April 2016

Spring has arrived full force in Washington, DC, and with it has come a new round of exciting events for the Council and the region. 

On March 30, we hosted dinner for Prime Minister Gen. Prayut Chan-o-cha (Ret.) of Thailand at the Four Seasons Hotel here in Washington, DC.  During his remarks, Prime Minister Prayut reasserted Thailand’s intent to sign onto the Trans-Pacific Partnership (TPP) agreement when it opens to new participants.

That same day in Myanmar, President U Htin Kyaw and his cabinet took office.  Soon after, both houses of Parliament approved a measure to create a new “State Counselor” position for Daw Aung San Suu Kyi to coordinate the activities of both the executive branch and Parliament.  As the new government gets to work, the Council was honored to host the new Ministers of Health and Natural Resources and Environment at our offices on April 13.

In Laos, elections were held for the National Assembly and provincial People’s Councils; the Laos National Election Commission reported a voter turnout of 97.9 percent.  One of the first tasks of the newly-elected assembly members will be to vote to approve a new president and executive cabinet headed by a prime minister and deputies.  During the Council’s Business Mission to Laos on March 24 and 25, our delegation met with key ministries and government agencies to explore how U.S. companies can support Laos during this important year.  

From April 2 to 4, the Council was pleased to lead a delegation of our Financial Services members to our 17^th annual engagement with the ASEAN Finance Ministers and our second consecutive meeting with the combined ASEAN Finance Ministers and Central Bank Governors in Vientiane, Laos.  Financial Inclusion and Private Sector views on ASEAN’s financial integration agreements were the two major focuses of our annual lunch with the Ministers and Governors.   FinTech featured prominently as a vehicle to help improve inclusion, while better cyber-security and access to micro-insurance were discussed as way to mitigate some of the risk in a more integrated digital world.  

Our annual Business Mission to Malaysia occurred from April 5 to 8.  23 member companies participated in the Mission which held meetings with Prime Minister Najib and Deputy Prime Minister Zahid as well as most of the economic cabinet including Minister for International Trade and Industry Mustapa.  Prime Minister Najib re-iterated his government’s commitment to TPP and was proud that Malaysia was the first country to ratify the agreement.  U.S. Ambassador to Malaysia Joseph Yun briefed the delegation before our meetings and generously hosted a reception at his residence for the US-ABC business leaders.

The Philippines will hold elections on May 9^th.  A tight four-way race for President is underway.  

President Obama will make an historic visit to Vietnam the week of May 23^rd (official dates have not yet been announced by the White House).  Checkout the Council’s latest Vietnam Update here.

As we head toward summer, we wanted to put the following on your radar:

• May 17 -  Energy and Infrastructure Mission to Malaysia
• May 25-26 - Mission to the ASEAN Customs Directors-General meeting in Phnom Penh, Cambodia.   
• June 1-3 -  ASEAN Ambassador’s Tour to Louisville, KY
• July 14 – Council’s Annual Gala Dinner in Washington, DC
• July 21-22 - Annual Thailand Business Mission
• July 25-26 -  Annual Cambodia Business Mission

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

Highlights

Advocacy

• The Council released its Enabling Cross-Border e-Commerce Trade in ASEAN report at an event in Jakarta on April 13.  The report highlighted a number of powerful economic benefits which ASEAN could obtain by including the development of a more robust and dynamic e-commerce ecosystem as a key feature of the ASEAN Economic Community (AEC).  E-commerce has the potential to be a significant engine of growth in ASEAN.  Recent studies have noted: approximately 12 percent of the global goods trade is conducted via international e-commerce and 86 percent of the world’s tech based startups are involved in some form of cross border e-commerce; ASEAN’s digital economy could add up to US$1 trillion to ASEAN’s GDP over the next ten years if the region puts in place policies and a strong regional digital agenda with visionary government and industry collaboration; and online retail represents a $6 billion market in ASEAN, however due to constraints in the region’s logistics and payments infrastructure online sales have only reached below four percent of total retail. The report advocates 12 targeted recommendations for the coordination of policies and regulations throughout the region, so that information, goods, and services can more easily flow across borders between businesses and consumers. The full report can be read here.
• The Council’s Financial Services Committee attended the 2016 ASEAN Finance Ministers and Central Bank Governors meeting.  In a dialogue with the ministers and governors, Council members advocated for greater regional harmonization of financial regulations and engagement with private sector stakeholders in order to deepen regional capital markets development in ASEAN. In light of the growing importance of FinTech related initiatives in the financial services sector, Council members also advocated for greater collaboration between the governments and the private sector in the areas of financial inclusion and cybersecurity. 
• As a follow up effort to the Council’s recent Food and Agricultural mission to Indonesia, the Council transmitted a letter to the Director General (DG) of Indonesia’s Ministry of Agriculture. In addition to thanking the DG for meeting with our delegation and highlighting other domestic market related challenges for US food and agricultural businesses, the letter advocated that the Ministry postpone an existing regulation requiring that imports of agricultural commodities must be tested by labs in exporting countries which have also been registered with the Government of Indonesia.  In order to prevent potential disruption of commodity imports into Indonesia, the letter advocates that the Government of Indonesia extend the deadline by up to three years which labs in exporting countries can register with them; and allow laboratories from neighboring countries or any Indonesia approved laboratory to be utilized for the food safety testing as an option for countries that do not have domestic laboratories.

Intelligence

• The Council’s Indonesia team reviewed 4 of 6 new bills passed by the DPR.  For detailed information, visit the update here.
• The Council’s Myanmar team highlighted the new cabinet, sworn in on March 30.  For more information on the Ministers, see our recent update here.

Relationship Building

• The Council’s has several events and missions on tap for the coming months:
• May 17 -  Energy and Infrastructure Mission to Malaysia
• May 25-26 - Mission to the ASEAN Customs Directors-General meeting in Phnom Penh, Cambodia.   
• June 1-3 -  ASEAN Ambassador’s Tour to Louisville, KY
• July 14 – Council’s Annual Gala Dinner in Washington, DC
• July 21-22 - Annual Thailand Business Mission
• July 25-26 -  Annual Cambodia Business Mission

Promotion

The Council is planning a Chairman’s Business Mission to Myanmar, Thailand and Singapore May 23 to 26.

Membership

We are pleased to welcome Airbnb, Inc. as our newest corporate member.  Airbnb is a trusted online community marketplace for people to list, discover, and book unique accommodations around the world.  It is headquartered in San Francisco, California and operates in more than 34,000 cities and 190 countries.

Total membership now stands at 153.

Regional Highlights

APEC

Major Developments

• On March 30, the U.S. Trade and Development Agency (USTDA), in collaboration with the APEC Secretariat and the U.S. Federal Aviation Administration hosted an APEC Air Traffic Management and Air Traffic Control Workshop in Manila, the Philippines.  The workshop featured the results of a project, co-sponsored by USTDA, which analyzed how new air traffic techniques can reduce aviation emissions and fuel consumption in the Asia-Pacific region.  Specifically, the project analyzed the benefits of implementing Air Traffic Flow Management (ATFM) in Vietnam and the Philippines, with connectivity to neighboring countries.  Commercial aviation and air traffic across the APEC region, particularly within Southeast Asia, continues to expand, leading to increased emissions and fuel costs, as well as to constraints to airspace and airport capacity.  APEC stakeholders are seeking technologies and best practices to achieve efficiencies in air traffic management. To read the press release please click here.

 
Looking Ahead:

• The second APEC Business Advisory Council (ABAC II) meetings will be held in Port Moresby, Papua New Guinea April 25 to 28.
• There are two upcoming SME events in Ho Chi Minh City, Vietnam.  APEC will host a workshop on Enhancing Access for Micro, Small, and Medium-Sized Enterprises to the Digital Economy on April 25 and an APEC SME Online to Offline Forum on April 26.  For more information on the APEC SME Working Group please click here.
• The APEC Ministers Responsible for Trade (MRT) will meet in Arequipa, Peru on May 17 and 18. The APEC Senior Officials and technical working groups will meet for two weeks prior to the MRT. For a full calendar of APEC events please click here.

View the Council's latest APEC updates

Industry Highlights

Customs

Major Developments

On March 29, the Indonesian government introduced the Indonesian Single Risk Management (ISRM) as part of its 11th stimulus package.  The ISRM will streamline the exports and imports permitting process by integrating 18 different government institutions that currently evaluate risk of imports and exports under their own standards.  The goal is to cut port dwelling time from 4.7 days to 3.5 days by the end of 2016, and down to three days in 2017.  The ISRM will eventually become part of the Indonesia National Single Window, which will allow registered businesses to undergo a standard procedure in applying for exports and imports permits.
 
Singapore Customs and the Infocomm Development Authority are aiming to boost Singapore’s competitiveness in the logistics and trade finance sectors by upgrading the country’s current trade platforms, TradeXchange and TradeNet.  The government estimates that the TradeXchange and TradeNet upgrades could save firms in the logistics and trade finance sectors over S$600 million (US$445 million) in man-hours that are currently spent on customs-related work.
 
Looking Ahead

The Council is now registering executives for our two-day business mission to the 2016 ASEAN Customs Directors-General (DG) Meeting in Cambodia on May 25 and 26.  The mission schedule will consist of bilateral meetings as well as a formal consultation with the ASEAN Customs Directors-General.  The deadline for registration is April 20. Click here to register.  Please also submit the official delegate registration form to Ian Saccomanno at isaccomanno@usasean.org.
 
The first planning call for the mission will be held on April 28 from 9:00-10:00 PM (Washington, DC) and April 29 from 9:00-10:00 AM (Singapore). Click here to register.
 
For more information on registration and planning for the mission, please contact Ian Saccomanno at isaccomanno@usasean.org or Fatimah Alsagoff at falsagoff@usasean.org.

View the Council's latest Customs updates

Defense & Security

Looking Ahead

The Council is now registering executives for our Defense & Security Industry Mission to Vietnam on May 10 and 11, 2016.  The mission is organized in coordination with the U.S. Embassy’s Defense Symposium in Hanoi on May 12 and 13.  The mission schedule will consist of meetings with the President's Office, Prime Minister's Office, Ministry of National Defense, Ministry of Public Safety, Ministry of Trade and Industry and Ministry of Foreign Affairs.  The deadline for registration is April 29. Click here to register. 

View the Council's latest Defense & Security updates

Energy

Major Developments

• From March 31 to April 1, the United States hosted the fourth Nuclear Security Summit (NSS), which will be this year’s focus on ensuring the sustainability of the nuclear security architecture that has been built up as a result of the previous three summits. First announced by U.S. President Barack Obama in Prague in 2009, NSS is intended to empower and enhance existing multilateral institutions and structures focused on preventing nuclear proliferation.  More on the NSS and the ASEAN countries in attendance can be found here.
• The Government of Vietnam released the updated Power Development Plan VII (PDP 7), which outlines the growth of the country’s power sector and the targeted energy mix for total national power generation capacity over the next 15 years.  According to the plan, Vietnam will bring its first nuclear power plant into operation in 2028.  More about Vietnam's PDP 7 can be found here.

Looking Ahead

• The 23^rd Annual ASEAN Renewable Energy Sub-sector Network Meeting will be held from April 4-8 in Manila, with workshops associated with the RE-SSN meeting to take place in Iloilo City from April 6-7.
• On April 26, Singapore International Energy Week (SIEW) will host the first in a series of ‘Energy Insights’ in Washington, D.C, leading up to SIEW, which will take place October 24 to 28.
• On June 6, the ADB will host the 11th Asia Clean Energy Forum at its headquarters in Mandaluyong, Metro Manila.

View the Council's latest Energy updates

Financial Services

Major Developments

On April 3 and 4, the ASEAN Finance Ministers and Central Bank Governors’ held their annual meetings in Vientiane, Laos, where they endorsed new action plans for 2016-2025 to advance financial integration, inclusion, and stability.  The full text of the AFMGM Joint Statement can be found here.  A summary of key developments is as follows:

• Framework Agreement on Services: The AFMGM welcomed the conclusion of negotiations on the Seventh Package of Financial Services Commitments under the ASEAN Framework Agreement on Services (available here), which will be signed on May 3.  They also called for negotiations of the Eighth Package to begin in 2016.
• ASEAN Banking Integration Framework (ABIF): The AFMGM called for intensified implementation efforts and established a Working Committee on ABIF.
• ASEAN Insurance Forum (AIFo): The AFMGM welcomed the establishment of the AIFo, saying it will strengthen collaboration between the Working Committee on Financial Services Liberalization and the ASEAN Insurance Regulators’ Meeting.
• Capital markets: The AFMGM endorsed the ACMF Action Plan 2016-2020 (available here). They also endorsed the formation of a taskforce comprising the Working Committee on Capital Market Development (WC-CMD), the ASEAN Capital Markets Forum (ACMF), and the ASEAN Forum on Taxation to resolve tax-related implementation issues in the ASEAN Collective Investment Scheme.
• Working Committee on Financial Inclusion: The AFMGM welcomed the establishment of the Working Committee on Financial Inclusion (WC-FINC), which will facilitate greater financial inclusion efforts.

Advocacy 

The Council held its annual consultation with the AFMGM on April 4, where 10 member companies discussed strengthening financial inclusion, advancing the integration agreements, and responding to emerging financial technologies.  The briefing paper the Council submitted to the ministers may be found here.  The Council is now exploring follow-up activities based on strengthening engagement with the ACMF, developing platforms for cybersecurity engagement, and supporting financial inclusion.

View the Council's latest Financial Services updates

Food & Agriculture

Looking Ahead

On April 1, the Trade Ministry of Indonesia announced that the Government of Indonesia (GOI) may soon issue rules that will allow feed mills, with approval from the Ministry of Agriculture, to import corn directly instead of through BULOG, a government-owned procurement agency.  This comes after imports of grains were disrupted in July 2015, when GOI announced that it would temporarily ban corn imports for an unspecified amount of time in a bid to boost local corn production, as part of the government's broad push for food self-sufficiency.  Following this 2015 announcement, GOI stopped issuing corn import permits to feed mills, resulting in various disruptions to the global supply chain of international agricultural trading companies, and the accumulation of exorbitant shipping charges as vessels carrying tons of imported corn were left stranded in domestic ports.  More importantly for the average Indonesian consumer, the price of Indonesian poultry and eggs were also pushed upwards as corn is a key input in the animal feed production process.  Minister of Trade Lembong has spoken publically about the role imports play in helping attract foreign investment and promote innovation in Indonesia.  Reduced access to foreign agricultural products (and investment and innovation) will likely also result in higher prices to domestic consumers but not necessarily result in higher incomes for farmers. Such import restrictions will not only inhibit foreign investment in the crop and food processing industries, but could have implications under Indonesia’s various international trade agreements. Currently, the Council is engaging with GOI and the Trade Ministry to seek clarification on the conflicting news reports on the government's intentions to shift imports of agricultural commodity products (corn, rice, sugar, meat) under the oversight of BULOG, and issue rules that will allow feed mills to import directly with approval of the Agriculture Ministry. 

View the Council's latest Food & Agriculture updates

Health & Life Sciences

Major Developments
 
Singapore's Ministry of Health announced several new initiatives during its Committee of Supply debate on April 13.  One major initiative is the formation of a new Diabetes Prevention and Care Taskforce to wage a multi-year 'war on diabetes', co-chaired by Minister Gan Kim Yong and Minister Ng Chee Meng.  In his speech, Minister Gan emphasized the need to choose care that is appropriate to needs, especially in the face of rising healthcare costs – Singapore’s healthcare budget more than doubled from US$3.5 billion in 2012 to US$8.1 billion this fiscal year.  Among other initiatives to address this, he announced the newly established Agency for Care Effectiveness (ACE), a new Health Technology Assessment (HTA) entity within the Ministry.  The agency is tasked with supporting national clinical policy decision-making through evidence-based assessments and appraisals, producing national guidance on appropriate care for Singaporeans, and designing and managing systems to ensure maximal value.  Numerous other new health initiatives were announced in speeches made during the MOH Committee of Supply Debate, available here.
 
Looking Ahead
 
The Health & Life Sciences Industry Mission to Vietnam, planned for April 25, is now postponed due to the unavailability of many key officials in the Ministry of Health leading up to and on that date.  The Ministry has proposed holding the Mission in the latter half of June. In the interest of ensuring continued momentum in implementing the Council's MOU with the Ministry of Health, we have requested a private meeting with the Minister on April 25 for HLS Committee Co-Chair Steve Plunkett (GE) and the Council's Senior Vice President & Regional Managing Director Amb. Michael Michalak.  The Council is developing an MOU Implementation Action Plan (draft available here) as a leave-behind for that meeting.  If you would like to submit a project that will be proposed to the Minister of Health under the Council's MOU, please submit it through this form by Wednesday, April 20.

View the Council's latest Health & Life Sciences updates

ICT

Major Developments

• On March 31, Indonesian Ministry of Communication and Information Technology released a circular regarding the government’s plans to promulgate a regulation requiring foreign over-the-top (OTT) mobile service providers to acquire licenses in the country and to pay taxes.  The circular (in Bahasa) can be found here, and an unofficial translation can be found here.

Advocacy

• In response to Indonesian Ministry of Trade (MOT) proposed amendments to MOT 82/2012 (Bahasa, English translation) on the import of cell phones, handheld computers and tablets, the Council has submitted feedback from its members to the MOT. A copy of the letter to the MOT can be found here.
• The Council is collecting input from members on Indonesia’s MCIT circular regarding the requirement of foreign OTT mobile service providers (Bahasa/English) to acquire licenses in the country and to pay taxes.  Please submit input to Alex Stuart at astuart@usasean.org and Kim Yaeger at kyaeger@usasean.org by COB Friday, April 22.  A draft of the comments will be circulated for review before being submitted to MCIT.
• The Council has been engaging with the Prime Minister of Malaysia, the Malaysian Multimedia Development Corporation (MDEC), and the Malaysian Ministry of Communications and Multimedia (KKMM) regarding the draft amendments to the Communication and Multimedia Act (CMA), which Parliament has announced it will be discussing.  More information on the draft amendments can be found here.  The Council is seeking a follow up meeting with the KKMM to receive more information about the draft amendment.  Please contact Kim Yaeger at kyaeger@usasean.org for more information.
• The Council, along with the Information Technology Industry Council (ITI), Business Software Alliance (BSA), Semiconductor Industry Association (SIA), and the U.S. Chamber of Commerce are continuing to engage the Vietnam government on the recently-passed Law on Network Information Security.  Following last month’s meeting with the Ministry of Information and Communications, the Council was invited to attend workshops on April 13 and 15 in Hanoi and Ho Chi Minh City, respectively, in order to gain further insight into the law’s scope and implementation.  The partner associations are compiling detailed feedback on the law for submission this month.  For more information or to offer input, contact Matt Solomon at msolomons@usasean.org.

View the Council's latest ICT updates

Country Highlights

Cambodia

Major Developments

• On April 4, The National Assembly voted to support Prime Minister Hun Sen’s cabinet reshuffle of 26 officials without any changes.  All but two opposition lawmakers voted against the reshuffle.  Highlights in the proposed changes to the current Cabinet are as follows:
• Hor Namhong, the long-serving foreign minister, will remain in a largely ceremonial role as Deputy Prime Minister and be replaced by Prak Sokhon, the current posts and telecommunications minister.
• Tram Iv Tek, the outgoing Minister of Public Works and Transport, will take Mr. Sokhon’s job at the Posts and Telecommunications Ministry.
• Sun Chanthol, the commerce minister, will oversee the Ministry of Public Works and Transportation.
• Pan Sorasak, a secretary of state at the Ministry of Commerce will be promoted to Minister.
• Cults and Religion Minister Min Khin will switch positions with Him Chhem, a senior minister in charge of special missions.
• Head of Land Management and Urban Planning Im Chhun Lim is the only other portfolio-holding minister to retire from the administration “at his own request”.
• Chhun Lim will be replaced by current Minister for Rural Development Chea Sophara, who will be replaced by Ouk Rabun, current Minister of Agriculture, Forestry and Fisheries (MAFF), which, in turn, will be taken over by Veng Sakhon, a secretary of state from the Ministry of Water Resources and Meteorology.
• Deputy Prime Minister Keat Chhon, a former finance minister, will retire from the cabinet.
• There will also be 11 new secretaries of state, including Im Suosdey, former head of the National Election Committee, who will work at the Interior Ministry.
• Please save the date for the annual Cambodia Business Mission, scheduled for July 25 and 26 in Phnom Penh..

View the Council's latest Cambodia updates

Indonesia

Major Developments

• On March 29, the Indonesian government revealed its 11^th stimulus package, which includes four main parts.  First, the government will cut the final income tax rate (PPh) on sales of property for local Real Estate Investment Trusts (REITs) from five percent to 0.5 percent.  Second, the government has set a target for reducing dwelling time at Indonesian ports from 4.7 days to 3.7 days by implementing the Indonesian Single Risk Management (ISRM) that will take effect beginning August 2016.  Third, the government will provide subsidized loans for export-oriented small and medium-sized companies.  Finally, the economic package also unveiled a roadmap for the pharmaceutical industry, including guidelines for firms’ standard operating procedures.  According to the Asian Development Outlook (ADO), economic growth is expected to accelerate to 5.2 percent this year due to the economic reforms carried out by President Jokowi.  Spending on new infrastructure projects and household spending will contribute to accelerating growth.  To read more about the 11th economic package released by the government please click here.
• The anticipated budget revenue shortfall this year has prompted President Jokowi to urge his Cabinet members to increase efficiency in government spending and to formulate policies to increase tax collection.  Currently, there are only 27 million registered taxpayers in Indonesia, out of 120 million people who should be paying taxes.  The government is currently considering a number of policies including lowering the income tax rate for individuals, clamping down on foreign companies who avoid paying taxes, and using data on consumers’ credit card spending to identify misreporting.  Minister of Finance Bambang Brodjonegoro, has alluded to plans to lower tax income rates for individuals but has not specified a timeline.  The Investment Coordinating Board (BKPM) plans to annul investment permits of foreign companies that are proven to be avoiding paying taxes, after being investigated by the tax office.  The government estimates that there are currently approximately 2,000 foreign investors who have avoided their tax liabilities in the last 10 years by declaring losses or changing names to benefit from new tax allowances. This has led to Rp 500 trillion (US$38 billion) in state losses.  Beginning at the end of May, the Ministry of Finance will require 23 banks to share their customers’ credit card transactions on a monthly basis.  Under Regulation No. 39/2016, tax authorities will have access to account numbers, merchant IDs, merchant names, card owner names, addresses, ID numbers, tax ID numbers, invoices, transaction details, and customer credit limits.  The purpose of this new regulation is to cross-check credit card owners’ spending against their reported income.
• On April 13, the Council marked the launch of its report, “Enabling Cross-Border e-Commerce Trade in ASEAN,” with an event in Jakarta co-hosted by MASTEL, the Indonesia ICT Society.  The timely report examines the potential for growth in the e-commerce sector in the Association of Southeast Asian Nations (ASEAN) due to increased connectivity and access to technology across the region, along with increased spending power.  A panel discussion comprised of Indonesian officials and private sector representatives discussed country-specific benefits and challenges.  While the report identifies Indonesia as having the highest number of online shoppers in ASEAN, more can be done to facilitate the sector’s growth.  Participants in the panel included representatives from the Ministry of Communications and Information Technology, Ministry of Finance, Ministry of Trade, Bank Indonesia, the Association of Indonesian Internet Providers, and the Indonesian E-Commerce Association.  The full report, “Enabling Cross-Border e-Commerce Trade in ASEAN,” is available here.
• On April 6 the Council released an Indonesia Legislative update tracking recent legislative and regulatory developments including passage of the Bill on Public-Housing Savings (Tapera Bill), the Bill on the Prevention and Control of Financial-System Crisis (PPKSK), the Bill on the Protection and Empowerment of Fisherman, Fish-Breeders, and Salt Farmers, and the Guarantees Bill. To read the full update please click here.

Advocacy

• On March 31, Indonesia's Ministry of Communication and Information Technology (MCIT) released a circular regarding the government's plans to promulgate a regulation requiring foreign over-the-top (OTT) mobile service providers to acquire licenses in the country and to pay taxes.  To acquire licenses, foreign OTT providers will be required to either register as a local entity with sole ownership, to establish a joint-venture with local firms, or to partner with local operators.  According to the Minister of Communication and Information Technology Rudiantara, this new regulation is part of government’s efforts to protect and encourage the development of national OTT internet applications.  The new regulation proposes three other requirements that both local and foreign OTT companies have to abide by: self-censoring content, utilizing Indonesia-based payment gateways, and making their data easily accessible for law enforcement.  Minister Rudiantara said that OTT companies will be given a reasonable amount of time to comply with the new rules, though he did not specify exactly how long. Click here to read the circular issued by MCIT (in Bahasa), and click here to read an unofficial translation.  The Council is collecting input from members on the circular in order to draft comments.  Please submit input to Alex Stuart at astuart@usasean.org and Kim Yaeger at kyaeger@usasean.org by COB Friday, April 22. A draft of the comments will be circulated for review before being submitted to MCIT.
• The Ministry of Trade recently issued a draft Regulation on the General Provisions of Distribution of Goods.  This regulation is an implementing regulation to Article 11 of Law Number 7/2014 on Trade.  In the draft regulation, big and medium size producers as well as importers are prohibited from distributing their goods directly to retailers without using distributor services.  The regulation does not provide a grace period or phase in for producers or importers to change their way of distributing goods to retailers.  Producers and importers that already have contracts with direct distribution will likely encounter immediate difficulty.  The draft regulation can be found here in Bahasa. For questions or comments please contact Alex Stuart at astuart@usasean.org or Desi Indrimayutri at desi@usasean.org

Looking Ahead

• On May 12, the Consulate General of the Republic of Indonesia will host the Indonesia Investment Forum in Los Angeles.  To learn more about this event please contact Pak Zufri Hadi at zufri.hadi@indonesianconsulatela.org
• The Council is planning to host a Human Capital Development Forum in Jakarta on May 25.  The forum seeks to be an inclusive multi-stakeholder engagement platform focused on a specific set of short and long term strategic topics and a number of tangible outcomes and follow-up opportunities.  The forum is timely, given the Jokowi Administration's heightened focus on developing Indonesia's innovative ecosystem and promoting trade modernization.  To learn more about this initiative, 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 March 20, Laos held elections for the National Assembly and provincial People’s Councils.  The ballot included 149 seats in the National Assembly and 360 seats in the provincial councils, which cover Laos’ 18 regions, including the capital.  Although a low voter turnout was expected, the Laos National Election Commission reported 3.66 million votes, out of 3.73 million eligible voters (97.9 percent).  The serving President Choummaly Sayasone and Prime Minister Thongsing Thammavong are not standing for reappointment for their respective roles, and one of the first tasks of the newly-elected assembly members will be to vote to approve a new president and executive cabinet headed by a prime minister and deputies.

Advocacy

The Council held the 2016 Laos Business Mission on March 24-25.  The delegation met with various agencies of the Laos government to explore how U.S. companies can support Laos’ Chairmanship of ASEAN, how Laos can harness the benefits of the ASEAN Economic Community (AEC), and explore further areas for collaboration to promote international investment.   More information on the Business Mission can be found here.
 

Malaysia

Major Developments

• According to Bursa Malaysia, Malaysia is currently receiving the largest inflow of foreign funds in the region due to the country’s strong fundamentals and the valuation of the companies.  “Foreign flows are back, market capitalization is near all-time high,” said Bursa Malaysia Chairman Tan Sri Amirsham A Aziz in his opening remark at the 12th Invest Malaysia conference.  Foreign net inflows to Malaysian equities have totaled RM5.6 billion (approximately $1.5bil USD) in the first three months of this year.  Last year, Malaysia registered a total net outflow of RM19.4bil, with foreign shareholdings standing at 22.3% of its market capitalization.  Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Azman Mahmud stated recently that Malaysia is targeting to attract RM40bil worth of investments from the manufacturing and services sectors this year, expected primarily from the United States and Europe.
• Work on four key initiatives listed under the 11th Malaysia Plan to tackle the high cost of living began this month.  They include efforts to strengthen the enforcement and monitoring system related to price control, bring about wider access to affordable homes, implementation of an integrated and comprehensive social safety network, and raise better awareness on financial management.

Advocacy

The Council held the 2016 Malaysia Business Mission on April 6 to 8.  The delegation met with government officials to offer continued support with implementation of the TPP and encouraged the government to continue to play a leading role in the ASEAN Economic Community (AEC) and to pursue regional trade initiatives such as the Regional Comprehensive Economic Partnership (RCEP).  More information can be found in the press release here.

View the Council's latest Malaysia updates

Myanmar

Major Developments

• On March 30, the newly elected President of Myanmar, President Htin Kyaw, and his cabinet were sworn into their positions.  In the ceremony, President Htin Kyaw delivered a speech which emphasized familiar NLD party themes of national reconciliation, peace-building, democratic constitutional reform based on principles of federalism and improving livelihoods for Myanmar citizens.  For more information on the Ministers, see our recent Update here.
• Both houses of Parliament approved a measure to create a new “State Counsellor” role for NLD leader Daw Aung San Suu Kyi, to coordinate the activities of the executive branch and Parliament.  It appears to be the culmination of her stated intent to “be above the President.”
• On April 5, the Central Bank of Myanmar issued multiple regulations aiming to expand the mobile financial services market.  Previously, only banks were allowed to provide mobile financial services, but under the new regulations non-bank financial institutions can offer a number of mobile financial services.  For more information, see our recent update here.

Advocacy

• On April 13, the Council hosted a roundtable discussion featuring the new Ministers of Health and Natural Resources & Environment.  The discussion, which was also joined by the Chief Ministers of Tanintharyi Region and Mon State, was a unique opportunity for members to hear from the officials regarding the new NLD-led government's political and economic priorities for the coming year.
• The Council is finalizing two important advocacy tools, one targeted at the incoming NLD government, and the other geared towards U.S. policymakers: (1) an 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, for use in U.S. government advocacy.  Click here for more information on both projects.  If you have any questions, or to submit final input, contact Matt Solomon at msolomon@usasean.org. 

View the Council's latest Myanmar updates

Philippines

Major Developments

On March 29, the Department of Trade and Industry launched the Comprehensive National Industrial Strategy (CNIS), a plan that seeks to establish the Philippines as a regional hub for manufacturing, services, and agribusiness.  The CNIS is a national blueprint for industrial development and is the product of the industry-specific roadmaps that were jointly developed by the Government of Philippines and key stakeholders.  More information on the CNIS can be found here.

Advocacy

On March 30 in Washington, D.C., the Council hosted a quarterly coffee and roundtable discussion with Ambassador of the Philippines to the United States, H.E. Jose Cuisia, Jr.

Looking Ahead

Ambassador Jose Cuisia, Jr., is leaving his post as Ambassador of the Philippines to the United States.  The Council is hosting a Farewell Luncheon in honor of the Ambassador on May 18.  We are currently seeking sponsors for the lunch. For more information contact Riley Smith at rsmith@usasean.org and Alex Stuart at astuart@usasean.org.

View the Council's latest Philippines updates

Singapore

Looking Ahead

On April 11, a delegation of 10 leading U.S. companies organized by the Council embarked on a business mission to Singapore.  The delegation met with key government officials, as well as representatives of the business community.  Ambassador Michael Michalak, the Council’s Senior Vice President and Regional Managing Director, led the delegation.  Mission participants met with the Singapore Media Development Authority CEO and Info-communications Media Development Authority CEO (Designate) Mr. Gabriel Lim, and representatives from the Cyber Security Agency, Government Technology Organization, Personal Data and Protection Commission (PDPC), and the Ministry of Communications & Information.  Part of the discussion entailed opportunities for U.S. companies to participate in the development of Singapore’s digital economy.  The delegation also reviewed the need to devise comprehensive policy frameworks for cutting edge technologies, such as 3D printing.  In addition to Mr. Lim, the delegation met with Minister for Trade and Industry (Industry) Mr. S Iswaran, who is also the CFE’s Deputy Chairman, and Acting Minister for Education (Higher Education and Skills) Mr. Ong Ye Kung, who leads the CFE’s Subcommittee on Future Jobs and Skills.  During these meetings, the delegation discussed the CFE's work and priorities, the Trans-Pacific Partnership, and ways that U.S. businesses can become more engaged in the industry and education initiatives intended to spur increased innovation in Singapore’s economy.

View the Council's latest Singapore updates

Thailand

Major Developments

• On March 30, the Council hosted H.E. General Prayut Chan-o-cha (Ret.), Prime Minister of Thailand for a reception and dinner at the Four Seasons Hotel in Washington, DC. During his remarks, Prime Minister Prayut reasserted Thailand’s intent to eventually sign onto the Trans-Pacific Partnership (TPP) agreement. In DC for the Nuclear Security Summit, the Prime Minister’s delegation included Minister of Foreign Affairs Don Pramudwinai, Minister of Science and Technology Dr. Pichet Durongkaveroj, Secretary-General to the Prime Minister Gen. Wilas Aroonsri, and other senior officials.
• The Thai government has introduced a number of new laws and regulations impacting foreign investment.  First, Ministry of Commerce recently issued a ministerial regulation to streamline foreign investment in life insurance, non-life insurance, commercial banking, and foreign banking.  More information is available here. The Cabinet also approved a new e-payments bill proposed by the Finance Ministry, setting out a system wherein every Thai citizen will have a 13-digit ID number for money transfers, bill payments, and other transactions.  More information here. Finally, the Cabinet approved new legislation that will subject imports of 3D printers to import regulations under the Commerce Ministry, requiring importers of 3D printers to comply with new procedures for registration and ownership transfer.  The Council will continue to monitor the implementation of these and other relevant regulations.

Looking Ahead

Please save the date for the annual Thailand Business Mission, scheduled for July 21 and 22 in Bangkok. More details to come. 

View the Council's latest Thailand updates

Vietnam

Recent Developments

April 12 marked the closing of the 11th and final session of the 13th National Assembly (NA) in Hanoi.  The National Assembly fulfilled its primary tasks of electing the new top leadership positions in Vietnam, as well as reviewing the next steps for continued national development and preparing for the 14th National Assembly.  To see the list of Vietnam’s expected new leadership, please click here.  On April 7, with a vote of 446 out of 490 in favor of the new Prime Minister, the National Assembly approved Mr. Nguyen Xuan Phuc to replace Mr. Nguyen Tan Dung. In a formal vote on April 6, 418 members representing roughly 84 percent of the National Assembly dismissed Nguyen Tan Dung from his position as the Prime Minister.  Prior to his nomination as Prime Minister, Mr. Nguyen Xuan Phuc held the role of Deputy Prime Minister, where he covered the law and order portfolio in the government with a focus on administrative reform.  This new transition will complete the new ‘leadership trio’ in Vietnam, which now consists of President Tran Dai Quang (former Public Security Minister), Nguyen Phu Trong, who was elected to a second 5-year term as General Secretary of the Communist Party of Vietnam, and the newly elected Prime Minister Nguyen Xuan Phuc.  Additionally, on March 31, the National Assembly confirmed Nguyen Thi Kim Ngan as Vietnam’s first female Chair of the National Assembly, with 472 out of 481 votes.  This new appointment makes Ms. Ngan the highest-ranking female party official in the National Assembly, replacing Chairman Nguyen Sinh Hung of his duties.  Her previous position in the government was as the director of the finance department in her home province of Ben Tre in the southern Mekong Delta, from which she rose to the Vice Chairwoman of the National Assembly five years ago.

Looking Ahead

• The Health & Life Sciences Industry Mission to Vietnam, planned for April 25, is now postponed due to the unavailability of many key officials in the Ministry of Health leading up to and on that date.  The Ministry has proposed holding the Mission in the latter half of June. In the interest of ensuring continued momentum in implementing the Council's MOU with the Ministry of Health, we have requested a private meeting with the Minister on April 25 for HLS Committee Co-Chair Steve Plunkett (GE) and the Council's Senior Vice President & Regional Managing Director Amb. Michael Michalak.  The Council is developing an MOU Implementation Action Plan as a leave-behind for that meeting.  If you would like to submit a project that will be proposed to the Minister of Health under the Council's MOU, please submit it through this form by April 20.
• The Council is organizing a Defense & Security Industry Mission for our members to meet with new officials of the new government of Vietnam in key agencies such as the President's office, Prime Minister's office, Ministry of National Defense, Ministry of Public Security, and other relevant agencies.  The mission will take place on May 10 and 11, 2016 in Hanoi, Vietnam.  Please contact Vu Tu Thanh at tvu@usasean.org with any questions. To register, please click here.

View the Council's latest Vietnam updates