October 2017

It is with great sadness that I announce the passing of one of the Council’s original board members and supporters, Washington SyCip, at the age of 96, on a flight on his way to a dinner and meetings in the United States. Wash was a wonderful friend of the Council throughout our 33 years of existence. He engaged us at every opportunity, including during our last Council business mission to the Philippines in July where he made a special effort to attend the reception that Ambassador Kim held in honor of our delegation, despite having two other engagements that evening. He also accompanied us to every meeting at Malacañang Palace since I became President of the Council in 2009. Wash was one of the great men of Asia, though he was very humble and did not make a big deal of his success in business or philanthropy. Among other notable achievements, he was a critical player in creating bridges between the United States and the Philippines for decades, mentoring countless American and Philippine business and government leaders. I was honored to be coached by Wash since I returned to Washington in 2004. Wash was the driving force behind the founding of the Asian Institute of Management in Manila, one of ASEAN’s best business universities. He spent his life focused on bringing good governance to the Philippines and addressing the poverty he saw throughout the Philippines. We will miss his leadership and friendship.

October saw President Trump continue to engage ASEAN leaders with the visit of Thailand’s Prime Minister Prayut Chan-o-cha to the White House October 2. The Prime Minister, his wife and senior Thai delegation officials held extensive meetings with President Trump and the First Lady, which included luncheon, an Oval Office private meeting and a meeting between the leaders and key cabinet members. It was the first official visit of a Thai premier to the White House in 12 years, a clear indication of the rising momentum in U.S.-Thai bilateral relations.

The Council co-hosted Prime Minister Prayut and his economic team for a dinner with the business community on October 3. The Prime Minister emphasized his commitment to the U.S.-Thai relationship and offered his support for increased U.S. business presence in Thailand and increased Thai investment in U.S. businesses. The event was a huge success and well-attended, with U.S. Secretary of Commerce Wilbur Ross there to introduce the Prime Minister.

The week prior to Prime Minister Prayut’s visit to the United States, U.S. Secretary of Commerce Ross visited Thailand and Laos, accompanied by a small, high-level business delegation led by the Chairman of the Council’s Board of Directors, Keith Williams, who is also the President & CEO of UL. The delegation held meetings with the Prime Ministers of both Thailand and Laos as well as key cabinet members of both countries. This marked the first time in recent years the Council has met with a Lao Prime Minister.

In yet another encouraging sign of improving U.S.-ASEAN relations, President Trump on September 29 confirmed his participation in the APEC Summit in Vietnam and the ASEAN Summit in the Philippines. Read the official White House announcement here. The President also announced the visit to the White House on October 23 by Prime Minister Lee Hsien Loong. This will be President Trump’s second formal meeting with Prime Minister Lee (the first occurring as a bilateral meeting on the sidelines of the G-20 Summit in Germany). With his meeting next Monday with Prime Minister Lee, President Trump will have met with the leaders of Indonesia, Malaysia, Singapore, Thailand and Vietnam prior to his trip to Asia for the APEC and ASEAN Summits in Vietnam and the Philippines.

In Congress, ASEAN Caucus Co-chairs Congressman Joaquin Castro of Texas and Congresswoman Ann Wagner of Missouri passed House Resolution 311, which recognized the 40th anniversary of U.S-ASEAN relations and the importance of the United States’ strategic relationship with ASEAN member states. To read the full text of the resolution, click here.

The Council continued our engagement in ASEAN multilateral dialogues. This past month, we led successful missions to the ASEAN Ministers of Energy Meeting (AMEM), ASEAN Ministerial Meeting on Agriculture and Forestry (AMAF) and the ASEAN Transport Ministers Meeting (ATM).

In Washington, we co-hosted the “Voyage to Indonesia 2018 Gala Dinner,” to announce that Indonesia will host the 2018 World Bank/IMF Fall Meeting. Our dinner and roundtable featured three of Indonesia’s most senior government leaders – Coordinating Minister Luhut Pandjaitan, Finance Minister Sri Mulyani Indrawati, and Central Bank Governor Agus Martowardojo. The three leaders provided their insights on such key issues as Indonesia’s latest economic policies affecting its growth, upgraded investment rating, and new opportunities for its development and investment potential. These include investment opportunities in infrastructure, IT, banking, energy, creative industries, tourism, real estate, and others.

The Council’s annual business mission to Brunei just concluded successfully, with three companies participating. Through members’ input, we were able to put forth proposals for engaging the Government of Brunei on its priorities to diversify its economy, which include the financial sector (electronic payments, insurance, banking and financial inclusion), ICT sector (digital economy, cyber security), and energy sector.

Looking ahead, and towards the end of the year, the Council will be attending the Vietnam Business Summit (November 7), APEC CEO Summit (November 8-10) and the ASEAN Business & Investment Summit (November 12-14), as well as engaging for the first time the ASEAN Telecommunications Ministers Meeting (November 30-December 1) and holding our final business mission of the year to Myanmar (December 6-8).

It is with tremendous gratitude that we bid farewell to two outstanding Ambassadors, who will be leaving their respective posts at the end of this month: Thai Ambassador to the United States Pisan Manawapat and U.S. Ambassador to Vietnam Ted Osius. Both Ambassador Pisan and Ambassador Osius are great friends of the Council and truly outstanding representatives of their countries. We will be sad to see them go and wish them all the best in their future endeavors.

Highlights

Looking Ahead

• As U.S. Ambassador to Vietnam Ted Osius concludes his tour, the Council is organizing two farewell receptions in his honor on October 23, in Ho Chi Minh City, and November 1, in Hanoi. Participants will include senior central and provincial Vietnamese government officials, U.S. Embassy and consulate officials, U.S. corporate executives, local business leaders, heads of international organizations, and prominent intellectuals. Sponsorship opportunities are available. For more information, please contact Vu Tu Thanh at tvu@usasean.org.
• On October 30, the Council will host a farewell luncheon for His Excellency Pisan Manawapat, the Thai Ambassador to the United States. Ambassador Pisan has served in the U.S. since February 2015, and will end his term at the end of October. The Ambassador has been highly dedicated to deepening all aspects of the Thai-U.S. bilateral relationship, and the Council has greatly benefitted from his friendship and advocacy. He will be dearly missed and the Council looks forward to celebrating his successful term, and wishing him well in his next endeavors. For sponsorship opportunities, please contact Ella Duangkaew at eduangkaew@usasean.org.
• On October 31, the Council will meet with Ms. Sulaimah Mahmood, Senior Director of the ASEAN Division at Singapore’s Ministry of Trade and Industry (MTI), to discuss plans and priorities for Singapore’s ASEAN Chairmanship in 2018, and receive an update on RCEP’s Trade Facilitation and e-Commerce Chapters. Please contact Jamie Lim at jlim@usasean.org to suggest talking points.
• APEC CEO SUMMIT: Registration for the APEC CEO Summit 2017 in Da Nang, Vietnam is quickly coming to a close on October 20. To register, please click here. Confirmed ASEAN speakers include President Joko Widodo of Indonesia and President Tran Dai Quang of Vietnam. In addition to official APEC events, Council members are also invited to attend a number of side events organized by the U.S. APEC Business Coalition, including a welcome reception co-sponsored by AmCham Hanoi and a series of meetings with APEC leaders and ministers from APEC economies and senior U.S. government officials. These events will take place on November 8-10. For more information, please contact Hai Pham at hpham@usasean.org.
• ASEAN Business and Investment Summit: The annual ASEAN Business and Investment Summit (ABIS), organized by the ASEAN Business Advisory Council, will take place in Manila, Philippines, on November 13-14. The event will feature panels on infrastructure, financial services, sharing economy, entrepreneurship, and more. Several heads of state, including President Trump, have been invited to offer keynote remarks. Click here to register. Contact Mario Masaya at mmasaya@usasean.org with any questions.

Advocacy

• This month, the Council continued its advocacy efforts with the Government of Indonesia regarding data privacy protection regulations GR82, which include rules on cross-border data transmissions. On September 29, the Council organized a meeting in San Francisco with member companies and a delegation of Indonesian officials from the Ministry of Communication. The Council followed up that meeting with a members’ dialogue with officials from the Ministry of Communication in Jakarta on October 17. In both sessions, which included Minister Rudiantara, Council members commented and transmitted proposals for revisions to the regulation, particularly on its proposed data localization requirements.
• The Council has started developing an ASEAN regional advocacy effort regarding regulations on Over-the-Top (OTT) services in ASEAN. Such laws are currently a prominent issue at the national and regional levels. Indonesia and Thailand are developing national OTT regulations. Earlier in October, the Council hosted a discussion in Singapore to assess current trends and to take stock of some of the initial perspectives on OTT’s coming out of the ASEAN Telecommunications Regulators' Council (ATRC) meeting in September, which the Council attended as a stakeholder. The Council will be organizing a meeting for members together with the Asia Internet Coalition (AIC) to discuss opportunities to engage ASEAN and its member countries on OTT regulations. We will discuss a possible code of conduct for and methods of engagement at the next OTT dialogue, which will be held in Malaysia.
• On October 12-13 at the Council’s mission to the 2017 ASEAN Transportation Ministers meeting in Singapore, Council members were able to engage all ten of the ASEAN Transport Ministers as a group and held meetings with five country delegations bilaterally. The delegation used the mission to advocate for greater transparency throughout the infrastructure project value chain (design, development, ownership, assigning of risk, operating the asset), the importance of the value of life cycles costs, and benchmarking both capital and operating costs of a project as ways of attracting greater private sector participation in projects. The mission also provided a platform for Council members to exchange views on how best to increase the role and utilization of technology to improve processes for developing infrastructure projects.

Intelligence

• From October 4-9, as part of the Vietnamese government’s wider institutional reform to cut down red tape and improve business climate, the Central Executive Committee (CEC) of the Communist Party of Vietnam met to discuss possible mergers of several agencies at the central and provincial levels. Following the Ministry of Industry and Trade’s (MoIT) lead of drastically reducing the administrative burden placed on businesses announced recently, the Vietnamese government is increasing pressure on other agencies to do the same. To date, Minister of Health Nguyen Thi Kim Tien has promised to slash 80 percent of existing business conditions and actively coordinate with the MoIT and the Ministry of Agriculture and Rural Development on simplifying goods inspection processes and food safety regulations. Once in effect, the new laws are expected to reduce the duration of customs clearance by three to four days and save an estimated VND 2 million (US $100) per batch of goods.

Relationship Building

• On October 20, the Council and AmCham Singapore will host a roundtable discussion with a U.S. Congressional Delegation led by Congressman Ted S. Yoho (R-FL), Chairman of the House Foreign Affairs Subcommittee on Asia and the Pacific. The Members of Congress seek to engage member companies to gain a better understanding of the issues that U.S. businesses face in Singapore. Members interested in participating should contact Shay Wester at swester@usasean.org.
• Please save the date for the Council’s Business Mission to the ASEAN Telecommunications 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 Nay Pyi Taw and Yangon, Myanmar on December 6-8. 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.

Promotion

• On October 26, the Council and the ASEAN Centre for Energy (ACE) will host a roundtable titled "20% in 2020 - Unlocking ASEAN's Energy Efficiency Potential.” This roundtable with take place 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 provide an open platform for policymakers, technology developers, and financial institutions to discuss major technology hurdles, financial constraints and social challenges in putting together the regulatory frameworks that can be developed to unlock the true potential of energy efficiency in the region. Please contact Riley Smith at rsmith@usasean.org with any questions or to express interest.

Membership

• The Council is pleased to welcome Cheniere Energy and Bower Group Asia as of October 1. Both have joined the Council at the Corporate level, bringing total membership to 156 with 85 Chairman’s Council members and 71 Corporate level members. The Membership team is always interested in your thoughts on companies that might make great additions to the Council.

Regional Highlights

APEC

Looking Ahead

• On September 29, the White House confirmed that President Trump will travel to Asia November 3-14, with stops at the APEC Summit in Vietnam, and the ASEAN and East Asia Summits in the Philippines.
• APEC CEO SUMMIT: Registration for the APEC CEO Summit 2017 in Da Nang, Vietnam is quickly coming to a close on October 20. To register, please click here. Confirmed ASEAN speakers include President Joko Widodo of Indonesia and President Tran Dai Quang of Vietnam. In addition to official APEC events, Council members are also invited to attend a number of side events organized by the U.S. APEC Business Coalition, including a welcome reception co-sponsored by AmCham Hanoi and a series of meetings with APEC leaders and ministers from APEC economies and senior U.S. government officials. These events will take place on November 8-10. For more information, please contact Hai Pham at hpham@usasean.org.

View the Council's latest APEC updates

ASEAN

Major Developments

• On September 27, the U.S. House of Representatives passed H.Res. 311, Recognizing that for 50 years the Association of South East Asian Nations (ASEAN) has worked toward stability, prosperity, and peace in Southeast Asia. The Resolution, which was introduced in May by the Co-Chairs of the Congressional Caucus on ASEAN, Congressman Joaquin Castro (TX-20) and Congresswoman Ann Wagner (MO-02), recognizes that ASEAN is the United States’ fourth-largest export market, creating more than 500,000 jobs, and calls for the elimination of remaining trade barriers. According to Congressman Ed Royce (CA-39), Chairman of the House Foreign Affairs Committee, “Passage of this resolution demonstrates our support for ASEAN as an institution and the United States’ strategic relationship with Southeast Asian nations.”
• The Council continued its ASEAN multilateral engagement at the 35th ASEAN Ministers on Energy Meeting (AMEM) September 26-28 and the 39th ASEAN Ministerial Meeting on Agriculture and Forestry (AMAF) September 28-29. See the Energy and Food & Agriculture sections below for more information.

Looking Ahead

• The Council is organizing a business mission to the ASEAN Telecommunications and IT Ministers Meeting (TELMIN) November 30 to December 1 in Siem Reap, Cambodia. We have submitted a proposal for engagement to TELMIN. If you have any questions or are interested in participating in the mission, please contact Shay Wester at swester@usasean.org or Mario Masaya at mmasaya@usasean.org.
• On October 31, the Council will meet with Ms. Sulaimah Mahmood, Senior Director of the ASEAN Division at Singapore’s Ministry of Trade and Industry (MTI), to discuss plans and priorities for Singapore’s ASEAN Chairmanship in 2018, and receive an update on RCEP’s Trade Facilitation and e-Commerce Chapters. Please contact Jamie Lim at jlim@usasean.org to suggest any talking points.
• The Council is beginning to formulate its ASEAN SME programming for 2018. We welcome members’ proposals for multi-event partnerships, input on priority markets/topics, and any feedback on how to ensure the SME program is impactful and responsive to company priorities. Please contact Vinsensius Kangen at vkangen@usasean.org with any questions and to express interest.
• ASEAN Business and Investment Summit: The annual ASEAN Business and Investment Summit (ABIS), organized by the ASEAN Business Advisory Council, will take place in Manila, Philippines, on November 13-14. The event will feature panels on infrastructure, financial services, sharing economy, entrepreneurship, and more. Several heads of state, including President Trump, have been invited to offer keynote remarks. Click here to register. Contact Mario Masaya at mmasaya@usasean.org with any questions.

View the Council's latest ASEAN updates

TPP

Major Developments

• The TPP-11 process continues to move forward, with some analysts expecting some form of agreement to be announced by the 11 nations on the sidelines of the 2017 APEC Summit in Vietnam in November. The agreement is likely to be in the form of a consensus on how these countries will look to move forward in terms of what adjustments to the original agreement the 11 nations are willing to make. Domestic political developments in TPP-11 nations (Japan, New Zealand and Malaysia) and the ongoing NAFTA modernization talks (Canada and Mexico) have complicated the group’s efforts to find a new consensus. In addition, the relatively slow progress in the RCEP FTA process (which includes seven members of the TPP-11) could provide an additional incentive to reach a new consensus by November.

View the Council's latest TPP updates

Industry Highlights

Customs

Major Developments

• The Thai Ministry of Commerce (MOC) is creating a new integrated control system to monitor export and transshipment of dual-use items in support of international efforts against terrorism and weapons proliferation. The MOC has recently issued a Notification (accessible here in Thai and English) to formally announce the Dual-use items list (List One) and HS-Code list (List Two), stipulating products that will be subjected to the export controls. The new system enters into force on January 1, 2018, and will target approximately 1,200 categories of items which collectively have an export value of 2 trillion Thai baht (about US $60.5 billion). Businesses dealing with goods on these two lists will be required to obtain approval before commencing their export activities. A trial version of the MOC’s e-Trade Management of Dual-use Items (e-TMD), through which exporters can determine whether their products fall under DUI categories, was circulated to some companies in August for testing and is accessible here. If their goods are subject to the rules, exporters are required to obtain the DUI Export License for List One goods or self-certify for the List Two goods from the electronic system. Describing the new rules, MOC’s Vice Minister Winichai Chaemchaeng said that “this law enforcement should help increase trading partners’ confidence and ensure that Thailand has not supported any terrorism, while it should effectively prevent future problems [regarding trade barriers].” More detailed official implementing guidelines are expected from MOC soon, as is a call for companies to begin registering in the system. While companies await more implementation details from the Thai government ahead of the fast approaching entry into force, they should review whether their products are covered by the new regulations and review their compliance procedures to prepare for the new system. The Notification is based on the 1979 Export and Import of Goods Act (accessible here in English), which was amended in 2015 (accessible here in English).

Advocacy

• On October 24-26, the Council will join the 27th meeting of the ASEAN Coordinating Committee on Customs in the Philippines to present trade facilitation ideas to ASEAN’s senior customs officials. The presentation will build on the Council’s presentation at the 2017 ASEAN Directors-General of Customs Meeting to argue for further simplification of customs procedures, implementation of the World Customs Organization Immediate Release Guidelines, simplification of tax and payments procedures, and simplification of return procedures. 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

• On October 2, Prime Minister of Thailand General Prayut Chan-o-cha (Ret.) met with President Trump at the White House. The visit is considered an important step in further cementing a key economic and strategic alliance in U.S.-Thai relations. After the 2014 coup, the United States ceded many of its military assistance and training programs with Thailand. Under the Trump Administration, mil-to-mil ties seem to be on the uptick, with more arms sales to Thailand having been authorized as a means to help reduce the U.S. trade deficit with Thailand. In June, the Royal Thai Army (RTA) announced that the United States approved a plan for its acquisition of Sikorsky UH-60M Black Hawk utility helicopters. The Royal Thai Air Forces cleared a project to upgrade its F-5 fighter aircraft in August, and plans to upgrade its fleet of F-16 fighter jets in the near future. In September, Northrop Grumman was awarded an $18.6 million contract to provide Mk 54 Mod 0 lightweight torpedo array kits to operators of the weapon. Approximately 5 percent of the contract values will be provided to the Royal Thai Navy under the U.S. Foreign Military Sales (FMS) program. On October 6, Thailand’s Defense Minister Prawit Wongsuwan confirmed that the RTA plans to upgrade its fleet of Bell AH-1F Cobra attack helicopters, likely the AH-1Z Viper. The RTA’s plans to procure combat helicopters was revealed after Prime Minister Prayut’s visit, during which defense ministers from both sides discussed the FMS process in detail.
• On September 12, Prime Minister Najib Razak visited the White House to commemorate the 60th anniversary of bilateral ties between Malaysia and the United States. During their meeting, President Trump and PM Najib agreed to further boost defense cooperation in existing areas such as maritime security, counterterrorism and cybersecurity. The outlook of U.S.-Malaysian defense ties after Prime Minister Najib’s visit is positive as both sides reaffirmed their commitment to a strong bilateral defense relationship in their Joint Statement for Enhancing the Comprehensive Partnership between the United States and Malaysia. President Trump welcomed Malaysia’s intent to make an additional $60 million in defense procurements from the United States. The leaders also committed to pursuing additional opportunities for joint exercises and training. On September 18, the United States and Malaysia conducted a maritime training activity (MTA) at Lumut Naval Base. This exercise is separate from the Cooperation Afloat Readiness and Training (CARAT) exercise series which was under way at the time, though Malaysia officially remains part of the CARAT series, and CARAT exercises between the United States and Malaysia are expected to continue in the future. To access the full joint statement, click here.

View the Council's latest Defense & Security updates

Energy

Major Developments

• On September 27, during the ASEAN Ministers on Energy Meeting in Manila, energy officials from Laos, Malaysia and Thailand signed the ASEAN region’s first multilateral power trading agreement. According to the two-year tripartite purchase agreement, Laos will supply 100 Mw of hydroelectric power to Malaysia through the grid network in Thailand starting January 1, 2018. Malaysia’s motivation for the agreement is to incorporate more renewably-sourced energy into its power mix. The agreement is Phase 1 of a power trading and integration project that could potentially include Singapore in subsequent years. Supporters of the agreement hope it will serve as a building block for the ASEAN Power Grid initiative, which aims to facilitate power trading across most of the countries in the region.
• Indonesia’s Finance Ministry is reportedly preparing a regulation that aims to use tax incentives to make the Government’s gross-split scheme for production sharing contracts (PSCs) for oil and gas project development more attractive to foreign companies. The new regulation would see taxes waived during the exploration stage, deduct the accumulated operational costs of the exploration stage from the company’s income tax, and allow the company to only pay taxes once it had reached optimal oil and gas production. The scheme would also only apply to new oil and gas projects. Earlier this year, the Ministry of Energy and Mineral Resources introduced a gross-split scheme for oil and gas PSCs that divided gross production between the State and PSC contractors without providing a mechanism for the contractors to recover sunk costs. Having met with criticism of the scheme from oil and gas companies, the Government of Indonesia has sought ways to make it more attractive over the last several months.
• In a report released at the end of September, the British energy research and consulting company Wood Mackenzie estimated that ASEAN will need to more than double its power capacity in less than 20 years to keep up with demand. The group estimated that the endeavor would require approximately US $500 billion of investment, with countries currently displaying lower energy consumption – such as Cambodia, Indonesia, Laos, Myanmar, the Philippines, and Vietnam – seeing most of the development.

Advocacy

• The Council led its annual business mission to the 35th ASEAN Ministers on Energy Meeting (AMEM) September 26-28. The delegation held bilateral meetings with high-ranking energy officials from six of the 10 ASEAN countries in attendance, as well as with the U.S. Government delegation, the ASEAN Centre for Energy (ACE), and the Economic Research Institute for ASEAN and East Asia (ERIA). Energy efficiency and how ASEAN countries can work toward their energy efficiency goals was a major theme of the mission. The mission also highlighted the degree to which the architecture and mechanics of the digital economy reach into the energy sector, and how unencumbered data flows are integral to ASEAN countries benefitting from the sector's increasing digitalization. It was the seventh year that the Council has participated in the annual meeting, which brings together delegations from the Energy Ministries of all 10 ASEAN countries, as well as the countries that participate in the AMEM+3 and the East Asia Summit Energy Ministers Meeting (EAS EMM). As a follow-up to the Mission, the Council will be looking into possible collaborative projects with ACE that would cover the overlap of the digital economy, the Internet of Things, and the energy sector. Any member companies that are interested in these topics should contact Riley Smith at rsmith@usasean.org.

Looking Ahead

• 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 provide an open platform for policymakers, technology developers, and financial institutions to discuss major technology hurdles, financial constraints and social challenges in putting together the regulatory frameworks that can be developed to unlock the true potentials of energy efficiency in the region. Participants include energy efficiency officials from Indonesia, Malaysia and Thailand, along with representatives from GE, UL, ACE, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), and the Institution of Engineers Singapore (IES). Please contact Riley Smith at rsmith@usasean.org with any questions.

View the Council's latest Energy updates

Financial Services

Major Developments

• Thailand is currently developing a new act on financial technology regulation which appears to focus on some of the challenges fintech development has faced in Thailand. Thai regulators began the country’s work to enable and regulate digital finance in late 2016, issuing new regulations and creating a regulatory sandbox. Some components of this act would address gaps and concerns not addressed in the previous regulations, such as digital signatures and cybersecurity. Another important component of the bill is clarification that business transactions using electronic means with the procedures and technologies prescribed will be lawful, reducing legal grey zones around new forms of business.
• Indonesia’s Financial Services Authority (OJK) and Deposit Insurance Agency (LPS) have issued new implementing regulations for the Law on Prevention and Mitigation of Financial System Crises (Law No. 9/2016), which requires Indonesia’s banking and finance industries to comply with increased supervision by financial authorities. Important developments include stronger reporting requirements for Systemically Important Banks, tiered supervision, and raised safeguard measures. Systemically Important Banks must prepare and submit a plan for resolving financial problems to the OJK. The new crisis management framework mostly rules out the use of public funding in bank resolution. The Indonesian government believes this will reduce moral hazard, thus reducing the risk of major bank failures.
• On September 13, Bank Indonesia (BI) issued a new anti-money laundering and anti-terrorist financing regulation, PBI No. 19/10/PBI/2017 (available here in Bahasa Indonesia) concerning the Implementation of Anti Money Laundering and Terrorism Financing Prevention for the Provider of Payment System Services Other Than Banks and Organizers of Non-Bank Foreign Exchange Business Activities. These regulations are aimed at curbing money laundering and terror-related financing across the payment system, including money changers, credit card issuers, remittance services, fintech payments startups, and electronic money providers. The Financial Services Authority released similar regulations in June (available here in Bahasa Indonesia) that cover banks, insurance companies, and other financial institutions.

Advocacy

• On October 11, the Council, together with the United States-Indonesia Society and the Government of Indonesia, hosted a Gala Dinner to kick off The Voyage to Indonesia 2018, a series of events on Indonesia leading up to the Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund. The dinner featured speeches by Coordinating Minister for Maritime Affairs Luhut Pandjaitan, Finance Minister Sri Mulyani Indrawati, Bank Indonesia Governor Agus Martowardojo, and U.S. Representative Vern Buchanan. The dinner was preceded by a business roundtable with the leaders, during which Council members had the opportunity to discuss policy directly with the keynoters.

Looking Ahead

View the Council's latest Financial Services updates

Food & Agriculture

Major Developments

• The Tax Reform for Acceleration and Inclusion Act (TRAIN) – the first component of the Philippines Department of Finance (DoF)’s proposed Comprehensive Tax Reform Package (CTRP) – presents one of the most ambitious government efforts to date to overhaul the country’s tax system. The TRAIN was approved by the Philippines’ House of Representatives in May 2017 in its own version of House Bill No. 5636, a substitute bill consolidating 54 tax-related measures authored by Quirino Rep. Dakila Carlo Cua.

  On September 20, the Senate Ways and Means Committee filed its own version of the bill -Senate Bill No. 1592 - under the sponsorship of Sen. Juan Edgardo “Sonny” Angara. The proposal retains most of the original tax reform program and a similar targeted revenue outcome. Pertaining to the food, agriculture and beverage sector, some differences were noted:

  • Regarding sugar-sweetened beverages (SSBs), the Senate endorsed a two-phased approach. Instead of charging P10 in taxes for beverages containing purely locally produced sugar and P20 for other soft drink varieties as outlined in the House bill, in the first two years, it proposes P5-per liter for beverages with caloric sweeteners, P3 for those with non-caloric sweeteners, and P10 for those that use High Fructose Corn Syrup (HFCS). After two years, the tax will be calculated at P0.05 per gram of sugar for qualifying beverages. According to Sen. Angara, “the two-phased approach is to give the food and drug administration (FDA) time to build its capacity to implement the proper tax monitoring regime.” The Senate’s TRAIN version excludes milk with less than 5 grams of sugar per 100ml - given its nutritional value - and coffee (grounded and 3-in-1), one of the top consumed food products in the country. It also exempts 100-percent natural fruit and vegetable juices, unsweetened tea, meal replacement, medically indicated beverages, and certain sweetened beverage items that use coconut sugar and stevia. Despite the change from the House version of the bill, this tax will still pose challenges for some members doing business in the Philippines.
  • The Senate Committee retains the House’s proposed value-added tax (VAT) exemptions on raw food, healthcare, social housing, other basic needs, as well as those given to senior citizens, persons with disabilities, cooperatives, etc. It raises the VAT-exempt threshold on small business owners’ sale of goods and services from P1.5 million to P3 million and below as a measure of support for their business growth.

Advocacy

• On September 28-29, the Council organized its annual business mission to the 39th ASEAN Ministerial Meeting on Agriculture and Forestry. The delegation, which included representatives from six Council member companies, had productive bilateral meetings with key officials from Cambodia, Laos, Myanmar, the Philippines and Vietnam. During the mission, the Council was also invited to present during the Preparatory Senior Officials Meeting on September 26 and 39th AMAF on September 28 – during these presentations, Council F&A Committee Chairman Bruce Blakeman (Cargill) reviewed current agricultural trade barriers in the areas of maximum residue limits (MRLs), standards harmonization and equivalency, and low-level presence regulations. For more information on follow-up or mission notes, please contact Sunita Kapoor at skapoor@usasean.org.

View the Council's latest Food & Agriculture updates

Health & Life Sciences

Major Developments

• According to the World Health Organization (WHO), Malaysia’s healthcare budget is currently 4 percent of its GDP, but should be at 7 percent to account for inflation and reduce congestion in government facilities. In past budgets, the ministry had received between 10 to 15 percent more in the annual allocation, and the Health Ministry does intend to seek a larger allocation due to increasing medical costs. Its minister, Dr. S. Subramaniam, stated that the Health Ministry is committed to providing people with quality healthcare despite the fact that RM23 billion allocated for this year was insufficient. With the rise of non-communicable diseases in Malaysia such as diabetes and obesity, the healthcare sector is looking to shift focus towards prevention and general wellness to reducing incidents of such diseases.

Advocacy

• Due to scheduling conflicts and recent developments on Secretary Ubial’s appointment as Secretary of Health, the Council’s Health & Life Sciences Industry Mission to the Philippines has been postponed. In early 2018, the Council’s HLS committee will plan to continue its engagement with the Vietnam Ministry of Health and look to reschedule this mission to the Philippines.

View the Council's latest Health & Life Sciences updates

ICT

Advocacy

• In August, the Ministry of Communications and Information Technology of Indonesia (KOMINFO) published a revised draft of Over-the-Top (OTT) Services Regulations. There have been several updates and improvements to the regulations since the Council’s submission in June 2016. One new area of concern is the proposed formation of the National Forum, which would have the power to recommend bandwidth sanctions to the KOMINFO Minister. On September 26, the Council, in partnership with ACT, AmCham Indonesia, BSA, ITI and the USCC, submitted final comments and a letter in response to the revision.
• On September 29, the Council held a roundtable with H.E. Rudiantara, Indonesia Minister of Communications and Information Technology, during his trip to San Francisco. The Minister stated that the Government of Indonesia would be finalizing revisions to Government Regulation 82 of 2012 (GR82) before October 17, which was the original implementation deadline of the regulation. He shared that the revision requires that critical data remain in the country. A follow-up roundtable was held on October 17 and Minister Rudiantara provided more updates on the revised regulation. Notes from the meeting will be disseminated in a separate update.
• In response to the call for input issued by the Personal Data Protection Commission of Singapore, BSA and the Council submitted joint comments on the proposed amendments to the Personal Data Protection Act (PDPA). In addition, BSA and the Council will be meeting with the Commission to discuss technical aspects of the amendments. The date has not yet been confirmed, but is expected to be the last week of October. If you are interested in attending the meeting, please contact Shay Wester at swester@usasean.org.
• In July, BSA and the Council submitted a joint position paper to the Standards, Productivity and Innovation Board (SPRING) Singapore, the national standards and accreditation body. The paper proposed amendments to the Cloud Outage Incident Response (COIR) guidelines. On October 6, SPRING issued a call for input on the draft Singapore Standards, which includes the revised COIR standards. Among other revisions, the recommendations on data breach have been removed. SPRING has issued a call for input on the draft, and the closing date for comments is December 7. BSA and the Council are currently analyzing the revised standards and will update members in due course with proposed next steps. Please feel free to provide preliminary input to Shay Wester at swester@usasean.org.
• On October 9, the Council held a meeting at its Singapore office to discuss OTT regulations in the ASEAN region. Members discussed potential interest in regular consultation with the ASEAN Telecommunications Regulators’ Council (ATRC) and possible avenues of engagement at its next meeting, which will be hosted in Malaysia in November. A code of conduct for the regulation of OTT services was also on the agenda. The meeting notes are available here.
• Following the submission of a joint industry letter to Vietnam’s Ministry of Public Security (MPS) regarding its Draft Law on Cybersecurity, MPS has issued an updated version (“Draft 14”) of the Draft Law (English translation here), which will go before the National Assembly on or around October 20. If members have any additional questions or concerns about the new version, please contact Matt Solomon at msolomon@usasean.org.

Looking Ahead

• The Council is organizing a business mission to the ASEAN Telecommunications and IT Ministers Meeting (TELMIN) November 30 to December 1 in Siem Reap, Cambodia. We have submitted a proposal for engagement to TELMIN. If you have any questions or are interested in participating in the mission, 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

• During the 36th ASEAN Air Transport Working Group (ATWG) in Vientiane September 4-7, air transport officials from ASEAN member countries affirmed their intentions to collaborate closely and work towards building the ASEAN Single Aviation Market, which was one of the key proponents of the ASEAN Economic Community blueprint. The general consensus between officials was to first proactively enhance cooperation on air transport service. The officials also drew points from previous ATWG meetings and referenced their shared goal of implementing open skies policies, by carrying out key economic and technical elements that need to be in place for a successful single aviation market to be established. Also known as the ASEAN Open Sky Agreement/Policy, this initiative has won the support of ASEAN senior transport officials and is endorsed by ASEAN transport ministers. If successfully implemented, it would serve at the region’s major regional aviation policy framework. The main aim of the policy is to liberalize the ASEAN skies in terms of air travel. This Single Aviation Market would allow ASEAN to reap the benefits of growth in air travel not only in the region, but around the world, with the continued growth of tourism, trade, investment, and service flows between member states.

Advocacy

• On October 12-13 at the Council’s mission to the 2017 ASEAN Transportation Ministers meeting in Singapore, Council members engaged all ten of the ASEAN Transport Ministers as a group and held meetings with five country delegations bilaterally. The delegation used the mission to advocate for greater transparency throughout the infrastructure project value chain (design, development, ownership, assigning of risk, operating the asset), the importance of the value of life cycles costs, and benchmarking both capital and operating costs of a project as ways of attracting greater private sector participation in projects. The mission also provided a platform for Council members to exchange views on how best to increase the role and utilization of technology to improve processes for developing infrastructure projects.

View the Council's latest Infrastructure updates

Country Highlights

Brunei

Major Developments

• Brunei Darussalam moved up from 58 to 46 this year in the Global Competitive Index for 2017-2018 issued by the World Economic Forum (WEF). The Global Competitiveness Report 2017-2018 assesses the competitiveness landscape of 137 economies, providing insight into the drivers of their productivity and prosperity. Four of Brunei’s ASEAN peers, Singapore (3rd), Malaysia (23rd), Thailand (32nd) and Indonesia (36th), rank higher than Brunei; meanwhile Brunei is leading compared to Vietnam (55th), Philippines (56th), Cambodia (94th) and Laos (98th).

Advocacy

• On October 17-18, the Council led a delegation of member companies on its annual Business Mission to Brunei and engaged key economic officials on regional, bilateral trade and investment issues. During the mission, the Council delegation focused on identifying opportunities to bolster the U.S.-Brunei economic relationship and supporting the Government of Brunei’s efforts to implement key reforms to help promote Brunei as a destination for high-value trade and investment. During the meetings, the delegation also spoke about the importance of further improvements to the investment climate, good regulatory practices, and plans to diversify the economy and attract more foreign investment.

View the Council's latest Brunei updates

Cambodia

Major Developments

• On September 22, H.E. Prak Sokhonn, Minister of Foreign Affairs and International Cooperation of Cambodia, spoke at the United Nations General Assembly (to access the full speech, please click here). He expressed great concern about the situation on the Korean Peninsula and called for all parties involved to exercise restraint and remain committed to mutual dialogue. He described climate change as a serious and unprecedented threat to global peace and security and reiterated Cambodia’s commitment to low carbon development. On the issue of human rights and in reference to recent developments, he maintained that Cambodia has no issue with monitoring efforts from international entities as long as it is performed in an impartial manner that takes all pertinent facts into account. He noted, however, that external powers and some large international non-governmental organizations’ lack political neutrality. Minister Prak Sokhonn asserted that Cambodia was acting as any other nation would when experiencing invasive interference from a foreign government and within the provisions stipulated under Cambodian law.

View the Council's latest Cambodia updates

Indonesia

Major Developments

• On September 21, the Government of Indonesia issued a draft Presidential Regulation on the Implementation of Patents by Patent Holders (to access the draft, please click here) as clarification on the implementation of Article 20 of Law No. 13 of 2016 on Patents which has received much criticism. Article 20 requires patent holders to either manufacture their patented products in Indonesia or to use their patented processes in Indonesia, to which the Government of Indonesia argued that such transfer of technology will positively contribute to Indonesia resulting in investment absorption among others. Under the draft regulation, postponement of implementation may be granted by the Minister of Law and Human Rights under two circumstances: the incapability of a patent holder to implement the patent and the inability of the implementation to generate any proportional economic values for the patent holders. The regulation is still being developed and there are a number of provisions that will need to be clarified. It is currently not clear whether the Ministry of Law and Human Rights is accepting feedback on the draft.
• The Head of the Indonesian Investment Coordinating Board issued Regulation No. 9 of 2017 which serves as an implementation of Articles 16 (1) and (2) of Law No. 23 of 2014 on Regional Governments. Regulation 9/2017 provides a set of guidelines for the central and local governments to improve their investment climate through deregulation, development of potential opportunities, and business empowerment. The regulation is seen as timely since the Jokowi Administration has been working to improve its strategy to promote and facilitate private sector investment and development in Indonesia. Under Regulation 9/2017, local governments can take the initiative to seek and harness potential investments through identifying and mapping out regional investment opportunities, and then submitting the mapping results to the Regional Investment Potential Information System. Such activities should pivot to the collection and analysis of information and data, which have been implemented by the Investment Coordinating Board (BKPM) and the Investment Unit and the One-Stop Integrated Service Facility at the local level. While efforts to further develop the investment climate in Indonesia are in the right direction, Indonesia still needs to address current challenges for investors such as regulatory policy uncertainty and restrictive regulations. Institutional problems that create uncertainty, unnecessary red tape, and bureaucratic burdens hinder the process of running a business in Indonesia and send alarming signals to potential investors. Regulation 9/2017 took effect on August 30, 2017.

Advocacy

• On October 11, the Council, together with the United States-Indonesia Society and the Government of Indonesia, hosted a Gala Dinner to kick off The Voyage to Indonesia 2018, a series of events on Indonesia leading up to the Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund. The dinner featured speeches by Coordinating Minister for Maritime Affairs Luhut Pandjaitan, Finance Minister Sri Mulyani Indrawati, Bank Indonesia Governor Agus Martowardojo, and U.S. Representative Vern Buchanan. The dinner was preceded by a business roundtable with the leaders, during which Council members had the opportunity to discuss policy directly with the keynoters.
• On October 11, the Council supported the inaugural U.S.-Indonesia Women’s CEO Summit held by the American Indonesian Chamber of Commerce. The Summit, a half day forum alongside the World Bank and IMF meetings in Washington, D.C., was designed to empower, promote and connect female leaders from the United States and Indonesia. H.E. Sri Mulyani Indrawati, Indonesia’s Minister of Finance, opened the event and private sector leaders, including top executives from Freeport-McMoRan, Chevron, ExxonMobil and Citi, shared their experiences on women’s styles of management, smashing the glass ceiling and shepherding the way for the next generation of female leaders.

View the Council's latest Indonesia updates

Laos

Major Developments

• On September 29, U.S. Secretary of Commerce Wilbur Ross visited Laos with a small, senior-level delegation of Council members, led by Chairman of the Council’s Board of Directors, and CEO, President and Trustee of UL, Keith Williams. Secretary Ross and the delegation met with Lao Prime Minister Thongloun Sisoulith; the Secretary’s visit was the first-ever by a U.S. Commerce Secretary to Laos. During the meeting with the Prime Minister, Secretary Ross discussed the U.S. Government’s desire to increase economic engagement with Laos, and the Trump Administration’s commitment to engaging with markets of all sizes. Secretary Ross’s trip signifies a promising upturn in the U.S.-Laos commercial relationship, and the Secretary appears to be a positive advocate for increased U.S. business presence in Laos. For the delegation of Council members, this was also the first-ever engagement with the Prime Minister of Laos. In the meeting, the Prime Minister expressed a desire for meeting again next year during the Council’s annual Business Mission to Laos. This trip opens opportunities for the Council’s future engagement with the Prime Minister, and for U.S. business expansion in Laos.

View the Council's latest Laos updates

Malaysia

Advocacy

• On September 28, Bank Negara Malaysia (BNM) issued an exposure draft of Outsourcing Guidelines for financial institutions. The draft framework aims to ensure that risk management practices for outsourcing arrangements remain effective and robust in an increasingly globalized and digitized environment. The draft seeks to subject all outsourcing arrangements outside Malaysia to BNM approval among other proposed regulations. BNM is inviting comments on the draft until October 27, and the Council is drafting a submission. Please send any input to Emma Tabatabai at emma@usasean.org.

View the Council's latest Malaysia updates

Myanmar

Major Developments

• On September 5, the U.S. House of Representatives’ Committee on Foreign Affairs entertained a full committee hearing entitled “The Rohingya Crisis: U.S. Response to the Tragedy in Burma.” Testifying before the committee were Deputy Assistant Secretary of State for Southeast Asia. Patrick Murphy, Deputy Assistant Secretary of State for Population, Refugees, and Migration Mark C. Storella, and Acting Deputy Assistant Administrator Kate Somvongsiri of the U.S. Agency for International Development. Key among the recommendations put forth was for the U.S. Government to re-impose targeted economic sanctions on Myanmar’s military and their affiliates responsible for excessive use of force that befall harm towards the civilian Muslim population in Rakhine. To access notes from the committee hearing, please click here.

Looking Ahead

• Please save the date for the Council's annual Myanmar Business Mission to Nay Pyi Taw and Yangon on December 6-8. 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 September 21, Malacañang Palace confirmed the resignation of the Secretary of Information and Communications Technology Rodolfo Salalima. Undersecretary Eliseo Mijares Rio, Jr. was designated as the Officer-in-Charge of the Department of Information and Communications Technology (DICT) until a new secretary is appointed. Salalima had only been Secretary of the newly formed DICT for 14 months, and attributed his decision to resign to "corruption and interference." According to local news reports, some of the interference was reportedly coming from certain people in the Government who were pressuring Salalima and the DICT to favor certain suppliers in the Department's signature project, the P77.9-billion National Broadband Plan that would provide high speed internet to unserved or underserved areas in the Philippines.
• On October 10, the Commission on Appointments (CA) rejected the ad interim appointment of Paulyn Jean Rosell-Ubial as Secretary of Health, following her third confirmation hearing with the congressional body. Undersecretary Herminigildo Valle, head of the Office for Field Implementation and Management at the Department of Health (DOH), was designated the Officer-in-Charge of the department until a new Secretary is appointed. Prior to her appointment as Secretary of Health, Ubial had worked at the DOH for nearly three decades and had served under 13 Secretaries of Health. Her tenure as Secretary of Health was marked by criticism of her management skills from both inside and outside the DOH. Ubial was the last member of Duterte’s Cabinet to face the CA and is the fifth Cabinet Secretary to be rejected. The CA also rejected the appointments of Former Secretary of Foreign Affairs Perfecto Yasay, Secretary of Environment and Natural Resources Gina Lopez, Secretary of Social Welfare and Development Judy Taguiwalo, and Secretary of Agrarian Reform Rafael Mariano.
• In an October 10 memorandum, President Rodrigo Duterte ordered the Philippine National Police (PNP) to suspend its controversial crackdown on illegal drugs and transferred sole responsibility for anti-drug operations to the Philippine Drug Enforcement Agency (PDEA). The order came just days after the release of polling data showing that Duterte’s public satisfaction rating had dropped by 18 points, from +66 to +48, in September. The drop appears to be a result of the administration’s bloody crackdown on illegal drugs, specifically the deaths of three teenagers over the last two months that sparked rare street protests against the campaign. According to the PNP, more than 3,900 people have been killed in anti-illegal drug operations since July 1, 2016. Vigilantes have been blamed for an additional 2,290 deaths. The October 10 order is not the first time Duterte has suspended the anti-drug campaign. At the end of January, Duterte transferred responsibility for the crackdown to the PDEA after PNP officers were implicated in the kidnapping and murder of South Korean businessman Jee Ick-joo. That suspension lasted only five weeks and did not result in any major reforms to the campaign, despite pledges to root corruption out of the PNP.

Advocacy

• During the Council's annual business mission to the ASEAN Ministers on Energy Meeting (AMEM) from September 26-28, the Council raised member companies’ concerns over the costs associated with a proposed fuel marking scheme in a meeting with Philippine Secretary of Energy Alfonso Cusi. The Council requested that, if the Department of Energy (DOE) is intent on pursuing the scheme, which is intended to cut down on fuel smuggling, it studies the best practices of other countries that have implemented similar fuel-marking programs. DOE representatives said that they are studying best practices from other countries, and that they plan to submit a report on these practices to the relevant committees in the Philippine House of Representatives and the Senate.

View the Council's latest Philippines updates

Singapore

Major Developments

• On September 18, Minister for Communications and Information Yaacob Ibrahim announced that Singapore’s Cybersecurity Bill will be tabled in Parliament in 2018 instead of this year, as was originally planned. Dr. Yaacob said that the Government had consulted a range of stakeholders in the public and private sector and that interest in the draft legislation prompted them to extend the public consultation period. The additional time before the bill is introduced to Parliament will reportedly be spent, at least in part, reviewing the feedback that was received during the public consultation period.
• Prime Minister Lee Hsien Loong is scheduled to make an official working visit to Washington, D.C., from October 22-26, at the invitation of U.S. President Donald Trump. While in Washington, Prime Minister Lee will meet with President Trump, key administration officials, and Congressional leaders. He will also speak at the Council on Foreign Relations and the Economic Club of Washington, D.C. According to a White House press statement announcing the visit, "President Trump looks forward to reaffirming the relationship between the United States and Singapore, which has been one of America's closest partners in Asia for more than 50 years." The two leaders last met in July at the G20 Summit in Hamburg, Germany. Prime Minister Lee’s visit comes just weeks before President Trump’s planned trip to Asia, where he is expected to attend the U.S.-ASEAN Summit and 12th East Asia Summit in the Philippines and the 2017 APEC Summit in Vietnam.

Advocacy

• In response to the call for input issued by the Personal Data Protection Commission of Singapore, BSA and the Council submitted joint comments on the proposed amendments to the Personal Data Protection Act (PDPA). In addition, BSA and the Council will be meeting with the Commission to discuss technical aspects of the amendments. The date has not yet been confirmed, but is expected to be in the last week of October. If you are interested in attending the meeting, please contact Shay Wester at swester@usasean.org.
• In July, BSA and the Council submitted a joint position paper to the Standards, Productivity and Innovation Board (SPRING) Singapore, the national standards and accreditation body. The paper proposed amendments to the Cloud Outage Incident Response (COIR) guidelines. On October 6, SPRING issued a call for input on the draft Singapore Standards, which includes the revised COIR standards. Among other revisions, the recommendations on data breach have been removed. SPRING has issued a call for input on the draft, and the closing date for comments is December 7. BSA and the Council are currently analyzing the revised standards and will update members in due course with proposed next steps. Please feel free to provide preliminary input to Shay Wester at swester@usasean.org.

Looking Ahead

• On October 20, the Council and AmCham Singapore will host a roundtable discussion with a U.S. Congressional Delegation led by Congressman Ted S. Yoho (R-FL), Chairman of the House Foreign Affairs Subcommittee on Asia and the Pacific. The Members of Congress seek to engage member companies to gain a better understanding of the issues that U.S. businesses face in Singapore. Members interested in participating should contact Shay Wester at swester@usasean.org.

View the Council's latest Singapore updates

Thailand

Major Developments

• On October 2, General Prayut Chan-o-cha (Ret.), Prime Minister of Thailand, met with President Trump at the White House, the first visit of a Thai leader to the White House in more than a decade. During the visit, the two leaders affirmed that the strong and thriving U.S.-Thailand alliance is underpinned by shared interests and common values, and discussed their vision of a stronger alliance for common security, a closer economic partnership for common prosperity, and growing people-to-people ties. Prime Minister Prayut also promised President Trump that the Thai government will “definitely” announce an election date next year. This was confirmed in a statement made on October 10, in which the Prime Minister stated that he will announce a date for a general election in June 2018, and that people will go to the polls in November 2018. The White House released a Joint Statement, which can be found here. After his visit to the White House, Prime Minister Prayut attended and provided remarks at a reception and dinner hosted by the Council and the U.S. Chamber of Commerce. Secretary of Commerce Wilbur Ross, who visited the Prime Minister in Thailand the week prior, also attended and spoke at the dinner. The visit culminated a series of increasingly high-level visits of U.S. officials to Thailand, including Secretary of State Rex Tillerson’s visit in August, and Secretary of Commerce Wilbur Ross’s visit at the end of September. With the Prime Minister’s commitment to maintaining a positive relationship with the United States, in both economic and political matters, a continued upswing of Thai-U.S. relations appears likely.
• From September 27-28, U.S. Secretary of Commerce Wilbur Ross visited Thailand with a small, senior-level delegation of Council members, led by Chairman of the Council’s Board of Directors, and President, CEO and Trustee of UL, Keith Williams. During his visit, Secretary Ross and the accompanying delegation met with Prime Minister Prayut Chan-o-cha, Deputy Prime Minister Somkid Jatusripitak, Minister of Commerce Apiradi Tantraporn and other economic leaders of Thailand, including the Secretary General of the Eastern Economic Corridor, Mr. Kanit Sangsubhan. Secretary Ross’s visit signified the first visit of a U.S. Commerce Secretary to Thailand in 32 years. During the trip, the Secretary emphasized the Trump Administration’s desire to increase economic engagement with Thailand, and discussed proactive solutions for the trade deficit between the United States and Thailand that could benefit both countries’ economies. Additionally, the Secretary discussed the role that Thailand could play in security, particularly regarding North Korea, and highlighted the critical military relationship between Thailand and the U.S.

Looking Ahead

• On October 30, the Council will host a farewell luncheon for His Excellency Pisan Manawapat, the Thai Ambassador to the United States. Ambassador Pisan has served in the U.S. since February 2015, and will end his term at the end of October. The Ambassador has been highly dedicated to deepening all aspects of the Thai-U.S. bilateral relationship, and the Council has greatly benefitted from his friendship and advocacy. He will be dearly missed, and the Council looks forward to celebrating his successful term and wishing him well in his next endeavors. For sponsorship opportunities, please contact Ella Duangkaew at eduangkaew@usasean.org.

View the Council's latest Thailand updates

Vietnam

Major Developments

• On October 16, the White House announced that U.S. President Donald Trump will travel to Hanoi, Vietnam on November 11 for an official visit. This trip will follow President Trump’s stop in Da Nang to attend the APEC Leaders’ Meeting and deliver a speech at the APEC CEO Summit on November 10 on his vision for a free and open trade network in the region. In Hanoi, President Trump will meet with Vietnam President Tran Dai Quang. This visit is part of President Trump’s Asia tour taking place between November 3 and 14 – other stops include Japan, South Korea, China and the Philippines.
• From October 4-9, as part of the Vietnamese government’s wider institutional reform to cut down red tape and improve the business climate, the Central Executive Committee (CEC) of the Communist Party of Vietnam met to discuss possible mergers of several agencies at the central and provincial levels. Following the Ministry of Industry and Trade (MoIT)’s lead at drastically reducing administrative burden placed on businesses announced recently, the Vietnamese government is increasing pressure on other agencies to do the same. To date, Minister of Health Nguyen Thi Kim Tien has promised to slash 80 percent of existing business conditions and actively coordinate with the MoIT and the Ministry of Agriculture and Rural Development on simplifying goods inspection processes and food safety regulations. Once in effect, the new laws are expected to reduce the duration of customs clearance by three to four days and save an estimated VND 2 million (US $100) per batch of goods.

Advocacy

• In the past 18 months, there has been a marked increase in efforts by local tax authorities to demand that Council member companies pay “back taxes.” The most common reason given by tax authorities has been that tax regulations were misinterpreted when member companies made their investment decisions. According to the new interpretations of the regulations, member companies should have had tax obligations all along and therefore should now pay back taxes. In some cases, tax officials have tried to retroactively apply new tax rules. The Council has been actively helping affected member companies fight these claims. The Council will continue to provide support for member companies in any pending cases.
• Vietnam’s Ministry of Finance (MOF) is proposing a new law to revise five tax laws: Value-Added Tax Law, Excise Tax Law, Corporate Income Tax Law, Personal Income Tax Law and Natural Resources Tax Law. The new draft law contains provisions to increase tax rates and expand the tax base dramatically. Hardest hit industries include beverage, automobile, tobacco and food. The Council has collected inputs from member companies and made recommendations to change the draft law in consultation workshops in Ho Chi Minh city and Hanoi organized by the Vietnam Chamber of Commerce and Industry (VCCI). On September 19, the Council coordinated with the Ministry of Planning and Investment (MPI) and other local partners to organize a conference on “Ensuring Consistency in Policy Adjustments to Achieve Economic Growth Objectives.” Many government agencies and economists participating in the conference agreed that the draft tax law should be delayed and revised in such a way that it shall not have negative impacts on the business environment. All provisions that potentially hurt business should have to go through an impact assessment scheme before they could be included in the final proposal. The Council will continue to engage the government and the National Assembly on this draft law in the coming months. Please contact Vu Tu Thanh at tvu@usasean.org for more details.
• Vietnam’s Ministry of Finance (MOF) is proposing a government decree on e-invoices. While in theory an e-invoice system applied nationally will boost tremendous efficiency, in practice, both the regulatory and technical infrastructure are not yet ready. Forcing adoption of e-invoices on businesses will not only increase compliance costs but also create disruption of business. The Council is compiling inputs from members to engage with the drafting team at MOF to make changes to the proposed decree to make sure the transition to full adoption of e-invoices will be smooth and cost-effective. Please contact Vu Tu Thanh at tvu@usasean.org for more details.

Looking Ahead

• As U.S. Ambassador Ted Osius concludes his tour in Vietnam, the Council is organizing two farewell receptions in his honor in Vietnam on October 23 (Ho Chi Minh City) and November 1 (Hanoi). Participants will include senior central and provincial Vietnamese government officials, U.S. Embassy and consulate officials, U.S. corporate executives, local business leaders, heads of international organizations, and prominent intellectuals. Sponsorship opportunities are available. For more information or to express interest, please contact Vu Tu Thanh at tvu@usasean.org.
• On November 7, the Government of Vietnam is hosting the Vietnam Business Summit, under the theme “Viet Nam: We Mean Business,” during the APEC Economic Leaders’ Week in Da Nang, Vietnam. The Summit, which will include an address by Vietnam Prime Minister Nguyen Xuan Phuc, invites representatives from international organizations, academics and business leaders from both Asia Pacific and globally. This is an excellent opportunity for foreign investors to learn about economic development policies and investment potential in Vietnam. For more information and registration, please click here.
• Registration for the APEC CEO Summit 2017 in Da Nang, Vietnam is quickly coming to a close on October 20. To register, please click here. Confirmed ASEAN speakers include President Joko Widodo of Indonesia and President Tran Dai Quang of Vietnam. In addition to official APEC events, you are also invited to attend a number of side events organized by the U.S. APEC Business Coalition, including a welcome reception co-sponsored by AmCham Hanoi and a series of meetings with APEC Leaders and Ministers from APEC economies, and senior U.S. government officials. These events will take place November 8-10. For more information, please reach out to Hai Pham at hpham@usasean.org.
• The Council and its partners in Vietnam are organizing a symposium entitled “Elevating Vietnamese SMBs to the Fourth Industrial Revolution World” in Ho Chi Minh City on October 23. This interactive symposium will draw speakers from Council members, Vietnamese associations, as well as government institutions. Members interested in sponsoring should contact Vu Tu Thanh at tvu@usasean.org or Vinsensius Kangen at vkangen@usasean.org.

View the Council's latest Vietnam updates