President's Newsletter - Feburary 2016

February was an incredible month for both the US-ASEAN relationship and the Council.

As I hoped you followed, President Obama hosted the first stand alone, U.S.-ASEAN Summit at Sunnylands in Rancho Mirage, California.  Leaders from all ten countries gathered on February 15 and 16 to further strengthen the relationship that has grown significantly over the last seven years.

The leaders agreed to 17 key principles that will guide future US-ASEAN cooperation moving forward.  Read the joint statement of the U.S.-ASEAN Special Leaders’ Summit.

The following day, on February 17th, in San Francisco, the Council hosted our first major conference on ASEAN, Asia’s Best Kept Secret: The ASEAN Economic Community.  Over 250 of our members and invited guests gathered in San Francisco and heard directly from senior U.S. and ASEAN government, business and the academic leaders about issues affecting the United States and ASEAN.   The full agenda and speaker bios are still available online. 

His Excellency Joko Widodo, President of Indonesia, was one of our major Keynote speakers, and delivered an important economic policy message to our guests and media.  President Jokowi promised to deregulate more and to lift investment restrictions.  He announced that 16 industries were further opened to foreign investors just days before his arrival in San Francisco.  He pledged not to be satisfied and to continue his efforts to simplify business regulation and to modernize Indonesia.  He quoted a former governor of California when he promised to say “Hasta La Vista, Baby” to excessive permits, licenses and undo restrictions. Read text of President Jokowi’s full speech.  I encourage you to read the full text.  It is an important piece on Indonesia’s growth story and President Jokowi’s economic priorities.

Other distinguished speakers included:

• United States Trade Representative, Ambassador Michael Froman, 
• ASEAN Secretary General Le  Luong Minh
• San Francisco Mayor Edwin Lee
• U.S. Ambassador to ASEAN Nina Hachigian
• Ten ASEAN Economic Ministers:
  • Brunei’s Minister of Foreign Affairs and Trade II: H.E. Lim Jock Seng
  • Cambodia’s Minister of Commerce: H.E. Sun Chanthol 
  • Indonesia’s Minister of Trade:  H.E. Thomas Lembong 
  • Laos’ Minister of Industry and Commerce:  H.E. Khemmani Pholsena
  • Malaysia’s Minister of International Trade and Industry:  H.E. Mustapa Mohamed
  • Myanmar’s Minister of National Planning and Economic Development:  H.E. Kan Zaw 
  • The Philippines Secretary of Trade and Industry:  H.E. Adrian Cristobal, Jr
  • Singapore’s Minister of State, Ministry of Trade and Industry: H.E. Koh Poh Koon 
  • Thailand’s Minister of Commerce: H.E. Apiradi Tantraporn
  • Vietnam’s Deputy Minister of Industry and Trade: H.E. Tran Quoc Khan
• Thailand’s Minister of Industry:  H.E. Atchaka Sibunruang
• Mayor of Makassar, Indonesia:  H.E. Mohammad Ramdhan Pomanto

The event concluded with a dinner, where Tan Sri Tony Fernandes, AirAsia founder and Group CEO as well as ASEAN Business Club founder, was honored with the Council’s Fourth Pillar Award.   Tony was only the second recipient of this award which seeks to honor and recognize individuals or organizations who make a significant contribution to the advancement of ASEAN and the U.S.-ASEAN relationship.   Officially, ASEAN has three pillars – Political-Security + Economic + Socio-Cultural – the unofficial Fourth Pillar helps to make ASEAN even stronger and more stable from outside the governments of the ASEAN members or the ASEAN Secretariat.  

The conference was a huge success and I want to particularly recognize our Chairman Keith Williams, the President & CEO of UL for his support throughout the day including opening the conference, chairing a panel of Ministers (Indonesia, Philippines and Singapore) over lunch and presenting Tony Fernandes with the Fourth Pillar Award.  I also want to take this opportunity to thank our many corporate sponsors especially Chevron and UL who were our Platinum Sponsors as well as our partner organizations who helped us get the word out about this event. 

The Council and the Conference received significant press coverage about and around the conference and Summit: 

• New York Times 
• Reuters 
• Time Magazine
• Channel News Asia
• CNN International

Highlights

Looking Ahead

• Dinner co-hosted in Honor of H.E. General Prayut Chan-o-Cha, Prime Minister of Thailand is tentatively planned for the evening of March 30th.
• CEO Business Mission to Myanmar, Thailand and Singapore will take place from May 23rd- 26th.  This small business mission will meet the leaders of these three countries and is limited to global CEOs and their direct C-suite reports.  For more information, please contact Harry Surjadiredja hsurjadiredja@usasean.org.

Advocacy

• The Council, the U.S. Chamber of Commerce and three other U.S. business organizations transmitted a joint letter to the Obama Administration entitled: U.S. Business Community Statement on US-Myanmar Relations.  The statement acknowledges the efforts made by the U.S. government (USG) to engage the Government of Myanmar and support the ongoing reform process.  It also recommends that the USG examine the utility of the remaining U.S. sanctions and to map out a vision and pathway for a normalization of relations.  Such progress would also significantly enhance the ability of the American business community to expand its presence in Myanmar and to support economic growth, development and the reform & modernization of its institutions.
• The Council joined the Joint Foreign Chambers of Commerce in the Philippines in issuing a policy brief to the Government of the Philippines on the importance of investing in broadband infrastructure development to support inclusive economic growth and global competitiveness in the Philippines. 
• The Council transmitted a letter to Vietnam’s Minister of Agriculture and Rural Development (MARD) acknowledging the Ministry’s agreement to consider delaying the effective date of the new circular governing the use of medically important antibiotics for growth promotion purposes and will be guided by a Department of Livestock Production roadmap to conduct risk analysis for allowing appropriate uses of antibiotics in feed by 2020.  In line with sharing the current global trends, the Council will also compile a list of antibiotics to be used for therapeutic purposes as well as growth promotion for MARD’s consideration.  
• The Council is currently drafting a letter to the Director General of Foreign Trade at Indonesia’s Ministry of Trade advocating for an extension of the amount of time the ministry will accept comments from industry on the proposed revision to the Ministry of Trade 82/2012 on the proposed local content requirements for the importation of cell phones, handheld computers and tablets.  For more information contact:  Kim Yaeger at kyaeger@usasean.org.

If you have questions about the Council’s advocacy efforts, please reach out to Marc Mealy at mmealy@usasean.org.

Promotion

It was our intent that the AEC Conference provide valuable content through insightful speakers, but we also believe that the overall Council brand was further enhanced as a result and our goodwill with key stakeholders grew.  Not only are we pleased to hear from many of the attendees that their overall experience was extremely positive and our reputation as being able to develop such a high-level event secured, but the awareness of the Council was expanded through a wide variety of press coverage in the United States, throughout the region and beyond.  Leading up to and during the conference the Council was covered by television, print, radio and social media coverage, including CNN, New York Times, Associated Press, Forbes, Time, Reuters, Fox News Radio, Channel News Asia, a significant amount of chatter on Twitter and more.  See more about our press coverage.

Membership

• The Council is very proud to announce its newest member, Herbalife International.  Headquartered in Los Angeles, California, Herbalife manufactures and distributes weight control products, including meal replacements, snacks, and “enhancers.”  It also offers nutritional supplements, energy, sports, fitness, and skin care products.
• We are pleased to announce that Eli Lilly has upgraded to the Chairman’s Council level.
• Currently, the Council’s membership includes 72 member companies at the Chairman’s Council level and 80 members at Corporate level for a total of 152 members.

APEC

Major Developments

• The first APEC Senior Officials Meetings (SOM1) for 2016 will be held in Lima, Peru over the next two weeks. Participants will discuss policies for ensuring “Quality Growth and Human Development” under various different technical working groups.  During the SOM1, officials will also consider recommendations that come out of the first APEC Business Advisory Council (ABAC) meetings, held in San Francisco from February 24 to 28.  
• On February 25, the National Center for APEC held an executive forum entitled, Connecting the Asia-Pacific: Innovation, Disruption and Growth in San Francisco. The Forum focused on the role that innovation and disruptive technologies can play in driving economic growth in Asia-Pacific markets.  Participants included senior-level government and business representatives from across the 21 APEC economies, as well as thought leaders, media figures and representatives of US corporations, large and small, with an interest in Asia-Pacific markets.

Looking Ahead

APEC Senior Officials Meetings will be held in Lima, Peru, March 3 to 5.  More APEC related news and events.

View the Council's latest APEC updates

ASEAN

Major Developments

ASEAN officially announced its vision for the completion of the ASEAN Economic Community and the pathway to 2025.  More information on Vision 2025 and what has been achieved so far.  

Advocacy

The Council is preparing a paper entitled “Ways to Enable ASEAN Cross-Border E-Commerce Trade."  To provide feedback on the draft, please contact Shay Wester at swester@usasean.org. 

Looking Ahead

• The Council will participate in the joint ASEAN +1 Business Councils Dialogue hosted by the ASEAN-BAC in Singapore on April 28, 2016. 
• The ASEAN Online SME Academy is a fantastic opportunity to share content with a wide variety of SMEs and contribute to the lasting success of the US-ASEAN Business Alliance for Competitive SMEs.  If you would like to contribute to the Academy, please contact Mario Masaya at mmasaya@usasean.org to discuss opportunities and check out the Alliance on our website. 

View the Council's latest ASEAN updates

TPP

• At the US-ASEAN Leaders Summit, the Obama Administration announced that in 2016 it will organize a series of Trans-Pacific Partnership (TPP) information and education workshops in ASEAN nations which are interested in learning more about the TPP agreement.  Since the TPP agreement was signed on February 3 of this year, the governments of Indonesia, Thailand, and the Philippines have each expressed an interest in joining the TPP in the future.
• On February 25, the U.S. Coalition for TPP announced an expansion in its leadership as it works to advocate for passage of the TPP agreement, signed by the United States and its 11 TPP partners on February 3.  The expanded Coalition leadership, known as the Steering Committee, now includes the American Farm Bureau Federation, the Business Roundtable, the Emergency Committee for American Trade, the National Association of Manufacturers and the U.S. Chamber of Commerce.

View the Council's latest TPP updates

Customs

Major Developments

• On February 4, the Philippine Bureau of Customs (BoC) launched two out of a total of six projects that are planned to improve the BoCs information technology infrastructure, as it prepares to implement the Customs Modernization and Tariff Act (CMTA).  The projects will continue after the end of President Aquino’s term, according to Customs Commissioner Alberto D. Lina.  The CMTA, which is expected to be signed into law soon, brings Philippine customs laws in line with Revised Kyoto Convention standards and mandates an electronic system for trade transactions.
• Following February’s ASEAN-US Leaders’ Summit, nine of ASEAN’s Economic Ministers met with United States Trade Representative (USTR) Michael Froman and other U.S. counterparts on February 16 and 17 to discuss furthering trade relations. Laos signed a Trade and Investment Framework Agreement (TIFA) with USTR while in San Francisco. Cambodia built on TIFA talks that began in 2007 to discuss ways to direct high-tech investment into Cambodia while improving that country’s customs and e-commerce regulations to bring them up to World Trade Organization standards.  These talks have resulted in the announcement this week that the United States and Cambodia will complete a Bilateral Investment Treaty by March, which is expected to lower duties on Cambodian textiles, clothing, footwear, and travel goods. 

Looking Ahead

• On March 14, the Customs Committee is planning to hold a seminar on the sidelines of the March 15 to 17 meeting of the ASEAN Customs and Enforcement Compliance Working Group (CECWG) in Manila, Philippines. The CECWG is made up of director-level staff who are tasked by the Customs Directors General to implement customs enforcement initiatives.  Topics for discussion will include anti-smuggling strategies, post-clearance auditing, and other topics of mutual interest.  More information will be distributed soon.  Please contact Ian Saccomanno at isaccomanno@usasean.org if you are interested.
• The Council looks forward to bringing a delegation to the annual meeting of the ASEAN Directors-General of Customs, scheduled for May 25 to 27 in Phnom Penh, Cambodia.  The Council delegation's schedule will likely consist of two days of bilateral meetings and a formal consultation with the assembled Directors-General.  More information will be forthcoming.

View the Council's latest Customs updates

Defense & Security

Major Developments

• Approximately 8,500 soldiers, including 3,600 from the U.S., participated in the annual Cobra Gold Military Exercises in Thailand in early February.  The event is the largest of its kind in Asia-Pacific, and has been co-hosted by the U.S. and Thailand for 35 years.  Although the exercises were significantly scaled down to express U.S. concerns with Thailand’s political developments, similar to 2014 and 2015, the continued large-scale military-to-military exercises were seen as a sign of a resilient multi-faceted relationship.  For more information, see our recent Thailand Update. 
• From February 16 to 21, Singapore reaffirmed its position as the regional leader in the aerospace industry by hosting the biennial Singapore Airshow.  The event featured over 1,000 companies from approximately 50 countries, including 65 of the world’s top 100 aerospace firms, participating as exhibitors.  More information on the airshow, along with the aviation maintenance agreement signed by the Civil Aviation Authority of Singapore and U.S. Federal Aviation Administration.

View the Council's latest Defense & Security updates

Energy

Major Developments

• On January 28, the 21 APEC member economies released documents detailing the implementation of tariff cuts on 54 different environmentally-friendly goods.  The products range from solar panels and wind turbines to air pollution control equipment.  More information on the tariff cuts.
• Indonesian Investment Coordinating Board head Franky Sibarani recently stated that the Indonesian government plans to relax foreign ownership rules for large geothermal power plants as part of an ongoing program to encourage increased investment in renewable energy.  More information on the relaxing of these foreign ownership caps.  
• The Laotian government recently announced that it plans to begin exporting electricity to Myanmar by the end of 2016.  More information on this development and it relates to the planned Laos-Thailand-Malaysia-Singapore power transmission project.

Looking Ahead

• The 2016 U.S. & International Geothermal Energy Showcase will be held on March 17 in Washington, D.C.
• The 23rd Annual ASEAN Renewable Energy Sub-sector Network Meeting will be held from April 4 to 8 in Manila, Philippines with workshops associated with this RE-SSN meeting to take place in Iloilo City on April 6 to 7.

View the Council's latest Energy updates

Financial Services

Major Developments

• The Philippines is set to further open its financial services sector by granting new banking licenses and lifting foreign ownership restrictions on lending, financing, and investing companies.  Bangko Sentral ng Pilipinas (BSP) will soon gradually resume licensing new banks for the first time in 17 years.  The regulation will be executed in two phases over a two year period.  On February 2, the Philippine Senate and House approved the final reconciled draft of Senate Bill 3023 and its counterpart House Bill 6395 which eliminates foreign ownership restrictions on lending companies, financing companies, and investment houses in the Philippines.  The Senate version and the House version are both available online.
• On February 1, Firdaus Djaelani, Chief Executive of the Non-Bank Financial Industry Supervisory Body at the Indonesian Financial Services Authority (OJK), told reporters he is confident that the OJK will complete the implementing regulations for Law No. 40 on Insurance by April.  The OJK has been drafting 16 regulations to implement the law.  Four of those regulations, on the fit-and-proper test, reporting mechanisms, administrative sanctions, and insurance company management, are still under deliberation.  The other 12 regulations were completed in 2015 with four being implemented and eight awaiting review by the Ministry of Law and Human Rights.  The government is also expected to unveil a new and possibly lower foreign ownership cap for insurance companies.  The House of Representatives called on the OJK to lower the limit from 80 to 49 percent during the passage of the Insurance Law, but there are also signs that the government will maintain a higher limit.
• On February 2 and 3, the Financial Service Committee held its first Quarterly Call of 2016.  Click here to view a summary of the items discussed, including the ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM), 2016 themes, and key initiatives.

Looking Ahead

On April 3 and 4, the Financial Services Committee will join the AFMGM in Vientiane, Laos.  The Council looks forward to bringing a delegation to present the private sector’s priorities for financial sector development in ASEAN to the assembled ministers and bank governors.  The Council’s Luncheon Meeting with the AFMGM is scheduled for April 4 and delegates are also invited to join the AFMGM’s formal dinner on April 3.  The Council will arrange bilateral meetings with priority ministers and governors as they are available on those days.  Logistical details and a full invitation will be distributed soon.

View the Council's latest Financial Services updates

Food & Agriculture

Major Developments

As food security remains one of the most pressing concerns in the Philippines, the recycled proposals coming from the country’s five presidential candidates—including maximizing feeding programs and building more farm-to-market infrastructure—are considered unsatisfactory.  On food security, Vice President Jejomar Binay mentioned that he would ensure better coordination with local government units (LGUs) and national food agencies to ensure sufficiency in food production, processing, distribution, and regulation.  He also said that his administration would introduce mechanisms for better fund management and supervision of anti-poverty and anti-hunger programs.  Another candidate, Mar Roxas, plans to invest in post-harvest facilities, which will minimize the losses that farmers presently incur in the processing, storage, and transportation of their produce.  Through this method, he hopes to increase both the supply of rice and the opportunities for farmers to alleviate themselves out of poverty.  On a related note, Miriam Defensor-Santiago emphasizes encouraging sustainable small-scale farming and providing incentives for banks to lend directly to farmers. Rodrigo Duterte focuses more on infrastructure as he aims to build food terminals in key areas to receive delivery of farm produce and to build a railway system in Mindanao to facilitate transport of farm produce.  The last candidate, Grace Poe, emphasizes relationship-building to improve food security in Philippines, such as inviting regional agribusiness powerhouses to invest in the nation and strengthening trade relations with food-producing countries that have competitive advantage in producing goods that are not available in the Philippines.  These proposals on food security policy platforms are considered not coherent or comprehensive enough to address the potential food scarcity, which is the most frightening prospect facing the Philippines, as the population continues to grow beyond the 100 million mark.  Arangkada Philippines has developed an agricultural brief, reviewing past performance of the sector, identifying remaining challenges, and stating that if the Philippines is to achieve broad-based and inclusive growth, a sense of urgency is needed to unleash, modernize, and diversify the business of agricultural and food production.  The Agribusiness Policy Note dated March 1 can be reviewed here. 

Looking Ahead

The Council is pleased to announce an inaugural Food & Agriculture Industry Mission to Indonesia to be held on March 3.  This one-day event will take place in Jakarta, Indonesia.  This sector-focused mission will offer members an opportunity to engage key public and private sector stakeholders which make up Indonesia's domestic agriculture ecosystem.  Participants should plan to arrive in Jakarta on March 30 for a pre-mission organization briefing and delegation dinner event.  Please note that the deadline for submission of registration and mission materials is March 4.  After that date your company details may not be included in the briefing materials presented to the government.  We are grateful for your prompt attention to this deadline.  Click here to register.

View the Council's latest Food & Agriculture updates

Health & Life Sciences

Major Developments

• Healthcare services, pharmaceuticals, and medical devices sectors will be expected to see relaxed restrictions in Indonesia thanks to revisions to the negative investment list, announced in the Government’s 10th economic package on February 11.
• On February 12, the Health & Life Sciences Committee held its first Quarterly Call for 2016.  Click here to view a summary of the items discussed.

Looking Ahead

• The Council looks forward to leading a Health & Life Sciences Industry Mission to Hanoi, Vietnam in April (date TBC).  The schedule will likely consist of a full day of meetings with line agencies of the Ministry of Health and other stakeholders based on member interest.  The first meeting of the Joint Working Group called for under the Council’s Memorandum of Understanding (MOU) with the Ministry of Health will also take place during the Mission.  More information will be forthcoming.
• On March 22, the Council will hold a training workshop for medical technology SMEs in partnership with SPRING Singapore and the Association of Medical Device Industry in Singapore on topics including “Industry Trends and Implications for Singapore,” The Value of Health Economics,” Regulatory Perspectives in USA, EU and Global Markets,” and “Logistics and Supply Chain Management for Medical Devices Sector.”  The workshop is supported by Council members Booz Allen Hamilton, Boston Scientific, and UPS.  For more information, please contact Mario Masaya at mmasaya@usasean.org. 

View the Council's latest Health & Life Sciences updates

ICT

Major Developments

• Indonesia’s Ministry of Trade (MOT) held a public consultation on February 23 to socialize the Ministry’s plans to revise MOT 82/2012 on the importation of cell phones, handheld computers and tablets.  The MOT and Ministry of Communications & Information Technology (MCIT) each gave presentations supporting local content for 4G enabled devices.  We are currently getting the law translated and discussing possible engagement with MOT in response to the draft.  Please contact Kim Yaeger at kyaeger@usasean.org or Daniel Purba at dpurba@usasean.org with any questions.
• The Council recently obtained an English translation of Vietnam’s decree on the import of refurbished IT equipment, for which the Council submitted input to the Ministry of Information (MIC) in June 2015 and offered additional input during the Vietnam Customs and Trade Facilitation Forum in November 2015.  Please contact Kim Yaeger at kyaeger@usasean.org with any questions or feedback on the new law.
• Singapore Minister of Communications and Information and Minister-in-charge of Cyber Security Yaacob Ibrahim announced in late January that the Cyber Security Agency is drafting a new bill that will grant the agency broader authority to protect Singapore’s critical information infrastructure, to be introduced later in 2016, which may include stricter notification requirements.  More information about the bill.

Advocacy

In response to the recently signed Vietnam Law on Network Information Security, the Council is working with the Information Technology Industry Council, Business Software Alliance, and the Semiconductor Industry Association to seek clarity and offer our input for implementing regulations.  The Council is requesting a meeting with the Ministry of Information and Communication in mid-March and are collecting member feedback on the law in preparation for that discussion.  If you have any questions or to submit input, please contact Matt Solomon at msolomon@usasean.org.

View the Council's latest ICT updates

Brunei

Major Developments

• The United States has a new Ambassador from Brunei Darussalam.  Dato Paduka Hj Serbini Hj Ali received his appointment by the Sultan on January 23 and has already begun his post in Washington, D.C. Ambassador Serbini was previously the ambassador of Brunei to Belgium.
• Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah visited California last week for the U.S.-ASEAN Summit.  Accompanying the Sultan were YB Dato Lim Jock Seng, Minister at the Prime Minister’s Office (PMO) and Second Minister of Foreign Affairs and Trade, YB Pehin Dato Mohammad Yasmin Umar, Minister of Energy and Industry at PMO, and Dato Paduka Hj Serbini Hj Ali, Brunei’s Ambassador to the United States.

View the Council's latest Brunei updates

Cambodia

Major Developments

In 2015, Cambodia’s agricultural product exports increased by more than 20 percent, led by a surge in exports of cassava.  Rice, Cassava and Rubber are Cambodia’s most important agricultural crops, with Cassava recording the strongest export growth among major crops and led all products in tonnage exported. In all, total exports of 66 raw and semi-processed agricultural products totaled 4.1 million tons in 2015, compared to 48 products totaling 3.4 million tons in 2014, according to the annual report on agricultural production released by the Ministry of Agriculture.  This trend is expected to continue through 2016 due to predicted rise in price and demand from major buyers in China, Thailand and Vietnam, the three major export destinations of agricultural products for Cambodia.  However, agricultural export firms are calling for the Cambodian government to support farmers by setting a price floor on agricultural products, because their markets depend on orders from neighboring countries.  The Ministry of Agriculture expects further increases in exports this year as the government continues to work closely with farmers to improve their skills and implement tighter phytosanitary controls, strengthening phytosanitary compliance to match international standards and matching those of importing countries. Overall, this is a positive sign for Cambodia moving into 2016. 

View the Council's latest Cambodia updates

Indonesia

Major Developments

President Jokowi joined President Obama and the ASEAN Heads of State in Sunnylands for the ASEAN-US Leaders’ Summit.  After the Summit, President Jokowi continued to San Francisco where he delivered a keynote address at the Council's AEC Conference.  During his address the President commented that further reform and deregulation was required to help Indonesia achieve its economic development objectives.  As part of his trip to California, President Jokowi also met with the CEOs of Twitter, Google, and Facebook and stressed the importance of technology to supporting SMEs and developing Indonesia’s digital economy. 

Advocacy

• The Indonesia Committee is currently working on a human capital development initiative.  This initiative follows up on discussions held with the Indonesian government during the 2015 Business Mission and built upon input collected from Council members earlier this year.  The Council is currently working closely with the National Development Planning Agency to design and develop ideas for programs and activities in support of this initiative.  If your company is interested, or to learn more please contact a member of the Indonesia team.
• The Council is currently drafting a letter to the Director General of Foreign Trade at Indonesia’s Ministry of Trade advocating for an extension of the amount of time the ministry will accept comments from industry on the proposed revision to the Ministry of Trade 82/2012 on the proposed local content requirements for the importation of cell phones, handheld computers and tablets.  For more information contact: Kim Yaeger  at kyaeger@usasean.org.

Looking Ahead

• On March 17 the Council will host U.S. Ambassador to Indonesia, the Honorable Robert Blake, for a roundtable in Washington, D.C. 
• On March 22 Ambassador Blake will lead a business outreach delegation to East Java.  For more information please click here.  
• On March 31 the Council will lead a Food and Agriculture Industry Mission to Jakarta.  If interested please contact Sunita Kapoor at skapoor@usasean.org. 

View the Council's latest Indonesia updates

Laos

Major Developments

Last week, President Choummly Sayasone of Laos represented the Chair of ASEAN at the US-ASEAN Summit in Sunnylands.  Later in the week, Minister of Industry and Commerce Khemmani Pholsena traveled to San Francisco for our AEC Conference and the ASEAN Economic Ministers’ Roadshow.  During the trip, Minister Khemmani signed a bilateral Trade and Investment Framework Agreement (TIFA) with the United State Trade Representative (USTR) during her visit.  The TIFA committed the two nations to collaborate on bilateral trade and investment issues such as intellectual property, labor, environment, and capacity building, as well as on multilateral and regional issues, such as those related to ASEAN.  The TIFA is expected to increase the flow of goods between the two countries and provide support for Laos as the government works to increase trade liberalization, enhance trade facilitation, and improve the business environment.

Looking Ahead

• From March 23 to 25, the Council will lead a Business Mission to Laos to meet with key leaders in Vientiane and discuss the theme of “Utilizing Digital Tools for Smarter Business.”  The Mission will begin with a capacity building program for Lao SMEs on March 23.  Contact Kim Yaeger at kyaeger@usasean.org for more information on either event.
• On April 3 and 4, the Council will engage the 2016 Mission to the ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM) in Vientiane.

View the Council's latest Laos updates

Malaysia

Major Developments

On February 3, Malaysia and 11 other countries signed the Trans-Pacific Partnership agreement (TPP) in New Zealand after five years and 19 rounds of intricate negotiations.  Malaysia’s Parliament also approved the TPP agreement in late January.  This agreement will bridge economic integration by liberalizing trade and setting commercial rules of the road for two-fifths of world’s economy (US$30 trillion).  Over 90 percent of the economic gains from this partnership will be attributable to lower non-tariff measures.  Malaysia is expected to see an increase in its GDP between US$107-211 billion over 2018-2027, which will raise the GDP growth between 0.6-1.15 percent in 2027.

Looking Ahead

The Council is currently taking registrations for the 2016 Malaysia Business Mission from April 5 to 8.  There will be the first of two pre-mission planning calls on March 2.  At the start of the call, members will be briefed by the Malaysian Ambassador to the United States Awang Adek Bin Hussin on the latest political and economic developments.  Click here to register for the call.  For more information about either the mission or the call, please contact Kim Yaeger at kyaeger@usasean.org. 

View the Council's latest Malaysia updates

Myanmar

Major Developments

• The new National League for Democracy (NLD)-led Parliament convened on February 1, marking a beginning of a sea of change in Myanmar’s governance. Concerns remain, however, about the balance of power between the civilian government and the military, as the latter retains control of three powerful ministries and 25 percent of parliamentary seats.
• Ongoing negotiations between the NLD and military center around the possibility of amending the constitution to allow Daw Aung San Suu Kyi to assume the presidency.  Presidential nominations must be received by March 17.  See our recent updates here and here for more information on the political transition. 
• On February 9 the Honorable Scot Marciel was unanimously confirmed by the Senate as the next Ambassador to Myanmar, replacing the Honorable Derek Mitchell. He is expected to assume his post by the end of March.

Advocacy

• On February 18, the Council joined in submitting a letter to the U.S. Secretaries of State, Treasury, and Commerce urging the normalization of the U.S.-Myanmar economic relationship in response to recent positive reforms, and specifically to not renew the sanctions when they expire in May.  The letter was developed in cooperation with the U.S. Chamber of Commerce, AmCham Myanmar, the National Foreign Trade Council, and the U.S. Council for International Business. 
• The Myanmar Committee is gathering input for two important advocacy tools: one targeted at the incoming NLD government, and the other geared towards U.S. policymakers: (1) Update to last year’s “Quick Wins for Myanmar’s Economy” paper, including highly specific policy or procedural fixes that will increase efficiency and transparency, thus leading to new and increased investments by U.S. companies; and (2) a report offering a side-by-side analysis of the time and financial costs of doing business as a U.S. company in Myanmar, as compared to companies based elsewhere, for use in U.S. government advocacy.  Click here for more information on both projects, and email Matt Solomon (msolomon@usasean.org) with questions or to submit comments. Deadline for input is March 1.

Looking Ahead

• The Council will host Ambassador-designate Marciel for an off-the-record roundtable discussion on March 4.  He will offer insight into his political and economic priorities, and Council members will have the opportunity to present the issues they are facing in Myanmar.  Click here to register.
• The Council’s annual CEO Business Mission will visit Yangon and Naypyitaw on May 23 and 24.  Additional details are forthcoming.  

View the Council's latest Myanmar updates

Philippines

Major Developments

• On January 29, the US-ASEAN Business Alliance for Competitive SMEs organized a seminar on Supply Chain Readiness Training for the Automotive Sector in Manila.  More information on the seminar and the Philippine government's Comprehensive Automotive Resurgence Strategy (CARS).
• On January 31, Socioeconomic Planning Secretary Arsenio M. Balisacan resigned from his position at the National Economic and Development Authority (NEDA) to become the first Chairman of the newly established Philippine Competition Commission (PCC).  The PCC, which was formed as a result of the passage of the Philippine Competition Act, is tasked with ensuring efficient market competition among businesses, protecting consumer welfare, and boosting domestic and foreign trade.  More information on the PCC can be found here.
• On February 1, the Philippine House of Representatives passed a bill that will institutionalize the Public-Private Partnership (PPP) Center, strengthen the PPP program, and ensure that the procedure for awarding PPP contracts remains in place even after President Benigno Aquino III leaves office at the end of June. More information on the House bill and the status of the its counterpart in the Senate.

Advocacy

The Council co-sponsored a policy brief by The Arangkada Philippines Project on improving broadband services in the country.

Looking Ahead

• The Council is partnering with Leverage International (Consultants) Inc. to hold Protect 2016 on March 2 and 3 in Manila.
• The Council is supporting the Ivivialink Philippines Business & Investment Forum that will be held on March 3 in New York City. 
• The Asian Development Bank will be holding its 7th Annual Business Opportunities Fair on March 16 and 17 in Mandaluyong City, Philippines. 

View the Council's latest Philippines updates

Singapore

Major Developments

• On January 28, the Monetary Authority of Singapore lifted its prohibition on financial transactions with the Iranian government and Iranian financial institutions, re-opening Singapore’s bunker fuel market to fuel oil imports from Iran.  More information on the lifting of the prohibition.
• On February 3, the Sub-Committee on Future Growth Industries and Markets, part of the recently formed Committee on the Future Economy (CFE), met for the first time to kick off a months-long undertaking intended to devise ways to boost the global competitiveness of Singapore-based firms.  The sub-committee will “study the impact of disruptive technologies and new business models, as well as the scope to collaborate across sectors and address opportunities in new markets.”  More information on the Sub-Committee on Future Growth Industries and Markets and the CFE.

Looking Ahead

• The Council is supporting The Economist Events’ Health Care Forum: War on Cancer which will take place in Singapore on March 17. 
• On March 22, the US-ASEAN Business Alliance for Competitive SMEs will hold a workshop entitled "Supply Chain Readiness - Medical Technology Sector" in Singapore, in partnership with UPS Asia Group Pte. Ltd.
• The Council is hosting the 2016 Singapore Business Mission on April 11 and 12 in Singapore, which will meet with key leaders and Ministers from the country.

View the Council's latest Singapore updates

Thailand

Major Developments

• The Thailand Committee’s first Quarterly Call of 2016 featured a briefing from U.S. Ambassador to the Kingdom of Thailand, Glyn T. Davies.  Comprehensive notes on his remarks and the ensuing discussion on the Council’s plans and priorities for 2016. 
• In the weeks since the release of the draft charter on January 29, there has been a public back-and-forth on its merits, as well as uncertainty on its implications for the proposed 2017 elections.  For an overview of initial public reaction, read our analysis.    
• Prime Minister Prayut Chan-o-cha of Thailand traveled to the United States to participate in the U.S.-ASEAN Leaders Summit.  For a full readout on the Prime Minister’s visit please see our most recent update.  The Prime Minister will return to the United States next month for the Nuclear Security Summit to be held in Washington, D.C. on March 31 and April 1.

Advocacy

The Council hosted the Thai Ministers of Commerce, Industry, and Science and Technology at our AEC Conference on February 17.  The delegation also included the Thailand Ambassador to the United States, Pisan Manawapat and representatives from the Board of Investment, Trade Center, and the Industrial Standards Institution.  Council members had the opportunity to discuss political and economic issues with the delegation. 

Looking Ahead

The Council will co-host, along with the U.S. Chamber of Commerce, Prime Minister Prayut Chan-o-cha for a dinner event in Washington, D.C. on March 30. An official invitation and sponsorship information is forthcoming. 

View the Council's latest Thailand updates

Vietnam

Major Developments

Vietnam’s Ministry of Planning and Investment plans to introduce new investment laws to promote the development of innovative technologies, especially within SMEs. In March we expect a budget plan from the Vietnamese government that will consolidate the technology development fund to incentivize further development of the domestic venture capital industry.  With Prime Minister Nguyen Tan Dung’s recent approval to improve Vietnam’s fixed broadband infrastructure that will allow for at least 40% of the population to access the internet by 2020, the future of the new start-up tech companies in Vietnam looks bright. Vietnam’s rapid economic growth rate (which is expected to be 6.7-6.9 percent in 2016), its abundant human capital in mathematics and science and its room for growth in the e-commerce, e-learning and logistics sectors, make it ideal to host over 1,000 new startups per year. The start-up culture in Vietnam, characterized by a strong sentiment of welcoming innovation and entrepreneurial ideas, also helps to drive up the Vietnamese economy.  Many entrepreneurs in Vietnam are optimistic about its vast potential to export finished products to other countries, as opposed to only raw materials.  Google chief executive Mr. Sundar Pichai, has ranked Vietnam as one of the top 10 fastest growing and important markets in the world, a sharp contrast to Vietnam’s status 30 years ago. 

Advocacy

In response to the recently signed Vietnam Law on Network Information Security, the Council is working with the Information Technology Industry Council, Business Software Alliance, and the Semiconductor Industry Association to seek clarity and offer our input for implementing regulations.  The Council is requesting a meeting with the Ministry of Information and Communication in mid-March and is collecting member feedback on the law in preparation for that discussion.  For questions or to submit input, please contact Matt Solomon at msolomon@usasean.org.

Looking Ahead

The Council looks forward to leading a Health & Life Sciences Industry Mission to Hanoi, Vietnam in April (date TBC).  The schedule will likely consist of a full day of meetings with line agencies of the Ministry of Health and other stakeholders based on member interest.  The first meeting of the Joint Working Group called for under the Council’s MOU with the Ministry of Health will also take place during the Mission.  More information will be forthcoming.

View the Council's latest Vietnam updates