November 2016

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

Happy thanksgiving to all our American members! And to our friends in the region, we hope the spirit of fellowship and gratitude is with you as well.

I have just returned from Myanmar, where we held a very successful business mission, including a substantial, one-and-a-half-hour engagement with State Counsellor Daw Aung San Suu Kyi. This completes our cycle of 10 annual country business missions through which our members have had the opportunity to engage across the region. We also held our first engagement with the ASEAN Transport Ministers, another example of our value to ASEAN Ministers and the continued growth of the Council’s access to ASEAN ministerials.

Next week, I’ll head to Vietnam for the Asia-Pacific President’s Mission, which will be our last major delegation of 2016. In early December we will launch our join report with Deloitte on the importance of Data Management in ASEAN. Be on the lookout for launch events in Singapore and Jakarta.

Of course we have received many questions about U.S. policy towards ASEAN in light of the election of Donald Trump as the 45th President of the United States. The Council will be continuing to work with the new Administration as it develops to emphasize the importance of ASEAN, and of the business communities desire for strong, continued, engagement, including at the 2017 ASEAN Leaders Summit in Manila and at APEC in Vietnam. Our press release on the election can be read here.

Highlights

Advocacy

  • The Council is preparing to lead the 2017 Asia Pacific President’s mission to Vietnam at the end of November. Given the current uncertainty about the future of the TPP and free trade with ASEAN, this timely mission will enable US business leaders with a regional expertise and perspective to advocate the importance of the Government of Vietnam’s domestic economic reform agenda to sustaining Vietnam’s economic competitiveness relative to other leading economies in Asia. Some of the issue areas the delegation will look to engage on include: The GOV’s internet and cyber security related regulations and potential supplemental amendments to the Law on Investment which could affect the number of sectors open to FDI. Based on conversations with Vietnamese officials, the value of American business leaders directly engaging in both B2B and B2G efforts with Vietnamese counterparts is likely to grow in 2017.
  • The Council’s transmitted a follow up advocacy letter to Malaysia’s Bank Negara in response to their Fintech Sandbox Discussion paper. The follow up letter drew attention to the potential negative impacts on the Government of Malaysia’s Fintech development efforts, because of its current regulatory guidelines to outsourcing and offshoring of ICT and cloud computing systems by financial institutions. The letter noted that the current regulatory environment limits the ability of financial institutions operating in Malaysia to access international ICT systems which are critical for both Fintech and the financial services industry to implement digital finance platforms. The letter reiterated the willingness of the Council and our members to work with Bank Negara to develop regulatory approaches which will support the Government of Malaysia’s efforts to incentivize greater private investment in the development of 21st century digital finance platforms in Malaysia.
  • As a follow up the Council’s 2016 Senior Executives Business mission to Indonesia, the Council has advocated that the Government of Indonesia and the USG take a fresh look at the idea of starting talks on a Bilateral Investment Treaty (BIT). The timing of this advocacy effort has been catalyzed by the shuffle in President Jokowi’s cabinet, which transferred former Minister of Trade Tom Lembong to serve as Chairman of Indonesia’s National Investment Agency (BKPM). The Council can confirm that Tom Lembong has obtained a model BIT document from USTR, and we expect to encourage both governments to explore using this type of instrument as a way of strengthening bilateral commercial economic relations between the US and Indonesia in 2017.

Intelligence

  • Myanmar approved a revised investment law on October 18, which will go into effect with the issue of implementing regulations in April 2017. The Council’s analysis of the whole investment law can be found here.

  • Our Indonesia team looked at the recent reshuffling of President Jokowi’s cabinet. More information on the appointments can be found here.

  • Our Philippines Team contrasted the anti-U.S. rhetoric of Philippine President Rodrigo Duterte with the strong economic ties that exists between the two countries and the assurances of the new government’s economic team there will be no negative change in the U.S.-Philippines economic relationship, as a result of any of the administration’s policies. Please click here to read the full analysis.

Promotion

Allurentis Limited, a UK publishing company, work in partnership with the ASEAN Secretariat and the US-ASEAN Business Council to produce an annual publication on trading and investing in the ASEAN region. The next book (2016/17), which will be launched later this year, will be the sixth edition and has a global reach aimed at organisations, companies and individuals looking to do business in the ASEAN region. The book will be available in hard copy and online and will be distributed until the end of 2017. The 2016 book is available here and the 2015 book here. Members interested in promotional opportunities can contact laura.curtis@allurentis.com or john.headley@allurentis.com.

Relationship Building

Please save the date for the following events:

  • November 29 – 30: Asia Pacific Presidents’ Mission to Vietnam

  • December 5: Launch of Data Management Report, Singapore

  • December 6: Launch of Data Management Report, Jakarta

Membership

We are pleased to welcome to the Council our newest member, Covington & Burling, headquartered in Washington, DC. Covington & Burling has joined us at the Corporate level. We are also happy to report that Abbot and 21st Century Fox have both upgraded to Chairman’s Council.

Regional Highlights

APEC

The 2016 APEC Leader's Summit was held in Lima, Peru on November 17-19. The Council, led by former U.S. Ambassador to APEC Michael Michalak, the Council’s Senior Vice President and Regional Managing Director, held joint meetings with NCAPEC and the US Chamber of Commerce with Vietnam’s President Tran Dai Quang and Thailand’s Deputy Prime Minister ACM Prajin Juntong. For more information, contact Kim Yaeger at kyaeger@usasean.org.

View the Council's latest APEC updates

ASEAN

The Philippines will take over as ASEAN chair for 2017.

View the Council's latest ASEAN updates

TPP

With the election victory of President-elect Donald J. Trump, his senior advisors including Senator Jeff Sessions and other Republican leaders of the House and Senate have all stated that a vote on the TPP will not be included on the calendar during the "lame duck" session of Congress in 2016. The President-elect has further stated that he will announce the U.S. withdrawal from TPP on his first day in office, January 21, 2017.

View the Council's latest TPP updates

Industry Highlights

Customs

Major Developments

  • The Philippine Bureau of Customs (BOC) continues their consultations on the implementation of the Customs Modernization and Tariff Act. The BOC has released their first two final Customs Administrative Orders (CAOs) addressing De Minimis Importations and an Advance Ruling System, which include significant edits from the original drafts. Draft CAOs, the consultation schedule, and other information can be found on the BOC website here.

  • The Regional Comprehensive Economic Partnership’s (RCEP) members held a second intersessional ministerial meeting on November 3 and 4 (joint statement available here). No major breakthroughs were reported, but the group appears to be moving closer to a compromise on conflicting tariff offers. The 15th negotiating round, held before the ministerial, also completed the Chapter on Economic and Technical Cooperation. The ministerial meeting’s joint statement also appears to mark the first time that all leaders endorsed RCEP as a single undertaking. No new deadline for the completion of negotiations has been announced since the parties began excluding the end of 2016 deadline from their statements following the previous ministerial. Given political developments in the United States, RCEP may see more urgency in 2017.

  • On October 18, Myanmar approved a new Investment Law, combining the previous Foreign Investment Law of 2012 and the Myanmar Citizens Investment Law of 2013. The new law provides exemptions on taxes and tariffs for export-oriented manufacturers to encourage investment.  The Council’s analysis of the whole investment law can be found here.

View the Council's latest Customs updates

Defense & Security

Major Developments

China and Malaysia vowed to deepen cooperation on the disputed South China Sea on November 2nd as Malaysian Prime Minister Najib Razak met Premier Li Keqiang in Beijing. Li called on Malaysia and China to further consolidate their relationship as part of China's efforts to win over member nations of the bloc. Malaysia had also agreed to buy four Chinese naval vessels. A number of other deals were signed between the two countries, including a memo of understanding on defense cooperation.

View the Council's latest Defense & Security updates

Energy

Looking Ahead

View the Council's latest Energy updates

Financial Services

Major Developments

  • On October 18, Bank Negara Malaysia (BNM) issued its final Financial Technology Regulatory Sandbox Framework (accessible here), following a one-month consultation. Over 60 suggestions and comments were received by BNM from various stakeholders including financial institutions, fintech companies, associations, and other corporations. The final version of the framework includes multiple changes from the original proposal, several of which were suggested by the Council.  Sandboxes and other regulations for digital finance have become increasingly common in the region. Indonesia, Thailand, Hong Kong, Singapore, and Australia have all launched or are planning to launch their own sandboxes soon.

  • In September, the HNX announced that Vietnam plans to open a derivatives market in the first quarter of 2017. The market will start with just stock index and government bond futures, but will add more instruments once it is fully operational. The plan was approved by former Prime Minister Nguyen Tan Dung in 2014, but was slightly delayed. The HNX plans to announce templates for future contracts in the fourth quarter and draft regulations are expected to be submitted to the State Securities Commission by the end of November. Vietnam is also combining the Ho Chi Minh (HOSE) and Hanoi (HNX) stock exchanges, to increase transparency and attract foreign investors. The combined Vietnam Stock Exchange will be headquartered in Hanoi. Equity shares will be listed on the Ho Chi Minh City Stock Exchange, while government bonds and derivatives will be in Hanoi. The merger is expected to be completed in 2018.

Advocacy

On November 2, the Council submitted a letter to Bank Negara Malaysia to raise concerns about restrictions to the outsourcing of bank IT systems.

View the Council's latest Financial Services updates

Food & Agriculture

Major Developments

  • On October 17, Vietnam’s Minister of Agriculture and Rural Development signed an order, to be put in place in December 2016, that may pose two new challenges for Vietnamese exporters. First, according to the order exporters will with only a few exceptions be required to fumigate with methyl bromide, a product not used in the United States due to safety and its ozone depleting concerns, commencing December 1. This may prove to be an issue for many exporters seeking to penetrate the US market, and may also have TPP-implications, as these measures may be considered as a phytosanitary barrier and can be subject to scrutiny under the rules that exceed the SPS measures of the WTO.

  • Secondly, according to Decision no. 4217/QD-BNN-BVTV signed by the Minister on the same day (click here to review), the import of distillers’ dried grains with solubles (DDGS) will be temporarily suspended after December 17. From the date of its signing to the date of its official effect (December 17), all the DDGS imported from the USA will be tightly put in quarantine. The loss of Vietnamese imports would be a big hit for U.S. DDGS suppliers as Vietnam is one of the fastest growing feed grain markets in the world. Currently, the U.S. Grains Council is working with Vietnamese importers of DDGS to find a solution.

Advocacy

Indonesia’s Coordinating Ministry of Economic Affairs (CMEA) is currently conducting a review of regulations in the agriculture and fisheries sector. Please review this presentation deck in Bahasa Indonesia by CMEA’s Deputy for Coordination of Food and Agriculture, outlining a regulatory simplification initiative directed to improve the ease of doing business. The objective is to shape the regulatory simplification process and eliminate duplication and redundancy in relevant regulations. This initiative covers “agricultural infrastructure such as seeds, pesticides and agricultural production and fisheries”. Please review and provide feedback to Sunita Kapoor (skapoor@usasean.org). While deadline for submission has passed, the Council will plan to submit inputs to CMEA and call for a roundtable as a next step for further discussion.

View the Council's latest Food & Agriculture updates

Health & Life Sciences

Major Developments

On October 21, Malaysian Prime Minister Dato’ Seri Najib Tun Razak announced that the Malaysian Government has allocated RM25 billion to the Ministry of Health in the 2017 Budget to improve the healthcare of the country and its people. This is an increase from RM23.03 billion in 2016 and RM 23.31 billion in 2015. Healthcare allocation will be utilized in these seven areas. Malaysia has one of the fastest ageing populations in the world, according to the Asia Pacific Risk Centre, and the overall increasing ageing population in Asia will cost the region about $20 trillion in healthcare by 2030. In order to facilitate the increasing healthcare demand, the Malaysian government has encouraged private sector and non-governmental organizations (NGOs) to run non-profit hospitals based on hospital cost rates that have been set up by the government.

Looking Ahead

The Health and Life Sciences Committee held its quarterly committee call to look back on our activities for the past year and to look ahead at possible programs for 2017 on November 21. Please contact Hai Pham at hpham@usasean.org for more information.

View the Council's latest Health & Life Sciences updates

ICT

Major Developments

Vietnam’s Ministry of Communications and Information (MIC) recently released a draft circular ‘Detailing the Procedures and Documents for Granting Import Licenses for Cyber Information Security Products’, to implement July's Decree 108 on business licensing. The circular outlines the licensing procedures for the import of covered products and lists the products subject to import licenses by Harmonized System (HS) code.

Advocacy

  • Vietnam's Ministry of Information and Communications (MIC) is working to amend 2013's Decree 72. While the proposed amendments mostly apply to domestic gamers, a few provisions have implications on foreign businesses, such as local server and entity registration requirements.  The draft amendments are available in their entirety in Vietnamese here. The original decree can be found here. In response, the Council has submitted a letter to the MIC, outlining concerns and recommendations.

  • In order to establish a comprehensive overview of the Council's engagement with Vietnam’s MIC/GCC so far this year, we have compiled details of all ‘Law on Network and Information Security’-related meetings, submissions, and conference calls to date. It is available here.

  • During the Indonesia Business Mission (October 18-20), the Council met with Minister of Communication and Information Technology Rudiantara and shared concerns affecting the ICT sector including data localization, local content provisions for LTE devices and the regulation of over-the-top (OTT) services.

  • The ASEAN Telecommunications Senior Officials (TELSOM) and Ministers (TELMIN) met in Brunei on November 22-26. The Council participated in the TELSOM meeting and promoted the launch of the data management report. Please contact Kim Yaeger at kyaeger@usasean.org or Shay Wester at swester@usasean.org with any questions.

View the Council's latest ICT updates

Infrastructure

Major Developments

  • On November 1, Thailand’s cabinet approved a 55.28-billion-baht ($1.57 Billion) proposal to upgrade three dual-track rail routes in the central and upper southern regions – part of a seven dual-track inter provincial railways project, planned by the State Railway of Thailand (SRT). Kobsak Phutrakul, vice minister to the Prime Minister’s office added that an extra ground level track would be constructed alongside the existing tracks of the first two rail lines. The dual-track rail projects have been broken down into three different routes that will have a combined distance of 403 kilometers. There is a 148 kilometer route between Lopburi and Pak Nam Pho, which will cost an estimated 24.84 billion baht, a 90- kilometer track between Hua Hin and Prachuap Khiri Khan city which will cost an estimated 10.3 billion baht, and a 165 kilometer track between Nakhon Pathom and Hua Hin which costs 20.04 billion baht. To smoothen the operation of this building, 27 stations on the Nakhon Pathom-Hua Hin route will be constructed along with other 13 stations on the Huan Hin-Prachuap Khiri Khan. As for the Lopburi- Pak Nam Phon route, SRT will require approximately 371 rai of land in order to build a new dual-track detour around Lopburi city areas. The project is scheduled to begin by mid-2017 and be completed in early 2020.

  • The Council’s inaugural mission to the 22nd ASEAN Transport Ministers Meeting took place in Manila, Philippines from November 17-18. For more information, please contact Sunita Kapoor at skapoor@usasean.org and Jack Myint at jmyint@usasean.org.

View the Council's latest Infrastructure updates

Country Highlights

Brunei

Major Developments

The World Bank ranked Brunei as one of the top 10 most improved economies in their annual Doing Business Report. Brunei improved across 6 of 10 indicators: getting electricity, getting credit, protecting minority investors, paying taxes, enforcing contracts, and resolving insolvency. Improving their Ease of Doing Business ranking has been a priority of the government, as a part of their efforts to diversify the economy and attract foreign investment.

Advocacy

The Council recently concluded its Business Mission to Brunei on October 24 in Bandar Seri Begawan. The delegation met with several of Brunei’s top leaders, including the Minister of Foreign Affairs and Trade II, Minister of Health, Minister of Education, Permanent Secretaries for Energy and Industry, and the head of Brunei’s central bank. Notes from the mission will be available soon. Please contact Kim Yaegar with kyaegar@usasean.org for more information.

View the Council's latest Brunei updates

Cambodia

Major Developments

Cambodia has been struggling to stem the spread of malaria drug-resistant parasites, undermining success achieved in 2015. With support from the World Health Organization (WHO), that is spending $3 billion to eliminate malaria from the countries in Greater Mekong sub-region by 2030, cases of malaria in Cambodia last year registered a 9% drop from 2014. However, earlier this year, researchers from the US National Institutes of Health confirmed the presence of malaria parasites that resisted Artemisinin and Piperaquine, drugs commonly used in a key treatment for malaria infection in Cambodia. Resistance to Artemisinin has been known about for years, but recent rise of resistance to Piperaquine as well means that the frontline treatment for malaria, which uses the combination of both drugs, is starting to fail. The drug-resistant parasite is spreading rapidly due to an increase in migrant workers across the country.

View the Council's latest Cambodia updates

Indonesia

Major Developments

  • On October 26, the Indonesian parliament approved the 2017 State Budget. The budget predicts GDP growth of 5.3 percent and sets government spending at IDR 2,080.5 trillion (USD $160 billion), government revenue at IDR 1,750.3 trillion (USD $135 billion), and the budget deficit at 2.41 percent of GDP. These baselines, announced by new Finance Minister Sri Mulyani Indrawati, are seen as more realistic than those in the 2016 budget.

  • Indonesia’s GDP growth rate slipped slightly to 5.02 percent year-on-year in the third quarter as the Finance Ministry’s new leadership consolidated the national budget and economic stagnation, and uncertainty in other parts of the world continued to reduce foreign trade. Second quarter growth had been 5.19 percent and fourth quarter growth may also be slightly higher amidst an expected increase in government spending. Most analysts and the government expect growth rates to remain stuck at around 5 percent in the near term, with the strong domestic consumer base preventing a further slowdown but wider adverse conditions preventing acceleration.

  • More than 100,000 protestors gathered in Jakarta and other cities November 4 to demand Jakarta Governor Basuki Tjahaja Purnama (Ahok) be charged for blasphemy after he made a comment on verses in the Quran, which he then publicly apologized for sounding offensive. Vice President Jusuf Kalla and other leaders met with the protestors and promised a quick resolution to the investigation. The rally was organized by the Islam Defenders Front (FPI), while NU and Muhammadiyah separately stated that they did not support the rally, but would still allow their members to join. The protests were largely peaceful, except for a few disruptions and arrests after the demonstration had officially ended. Governor Ahok remains favored for reelection next year.

Advocacy

  • From October 18 - 20, the Council held its annual Indonesia Business Mission.

  • The Council held an introductory meeting with the next U.S. Ambassador to Indonesia, The Honorable Joseph R. Donovan Jr., on October 28. He was sworn in on November 4 and is expected to arrive in Indonesia by early December. The Council is exploring options for a welcome event in Jakarta.

View the Council's latest Indonesia updates

Laos

Major Developments

  • Laos has notified its Southeast Asian neighbors that it is moving forward with a third highly contentious hydroelectric dam project on the Mekong River’s mainstream, according to the Mekong River Commission, an organization that groups together Laos, Cambodia, Vietnam and Thailand for joint management of the river. According to the official Lao News Agency, construction on the 912 megawatt Pak Beng dam in the northern province of Oudomxay will begin in early 2017.

  • The China-Laos railway is to be built as a demonstration project in China’s "Go Global" and One Belt, One Road strategies, according to the Chinese run Laos-China Railway Company. The latest tender contracts for the second phase of the railway project was held in Vientiane on October 24. The signing included 11 contracts on civil engineering, construction supervision and third-party testing. The China-Laos railway will link the Chinese southwestern city of Kunming with the Lao capital of Vientiane, with an operating speed of 160 km per hour. Kicking off in late 2015, construction of the project is scheduled for five years with investment of about 37.4 billion Chinese yuan.

  • Laos’ National Assembly approved amendments to the Media Law on November 7, 2016, but said more changes are needed. National Assembly members have called for media outlets, individuals and entities that operate within the industry to be more clearly defined by law to ensure the media contributes positively to national protection and development. It was also proposed that foreign investment in media outlets, which is not permitted as the law stands, be restricted to a maximum of 20 percent and that it be compulsory for reporters to know a foreign language, such as English. The Media Law (2008) officially affirms the media’s’ right to access public records, receive information from state officials, and provide news coverage, although according to Freedom House, the country’s media remains highly restricted, under tight control by the ruling Lao People’s Revolutionary Party (LPRP).

View the Council's latest Laos updates

Malaysia

Major Developments

  • Prime Minister Najib Razak announced Malaysia's 2017 budget on October 21, highlighting how the government plans to accelerate growth, narrow its budget deficit and address rising cost of living. Themed “Accelerating Growth, Ensuring Fiscal Prudence, Enhancing Well-being of the Rakyat”, the 2017 Budget revealed a number of measures to address the country’s economic challenges following the weak external front. The Council's analytical brief on the budget can be found here.

  • China and Malaysia vowed to deepen cooperation on the disputed South China Sea on November 2nd as Malaysian Prime Minister Najib Razak met Premier Li Keqiang in Beijing. Li called on Malaysia and China to further consolidate their relationship as part of China's efforts to win over member nations of the bloc. Malaysia also agreed to buy four Chinese naval vessels. A number of other deals were signed between the two countries, including a memo of understanding on defense cooperation.

Advocacy

On November 2, the Council submitted a letter to Bank Negara Malaysia’s Fintech Enabling Office (FTEG) to raise concerns about restrictions to the outsourcing of bank IT systems.  The letter was a follow-up to our advocacy around FTEG’s Sandbox Discussion Paper.

View the Council's latest Malaysia updates

Myanmar

Major Developments

  • On October 18 Myanmar President U Htin Kyaw signed the new Investment Law, which merges the current foreign investment law with the Myanmar citizen’s investment law in an attempt to clarify investment rules. The enacted changes are meant to streamline the investment process by reducing the amount of businesses that require an MIC permit, although an MIC endorsement will still be required. The timeline of tax exemptions on investment projects will also be increased from three to seven years and there will be tax incentives for investing in high-priority regions and sectors. In addition, companies will be able to apply for long term leases of up to 70 years, up from a previous maximum of 50 years.  You can also read the Council’s complete legislative update on the new Investment Law Here. The new law will have implanting regulations issued in April 2017.

  • On November 13, Myanmar was officially added to the Generalized System of Preferences (GSP) program for the first time since sanctions were enacted in 1989. President Obama ended the suspension in September, but reinstatement to the program required a 60-day waiting period. By rejoining the program, Myanmar is allowed to export certain goods to the U.S. duty free. For more information, read one of our recent Updates here.

Advocacy

  • On November 7, the Council hosted a welcome luncheon in honor of the new Myanmar Ambassador to the United States, H.E. U Aung Lynn. Ambassador U Aung Lynn was appointed Ambassador of Myanmar to the United States on September 2016. He is the first career diplomat to be appointed to this position in over five decades. Prior to becoming Ambassador, U Aung Lynn served as Permanent Secretary and Director General of the ASEAN Affairs Department at the Ministry of Foreign Affairs in Nay Pyi Taw. He has also previously served in the United States as Minister Counsellor at the Permanent Mission of Myanmar to the United Nations in New York.

  • The Council’s annual Myanmar Business Mission took place November 15-17. The business mission brought Myanmar government officials together with representatives of U.S. companies for panel discussions and face-to-face interactions in Nay Pyi Taw and Yangon. For more information, contact Matt Solomon at msolomon@usasean.org.

View the Council's latest Myanmar updates

Philippines

Intelligence

Our Philippines Team contrasted the anti-U.S. rhetoric of Philippine President Rodrigo Duterte with the strong economic ties that exists between the two countries and the assurances of the new government’s economic team there will be no negative change in the U.S.-Philippines economic relationship, as a result of any of the administration’s policies. Please click here to read the full analysis.

Major Developments

  • President Rodrigo Duterte has appointed two special envoys to the United States, apparently with the aim to “reboot” the relationship with the United States. One envoy is Jose Manuel “Babe” Romualdez, a columnist for the Philippine Star newspaper. Romualdez was reportedly initially offered the post of Ambassador to the United States to replace Ambassador Marciano Paynor, whose appointment has been withdrawn. The second envoy is Jose E. B. Antonio, the founder of Century Properties Group Inc, which is most well-known for building Trump Tower Manila. Antonio’s primary mission will be to strengthen economic affairs and enhance business coordination between the U.S. and the Philippines. More information on both appointments can be found here and here.

  • On November 3, Ambassador Sung Kim was sworn in by Secretary John Kerry as the new U.S. Ambassador to the Philippines. He has previously served as U.S. Ambassador to Korea from 2011 to 2014 as well as been one of the foremost experts in North Korea policy and East Asian security and bilateral issues.

  • Also on November 3, the Duterte administration unveiled its massive infrastructure development program, which the new government hopes will address the Philippines’ infrastructure gap and serve as a general stimulus for the economy. Dubbed “Build, Build, Build,” the plan would see P8.2 trillion (US$168 billion) put towards key infrastructure projects such as roads and bridges, railways and ports, mass urban transport systems, and “green city solutions.” More information on the infrastructure plan can be found here.

Advocacy

On October 18, the Council hosted Mr. Patrick Chuasoto, Chargé d’Affaires of the Philippine Embassy, for a quarterly coffee in Washington, DC. Mr. Chuasoto gave an update on the Philippine economy and the economic plans of the new government and spoke about U.S.-Philippine relations. For more information, please contact Riley Smith at rsmith@usasean.org.

View the Council's latest Philippines updates

Singapore

Major Developments

  • Our Singapore Team examined the economic implications of the sharp slowdown of GDP growth in Q3 2016. The manufacturing and services sectors, which account for roughly two-thirds of Singapore’s economy, in particular, experienced significant contractions over Q3. Please click here to read the full analysis.

  • Starting on December 1, revised guidelines for the administration and enforcement of the Competition Act will come into force, according to a November 1 press release issued by the Competition Commission of Singapore (CCS). Three of the key revisions are the inclusion of a Fast Track Procedure to help speed up investigations, more clarity on how financial penalties will be calculated, and the simplification of notification forms and procedures related to investigations. For more information on the revised guidelines, please click here.

  • The October 22 and 24, cyberattacks on telecommunications company StarHub were reported as the first such attacks on Singapore’s telecommunication infrastructure. The distributed denial-of-service attacks, which utilized compromised Internet of Things (IoT) devices, have shown a spotlight on the Government of Singapore’s efforts to shore up cybersecurity in the public and private sectors while also moving forward with its cyber-dependent Smart Nation initiative. More information on the cyberattacks and the Government’s efforts to bolster cybersecurity can be found here.

  • The Singapore government aims to use technology in the healthcare sector for more productive and higher quality healthcare delivery. This effort is part of the government’s new 2020 Healthcare Manpower plan (released on October 20), which addresses two major shifts in Singapore’s healthcare system – first, moving from hospital to community; second, using technology to deliver better care to patients. For more information on this initiative, please click here.

Advocacy

  • On October 14, the Council held a breakfast with Singapore Ambassador to the United States Ashok Mirpuri in Washington, DC. During the breakfast, Ambassador Mirpuri spoke about recent developments in Singapore’s economy, how the Government of Singapore would continue to support TPP ratification in the United States, and how healthcare and transport will be priority sectors under the country’s Smart Nation initiative.

  • On November 7, the Council co-hosted a roundtable with Mr. Ziad Haider, the Special Representative for Commercial and Business Affairs at the U.S. Department of State in Singapore.

View the Council's latest Singapore updates

Thailand

Major Developments

  • According to the World Bank’s annual Doing Business report, Thailand ranks 46th for “ease of doing business,” up three spots from last year’s ranking. The report, released on October 26, tracks categories such as starting a business, access to credit, paying taxes, and contract enforcement.

  • In October, Thailand's exports rose for the second month in a row, due to higher demand from key markets. Exports were up to all markets except the Middle East, imports for re-export were also up. The government is now confident that outbound shipments are likely to escape contraction this year. Exports expanded 3.4% year-on-year in September to US$19.5 billion (683 billion baht), the highest in two years.

  • The Bank of Thailand ("BOT") recently issued a consultation paper on FinTech Regulatory Sandbox Guidelines. The purpose of the Regulatory Sandbox is to allow business operators to test their financial products or services in a live but limited environment, without being fully subjected to all requirements that are normally applicable. Through the Regulatory Sandbox, the BOT aims to facilitate new financial innovations while still ensuring consumer protection and financial system stability. More information can be found here.

Looking Ahead

On November 29, the Council will host a conference call with Ambassador Glyn T. Davies and new Economic Counselor Courtney Nemroff. Following the briefing, members will have the opportunity to ask questions about U.S.-Thailand political and economic relations. For more information and to register, click here.

View the Council's latest Thailand updates

Vietnam

Major Developments

During the National Assembly’s second meeting this year, Prime Minister Nguyen Xuan Phuc said that the State-Owned Enterprise (SOE) equitization process was behind schedule. During the first 9 months this year, 48 SOEs were equitized, 10 were dissolved, and 1 declared bankruptcy. According to the 2016-2020 master plan on State-Owned Enterprise restructuring, 250 of 280 SOEs will be up for sale. The Government will still own up to 50% of enterprises for which government ownership is mandated by law, but otherwise 100% of an enterprise can be sold. As of August 2016, the Government had effectively sold 54 of 56 SOEs laid out by the 2011-2015 master plan.

Advocacy

Regarding the Council’s ongoing engagement with the Vietnamese government on its Law on Network Information Security, the Ministry of Communications and Information (MIC) recently released a draft circular Detailing the Procedures and Documents for Granting Import Licenses for Cyber Information Security Products, to implement July's Decree 108 on business licensing. The circular outlines the licensing procedures for the import of covered products; and lists the products subject to import licenses by HS code.

Looking Ahead

On November 29-30, the Council will be conducting its annual Asia Pacific Presidents’ Mission, this year taking the delegation to meet with the Government of Vietnam. The mission will include meetings with the President, Prime Minister, National Assembly, and key Ministries. For more information, please contact Hai Pham at hpham@usasean.org.

View the Council's latest Vietnam updates