President's Newsletter - March 2016

Amb. Ted Osius
Amb. Ted Osius
President & CEO
US-ASEAN Business Council

A sincere thank you again to all those who helped make our ASEAN Economic Community conference Asia’s Best Kept Secret become a huge success in San Francisco last month. The conference followed immediately upon the US-ASEAN Leaders Summit in San Francisco, and brought together numerous business, government, media and academic leaders. We were honored to have a keynote by President Jokowi of Indonesia, as well as the participation of USTR Michael Froman and the ASEAN Economic Ministers. We also presented the Council’s Fourth Pillar Award to Tony Fernandes, the Group CEO and Founder of Air Asia.

March is another exciting month in ASEAN. Perhaps the biggest news this month is the historic political transition in Myanmar, as U Htin Kyaw will become the first democratically elected head of state in more than 50 years and Aung San Suu Kyi will be the Minister of Education, Energy & Natural Resources, Foreign Affairs, and Minister of the President’s Office.

Another rising ASEAN country is Laos, where, this week, we will make the first of at least four visits this year as our annual Lao Business Mission visits Vientiane and our US-ASEAN Business Alliance for Competitive SMEs holds a training session for Lao entrepreneurs. In early April, we will return for our annual engagement with the ASEAN Finance Ministers and Central Bank Governors.

In Washington, D.C., we will co-host a dinner for Thailand’s Prime Minister Prayut on March 30, where sponsorship opportunities are still available and individual seats may be purchased.    

As always, you can check out the calendar on the Council website to get a sense of our many coming events in Southeast Asia and Washington, D.C.

Highlights

Advocacy

  • The Council, in partnership with the U.S. Chamber of Commerce and the American Chamber of Commerce in Jakarta, successfully advocated that the Indonesia Ministry of Trade grant a two-week extension on the deadline for accepting comments on a proposed amendment to add local content requirements to the import provisions (MOT Regulation 82/2012) on cellphones, handheld computers and tablets.  As a result, Council members were able to anonymously submit comments, concerns and recommendations on the proposed amendment until March 16.    
  • The Council is preparing an input paper on U.S.-ASEAN Connect, an imitative announced by President Obama at Sunnylands, which will offer the business community’s feedback on how the initiative can best succeed. More information on U.S.-ASEAN Connect can be found here. To offer input, please contact Anthony Nelson at anelson@usasean.org.
  • The Council joined several other American business organizations in advocating to the Government of Malaysia that it provide a longer period of public consultation before Malaysia’s parliament takes up a proposed amendment to 1998 Communications & Multimedia and the Communication & Multimedia Commission acts due to a variety of concerns about the negative impact the proposed amendment could have on internet-related regulations governing Malaysia’s digital economy. The proposed amendment would include stricter government regulatory control, monitoring and stiffer penalties for violations of the law by social media users, bloggers and internet news portals.  On March 9, Malaysia’s Minister of Communications and Multimedia announced that the Malaysian Parliament would not start their debate on the amendment in the current parliamentary session, to allow the government to obtain feedback from consultations with a broad range of stakeholders
  • The Council is transmitting a letter to the Singapore Ministry of Health in response to their request for comments on a proposal to add plain packaging requirements on tobacco products to their existing anti-smoking measures.  The Council’s letter notes the importance of Singapore’s strong protection of intellectual property rights, including trademarks, to its global economic competitiveness and ability to attract foreign direct investment.  The Council advocates that if the Government of Singapore were to adopt plain packaging regulations, it would hurt IP rights for all trademark holders, would be inconsistent with Singapore’s international IPR protection obligations, and could have a negative effect on Singapore’s overall ability to compete for foreign direct investment.      

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

Intelligence

  • Our Philippines team examined some key factors and candidates in the 2016 Presidential election. You can read the update here.
  • The Council’s Myanmar team examined the selection of Myanmar’s new president and vice presidents. You can read the update here. A look at Myanmar’s new cabinet can be found here.
  • Thailand announced the commitment of significant resources to developing SEZ infrastructure along its borders to boost cross-border trade. For more information, see our recent update here.

Relationship Building

Promotion

The Council is planning its annual CEO Business Mission to Myanmar, Thailand and Singapore May 23 to 26. Please contact Alex Feldman at afeldman@usasean.org for more information.

Membership

  • We are pleased to welcome Reinsurance Group of America, Incorporated (RGA) as our newest Chairman’s Council member.  RGA is the only global life reinsurance company headquartered in the United States and one of the largest life reinsurers with approximately $2.9 trillion of life reinsurance in force, assets of $44.7 billion (as of December 31, 2014) and operations in 27 countries. RGA’s world headquarters is located in St. Louis, Missouri. 
  • Total membership now stands at 153.

APEC

Major Developments

On March 15, the Council hosted a briefing on the APEC SOM I and ABAC I which were held recently in San Francisco and Lima. Speakers included U.S. Senior Official for APEC Matthew J. Matthews and Assistant USTR for Japan, Korea and APEC Bruce Hirsh. John Steele of Eli Lilly provided a read-out of the first ABAC meetings as well as the Executive Forum hosted by NCAPEC in San Francisco. To read a press release issued by ABAC following its first meetings please click here.  

Looking Ahead

March 30: APEC Air Traffic Management & Air Traffic Control Workshop (Manila, Philippines). The U.S. Trade and Development Agency is hosting a workshop to facilitate the exchange of best practices and technologies for reducing aviation emissions and fuel consumption, as well as improving the efficiency of airline operations.  The workshop will connect U.S. companies to key decision makers from several Asia-Pacific Economic Cooperation (APEC) economies to discuss how advanced air traffic management (ATM) and air traffic control (ATC) solutions can support these efforts. For questions please contact Wendy Drake at wendy@webstergroupinc.com.

View the Council's latest APEC updates

ASEAN

Major Developments

The ASEAN leaders met with President Obama in Sunnylands February 15 and 16. The talks focused on rule of law, freedom of navigation, sustainable growth, entrepreneurship and innovation. Read the joint statement here.

Advocacy

  • The Council is preparing an input paper on U.S.-ASEAN Connect, an initiative announced by President Obama at Sunnylands, which will offer the business community’s feedback on how the initiative can best succeed. More information on U.S.-ASEAN Connect can be found here. To offer input, please contact Anthony Nelson at anelson@usasean.org.
  • The Council is preparing to launch a new publication on e-commerce in ASEAN, entitled “Enabling Cross-Border E-Commerce Trade in ASEAN”. To coordinate the Council’s cross-sectoral advocacy efforts, an E-Commerce Working Group has been formed within the ASEAN Committee. If you are interested in joining the Working Group, please contact Matt Solomon at msolomon@usasean.org.

Looking Ahead

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.  To contribute to the Academy, please contact Mario Masaya at mmasaya@usasean.org to discuss opportunities and check out the Alliance on the web here.

View the Council's latest ASEAN updates

Customs

Major Developments

ASEAN and the EU reaffirmed their commitment to ultimately developing an ASEAN-EU FTA during a consultation at the 22nd ASEAN Economic Ministers Retreat March 3 in Chiang Mai, Thailand. The ASEAN-EU FTA will be built upon bilateral FTAs that the EU is negotiating with each ASEAN member state individually. Senior economic officials will present recommendations for the next steps toward building the ASEAN–EU FTA at next year’s ASEAN Economic Ministers–EU Trade Commissioner Consultation. Their joint media statement from March 3 may be found at this link. Bilateral negotiations between the EU and Thailand, Malaysia, the Philippines and Indonesia seem to be receiving more attention from leaders after the successful completion of the Vietnam-EU FTA and the TPP.

Advocacy

On March 14, the Customs Committee held a seminar on the sidelines of a meeting of the ASEAN Customs and Enforcement Compliance Working Group (CECWG) in Manila, Philippines.  Attendees discussed rules of origin enforcement, auditing, and anti-counterfeiting programs. The Committee is now looking for avenues of collaboration with the CECWG and planning a possible engagement with the Customs Procedures and Trade Facilitation Working Group. For more information, please contact Shay Wester at swester@usasean.org

Looking Ahead

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 distributed soon.

View the Council's latest Customs updates

Defense & Security

Major Developments

The United States transferred a third Hamilton class Coast Guard cutter to the Philippines, the third U.S. warship added to the Philippines navy in recent years. Read the Council’s full analysis here.

Looking Ahead

The Council will lead a defense mission to Hanoi May 10 and 11. For more information, contact Vu Tu Thanh at tvu@usasean.org.

View the Council's latest Defense & Security updates

Energy

Major Developments

Looking Ahead

View the Council's latest Energy updates

Financial Services

Major Developments

  • On March 17, Indonesia’s House of Representatives (DPR) passed the long delayed Financial System Crisis Prevention and Mitigation Bill (PPKSK), formerly known as the Financial Stability Safety Net Bill (JPSK). The PPKSK will establish clear protocols for financial crisis prevention and resolution. The PPKSK began to move forward on March 11, when the government and the House of Representatives reached a compromise that removed the bill’s bailout provisions. The new draft of the bill replaced the controversial bailout mechanism with a bail-in mechanism. In the event of a financial crisis, a domestic systematically important bank (DSIB) will have to either be rescued by its owners through a bail-in or be taken over by the Deposit Insurance Corporation (LPS), which will also lose access to direct government funding and loan guarantees under the bill. The LPS will now only be able to raise funds from the market or from its own collected fees. Although the Council has not yet reviewed a full copy of the PPKSK, media reports suggest that this funding restriction could severely reduce the LPS’s ability to insure depositor accounts against bank failure.  To support the Bill, four law revisions are expected to be made which will allow the enforcement of the bail-in scheme in the banking sector, ensure the OJK will have a horizontal role in monitoring the banking sector, and allow the LPS to become an independent agency working outside the President’s authority. The OJK will have three months to classify banks as DSIB, which will allow the OJK to impose upon them a new capital surcharge and the new monitoring measures.
  • Malaysia has signed agreements with Thailand and the Philippines to integrate their banking markets as part of the ASEAN Banking Integration Framework (ABIF). This pact is one of the first bilateral agreements signed under ABIF, which has moved beyond its multilateral development stage and into a bilateral stage. These agreements will allow up to three qualified ASEAN banks from each jurisdiction to operate in the other country. Bank Negara Malaysia stated that the agreement “signifies a major step forward in the advancement of an integrated banking market within ASEAN and towards strengthening intra-regional trade and investment.” 

Looking Ahead

The ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM) will be in Vientiane, Laos April 1 to 4. 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 delegation will focus on themes of digital finance, financial inclusion and proposals to advance the ASEAN integration agreements. The Council will also arrange bilateral meetings between the delegation and the ministers and governors in attendance. Please contact Ian Saccomanno at isaccomanno@usasean.org or Shay Wester at swester@usasean.org for more information.

View the Council's latest Financial Services updates

Food & Agriculture

Major Developments

The Philippines Government has recently approved a new set of rules on genetically modified organisms (GMO) after the top court ordered a revamping of the previous regulations with regard to Bt Eggplant. The new rules, which have been signed by five ministers, will be sent to the Department of Agriculture and will take effect in April. In December 2015, the Supreme Court postponed the issuance of fresh permits for planting or importing genetically modified crops until the new rules were in place. This decision left approximately one million corn farmers and buyers of GM soybean meal—the Philippines’ top GMO import—in a state of uncertainty. The Council advocated that the Government of the Philippines quickly introduce new rules which clarified that the Supreme Court decision did not apply to corn farmers and soybean users in order to minimize any adverse impacts on trade.  According to Chief of Plant Quarantine Service at the Bureau of Plant Industry Merle Palacpac, the new rules are expected to improve transparency in the permit approval process as well as improve regulations on risk assessment and involvement of local governments. Despite the positive vibes that the new regulations bring, there is a possibility that it will take longer to get permission to import GM crops. The former rules regulated that feed millers were only required to get sanitary and phytosanitary import clearance for soybean meal that they shipped in. It is now unclear whether importers will also have to retrieve a separate biosafety permit.

Looking Ahead

The Council will hold its inaugural Food & Agriculture Industry Mission to Indonesia March 31 in Jakarta. This sector-focused mission will offer members an opportunity to engage key public and private sector stakeholders that make up Indonesia's domestic agriculture ecosystem.   For more information please contact Sunita Kapoor at skapoor@usasean.org.

View the Council's latest Food & Agriculture updates

Health & Life Sciences

Major Developments

The Malaysian Ministry of Health has announced plans to spend RM1.5 billion (US$356 million) on a system that will facilitate the sharing of health data across hospitals and clinics. The longer term objective is for Malaysian citizens to have centralized lifetime health records made up of health data from across government and private facilities, leading to a more uniform quality of care throughout Malaysia. It is creating a shared system for electronic patient records, lab results, discharge summaries and referrals, so that the same information can be accessed by doctors in any health facility across the country. The Singapore Government is spearheading a similar effort, having launched HealthHub in October 2015, an online portal allowing users to view their hospital discharge summaries, laboratory test results for chronic diseases and screening records for the past six months. HealthHub is part of Singapore’s drive towards being a Smart Nation and a milestone under the health ministry’s Health IT Masterplan.

Advocacy

The Council is now preparing position papers on Universal Health Coverage and Health Technology Assessment in ASEAN. Early drafts will be circulated to HLS Committee members for input soon.

Looking Ahead

The Council is planning a Health & Life Sciences Industry Mission to Hanoi, Vietnam April 25. The first Joint Working Group Meeting called for under the Council’s Memorandum of Understanding with the Ministry of Health of Vietnam will be scheduled during this mission. To indicate your interest, please contact Fatimah Alsagoff at falsagoff@usasean.org or Hai Pham at hpham@usasean.org. Further details will be sent to members soon.

View the Council's latest Health & Life Sciences updates

ICT

Major Developments

  • On February 24, the Indonesian Ministry of Communications and Information Technology (MCIT) announced that the Ministry is finalizing a regulation that requires OTT services operating in Indonesia to create local permanent business entities and pay local taxes. The regulation may be released in the coming months and will likely include a transition period for OTT services to meet the requirements. More information on the MCIT OTT regulation can be found here.
  • The Malaysian Parliament (Dewan Rakyat) is expected to discuss, in the next the session, a proposal to amend the Communications and Multimedia Act 1998 (CMA), which may include provisions that raise penalties from RM 50,000 (US$12,000) to RM 500,000 (US$120,000) and changes in regulations governing social media users, bloggers, and news portals. More information about the proposed amendments can be found here.

Advocacy

  • The Council, jointly with the U.S. Chamber of Commerce and AmCham Indonesia, is currently drafting a letter to the Indonesian Ministry of Trade (MOT) providing feedback to the Ministry on its draft amendment to the import provision (MOT Regulation 82/2012) on cellphones, handheld computers and tablets addressing local content requirements. More information on the draft amendment can be found here. Please send specific recommendations, views or concerns your company has on the revised local content regulation to astuart@usasean.org and nobermann@uschamber.com.
  • In response to Malaysia’s proposed amendment to the Communications Media Act (CMA), the Council is seeking a meeting with the Malaysian Ministry of Communications and Multimedia (KKMM) and plans to address the proposed amendment further during the Malaysia Business Mission April 5-8.
  • In response to the Law on Network Information Security  recently signed in Vietnam, the Council is working with the Information Technology Industry Council (ITI), Business Software Alliance (BSA) and the Semiconductor Industry Association (SIA) to seek clarity on the new law and offer our input for implementing regulations. The Council met with the Ministry of Information and Communication on March 16, during which the Ministry expressed interest in receiving further input the Council and its members on the law and its implementation. Notes from the meeting will be shared shortly. For more information, please contact Matt Solomon at msolomon@usasean.org.

View the Council's latest ICT updates

Brunei

Major Developments

The new Ambassador of Brunei Darussalam to the United States, H.E. Serbini Ali, arrived in February, and the Council looks forward to organizing a roundtable with him for our interested members in the coming weeks.

View the Council's latest Brunei updates

Cambodia

Major Developments

Prime Minister Hun Sen announced a substantial restructuring of Cambodia’s cabinet March 18. Although the changes will still need to be approved by the National Assembly in April, of major interest to businesses will be Commerce Minister Sun Chanthol moving to Public Works and Transport, where it is hoped that he will be able to oversee the same kinds of restructuring and efficiency-building that he did at Commerce. Longtime Ministry Secretary of State Pan Sorasak will be elevated to Commerce Minister. Among other significant changes, Foreign Minister Hor Namhung will step down after 17 years, although he will remain Deputy Prime Minister. Veteran Deputy Prime Minister and former Finance Minister Keat Chhon will retire from the cabinet.

View the Council's latest Cambodia updates

Indonesia

Major developments

According to House of Representatives (DPR) Deputy Speaker Agus Hermanto, deliberation of the Tax Amnesty Bill will be postponed until April. The tax amnesty will temporarily reduce penalties if tax evaders report their accounts and repatriate their funds into Indonesia. If taxpayers apply for an amnesty between January and March—a timeline already outdated by the delay in deliberations—they will only pay two percent of the value of their assets as the penalty for unpaid dues.  If the application is submitted between April and June, the penalty will increase to three percent, and to five percent if the taxpayers apply between July and December. The delay in deliberating the Tax Amnesty Bill has prompted the government to lower its 2016 tax revenue target. The Finance Ministry had estimated that the Tax Amnesty Bill would bring an additional US$4.4 billion to the US$115 billion total in expected tax collection. Indonesia’s Coordinating Minister of Economic Affairs Minister Darmin Nasution said that the government plans to cut spending in 2016 and become more efficient to avoid a widening budget deficit. He has not specified further how much spending the government plans to cut. According to a senior tax partner at RSM Indonesia Sentot Prijanto, this tax amnesty is in anticipation of the Automatic Exchange of Information (AEOI)—a global financial information exchange with tax authorities—which will be implemented in 2018 by the OECD. The original 2016 tax revenue target for Indonesia was 25 percent higher than the actual total tax revenue collected in 2015. Failure to meet tax revenue targets for 2015 led to the resignation of Director General for Taxation Sigit Priadi Pramudito. On March 1, Ken Dwijugiasteadi was appointed as the new Director General after serving as Acting Director General since Pramudito’s resignation. The new DG’s priorities include improving taxpayers’ compliance and setting up kiosks in shopping centers to make it easier for taxpayers to register their tax identification cards. More information on the proposed budget revisions may be found in our previous update.

Advocacy

  • The Indonesian Ministry of Trade (MOT) has released a draft amendment to the import provision (MOT 82/2012) on cellphones, handheld computers and tablets.  The new draft amendment only addresses local content requirements, and is scheduled to go into effect on April 1, 2016. The MOT held a public consultation on February 23 to socialize the draft (notes from the meeting can be accessed here). A draft of the letter with compiled member input was sent to members on March 18 for additional comments. Please submit all final input no later than March 25 to astuart@usasean.org.
  • The Ministry of Trade also circulated a draft of a new administrative sanctions regulation for importers and exporters, as part of the implementation of the 2014 Trade Law, which will expand the conditions that can lead to the suspension of import licenses. According to the draft, under the new system allegations that an imported product has an adverse effect can lead to the importer’s permits being temporarily frozen until a court judgment. The draft regulation in Bahasa as well as the form to submit comments may be found at this link. Comments from the public were due by March 19. If this draft regulation is of concern to your company please contact Alex Stuart at astuart@usasean.org and Desi Indrimayutri at desi@usasean.org.

View the Council's latest Indonesia updates

Laos

Major Developments

  • On February 26 to 28, Laos hosted the ASEAN Foreign Ministers’ Retreat as the first of a series of meetings organized as Chair of ASEAN in 2016. The Ministers’ Retreat included a discussion on the implementation of the ASEAN Community Vision 2025, and Ministers also shared concerns about ASEAN’s external relations and other issues, such as the necessity for freedom of navigation in the South China Seas.
  • On March 14, Laos hosted the 13th ASEAN Chiefs of Defence Forces Informal Meeting in Vientiane, where ASEAN nations agreed to explore the possibility of establishing a multilateral information-sharing portal among ASEAN military intelligence organizations under an existing ASEAN exchange.
  • On March 20, Laos held elections for the National Assembly and provincial People’s Councils. The ballot included 149 seats are up in the National Assembly and 360 seats in the provincial councils, which cover Laos’ 18 regions, including the capital. Approved candidates were members of or approved by the country's ruling Lao People's Revolutionary Party (LPRP). The new National Assembly is now expected to sit for their first session to approve the new government cabinet.

 Looking Ahead

  • The Council is hosting the 2016 Business Mission to Vientiane, Laos March 23 to 25, as well as an SME event for 50 Lao entrepreneurs on utilizing digital tools for smarter business.
  • On April 1 to 4, Laos will host the 20th ASEAN Finance Ministers and Central Bank Governors Meeting.

View the Council's latest Laos updates

Malaysia

Major Developments

  • Bank Negara Governor Zeti Akhtar Aziz is set to retire on April 30 after 16 years in the post. There are currently many speculations surrounding her replacement. Shortlisted candidates include: Bank Negara Deputy Governor Muhammad Ibrahim, Malaysian Ambassador to the United States Awang Adek Bin Hussin, as well as Finance Ministry Treasury Secretary General Irwan Serigar Abdullah, and Economic Planning Minister Abdul Wahid Omar.
  • On March 15, the Ministry of International Trade and Industry (MITI) set up a national committee to facilitate and oversee the implementation of TPP. According to MITI Minister Datuk Seri Mustapa, the committee will consist of representatives from the ministries and government agencies involved with the trade agreement. The government came to this decision after a meeting with the Parliamentary Caucus on TPP on March 14. This committee itself will mirror the set-up of the TPP Joint Commission and sub-committees under the trade agreement. Moreover, a separate consultative committee will also be formed to gather feedback and assess the impact of the TPP implementation overtime. This second committee will consist of representatives of industry players, business chambers, small and medium enterprises, non-governmental organizations and a number of other local stakeholders. Mustapa further added that these two committees are formed to assist Malaysia in taking advantage of the opportunities TPP will bring as well as mitigate the agreement’s challenges.

Looking Ahead

  • Ambassador Awang Adek Bin Hussin is leaving his post as Malaysian Ambassador to the United States on April 7. The Council is hosting a Farewell Luncheon in honor of the Ambassador on April 5. We are currently seeking sponsors for the lunch. For more information contact Shabari Moore at smoore@usasean.org and Alex Stuart at astuart@usasean.org.
  • The Council is organizing the 2016 Malaysia Business Mission April 5 to 8. Please contact Kim Yaeger at kyaeger@usasean.org and Ezani Mansor at emansor@usasean.org for more information.

View the Council's latest Malaysia updates

Myanmar

Major Developments

  • Myanmar chose its first fully democratically elected head of state in decades March 15, voting to elevate U Htin Kyaw, a longtime confidant of Aung San Suu Kyi, to the Presidency. The vice presidents will be U Myint Swe, the military candidate, and U Henry Van Thio, a Chin NLD-MP elect. The Council’s full analysis can be found here and here. A look at the new cabinet can be found here.
  • On March 2, Secretary of State John Kerry swore in the Honorable Scot Marciel as the next U.S. Ambassador to Myanmar. He is expected to arrive in country March 24 and 25, replacing Ambassador Derek Mitchell. On March 4 the US-ASEAN Business Council hosted the Ambassador Marciel for a business roundtable to discuss the U.S. economic and political priorities for the coming term.

View the Council's latest Myanmar updates

Philippines

Major Developments

Advocacy

  • On March 16 in Manila, the Council hosted a roundtable with Arun Kumar, U.S. Assistant Secretary of Commerce for Global Markets and Director General of the U.S. and Foreign Commercial Service.
  • On March 17 in Washington, DC, the Council hosted a roundtable with U.S. Ambassador to the Philippines Philip S. Goldberg.
  • On March 18 in Washington DC, the Council hosted a roundtable with Dr. Ceferino S. Rodolfo, Undersecretary for the Industry Development Group (IDG) of the Department of Trade and Industry and Vice Chairman and Managing Head of the Board of Investments.
  • The Council solicited sector-specific policy priorities from our Philippines Committee to be presented to the presidential candidates ahead of the May 9 general election.  The goal is to inform the presidential candidates of the policies that the U.S. private sector would like to see them adopt as part of their campaign platforms.

Looking Ahead

View the Council's latest Philippines updates

Singapore

Major Developments

  • In response to concerns that the lack of Cloud Outage Incident Response (COIR) guidelines was dissuading firms from utilizing cloud computing services, the Infocomm Development Authority of Singapore on February 26 issued a set of COIR guidelines to assist business continuity management and provide greater clarity in how cloud service providers (CSPs) should react in the case of cloud outages.  More information on the COIR guidelines can be found here.
  • On March 1, Singapore Minister of State for Health Chee Hong Tat announced that the Ministry of Health (MOH) remained on track to recruit 20,000 healthcare professionals between 2011 and 2020, in anticipation of growing demand for healthcare services.  To raise current doctor- and nurse-to-population ratios in the coming years, the MOH plans to provide incentives that attract more doctors and nurses to Singapore’s healthcare sector.  More information in these initiatives can be found here.
  • On March 22, the US-ASEAN Business Alliance for Competitive SMEs held a workshop entitled "Supply Chain Readiness - Medical Technology Sector" in Singapore, in partnership with UPS Asia Group Pte. Ltd.

Looking Ahead

View the Council's latest Singapore updates

Thailand

Major Developments

  • Thailand announced the commitment of significant resources to developing SEZ infrastructure along its borders to boost cross-border trade. For more information, see our recent update here.
  • On February 29 H.E. Pisan Manawapat published an op-ed in the New York Times outlining Thailand’s efforts to address forced labor in the seafood sector. “Thailand stands ready to work with the United States government and all stakeholders for better labor standards,” he wrote.
  • Debate has continued on Thailand’s draft constitution. The Constitutional Drafting Commission is expected to submit a final rewrite to the government by March 29.

Looking Ahead

On March 30 the Council and the U.S. Chamber of Commerce will host a reception and dinner in honor of H.E. General Prayut Chan-o-cha (Ret.), Prime Minister of Thailand. The dinner will be a unique opportunity to hear from the Prime Minister regarding his outlook on Thailand’s political and economic landscapes. High-level sponsors will have the opportunity to engage the Prime Minister and those traveling with him during an exclusive VIP meet-and-greet and throughout the dinner. For more information or to sponsor the event, click here or email Matt Solomon at msolomon@usasean.org.

View the Council's latest Thailand updates

Vietnam

Major Developments

The Vietnamese government has been seeking to attract more private investment into state-run enterprises (SOEs) and boost domestic capital markets by equitizing SOEs.  However the results of such efforts to date have not yet met the government’s expectations. One of the many reasons why the privatization process has been slow is because corporate governance reforms in Vietnamese SOEs have also been slow and uneven. As a result, the Vietnamese government still possesses a great percentage of shares and holds management authority over road maintenance, waterways and seaports, and the National Petroleum Group. In recognition of the these complications, at a conference in early March, Deputy Prime Minister Vu Van Ninh requested that the Decision 37/2014/QD-TTg on the criteria and classification rules for minimizing the state ownership in SOEs be revised further to ease the equitization process. DPM Ninh also noted that any ministries or provinces that want to have the Vietnamese government owning shares in companies must submit their plans to the Prime Minister for approval. The Vietnamese government will have up to 25 percent less shares in big companies that operate in industries like oil and natural gas refining, air transport, rubber and coffee production, and cigarette production. By 2016 and 2020, roughly 378 SOEs in Vietnam are scheduled to be restructured, increasing the number of investment opportunities at a steady pace.

Advocacy

  • The Council is currently updating our annual Sense of Business publication for the Vietnam portfolio ahead of President Obama’s planned May visit to Vietnam. To that end, we are gathering member input to address as many challenges to U.S. trade and investment in Vietnam as possible. Please complete our online survey here and direct any questions you may have to Hai Pham at hpham@usasean.org.
  • The revised Circular amending and supplementing several articles of Circular 200/2014/TT-BTC was officially approved by the Ministry of Finance on March 21, 2016. This new Circular takes effect since the signing date and will be applied retrospectively for Finance Statement 2015. This is the result of series of USABC- led delegation’s dialogues and meetings since 2015 with MOF’s Vice Ministers Do Hoang Anh Tuan and Tran Xuan Ha, especially several meetings with the drafting team at Department of Accounting and Auditing Regulations to negotiate on every single point.

Looking Ahead

  • The 12th National Assembly meets for its last session March 21–April 14. Some officials have indicated that the National Assembly will confirm candidates for key positions in the government who were nominated by the Communist Party of Vietnam (CPV) during its 12th national Congress in January. These will likely include the prime minister, deputy prime ministers and a number of key ministers. It was originally thought that these changes would be officially confirmed in early August when the new NA, which is scheduled to be elected on May 22nd, convenes its first session. However, there has been broad-based support among CPV and government leadership for a quicker transition to facilitate a better decision-making process and carry out reforms sooner rather than later.
  • The Council is planning a Health & Life Sciences Industry Mission to Hanoi, Vietnam on April 25. The first Joint Working Group Meeting called for under the Council’s Memorandum of Understanding with the Ministry of Health of Vietnam will be scheduled during this mission. To indicate your interest, please contact Fatimah Alsagoff at falsagoff@usasean.org or Hai Pham at hpham@usasean.org. Further details will be sent to members soon.

View the Council's latest Vietnam updates