December 2016

As 2016 comes to a close, I would like to thank all of you for your support of the Council.  It is your participation which makes us the most active and dynamic business organization focused on Southeast Asia.

We have spent most of this month focused on the incoming Trump Administration and its key personnel.  Marc Mealy is leading an effort to prepare a paper for the incoming President on the issues in Southeast Asia that he and his cabinet might consider as they start to look at ASEAN through their own policy lens.

In the first week of December, we launched our major report on the Digital Economy titled: Advancing the ASEAN Economic Community: The Digital Economy and the Free Flow of Data, drafted in collaboration with Deloitte.   We are grateful for the support from Cisco, Citi, Google, MasterCard, Microsoft, and Seagate which helped make this important report happen.

Looking back on the year, the Council was able to successfully support the growth of our members’ business as well as the role the Council plays in ASEAN.  We were included in the ASEAN Transportation Ministerial for the first time and continued our engagements at the ASEAN Finance & Central Bank Governors Meeting, the ASEAN Economic Ministerial, the ASEAN Energy Ministerial, the ASEAN Agriculture & Forestry Ministerial as well as at the ASEAN Customs Directors General Meeting.   Ambassador Michalak, Anthony Nelson and I also participated in the ASEAN Business & Investment Summit alongside the ASEAN Leaders Summit in Laos in September.

In addition to the ASEAN engagements, we continued to have the highest levels of access to the leaders of ASEAN and met at least once with:

• Prime Minister of Cambodia Hun Sen
• President of Indonesia Joko Widodo
• Prime Minister of Malaysia Najib Razak
• State Counsellor of Myanmar Daw Aung San Suu Kyi
• Prime Minister of Singapore Lee Hsien Loong
• Prime Minister of Thailand Prayut Chan-o-cha
• Prime Minister of Vietnam Nguyen Xuan Phuc

Our first major event of the year was our conference, Asia’s Best Kept Secret: The ASEAN Economic Community, which took place immediately following President Obama’s February Sunnylands Summit with the ASEAN Leaders.  This event, held in San Francisco, had an all-star line-up including President Jokowi, ASEAN Secretary General Le Luong Minh, USTR Michael Froman, the ASEAN Economic Ministers, U.S. Ambassador to ASEAN Nina Hachigian and AirAsia’s Founder Tony Fernandes.

The Council continued to raise its profile as a thought leader in ASEAN with myself, Ambassador Michael Michalak, Marc Mealy and Anthony Nelson all representing the Council in major media outlets, including quotes in the New York Times, Wall Street Journal and Financial Times, as well as appearances on CNN, BBC, NPR, Bloomberg and CNBC.

And as we move into 2017, the Philippines will take over as chair of ASEAN, and the chairmanship of APEC returns to the region, with Vietnam at the helm.

2017 is a tremendously important year for ASEAN, as it will celebrate its 50^th anniversary, and we will also celebrate the 40^th anniversary of U.S.-ASEAN relations.  We don’t need an excuse to trumpet the opportunities that ASEAN presents, but we plan to take full advantage of these milestones to ensure that more awareness of the region and its potential is built, including a conference on ASEAN and the ASEAN Economic Community to build on our effort last February, and launching an updated and expanded ASEAN Matters for America publication, among many other activities and publications.

As we look forward to 2017, the Council team offers their final updates of 2016.

Highlights

Advocacy

• The Council plans to initiate an advocacy effort with the Government of Indonesia regarding the proposed regulations by Indonesia’s financial regulator (OJK) on businesses in the emerging FinTech in space.  Some of the proposed regulations include a requirement that businesses must store their data in Indonesia.  Our effort will include submitting comments to the OJK on the proposed regulations and speaking to our contacts within the organization.  Members interested in this effort can contact Ian Saccomanno at isaccomanno@usasean.org.
• During the week of December 5, the Council held events in Singapore and Jakarta to announce the launch of our Digital Data Management in the ASEAN Economic Community (AEC) publication.  The publication will serve as an ongoing advocacy tool to highlight the economic benefits which ASEAN can obtain if they incorporate world class policy frameworks and regulatory approaches towards the digital economy as a key pillar of the AEC.
• The Council is supporting an advocacy effort with the Government of the Philippines to provide private sector ideas and inputs into the Philippines Board of Investment’s 2017-2019 Investment Priorities Plan (IPP).  The IPP is focused on the theme of “Scaling up and Dispersing Opportunities” in terms of promoting investment into sectors and locations which will best support the Duterte Administration’s ten-point socioeconomic agenda.  Council members interested in this advocacy effort can directly submit ideas and recommendations to the Board of Investment below
  
  Dr. Ceferino S. Rodolfo
  DTI Undersecretary and BOI Managing Head
  Industry and Investments Building
  385 Sen. Gil J. Puyat Avenue, Makati City
  Send to Email Address: info.ipp.ph@gmail.com  and RBEchague@boi.gov.ph
  Or Fax No.: (02) 895-3701

Intelligence

• Our Indonesia team examined the 2017 budget. Take a look at their analysis here.
• Our Philippines team looked at the resignation of Vice President Robredo from the cabinet. Read their full take here.

Promotion

The Council is exploring different ways to promote ASEAN’s 50^th anniversary and the 40^th anniversary of U.S.-ASEAN relations.  If you feel your company has a good story to tell as part of this effort, please contact Anthony Nelson at anelson@usasean.org.

Regional Highlights

ASEAN

Looking Ahead

• Please save the date for our next ASEAN Committee meeting: January 17, 9 am Singapore Time.
• The 2017 ASEAN Economic Ministers Meeting has been tentatively scheduled by the Philippines for August 27-September 2 in Manila.Official mission dates will be released closer to the year.

View the Council's latest ASEAN updates

Industry Highlights

Customs

Major Developments

• The Philippine Bureau of Customs (BOC) is continuing to release implementing regulations for the Customs Modernization and Tariff Act.  The BOC has released draft Customs Administrative Orders (CAOs) addressing Entry Lodgement and Cargo Clearance Process; Abandonment: Kinds, Effects and Treatment; Traveler and Passenger Baggage Processing; Clearance of Postal Items; and Duty Drawback, Refund and Abatement, and Return of Cash Deposits Held in Trust.  Plans have also been added to their agenda for new CAOs to be drafted through next summer.  Details of the drafts, consultation procedures, and a publication schedule can be found on the BOC website. 
• RCEP’s negotiating parties met in Jakarta during the week of December 5 for their next round of talks, as the deal appears to be taking on a new urgency as parties move toward compromise on tariff offers.  Indonesia and Malaysia both said they expect the negotiations to be mostly concluded by the end of 2017, following several delays.

Advocacy

The Council’s Customs Working Group Committee recently submitted a letter to the Indonesian Ministry of Trade, encouraging their efforts to ratify the WTO Trade Facilitation Agreement. The letter may be found here.

Looking Ahead

The 2017 ASEAN Customs Directors General Meeting is scheduled for May 16-18 in Bali, Indonesia.  The Council looks forward to bringing a delegation for its annual consultation session and bilateral meetings with the Directors General.

View the Council's latest Customs updates

Defense & Security

Major Developments

Over the past decade, the Vietnam People’s Army (VPA) has signaled a fundamental shift in its capabilities, having invested more in military hardware than any of its other ASEAN neighbors. Experts agree that this military build-up is correlated to growing conflicts over the South China Sea, and the hegemonic threat China poses in the region. Vietnam is entering a phase of consolidation and gradual improved military capability. While Vietnam has many assets in place, it lacks an overall doctrine and clear sense of cross-service interconnectedness. Vietnam’s official budget is a state secret, but their publicly released defense budget has grown from $1.3 billion in 2006 to $4.6 billion in 2015, which is a 258 percent increase. Vietnam’s defense budget is the fourth largest in Southeast Asia, behind Singapore, Indonesia and Thailand. Although Vietnam’s leadership is dedicated to rapid military modernization, defense spending is linked to economic performance, placing constraints on Vietnam.

Despite the acquisition of new defense platforms, Vietnam still has not developed a comprehensive doctrine that reflect these abilities. Vietnam has a patchwork of capabilities, without any integrated or joint defense doctrine. That being said, there have been several joint exercises among the branches in the last few years, such as a combined arms exercise between the air force, armored units, and infantry in 2014, or an undated recent joint marine-air force amphibious landing exercise, which involved amphibious armored vehicles attacking from tank landing ships (LSTs) and marines descending from Vietnam People’s Army Air Force (VPAAF) helicopters. Integration between the armed forces is becoming increasingly emphasized in the VPA, but a full doctrine has yet to be announced or seen. Nonetheless, consistently increasing investment over the past couple of decades has given the VPA great potential in Southeast Asia.

For the near future, we can expect to see more new weaponry and equipment, such as armored vehicles and artillery systems, be purchased and developed for ground forces. However, modernization for the Navy and the Air Force will not slow down much: new surface ships are being negotiated and self-produced, and a new lightweight fighter jet will be chosen. Maritime and aerial capabilities will continue to be increased, as well as ISR (intelligence, surveillance, and reconnaissance), due to urgent needs in the South China Sea. Vietnam’s current defense strategy remains ambiguous, beyond fielding a minimal credible deterrent towards China. However, with the asymmetry in Chinese defense spending, that approach might not be sustainable.

View the Council's latest Defense & Security updates

Energy

Looking Ahead

On November 10, the Government of Vietnam submitted a proposal to cancel the Ninh Thuan Nuclear Power Plant Project to the National Assembly (NA).  Although the anticipated cancelation does not directly affect the U.S.-Vietnam 123 agreement on nuclear cooperation (which will not need to be renewed until 2044), the myriad of expected business opportunities related to the development of the nuclear power sector in Vietnam are unlikely to manifest as a result.  More information on the proposal to cancel Vietnam’s nuclear power program can be found here.

View the Council's latest Energy updates

Financial Services

Major Developments

• The central banks of Thailand and Myanmar met on November 27 to begin talks on allowing access by designated banks to each other’s markets, an additional step forward for the ASEAN banking Integration Framework.  Thailand has already entered bilateral discussions on bank access with Malaysia and Indonesia; for Myanmar, this is a first.  Bangko Sentral ng Philipinas also recently announced it will begin talks with Thailand and Indonesia for reciprocal banking deals.
• On November 16, the Monetary Authority of Singapore (MAS) published its fintech regulatory sandbox guidelines, which can be found here.  The guidelines are meant to encourage and allow for experimentation of solutions using technology to deliver financial products.  The final version has incorporated feedback from the public consultation and learning points from sandbox applications elsewhere.
• On October 18, Bank Negara Malaysia (BNM) issued its final Fintech 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 includes multiple changes from the original proposal, several of which were suggested by the Council.  The Council’s comments may be found here. 
• On November 14, Bank Indonesia Governor Agus Martowardojo, inaugurated the Bank Indonesia Fintech Office in Jakarta, to support the development of technology based payments systems.  While BI’s regulations focus on new payments businesses and products, the OJK is developing new fintech regulations by the end of 2016 for non-financial institutions and startups.

Looking Ahead

The 2017 ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM) is scheduled for April 3-7 in Cebu, Philippines.  The Council looks forward to bringing a delegation for its annual consultation session and bilateral meetings with the Ministers and Governors.

View the Council's latest Financial Services updates

Food & Agriculture

Major Developments

• According to announcements made by President Joko Widodo in late November, Indonesia is on track to becoming self-sufficient in two agricultural sectors, rice, and corn.  On November 23, President Jokowi announced that the country’s rice stocks were 1.03 million tons higher than they were in November 2015, citing better weather and increased support for farmers.  He also assured that Indonesia would not be importing any rice until at least the end of the year.  In another similar move, the government announced that it will no longer import corn in 2017 and will instead focus on building up the domestic sector by promoting the use of Indonesian seeds and expanding the amount of land devoted to planting corn.  This has been the long-term goal of the government since it began to place restrictions on the levels of corn imports in 2015.  This year alone, the country has only imported 800,000 metric tons of corn as part of the restrictions imposed to promote self-sufficiency.  Currently, Indonesia will need to allocate about three million more hectares to corn production in order to meet the self-sufficiency goal.  The decrease in corn imports has led to an increase in wheat imports for Indonesia, which companies are using as an alternative for feed.
• Citing a significant increase in the smuggling of agricultural products over the last several years, the Department of Agriculture (DA) is tightening import rules for agricultural products.  However, the DA has also shown a willingness to consider the concerns of established importers by making accommodations intended to decrease related delays.  More information on the tightened import rules can be found here.

Advocacy

The Ministry of Agriculture, Forestry and Fisheries of Cambodia has asked the Council to provide some practical feedback on the constraints U.S. companies are facing in investing in the agriculture sector in Cambodia, and comment on any difficulties in the existing regulatory procedures. If your company is currently doing business in Cambodia, please share any feedback with Sunita Kapoor (skapoor@usasean.org) and Hai Pham (hpham@usasean.org) to help improve your business. This will also help as we look toward more engagements with the Cambodian Ministry of Agriculture, Forestry and Fisheries in 2017.

View the Council's latest Food & Agriculture updates

Health & Life Sciences

Major Developments

After nine months since the World Health Organization (WHO) declared the Zika virus a public health emergency of international concern, the organization now says that the Zika virus and its related neurological complications no longer constitute an international emergency.  This means that the WHO is acknowledging that the virus is here to stay and long-term plans to address it are required.  Dr. David Heymann who heads the WHO emergency committee on Zika said the virus will not be downgraded as “it is a significant and enduring public health challenge, but it no longer represents an emergency.”  ASEAN countries have been responding to the health emergency via different initiatives.  On September 19, the Health Ministers of the 10 ASEAN countries conducted a video conference to discuss ways to respond collectively.  The Health Ministers agreed on five ways to enhance their preparedness and response to the disease and other emerging and re-emerging diseases.  The Zika virus has spread to many of the Southeast Asian countries including, Singapore, Vietnam, Thailand, Malaysia, Laos and Myanmar.  

Advocacy

The Council is collecting priorities and comments from members of the Health & Life Sciences Committee for the 2017 Work Plan.  If you have not already done so, please fill out the HLS Committee survey here.  The working draft of the work plan is available for download in the survey.

Looking Ahead

On January 11-12, 2017 the Council will lead a delegation to Vietnam to engage officials from the Ministry of Health.  The Council’s second Health & Life Sciences Industry Mission to Vietnam will follow up on the Council’s MOU with the Ministry of Health.  Please contact Hai Pham at hpham@usasean.org with any questions.

View the Council's latest Health & Life Sciences updates

ICT

Major Developments

On November 25, the ASEAN Telecommunications and Information Technology Ministers (TELMIN) adopted an ASEAN Framework on Personal Data Protection (available here).  The document sets out principles of personal data protection, including on user consent for its collection, security safeguards, and retention practices.  

Advocacy

• On December 5 in Singapore, and December 6 in Jakarta, the Council launched its major new report, Advancing the ASEAN Economic Community: The Digital Economy and the Free Flow of Data, drafted in collaboration with Deloitte, with support from Cisco, Citi, Google, MasterCard, Microsoft, and Seagate.  The report highlights how ASEAN Member States can advance their digital economies and the AEC through pro-growth digital data management policies. Information on the launch events are available here: Singapore and Jakarta.
• The Council submitted feedback to Vietnam’s Ministry of Information and Communications on its draft circular Detailing the Procedures and Documents for Granting Import Licenses for Cyber Information Security Products.  The Circular enumerates the categories of cyber information security products requiring import licenses, and the procedures by which such licenses would be granted.  The submission is available here.

Looking Ahead

• On January 11, 2017, the Council will hold a launch event in Hanoi for its report Advancing the ASEAN Economic Community: The Digital Economy and the Free Flow of Data.  For more information please contact Matt Solomon at msolomon@usasean.org.
• A report launch event in Kuala Lumpur is also being planned for mid- or late-January.  More information on both events is forthcoming. 
• The ICT Committee will hold its first Quarterly Call of 2017 in mid-January.  Details soon to come.

View the Council's latest ICT updates

Infrastructure

Major Developments

• Indonesia’s transportation ministry is looking to speed up the completion of a 38-km-long double double-track (DDA) railway system, which will connect Manggarai station in South Jakarta to Cikarang.  The project initially started in 2013, but progress fell behind schedule due to reluctant land acquisition development and a concurrent project to improve the rail station.  Minister of Transportation Budi Karya Sumardi explained that the government has identified several obstacles that delayed the development of the DDT project, one of which stems in accommodating commuter trains and rail transport services from outer suburbs to the middle and city center in Jakarta.  All these rails are mixed with the intercity rail transport system and still connected to Manggarai Station – the biggest train station in Jakarta.  Thus, in an effort to hasten the development, Budi Karya said that the project will be accelerated as the government seeks to improve services for passengers by building a 2-storey rails that would differentiate commuter and intercity.  The Manggarai-Cikarang DDT project is worth IDR5.5 trillion (US$406 million) and is targeted to complete in 2019. 
• On November 8, the Security and Exchange Commission’s (SEC) approved the rules for listing public-private partnership (PPP) companies on the Philippine Stock Exchange (PSE).  The move opens another avenue for companies engaged in PPP projects to raise funds for these projects.  More information on the approved rules for listing PPP companies on the PSE can be found here.

View the Council's latest Infrastructure updates

Country Highlights

Brunei

Major Developments

• Brunei recently hosted the 3rd ASEAN Medical Device Committee Meeting (AMDC, December 8-9), the 17th ASEAN Telecommunications and Information Technology Senior Officials Meeting (TESLOM, November 22-23) and the 16th ASEAN Telecommunications and Information Technology Ministers Meeting (TELMIN, November 24-25).  Key highlights from the meetings include the adoption of the Declaration on Connected Innovative Community outlining ASEAN’s plans to establish an innovative and inclusive community through the use of technology and the adoption of the ASEAN Framework on Personal Data Protection.  For more information, please contact Kim Yaegar at kyaegar@usasean.org.
• For the second year in a row, Brunei was named the most improved economy in the World Bank’s 2017 Doing Business Report.  Brunei jumped to the 72nd position (out of 190 economies), up from 97th in 2016.  The country showed improvements across a number of indicators, including getting electricity, resolving insolvency, enforcing contracts, getting credit, protecting minority investors and paying taxes.  The Bruneian government has identified the World Bank’s Ease of Doing Business ranking as a priority area for improvement, as a part of a larger plan to improve attractiveness for foreign investment.

View the Council's latest Brunei updates

Cambodia

Major Developments

• On December 2, Cambodia's Senate voted on a $5 billion draft budget. This comes amidst concerns over the rise in military and defense budget allocation as Cambodia is currently at peace with its neighbors.  In a statement published on the Ministry of Defense’s Facebook page, the ministry defended criticism by stating that the budget increase seems significant in comparison only because most countries, particularly powerful ones, do not reveal the exact spending figures on defense and security budget allocation as a matter of national security. The proposed $850 million makes up 17.1 percent of the entire 2017 budget and majorly be spent on staffing - 77.8 percent of the defense budget, or $642 million, has been allocated for wages, an increase of 26.7 percent from last year. Much of this increase is attributable to the government’s larger efforts to raise salaries of public servants across the board. Despite having one of the lowest military budgets in the region and most of it being spent on staff wages, Cambodia has made some noticeable upgrades in military procurement. Post 2009, Cambodia has acquired some heavy armored personnel carriers, tanks and light artillery. 
• Effective December 1, Mr. Sakal Mao started as the new commercial and economic counselor at the Royal Embassy of Cambodia in Washington. He brings over a decade-long experience working at both the Ministry of Foreign Affairs and the Ministry of Economy and Finance in Phnom Penh.

View the Council's latest Cambodia updates

Indonesia

Major Developments

• On November 10, the Government of Indonesia released its 14^th economic policy package.  It focuses on Indonesia’s e-commerce industry with specific coverage on capital accessibility, tax incentives, consumer protection, human resource development, cyber security, logistics and communication infrastructure.  While the full national e-commerce roadmap is still awaiting release in the form of the Presidential Regulation, the Ministry of Communication and Information Technology has circulated a presentation, available here.  The roadmap sets out the collaboration of more than 8 ministries and related government institutions aiming to hit US$130 billion e-commerce transaction value by 2020.
• Indonesia’s 2017 National Budget was approved by parliament on October 26, after it was proposed by President Jokowi on October 16.  The Government Work Plan, which defines the budget’s priorities and strategy, affirms that the Budget should be sustainable and accurate.  The Work Plan defines the policy direction as (1) increasing non-oil-and-gas export, (2) simplification of permit registration and investment procedures, (3) extending and intensifying taxation base, and (4) continuing government institutional reform.  The Council’s analytical brief and a reference to the official budget plan is available here.
• As of November 28, the amended Law No. 11 of 2008 on Electronic Information and Transactions is in effect.  The amendments provide the government with more power in managing information technology, in addition to expanding the definition of defamation and libel.  It also introduces new technical provisions on the criminal procedure law regulating the cyberspace.  Despite controversies, particularly regarding how the new regulation affects freedom of speech, the Ministry of Communication and Information Technology’s Spokesperson states that a revision was needed due to implementation issues with the previous law.
• The Business Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha – KPPU) has initiated several new provisions to the current Anti-Trust Law, Law No. 5 of 1999 (a version in Bahasa Indonesia can be found here).  KPPU is often seen as the government’s main arm in an effort to maintain a fair market and is currently in charge of overseeing business competition within the country.  In response to such initiative, several institutions such as the Employer’s Association of Indonesia (Asosiasi Pengusaha Indonesia - APINDO) and the Indonesian Chamber of Commerce and Industry (Kamar Dagang Indonesia - KADIN) have expressed their concerns over KPPU’s multiple and significant roles as the all-in-one informant, investigator, prosecutor and judge.  The Draft Bill is currently under review by the House of Representative.

View the Council's latest Indonesia updates

Laos

Major Developments

Laos will soon have access to Cambodia’s roads and ports in order to export goods abroad. Cambodian Prime Minister Hun Sen made the announcement shortly after a meeting with Laotian President Pany Yathotou on November 26.  President Yathotou visited Phnom Penh to discuss strengthening ties with Cambodia.

View the Council's latest Laos updates

Malaysia

Major Developments

• On December 8, Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed, told reporters at a Malaysia-Vietnam Business Roundtable that Malaysia is exploring alternatives to the TPP, such as initiating bilateral trade pacts with countries Malaysia does not currently have an agreement with, and that Malaysia is also considering pursuing the TPP without the United States.  Minister Mustapa stated that Malaysia is “pro-free trade agreements” and mentioned Mexico and Canada as possible potential partners.  On the Regional Comprehensive Economic Partnership, Minister Mustapa said participating countries were committed to conclude talks by the end of 2017.
• The Council hosted Datuk Chua Tee Yong, Deputy Minister of International Trade and Industry on Thursday, December 15 in Kuala Lumpur, for a dialogue to discuss trade policy and priorities for 2017. The agenda can be found here. Click here to register. Email Emma Tabatabai at emma@usasean.org with any questions.

Please click here for the latest Malaysia updates.

Myanmar

Major Developments

On December 2, President Obama terminated section 570(a) of the 1997 FOAA Act, removing a final piece of economic sanctions against Myanmar. The FOAA Act had restricted U.S. government aide to the Myanmar government except for humanitarian aid the promotion of human rights. With the restrictions lifted, the U.S. government can more readily support needed reforms in the areas of rule of law, anti-corruption efforts, and transparency and accountability in government services.

Advocacy

• The Council submitted a joint industry submission in response to the Myanmar Investment Commission’s proposed Investment Rules. Please contact Anthony Nelson at anelson@usasean.org with any questions or comments.
• Comprehensive meeting notes from last month’s Myanmar Business Mission can be viewed here.

Looking Ahead

The Council is planning a SME training workshop in Yangon for Q1 2017. For more information, or to express interest in participating, contact Mario Masaya at mmasaya@usasean.org.

View the Council's latest Myanmar updates

Philippines

Major Developments

• On December 4, Vice President Maria Leonor “Leni” Robredo announced that she was resigning from her Cabinet post as Chair of the Housing and Urban Development Coordinating Council (HUDCC).  She will continue to function in her capacity as Vice President, though her responsibilities are limited as they are largely prescribed by the President.  Her resignation from the HUDCC is the latest incident in an increasingly strained relationship with President Rodrigo Duterte, who hails from a different political party and whose Cabinet is overwhelmingly comprised of his staunch supporters.  More information on Vice President Robredo’s resignation and its implications for the Duterte administration can be found here. 
• On November 28, Philippine authorities safely disposed of an improvised explosive device left outside the U.S. Embassy in Manila.  Several days later, the Philippine National Police (PNP) raised the national terror alert level to Level 3 and apprehended two suspects.  The PNP have blamed the attempted bombing on supporters of the radical Islamist rebel Maute group, which had been the target of a recent offensive by the Philippine military in Mindanao’s Lanao del Sur province.  At this time, there is no indication that the raising of the terror alert level signals a significant deterioration in the operating environment for U.S. firms, nor is there any indication that U.S. companies are at risk of being targeted as the U.S. Embassy apparently was.  More information on the attempted bombing and the PNP’s response can be found here.
• Citing a significant increase in the smuggling of agricultural products over the last several years, the Department of Agriculture (DA) is tightening import rules for agricultural products.  However, the DA has also shown a willingness to consider the concerns of established importers by making accommodations intended to decrease related delays.  More information on the tightened import rules can be found here.
• On November 8, the Security and Exchange Commission’s (SEC) approved the rules for listing public-private partnership (PPP) companies on the Philippine Stock Exchange (PSE).  The move opens another avenue for companies engaged in PPP projects to raise funds for these projects.  More information on the approved rules for listing PPP companies on the PSE can be found here.

View the Council's latest Philippines updates

Singapore

Major Developments

• On December 5, Singapore’s Ministry of Finance (MOF) opened the public consultation period for the 2017 Budget as it seeks input on a range of issues to help determine budget priorities.  Officially called the REACH Pre-Budget 2017 feedback exercise, the public consultation period will last until January 13, 2017.  More information on the public consultation period for the 2017 budget can be found here.
• On December 1, the Committee on the Future Economy (CFE), the consultative body that was tasked with devising economic policy recommendations to strengthen Singapore’s business environment, concluded its deliberations.  More than 1,000 stakeholders—including educators, union members, business leaders, and academics—participated in more than 80 discussion and focus groups with the CFE over the course of the year.  Although the CFE will release its recommendations in early 2017, the committee co-chairs, Finance Minister Heng Swee Keat and Trade and Industry Minister (Industry) S. Iswaran, emphasized that continued engagement with stakeholders will be crucial to helping Singapore’s economy weather challenging regional and global economic trends.  More information on the CFE can be found here. 
• On November 16, the Monetary Authority of Singapore (MAS) published its fintech regulatory sandbox guidelines.  The guidelines, which have incorporated feedback from the public consultation and learning points from actual sandbox applications, are meant to encourage and allow for experimentation of solutions using technology to deliver financial services or products.  More information on the newly released fintech regulatory sandbox guidelines can be found here.

Advocacy

• After receiving input from member companies, the Council’s Singapore Team submitted recommendations to the Government of Singapore’s Committee on the Future Economy (CFE), which is tasked with devising economic policy recommendations to strengthen Singapore’s business environment in the face of challenging regional and global economic trends.  The recommendations highlight areas where the Singapore Government can both adapt approaches to regulatory frameworks and reorient resources towards changing market trends in emerging high-growth fields.  They also address potential constraints U.S. firms face to increasing investment and strengthening economic cooperation with Singapore.
• On December 5, the Council, along with Deloitte, held a launch event in Singapore for a new, co-authored report entitled “Advancing the ASEAN Economic Community: The Digital Economy and the Free Flow of Data.”  The report highlights how ASEAN Member States can advance their digital economies and the newly-launched ASEAN Economic Community (AEC) through pro-growth digital data management policies.

View the Council's latest Singapore updates

Thailand

Major Developments

The US-ASEAN Business Council congratulates His Majesty King Maha Vajiralongkorn Bodindradebayavarangkun of Thailand on the occasion of his ascension to the Throne on Thursday, December 1.  His Majesty was formally acknowledged by the National Legislative Assembly (NLA) as the Heir to the Throne on November 29, and on the evening of December 1 NLA President Pornpetch Wichitcholchai announced that the former Crown Prince had formally accepted the invitation to succeed his late father, His Majesty King Bhumibol Adulyadej.  The coronation ceremony for the new King, also known as King Rama X, is expected to take place in late 2017.  The Council’s statement on the passing of His Majesty King Bhumibol is available here.

Advocacy

On November 29 - 30, the US-ASEAN Business Council was pleased to host a conference call featuring a briefing from the Honorable Glyn T. Davies, U.S. Ambassador to Thailand.  Ambassador Davies offered detailed updates on the royal succession and its possible impact on planned 2017 elections; the anticipated impact of the U.S. election U.S.-Thailand relations; Thailand’s short- and medium-term economic outlook; defense licensing processes; and more.  Also joining the call were Bangkok Embassy staff Courtney Nemroff, the new Economic Counselor; Greg Wong, Commercial Counselor; and Rachel Mueller, Senior Economic Officer. Comprehensive notes from the call are available here.

View the Council's latest Thailand updates

Vietnam

Major Developments

In late November, Vietnam’s 14th National Assembly (NA) wrapped up its second sessions in Hanoi.  One outcome was the adoption of a resolution to set three reform targets for the next five years: public investment, State Owned Enterprises (SOEs) and financial institutions.  In addition, the NA voted for a series of other plans and discussed drafts for revised laws on technology transfer, foreign trade management, tourism, irrigation and others.  One noteworthy outcome to close out the session was the decision to formally cancel plans to build Vietnam’s first two nuclear power plants, which was originally endorsed in 2009, slated for 2020.

Advocacy

• On November 28-30, the Council led a delegation of Asia-Pacific Presidents and CEOs to Vietnam to engage the government and discuss plans for long-term partnerships and investments.
• On December 14, the Council hosted Vietnam Ambassador to the United States H.E. Pham Quang Vinh for an off-the-record coffee discussion with Council members to exchange updates on Vietnam, plans for 2017, and the impact of the U.S. election on global trade and U.S.-Vietnam relations.
• The Council sent an official letter to H.E. Dinh Tien Dung, Minister of Finance, to provide comments and recommendations for MOF’s draft decree on transfer pricing. For more information, please contact Hai Pham at hpham@usasean.org.

Looking Ahead

On January 11-12, the Council will lead a delegation to Vietnam to engage officials from the Ministry of Health.  The Council’s second Health & Life Sciences Industry Mission to Vietnam will look to follow up on the Council’s MOU with the Ministry of Health.  For more information, please contact Hai Pham at hpham@usasean.org.

View the Council's latest Vietnam updates