAN Secretariat.  Some key focus areas include Mutual Recognition Agreements (MRAs) and technology development in the agricultural sector.  For more information, please contact Sunita Kapoor at skapoor@usasean.org.
• October 12-13  Mission to the ASEAN Transport Ministers Meeting, Singapore: Please save the date for the Council's second mission to the 23rd ASEAN Transport Ministers Meeting in Singapore.  The Council has been invited to host the ten ASEAN Transport Ministers, Senior Transport Officials and the Secretary General of ASEAN for a working luncheon.  Bilateral meetings with priority countries will also be conducted.  The official invitation with registration details will follow. Please contact Sunita Kapoor at skapoor@usasean.org and Jack Myint at jmyint@usasean.org with any questions or to express interest.

View the Council's latest ASEAN updates

TPP

Major Developments

The 11 nations in the Trans Pacific Partnership (TPP-11) continue to discuss options on how to bring the agreement into force.  In August, Australia hosted a three-day TPP-11 Senior Officials meeting.  The talks centered around to what degree, if any, should the existing TPP agreement text be modified given that some of the provisions were only included at the behest of the United States, which formally withdrew from the agreement earlier this year.  TPP-11 members Australia, Japan and Singapore are calling for “minimal” changes to the agreement text.  Others are seeking “minimal +” changes.  

Advocacy

In recent meetings with government officials from ASEAN members of the TPP-11, a wide range of Council members have urged the officials to move the TPP-11 process forward in order to improve the investment climate.

Looking Ahead

The next meeting of the TPP-11 is scheduled to be held on September 21-22 in Japan, with the hope that a new consensus can be reached by the TPP-11 when the leaders meet in Vietnam at the APEC Summit in November.

View the Council's latest TPP updates

Industry Highlights

Customs

Major Developments

• On August 30, Director General of the Philippine Drug Enforcement Agency Isidro Lapeña officially became the new Commissioner of the Philippines Bureau of Customs after the previous Commissioner, Nicanor Faeldon, and other senior staff left amid a drug-smuggling scandal earlier in August.  Upon taking his new post, Commissioner Lapeña declared that his top priority would be to crack down on corruption.  He promptly ordered the closing of the controversial Command Center that was created by his predecessor and suspended use of the customs Green Lane, diverting traffic to the slower Yellow and Red Lanes, in response to the smuggling scandal that led to Commissioner Faeldon’s resignation. Congressional committees are also investigating the scandal, which may lead to further policy changes and arrests.  The leadership transition and scandal appear to have also disrupted the development of the implementing regulations for the Customs Modernization and Tariff Act.  Consultations have slowed since July and the issuance of the next draft Administrative Order has been delayed until August 5.
• The ministers leading the Regional Comprehensive Economic Partnership (RCEP) negotiations began tempering expectations for a successful 2017 conclusion after the September 10 ministerial meeting ended without significant progress.  Philippine Secretary of Trade and Industry Ramon Lopez, who chaired the meeting, said that ASEAN and its partners will have to set more realistic expectations and aim for only defining the parameters of each chapter by the end of this year.  The 20th negotiating round, which is scheduled for October 17-28 in South Korea, is the last for this year.  The biggest current obstacle in the negotiations is that large gaps remain between goods market access offers, and new offers are expected from the non-ASEAN parties in advance of the October round.  Of the 15 areas under discussion, only the relatively uncontroversial chapters on small and medium enterprise development and economic cooperation have been completed.  RCEP’s potential 2017 outcomes will then be discussed by leaders at the ASEAN Summit, which will take place in the Philippines November 10-14.  The parties hope that they can use the summit to endorse key parameters for each chapter of the deal, which would affirm the negotiating targets for every issue and give the negotiators a more defined mandate.  The specifics of the chapters would then be worked out in 2018.  The content of the November leaders’ statement will thus be critical to determining the final scope and timeline of the agreement, should it be successfully endorsed.

Advocacy

On September 14, the Council's Customs and Trade Facilitation Committee joined the Singapore Ministry of Foreign Affairs and USTR for private sector consultations during the Singapore - United States Third Country Training Programme (TCTP) on the WTO Trade Facilitation Agreement.  Singapore and USTR hosted trade policy-makers from other ASEAN countries for the week-long program to discuss implementation of the TFA and sequencing of commitments.  During the private sector consultation day, Council members gave presentations on the private sector’s priorities for trade facilitation in ASEAN and joined public-private breakout sessions on various trade facilitation issues.

Looking Ahead

Please save the date for the 27th meeting of the ASEAN Coordinating Committee on Customs, on October 24-26 in the Philippines.  The Council hopes to bring a delegation to present detailed proposals for how the business community can collaborate with ASEAN's customs leaders on the issues the Council presented during this year’s Directors-General of Customs Meeting.  Please contact Ian Saccomanno at isaccomanno@usasean.org or Ying Hui Tng at yhtng@usasean.org for more information.

View the Council's latest Customs updates

Defense & Security

Major Developments

In August, the Singapore government unveiled the Island Defense Training Institute (IDTI), a new facility designed to train its armed forces personnel in homeland defense and security operations.  The facility is part of the government's 3rd Generation Singapore Armed Forces (SAF) program, aimed at further modernizing the city-state's armed forces to deal with increasingly diversifying and hybridizing threats, ranging from terrorism to cyberwarfare. The program had already begun implementation following the September 11, 2001 attacks, establishing the Island Defense Task Force (IDTF) with the goal of leveraging the combined capabilities of organizations including the SAF, police and immigration to protect key installations.  However, with the growing propensity for cyberwarfare, and a recent series of orchestrated attacks on urban population centers by the Islamic State (IS) in Europe and Southeast Asia, including the ongoing conflict in Marawi City in the Southern Philippines, particular focus has been placed on enhancing the ability of the SAF to deploy for operations in theaters closer to the island's heartlands.  In addition to the new facility, such measures include equipping first responders with more specialized arms and equipment to bolster mobility and surveillance capabilities, improving communication between units and organizations, and preempting anticipated manpower limitations with unmanned systems and more efficient deployment practices.

View the Council's latest Defense & Security updates

Energy

Major Developments

• On August 2, Myanmar Electricity and Energy Minister U Pe Zin Tun formally resigned, citing health reasons.  He was replaced by incumbent Minister of Construction, U Win Khaing, who has now absorbed the responsibilities of both the Ministry of Construction and the Ministry of Electricity and Energy.  U Win Khaing is expected to focus on electrification and the building of roads in an effort to boost economic growth and the creation or more jobs, goals that are in line with the NLD government’s development agenda.  Despite earlier reports, U Win Khaing’s appointment as Minister of Electricity and Energy may be permanent, and the government may soon appoint a new Deputy Minister for Electricity and Energy, while keeping U Win Khaing in charge of both ministries.
• On September 12, Vietnam's Ministry of Industry and Trade (MOIT) issued Circular No. 16, which provides detailed guidelines on how to formulate national and provincial solar power development plans.  As part of these guidelines, Circular No. 16 includes guidance on technical requirements and tariff structures solar power projects -- both rooftop and grid-connected, as well as templates for power purchase agreements (PPAs) for residential and commercial projects.  With its issuance, Circular No. 16 allows for the implementation of Decision No. 11, which was released in April and serves as the Government of Vietnam's new official policy for the development of solar power projects in the country.  A copy of Circular No. 16 (in Vietnamese) can be found here.
• Earlier this month, Vietnam’s Ministry of Industry and Trade officially requested that the Government increase the price per kilowatt to provide a boost to wind power production.  The current cost of production is 7.28 U.S. cents per kW, and was estimated to reach 9.94 U.S. cents per kW by 2020.  MOIT’s proposed prices are 8.7 U.S. cents per kW and 9.97 U.S. cents per kW for wind power produced on land and at sea, respectively.  If implemented, the new rates, which are considered below the average of the region, would be in force until the end of 2020.  MOIT’s wind power development goals have the energy source providing 0.7% of the input to the national power grid by 2020, a percentage that would increase to 2.4% by 2030.  Four-fifths of the added wind power would come from inland turbines.  However, investors have raised concerns about their ability to recover investment capital, given Vietnam’s relatively low feed-in-tariff (FiT) for onshore wind power projects, which is 7.8 U.S. cents/kWh, compared to Thailand’s 20 U.S. cents/kWh and the Philippines’ 29 U.S. cents/kWh.  Investors see this disparity with other countries in the region as a potential obstacle to Vietnam achieving its wind power development goals.    

Looking Ahead

• From September 26-28, the Council is leading a delegation of senior executives from U.S. energy companies to the 35th ASEAN Ministers on Energy Meeting (AMEM in Pasay, Metro Manila.  The mission will consist of bilateral meetings with various ASEAN Energy Ministers and AMEM Dialogue Partners, such as the U.S. Government delegation and the ASEAN Centre on Energy delegation.  Registration for the mission is still open.  To register, please click here.  If you have any questions about the mission or the registration process, please contact Riley Smith at rsmith@usasean.org.
• On October 26, the Council and the ASEAN Centre for Energy (ACE) are hosting a roundtable titled "20% in 2020 - Unlocking ASEAN's Energy Efficiency Potential" at the Singapore International Energy Week (SIEW) 2017, one of the premier conferences in Asia for energy professionals, policymakers and commentators to discuss and share best practices within the global energy space.  The roundtable will offer comprehensive insight into the ASEAN countries’ paths towards energy intensity reduction, as analyzed in ACE's 5th ASEAN Energy Outlook.  Additionally, it provides an open platform for policymakers, technology developers, and financial institutions in both the public and private sectors to discuss major technology hurdles, financial constraints and social challenges in pulling together the regulatory frameworks that can be developed to unlock the true potentials of energy efficiency in the region.  Sponsorship opportunities are available.  Contact Riley Smith at rsmith@usasean.org for more information.

View the Council's latest Energy updates

Financial Services

Major Developments

On July 27, the Indonesian House of Representatives approved a Government Regulation in Lieu of Law (Peraturan Pemerintah Pengganti Undang-Undang - PERPPU) No. 1 of 2017 (available here in Bahasa Indonesia) making permanent a key regulation for the government’s bank secrecy reforms.  PERPPU No. 1 grants Indonesia’s tax office access to financial information held by banks and other qualified institutions, requiring them to submit reports to the tax office “in line with standards of financial information exchanged based on the international agreement on taxation.”  The rule was originally issued by President Joko Widodo on May 8 as a PERPPU, which is a regulation equivalent to a law that eventually requires legislative approval.  The regulation will be the basis for the implementation of the Automatic Exchange of Information (AEOI) that Indonesia, along with other G20 members, will adopt in 2018.  Finance Minister Sri Mulyani has said that she plans to issue a ministerial regulation on banking data protection that will include sanctions on the misuse of financial data in response to concerns by some House members about privacy.

Advocacy

On August 23, the Council’s Financial Services Committee leadership met with Ms. Luz Foo, Executive Director of the International Department of the Monetary Authority of Singapore to begin discussing plans for the 2018 ASEAN Finance Ministers and Central Bank Governors Meeting, which will be hosted in Singapore.  The meeting reviewed topics MAS and the Council are interested in discussing, and MAS suggested that financial inclusion and infrastructure finance would be good areas for collaboration.  The Council is also exploring a February/March 2018 engagement with the ASEAN Working Committee on Payment and Settlement Systems with a discussion focused on fintech enablement and regulation.  More information about planning and attendance will be distributed in late 2017.  Please contact Ian Saccomanno at isaccomanno@usasean.org if you have any questions or suggestions about committee plans.

View the Council's latest Financial Services updates

Food & Agriculture

Major Developments

• On September 6, Vietnam lifted its ban on imports of distillers' dried grains with solubles (DDGS), an animal feed byproduct of corn-based ethanol.  Vietnam's Ministry of Agriculture and Rural Development suspended imports in December last year after it reportedly discovered quarantine pests in U.S. shipments, connoting dire repercussions in terms of economic benefits between the two countries. Before this suspension was announced, Vietnam was the third largest destination for import of the feed for the United States, accounting for 20 percent of overall U.S. DDGS exports valued at over $230 million a year. Overall, the United States’ exports of DDGS to Southeast Asia have shown a 16 percent increase in the past marketing year, totaling more than 1.7 million metric tons, according to data from the U.S. Department of Agriculture (USDA) and the U.S. Grains Council (USGC).  The Council’s Food & Agriculture Committee conducted a meeting with Vietnam’s Vice Minister for Agriculture and Rural Development Vu Van Tam in Hanoi earlier this year, where relevant stakeholders discussed this ban and came up with possible alternative solutions with the goal of removing the import restrictions on DDGS, so as to not disrupt economic engagement. As a follow-up, the Council carried out key actions, such as reviewing the provision of evidence regarding the aluminum phosphate recirculation method for DDGS to facilitate better and cleaner trade.
   
• On September 8, at the Second Agriculture Ministers’ Meeting in Siem Reap, Cambodia, representatives from the Greater Mekong Subregion (GMS) countries, including Cambodia, China, Laos, Myanmar, Thailand and Vietnam, agreed to push forward with a five-year strategy and action plan to build a region-wide food safety system. Following a news release from the Asian Development Bank (ADB), which hosts the Secretariat of the GMS, this will be a system “based on mutually recognized, science-based standards, product tracing, and information sharing, especially on hazard lists for key commodities.”  This is an important milestone for GMS to enhance cooperation on food safety and sustainability in the agricultural sector, helping to solidify standard control and management through improvement in infrastructure and institutional capacity.  In particular, ADB promises to provide GMS countries with investment and technical resources to establish necessary regulatory frameworks on information-sharing and risk assessment.

Advocacy

• In late August, as a follow-up to the Council's continued advocacy efforts  in the Philippines on its proposed sugar sweetened beverage (SSB) tax and as an action item from the Council's annual Philippines business mission, the Council filed a letter with the Philippines Senate Ways and Means Committee to outline additional concerns with research, ahead of the second Public Hearing on the Proposed Sugar Sweetened Beverage Tax under Section 26 of House Bill No. 5636 that took place on August 24 in the Philippines Senate.  Currently, the Senate is weighing all angles of this proposed tax measure to come up with its own version which currently is stalled because of the differing take on the proposed tax increase.
• The Council is tracking a new sugar tax in Thailand that came into effect on September 16.  According to news reports, Thailand will phase in a new sugar tax over the next six years.  The sugar tax will be increased over two phases, and after the fourth year, the tax rate on drinks that still contain sugar beyond the WHO's standard of 6g per 100ml will be doubled and increase further in the sixth year.  The tax rate has not been specified yet, but will be based on the sugar content of the drink.  The Council will continue to track this issue.
• With the statutory implementation deadlines rapidly approaching, the Government of Indonesia is preparing to release a series of regulations to direct the implementation of the Law of the Republic of Indonesia Number 33 of the 2014 Halal Product Assurance (HPA) Law.  The process, however, has faced numerous challenges and may see further delays or changes.  At the same time, the regulations will present new challenges for agriculture, food processing, consumer goods, and pharmaceutical companies.  According to the Ministry of Religious Affairs (MORA), the law is the culmination of the House of Representative’s (DPR) and the government of Indonesia’s efforts to provide a guarantee of halal foods for the Muslim population in Indonesia.  Deliberation took two parliamentary terms from 2004-2009 and 2010-2014, and was enacted on October 17, 2014.  Implementing regulations are now under development and the Halal Product Assurance Organizing Agency (BPJPH), the body responsible for halal product assurance, has now been established.  MORA has been leading the overall effort.  Please click here for a summary of the current situation, informed by meetings and other advocacy efforts supported by the Council.

Looking Ahead

• The Council is now registering executives for its 2017 business mission to the ASEAN Ministerial Meeting on Agriculture and Forestry on September 28-29 in Chiang Mai, Thailand. Please click here to register.  For more information, please contact Sunita Kapoor at skapoor@usasean.org.

View the Council's latest Food & Agriculture updates

Health & Life Sciences

Major Developments

• The Department of Standards of Malaysia has developed a draft on standards relating to the requirements in the manufacturing and handling of medical devices for the purpose of halal certification.  The draft, which can be accessed here, is open for public comment from August 1 to September 30.  Members who are interested in making a submission should contact Ying Hui Tng at yhtng@usasean.org.  For individual submissions, please follow the instructions on the Department of Standards’ Website here.  The Department of Standards plans to meet members for further discussions after the comment period.
• In late August, Vietnam Deputy Prime Minister Vuong Dinh Hue asked the Vietnam Social Security (VSS) to oversee the task of working with the Ministry of Finance and the Ministry of Health to come up with a bidding mechanism that would reduce prices of drugs covered by health insurance by 10-15 percent, especially for off-patent originator drugs.  The Drug Administration of Vietnam said the Ministry of Health has already begun negotiations with suppliers to carry out tendering for 100 generic drugs.  The Government of Vietnam plans to roll out the bidding mechanism by 2018.

Looking Ahead

• Please save the date for the Council’s Health & Life Sciences Industry Mission to the Philippines October 25-26.  An invitation with more details will follow.  For more information or questions, please contact Ying Hui Tng at yhtng@usasean.org.

View the Council's latest Health & Life Sciences updates

ICT

Advocacy

• On August 30, the Council, along with partner associations AmCham Hanoi, BSA, CompTIA, DIGITALEUROPE, ITI, JEITA, SIA, and the U.S. Chamber of Commerce, submitted the final version of its comments on Vietnam’s Draft Law on Cybersecurity to the Ministry of Public Security.  The Ministry’s final draft had some improvements—the removal of the criminal liability section and removal of some licensing requirements—but significant concerns remain.  The submission is available here in English and Vietnamese.
• In early August, Indonesia’s Ministry of Communications and Information Technology (MCIT) released a new draft ministerial regulation on OTT services (linked here in Bahasa Indonesia and an unofficial English translation can be found here).  The Council and its members participated in a public consultation by MCIT on the new draft on August 7 and are currently finalizing joint comments with the U.S. Chamber of Commerce, AmCham Indonesia and other partners.  For more information contact Kim Yaeger at kyaeger@usasean.org.  More background on our concerns with the draft regulation can be found here.
• The Personal Data Protection Commission of Singapore announced that it will be conducting a public consultation on its proposed amendments to the Personal Data Protection Act (PDPA) from July 27 to September 21.  The amendments would introduce: (1) two new bases for data collection, use, and disclosure; and (2) a mandatory data breach notification framework.  The Council is currently working with BSA | The Software Alliance on a joint submission. Contact Shay Wester at swester@usasean.org for more information.
• On July 10, a Draft Cybersecurity Bill was issued by Singapore’s Ministry of Communications and Information (MCI) and the Cyber Security Agency (CSA).  On August 22, the Council, along with BSA | The Software Alliance and AmCham Singapore members met with Mr. David Koh, Chief Executive of the CSA, to review key concerns that were then submitted on August 24 via joint comments.  Click here for notes from the meeting. Click here for the joint submission.

Looking Ahead

• On September 27, the U.S. Embassy in Bangkok is hosting a workshop entitled “Opportunities for Thailand in the Digital Economy”.  With presentations from U.S. private sector and Thai government representatives, the event will focus on the development of a digital economy ecosystem in ASEAN and its implications for Thailand.  More details are forthcoming.  Please contact Matt Solomon at msolomon@usasean.org if you have questions or are interested in attending.
• The Council is planning to mount a Business Mission to the ASEAN Telecommunication and IT Ministers Meeting (TELMIN) November 30-December 1 in Siem Reap, Cambodia.  The Council has developed a proposal (available here) for engaging the Ministers, and is seeking feedback from members before submitting at the end of the month.  If you have any questions or would like to propose any ideas, please contact Shay Wester at swester@usasean.org or Mario Masaya at mmasaya@usasean.org.

View the Council's latest ICT updates

Infrastructure

Major Developments

On September 7, Prime Minister Lee Hsien Loong met with Indonesian President Joko Widodo for the Singapore-Indonesia Leaders’ Retreat, in recognition of 50 years of diplomatic relations.  Both leaders extensively discussed future plans to boost economic, trade and infrastructure links between the two countries.  PM Lee mentioned that Singapore companies have expertise that might complement Indonesia’s development priorities, specifically in infrastructure development in the transport and energy sectors.  Both Indonesia and Singapore have synergies in their goals of growing their digital economy and transitioning to smart nations, and the two leaders pledged cooperation on the matter This collaboration would be ideal for Indonesia, due to the obstacles it has faced recently with the implementation of new infrastructure projects, ranging from the development of ports, and refineries to all other routes that would be lucrative for trade.  Infrastructure development has been one of President Jokowi's key focus areas, as he anticipates a rise in foreign investments.

Looking Ahead

October 12-13: Mission to the ASEAN Transport Ministers Meeting, Singapore: Please click here to register for the Council’s second mission to the 23rd ASEAN Transport Ministers Meeting in Singapore October 12-13.  The Council has been invited to host the ten ASEAN Transport Ministers, Senior Transport Officials, and the Secretary General of ASEAN for a working luncheon. Bilateral meetings with priority countries will also be conducted.  Please contact Sunita Kapoor at skapoor@usasean.org and Jack Myint at jmyint@usasean.org with any questions or to express interest.

View the Council's latest Infrastructure updates

Country Highlights

Brunei

Major Developments

• Brunei and China are seeking stronger economic cooperation in Brunei’s halal food industry.  With the Belt and Road Initiative (BRI) soaring, more Chinese companies are investing in Brunei, especially in the sectors of agriculture, energy and tourism.  Under the BRI, the Brunei-Guangxi Economic Corridor (BGEC), established in 2014, proposed to leverage on the Brunei Halal Certification Mark and the Bio-Innovation Corridor.  The BGEC not only provides access to an ever-expanding market of the halal food industry that serves both Muslim and non-Muslim customers, but also reduces the production cost for halal goods.  Ranked 12th out of 73 countries in halal industry growth according to Thomson Reuters’s report on 2017 Global Islamic Economy, Brunei has an increasingly strong performance in the halal food ecosystem development.  As a continuing effort, the Brunei government enacted the amendment to the Halal Certification and Label Order 2017 in early July, which further standardized halal permits and certificates in Brunei.  Last year, the local halal industry contributed over BND 88 million to Brunei’s economy.  The Minister of Energy and Industry also expressed Brunei's ambition of leveraging existing halal food and pharmaceutical industry and micro, small, and medium enterprises (MSMEs) to enable these businesses to benefit from the fast development of halal food and lifestyle sector.

Advocacy

In the lead-up to the upcoming Brunei Business Mission, the Council is currently developing proposals to engage the Government of Brunei on its priorities to diversify its economy, which will include the financial sector (electronic payments, insurance, banking and financial inclusion), ICT sector (digital economy, cyber security), and energy sector.  If you would like to propose any ideas or have any questions, please contact Artha Sirait at asirait@usasean.org.  

Looking Ahead

The 2017 Brunei Business Mission will take place October 17-18.  Please click here to register.  Please contact Artha Sirait at asirait@usasean.org with any questions.  

View the Council's latest Brunei updates

Cambodia

Major Developments

• On September 5, Kem Sokha, President of the Cambodian National Rescue Party (CNRP), Cambodia’s main opposition party, was arrested on a treason charge. He was accused of “involving foreigners in secret plans against the Kingdom of Cambodia” in a statement issued by the Phnom Penh Municipal Court.  The U.S. State Department said Sokha’s arrest seemed “politically motivated” and questioned Cambodia’s ability to organize credible national elections in 2018 that would enjoy democratic legitimacy.  The Cambodian government further raised the possibility that the CNRP may be ruled out of elections if it fails to replace Sokha in accordance with Cambodian law.  An official statement from the Ministry of Foreign Affairs listed alleged collusion between the United States and Kem Sokha as one of his treason charges. Member companies should be advised of the growing risk resulting from the government’s increasingly anti-U.S./anti-Western rhetoric.  There will continue to be a general push in the Cambodian government to promote trade, investment, technological innovation, etc.  However, certain Cambodian politicians and government officials are more likely now to distance themselves from publicly engaging with U.S. firms until after the July 2018 general elections, making government advocacy more challenging.

View the Council's latest Cambodia updates

Indonesia

Major Developments

• Indonesia recently launched its 16th economic policy package to further boost investment through a more efficient and integrated business licensing system.  The package will be implemented in two phases.  First is the establishment of task forces to implement business licensing processes and to oversee the application of licensing checklists at special economic zones, free trade zones, and industrial and tourism areas using data sharing.  Second is the development of the single submission system which would also include regulatory reforms.  In addition to developing a more effective and efficient system regarding business licensing, the package aims to also improve the coordination between ministries and regional authorities across Indonesia, to better balance the national and regional regulations, allowing the central government and the provincial government to work more closely to achieve the harmonization of regulations which has been an issue in the past.
• On August 18, President Joko “Jokowi” Widodo established a negotiation team in charge of Indonesia’s international trade agreements, whose objectives are to enhance market access and protect and secure Indonesia’s national interests in international trade agreements.  Such establishment was mandated by Law No. 7 of 2014 on Trade and the establishment itself was carried out based on Presidential Regulation No. 82 of 2017. The Minister of Trade, under the guidance of the Coordinating Minister for Economic Affairs, will lead a team of at least 21 ministers from various ministries with the Indonesian Chamber of Commerce as the only private sector representative.  The negotiation team is also authorized to assemble an advisory team which may include academics, business players and experts on international trade agreements.  Indonesia is a party to a number of bilateral and regional trade agreements with several countries across the Asia Pacific and the ASEAN Free Trade Area.  Indonesia also has an existing Trade and Investment Framework Agreement (TIFA) with the United States as a platform for both countries to build and address bilateral trade issues.  The most recent TIFA talks took place in June 2017, led by Indonesia’s Ministry of Trade Director General for International Trade Negotiations Iman Pambagyo and Assistant U.S. Trade Representative for Southeast Asia and the Pacific Barbara Weisel.

Advocacy

• On September 12, the Council’s Jakarta office facilitated a discussion with Haiyani Rumondang, Director General of Industrial Relations from the Ministry of Manpower regarding Ministerial Regulation No. 1 of 2017 on Wage Structure and Scale which mandates the disclosure of wage structures and scales of all businesses in Indonesia by October 23, 2017.  Click here to access the meeting notes.

View the Council's latest Indonesia updates

Laos

Major Developments

On August 31-September 1, the Council held its annual Laos Business Mission in Vientiane.  The delegation of seven leading U.S. companies was received by key ministers including Minister of Industry and Commerce Khemmani Pholsena, Minister of Posts and Telecommunications Thansamay Kommasith, Minister of Public Health Dr. Bounkong Syhavong, and Minister of Education and Sports Sengduan Lachanthaboun.  View the Council’s press release here.  Following on recent developments in the U.S.-Laos bilateral relationship, including last year’s visit by President Obama, this year’s formation of a comprehensive partnership, and the inaugural TIFA talks in March, Council members discussed how to further develop the bilateral commercial relationship in the digital economy, energy, healthcare and manufacturing sectors.

Looking Ahead

On September 27-29, a small group of senior executives led by Keith Williams, Chair, US-ASEAN Business Council Board of Directors and President, CEO and Trustee, UL, will accompany U.S. Secretary of Commerce Wilbur Ross to Bangkok and Vientiane.  The Council delegation will join Secretary Ross’s meetings with H.E. Prayut Chan-o-cha, Prime Minister of Thailand, H.E. Thongloun Sisoulith, Prime Minister of Laos, and other senior officials.

View the Council's latest Laos updates

Malaysia

Major Developments

• On September 12, Prime Minister Najib Abdul Razak met with U.S. President Trump at the White House in Washington, D.C.  The conversation focused on trade, Malaysian investment in the United States, relations with North Korea and counterterrorism.  Prime Minister Najib offered his support in strengthening the U.S. economy, highlighting Malaysian Airlines’ recent commitment to purchase 33 Boeing airplanes, Malaysia’s Employees Provident Fund, a pension fund with close to $7 billion invested in the U.S., and the sovereign fund Khazanah with approximately $400 million invested in U.S. high-tech companies.  The visit, heavily covered by the Malaysian press, was an opportunity for Prime Minister Najib to promote himself as a world leader in advance of national elections, expected early next year.  Click here for the remarks offered by both heads of state preceding their bilateral meeting.
• Following the Prime Minister’s visit with President Trump, the Council co-hosted a dinner in honor of the Prime Minister with the U.S. Chamber of Commerce.  During the dinner, Prime Minister Najib touched on the longstanding positive relationship between the United States and Malaysia, including that the U.S. is Malaysia’s third largest trading partner and Malaysia is the U.S.’s 18th largest and the second largest in ASEAN, with $33 billion in trade between the two countries last year.  Despite the strong relationship, Prime Minister Najib stated that it has been greater in the past and called on even closer trade and investment ties.  In addition, the Prime Minister spoke on the strategic importance of Malaysia as a gateway to ASEAN’s market of 625 million consumers and Malaysia’s English-speaking workforce, well-regulated financial markets, and various accolades from global institutions that make Malaysia a great place for foreign investment.  The Malaysian delegation included Minister of International Trade and Investment Mustapa Mohamed, Minister of Foreign Affairs Anifah Aman, as well as others from the Ministry of Foreign Affairs, Ministry of International Trade and Investment, Malaysian Development Authority, Prime Minister’s Office and National Security Council.  At the dinner, the Prime Minister was introduced by Assistant Secretary of Commerce for Global Markets and Director General of the U.S. and Foreign Commercial Service Elizabeth Erin Walsh.  Click here for the Prime Minister’s speech during the dinner.

Advocacy

In advance of Prime Minister Najib Razak’s visit to Washington, the Council provided an updated ‘Sense of Doing Business in Malaysia’ paper to the National Security Council to brief President Trump’s team on the experience of the U.S. private sector in Malaysia.  Click here to access the paper that was shared.

View the Council's latest Malaysia updates

Myanmar

Major Developments

Earlier this month, Myanmar’s President U Htin Kyaw signed into effect the amendments to the 2013 Telecommunications Law (click here for original text), after having passed both Houses of the Hluttaw in late August.  The amendments to the law focus on the controversial Article 66(d), also known as the defamation clause, which prohibits individuals from using any telecommunication network to “extort, threaten, obstruct, defame, disturb, inappropriately influence or intimidate” people or institutions, and carries a jail sentence of up to three years without bail, as well as a fine.  According to the Telecommunications Research Group, which is part of a coalition of 22 local civil society organizations, at least 73 people have been charged with online defamation since the law’s adoption in 2013.  Among them are journalists, artists and activists arrested for posting anti-government content on Facebook and elsewhere.  In addition to affecting the users of technology, the Law also has potentially created intermediary liability risks for the internet service providers and/or websites which host the content.  Although the initial move in the Bills Committee of Pyithu Hluttaw was to entirely eradicate the clause, lawmakers came to a compromise in the following three stipulations: (1) the maximum prison sentence will henceforth be reduced from three years to two years; (2) only those directly defamed or those with permission from the defamed will be able to file a lawsuit; and (3) the district judge will now hold discretion in granting bail to the defendant.  While seen as a step in the right direction, the relatively slight changes have done little to quell domestic and international pushback against the Law, its use against critics of the government, and its impact on freedom of expression online.

Advocacy

The Council is seeking input from members to an initial draft of its "Myanmar Sense of Business 2017" paper. To review the draft, please click here.  This paper will serve to inform senior U.S. government officials of the hurdles and obstacles facing American businesses operating in Myanmar. It will help to identify areas in which improvements can be made, both from the USG and Myanmar government side, thus setting the stage for an effective bilateral dialogue that incorporates the real views and challenges facing the American private sector. Please submit all comments to Jack Myint at jmyint@usasean.org.

Looking Ahead

December 6-8, Myanmar Business Mission: Please save the date for the Council's annual business mission to Nay Pyi Taw and Yangon, Myanmar.  The official invitation with registration details will follow. Requested meetings include: President U Htin Kyaw, State Counsellor Daw Aung San Suu Kyi, Key Cabinet Ministers, Members of Parliament including Speaker of the Pyithu Hluttaw (Lower House) U Win Myint, Myanmar Investment Commission, and the UMFCCI. Please contact Jack Myint at jmyint@usasean.org with any questions or to express interest.

View the Council's latest Myanmar updates

Philippines

Major Developments

• On August 30, Isidro Lapeña officially became the new Commissioner of the Philippines Bureau of Customs (BOC) after the previous Commissioner, Nicanor Faeldon, and other senior staff left amid a narcotics scandal.  Faeldon and other Customs officials are accused of failing to coordinate with the Philippine Drug Enforcement Agency (PDEA) and not securing a search warrant for an operation that mishandled the seizure of a P6.4 billion (US$125 million) shipment of methamphetamines that had been smuggled into the country through the customs Green Lane.  Commissioner Faeldon, Neil Estrella, the director of intelligence and investigation services, and Milo Maestrecampo, the director of import-assessment services, left the Customs Bureau and may face criminal charges.   The leadership transition at the BOC and scandal appear to have also disrupted the development of the implementing regulations for the Customs Modernization and Tariff Act.  Consultations have slowed since July and the Draft Customs Administrative Order on Supervision and Regulation of Other Third Parties, which was meant to be issued on September 7, has been delayed until August 5.  More information on the new BOC Commissioner and the circumstances that led to his appointment can be found here.
• The Commission on Appointments (CA) confirmed the appointment of Jose Manuel “Babe” Romualdez as the new Philippine Ambassador to the United States on August 23, less than one month after President Rodrigo Duterte nominated him on July 27.   Duterte had tapped Romualdez for the post late last year, but the latter had to turn it down due to an emergency medical procedure.  Romualdez is publisher and CEO of Stargate/PeopleAsia and is also a columnist for the Philippine Star newspaper.  Prior to his official nomination, Romualdez served as special envoy to the United States in the Duterte administration.  The tour of duty of the previous Philippine Ambassador to the United States, Jose Cuisia, Jr., ended at the end of June 2016.  Romualdez is expected to take up his new post in Washington, DC, before the end of 2017.
• On August 11, the Philippines Senate Committee on Ways and Means reported that the Department of Finance has offered to rescind its plan to impose an excise tax on sugar-sweetened beverages in exchange for the approval, in full, of a separate excise tax on fuel.  Senator Juan Edgardo Angara, chair of the Committee, indicated that Finance Secretary Carlos Dominguez III had made the suggestion in passing during a recent meeting between a number of senators and President Duterte’s economic advisors.  In a separate incident, Senator Angara has also expressed concern that the current iteration of the sugar-sweetened beverage tax would not be limited to soft drinks, but might also impact some milk products, echoing the concerns expressed by the Philippines Chamber of Food Manufacturers, Inc. (PCFMI).  PCFMI believes that the planned inclusion of milk products in the tax bill would cause prices to increase to such an extent that they would become too expensive for low income segments of the population.  If this were to occur, the PCFMI argues, it would risk exacerbating the ongoing problem of nutritionally deficient Filipino children.  More details on these developments can be found here. 

Advocacy

In late August, as a follow-up to the Council's continued advocacy efforts  in the Philippines on its proposed sugar sweetened beverage (SSB) tax and as an action item from the Council's annual Philippines business mission, the Council filed a letter with the Philippines Senate Ways and Means Committee to outline additional concerns with research, ahead of the 2nd Public Hearing on the Proposed Sugar Sweetened Beverage Tax under Section 26 of House Bill No. 5636 that took place on August 24 in the Philippines Senate.  At this time, the Senate is weighing all angles of this proposed tax measure to come up with its own version which currently is stalled because of the differing take on the proposed tax increase.

Looking Ahead

From September 26-28, the Council is leading a delegation of senior executives from U.S. energy companies to the 35th ASEAN Ministers on Energy Meeting (AMEM), in Pasay, Metro Manila.  The mission will consist of bilateral meetings with various ASEAN Energy Ministers and AMEM Dialogue Partners, such as the U.S. Government delegation and the ASEAN Centre on Energy delegation.  To register, please click here.  If you have any questions about the mission or the registration process, please contact Riley Smith at rsmith@usasean.org.

View the Council's latest Philippines updates

Singapore

Major Developments

• In a speech last month at the SMU-TA Centre for Excellence in Taxation Conference, Ms. Indranee Rajah, Senior Minister of State for Law and Finance, presented the Singapore Government’s case for expanding the country’s Goods and Services Tax (GST) to cover low-value e-commerce goods.  She argued that it was in response to an increasingly digitalizing economy and elaborated on Singapore’s three-pronged approach to adapting the country’s tax system to the challenges arising from this shift.  However, the way in which the Government of Singapore has proposed to level the playing field is likely to increase the regulatory and compliance burdens for the newly affected vendors.  The Council made this point on behalf of Members when it submitted comments on June 30 in response to the Inland Revenue Authority of Singapore's call for input on the proposed GST expansion.  More information on the Government’s motivations for expanding the GST to online sales of low-value goods can be found here.
• On September 5, Prime Minister Lee announced that he was again reshuffling his Cabinet and nominating Social and Family Development Minister Tan Chuan-Jin to be the next Speaker of Parliament.  This decision by the Prime Minister has very likely reduced the number of “fourth-generation” leaders vying to be Singapore’s fourth prime minister.  In order to take the position of Speaker of Parliament, which became open when former Speaker Halimah Yacob resigned last month to run in this month’s presidential election, Tan will have to resign from his Cabinet post, which removes him from playing a role in formulating policy.  The three Cabinet members who apparently are still in the running to be the fourth Prime Minister of Singapore are Minister in the Prime Minister’s Office Chan Chun Sing, Minister for Education (Higher Education and Skills) Ong Ye Kung, and Minister for Finance Heng Swee Keat.  More information on the recent Cabinet reshuffle and its implications can be found here.
• Madam Halimah Yacob, the former Speaker of Parliament who resigned in August to run in Singapore’s planned September 23 presidential election, was the only presidential candidate to receive a certificate of eligibility to contest the office, according to a press release issued by the Elections Department (ELD) on September 11.  Madam Halimah was declared the President-elect on September 13, and was sworn in the next day.  In addition to being Singapore’s first female President, she is also the city-state’s first Malay head of state in nearly 50 years.  Though the President is a largely ceremonial role that serves as the Head of State for a term of six years, this election cycle was the first to be conducted after Parliament made several major and controversial changes to Singapore’s presidential election system over the last year.  More information on the election and the changes made to the presidential election system can be found here.

Advocacy

• On August 22, the Council, BSA | The Software Alliance and AmCham Singapore members met with Mr. David Koh, Chief Executive of the Singapore Cybersecurity Agency (CSA), to review key points from our joint submission (submitted August 24 and available here) on the draft Cybersecurity Bill and to better understand CSA’s policy position. The four key areas of the Bill were addressed: protection of Critical Information Infrastructures (CII), their designation and owners; powers to respond to cybersecurity threats; facilitation of sharing of cybersecurity information; and cybersecurity industry regulation.  CSA aims to introduce the Bill in early 2018 and begin implementation a few months after. If you have any follow-up comments or questions, please contact Shay Wester at swester@usasean.org.
• The Personal Data Protection Commission of Singapore (the Commission) conducted a public consultation on its proposed amendments to the Personal Data Protection Act (PDPA) from July 27 to September 21.  The amendments would introduce: (1) two new bases for data collection, use, and disclosure, and (2) a mandatory data breach notification framework.  The Council has drafted a submission together with BSA | The Software Alliance.  The submission notes that both organizations support the inclusion of both bases for handling data, but that they should not be subject to conditions as they create ambiguity.  Both organizations also propose that the Commission require notifications only when there is an actual risk of material harm.  In addition, the timeframe for breach notification should be "as soon as practicable" instead of a fixed number of hours.

Looking Ahead

On October 26, the Council, in partnership with the ASEAN Centre for Energy (ACE), is organizing a roundtable titled "20% in 2020 - Unlocking ASEAN's Energy Efficiency Potential" during Singapore International Energy Week (SIEW) 2017, one of the premier conferences in Asia for energy professionals, policymakers and commentators to discuss and share best practices within the global energy space.  The roundtable will offer comprehensive and deep insight into the ASEAN countries’ paths towards energy intensity reduction, as analyzed in ACE's 5th ASEAN Energy Outlook.  It provides an open platform for policymakers, technology developers, and financial institutions in both the public and private sectors to discuss major technology hurdles, financial constraints and social challenges in pulling together the regulatory frameworks that can be developed to unlock the true potentials of energy efficiency in the region.  Sponsorship opportunities are available.  Contact Riley Smith at rsmith@usasean.org for more information.

View the Council's latest Singapore updates

Thailand

Major Developments

• On September 13, the National Broadcasting and Telecommunications Commission (NBTC) of Thailand stated that the draft regulatory framework for over-the-top (OTT) businesses will be finalized by the end of the year, and will be in line with regional guidelines currently under development by the ASEAN Telecommunications Regulators' Council (ATRC).  Following a two-day meeting with ARTC representatives from all ten ASEAN member states, telecom and OTT companies, and other stakeholders including the Council, NBTC Chairman Thares Punsri said that the meeting’s initial conclusion would be passed to the formal meeting of the ATRC. Once Thailand’s OTT framework is complete, it will be open for public consultation.  He did not elaborate on the exact timeline, or whether companies would have to be registered under a broadcast licensing regime.  In June, the Council submitted a letter urging the Thai government to adopt forward-looking OTT regulations, and has engaged NBTC and other agencies regularly on the topic.
• On September 11, Meechai Ruchupan, Chairman of the Constitution Drafting Committee, confirmed that his team will submit a draft law on parliamentary elections—the last of ten foundational election-related laws—on or around December 2.  The constitution, which passed referendum in August 2016, mandates that a general election be held within 150 days after all required laws take effect.  However, there are many processes that allow for opposition and revision of the bill that would delay its taking effect.  Based on this timeline, the Election Commission estimates the general election could be held as early as mid-October 2018, but will most likely take place in December 2018.

Looking Ahead

• The U.S. Embassy in Bangkok is hosting a digital economy workshop on September 27, 9:00-11:30am, featuring presentations from the Ministry of Digital Economy and Society, National Broadcasting and Telecommunications Commission (NBTC), and a private sector panel discussion. Council members are invited to attend, but space is limited.  Click here for agenda details and RSVP instructions, and contact Matt Solomon at msolomon@usasean.org with any questions.
• On September 27-29, a small group of senior executives led by Keith Williams, Chair, US-ASEAN Business Council Board of Directors and President, CEO and Trustee, UL, will accompany U.S. Secretary of Commerce Wilbur Ross to Bangkok and Vientiane.  The Council delegation will join Secretary Ross’s meetings with H.E. Prayut Chan-o-cha, Prime Minister of Thailand, H.E. Thongloun Sisoulith, Prime Minister of Laos, and other senior officials.
• On October 3, the Council and the U.S. Chamber of Commerce will host a reception and dinner in honor of  Thailand’s Prime Minister Prayut Chan-o-cha during his visit to Washington, DC.  Sponsors will have the opportunity to engage the Prime Minister and his delegation (including several Cabinet Ministers) during a VIP reception and throughout the dinner. Click here to sponsor by September 26.  Please contact Ella Duangkaew at eduangkaew@usasean.org if you have questions.

View the Council's latest Thailand updates

Vietnam

Major Developments

• On September 6, Vietnam lifted its ban on imports of distillers' dried grains with solubles (DDGS), an animal feed byproduct of corn-based ethanol.  Vietnam's Ministry of Agriculture and Rural Development suspended imports in December 2016 after it reportedly discovered quarantine pests in U.S. shipments, connoting dire repercussions in terms of economic benefits between the two countries.  Before this suspension was announced, Vietnam was the third largest destination for import of the feed for the United States, accounting for 20 percent of overall U.S. DDGS exports valued at over $230 million a year.  Overall, the United States’ exports of DDGS to Southeast Asia have shown a 16 percent increase in the past year, totaling more than 1.7 million metric tons, according to data from the U.S. Department of Agriculture (USDA) and the U.S. Grains Council (USGC).  The Council’s Food & Agriculture Committee conducted a meeting with Vietnam’s Vice Minister for Agriculture and Rural Development Vu Van Tam in Hanoi earlier this year, where relevant stakeholders discussed this ban and came up with possible alternative solutions with the goal of removing the import restrictions on DDGS, so as to not disrupt economic engagement.  As a follow-up, the Council carried out key actions, such as reviewing the provision of evidence regarding the aluminum phosphate recirculation method for DDGS to facilitate better and cleaner trade.
• During a seminar on the economic and environmental impact of biotech crops earlier this month, several government experts urged farmers to take more advantage of the latest biotechnologies currently endorsed by the government to boost agricultural productivity and competitiveness vis-à-vis their foreign counterparts.  Crop Production Department’s Deputy Director Tran Xuan Dinh reported that current production still relies largely on hybrid seeds, and only roughly one-tenth of corn cultivation areas in Vietnam is dedicated to genetically modified (GM) varieties.  Due to high production costs and low returns for farmers, average corn productivity in the country remains stagnant at 4.5 tons per hectare.  Delegates to the seminar proposed integrating GM seeds into local corn production in a more streamlined manner to meet increasing domestic demand, citing positive impacts that GM crop technology has brought to global gross farm income and productivity.  With its high-yielding and cost-saving potential, a 10 percent increase in the use of biotech corn is said to have an effect of adding at least US$16.9 million to the rural economy annually.

Advocacy

• On August 30, the Council, along with partner associations AmCham Hanoi, BSA, CompTIA, DIGITALEUROPE, ITI, JEITA, SIA, and the U.S. Chamber of Commerce, submitted the final version of its comments on Vietnam’s Draft Law on Cybersecurity to the Ministry of Public Security.  The Ministry’s final draft had some improvements—the removal of the criminal liability section and some licensing requirements—but significant concerns remain.  The submission is available here in English and Vietnamese.
• Vietnam’s Ministry of Industry and Trade recently drafted a decree to amend Decree 37/20056/ND-CP of April 4, 2006 which regulates the details of the Trade Law on activities on trade promotion with regard to registration regulations, notification and state management of trade promotion activities.  Members are currently able to submit comments; the draft decree is available here (Vietnamese).  Please submit any comments to Vu Tu Thanh at tvu@usasean.org.

Looking Ahead

• On September 22, the Ministry of Industry and Trade (MOIT) of Vietnam and the Vietnam Trade Promotion Agency (VIETRADE) will host a conference in Chicago, Illinois to promote Vietnam-U.S. trade.  The conference will provide participants with up-to-date information on trade and investment opportunities between the two countries.  MOIT and VIETRADE, in partnership with the Council, U.S. Chamber of Commerce, Chicagoland Chamber of Commerce, and AmCham Vietnam, will assist all participants in making relevant and meaningful connections during and following the conference.  Attendance is free of charge for Council members.
• Building upon three successful Small and Medium Businesses (SMBs) workshops in Vietnam throughout 2017, the Council and its partners in Vietnam are organizing a symposium titled “Elevating Vietnamese SMBs to the Fourth Industrial Revolution World” on October 23 in Ho Chi Minh City.  The symposium will host panel discussion sessions with focus on the most crucial and relevant topics related to issues faced by SMBs.  This interactive symposium will draw speakers from Council members, Vietnamese associations and government institutions with the aim of creating more technology-accomplished and global-oriented SMBs facing the economic challenges of the Fourth Industrial Revolution era.  Around 300 Vietnam SMBs owners and senior executives are expected to join the event.  Participants will be drawn from various industry sectors such as manufacturing, industry and construction, trade and services, as well as agriculture, forestry, and fishery.  For more information, please contact Vu Tu Thanh at tvu@usasean.org.

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