April 2017

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

It has been a busy month in ASEAN, and the Council continues to focus on advancing our members’ businesses in the region.   I am pleased to report that as a result of our efforts several issues important to our members have been resolved in the last few weeks (see Advocacy below for full details).

Vice President of the United States Mike Pence is visiting Jakarta as I write this newsletter and is the first senior member of the Trump Administration to visit ASEAN.   According to press reports, the Vice President announced that President Trump would in fact attend the ASEAN, the East Asia and the APEC Summits in the Philippines and in Vietnam in November.  This has been a major policy goal of the Council with the new Administration and it is great to see the Vice President’s reported statement.

The Council and 20 of our members held our annual Business Mission to Malaysia where the delegation met with Prime Minister Najib and his economic cabinet.  With the US withdraw from the TPP, the mission provided an excellent opportunity for the US private sector to both reiterate its commitment to expanding US-Malaysia bilateral trade and investment relations and to raise current issues affecting business activities. Key issues raised during the mission included: Malaysia's economic outlook and trade policy priorities, new foreign exchange regulations, potential amendments to Malaysia's internet law, and foreign investment limits in the insurance sector.

We also led our 17th annual mission to the ASEAN Finance Ministers and Central Bank Governors meeting where our delegation had the opportunity to sit down with Finance Ministers and Bank Governors from all 10 ASEAN nations.  This year the delegation focused on four themes: the digital economy, cyber security, advancing ASEAN capital and financial market integration and inclusive growth.  This week is a busy week in Washington, DC at the start of the World Bank/IMF Spring Meetings.   Currently, Vietnam’s Deputy Prime Minister and Foreign Minister is in town along with many ASEAN bankers and finance ministers.  In coordination with the US Indonesia Society, the Council participated in a roundtable and dinner with Indonesian Finance Minister Sri Mulyani Indrawati; Singapore’s Deputy Prime Minister Tharman SHANMUGARATNAM is in town and the Council was a supporting organization for a lecture by Managing Director of the Singapore Monetary Authority, Ravi Menon; the Council held a lunch in honor of Malaysia’s Minister of Finance II Datuk Seri Johari bin Abdul Ghani today and is hosting Thailand’s Minister of Finance Apisak Tantivorawong for a roundtable discussion tomorrow.  

Indonesia’s Coordinating Minister for Maritime Affairs, Natural Resources and the Environment Luhut Binsar Panjaitan will visit Washington starting this weekend and will conduct a rare Sunday roundtable with our members.   

As I mentioned above, Vice President Pence will hold a number of meetings in Jakarta this week including a small “listening session” with American and Indonesian business leaders.  I am proud to report that the Council’s Indonesia Committee Chair Martin Gil of the Coca-Cola Company will be one of the five Americans in the meeting along with representatives of four other Council companies. The five American companies will discuss the opportunities and challenges of doing business in Indonesia with the Vice President.  Vice President Pence is scheduled to meet with Indonesia’s President Jokowi and Vice President Jusuf Kalla as well as their Cabinet and give a major policy address.  He is also scheduled to visit the ASEAN Secretariat and meet with ASEAN Secretary General Le Loong Minh. 

Highlights

Advocacy

  • As a result of the Council’s 2017 Vietnam Business Mission in early March, several follow up efforts produced advocacy successes:
    • One member’s “back tax” dispute issue with the Government of Vietnam was resolved in the member’s favor with the member not having to make any additional tax payments.
    • Another member’s certificate of origin issue with Vietnamese Customs was resolved on an emergency basis, eliminating a 5 percent tariff on import shipments worth millions of dollars.
    • The Government of Vietnam decided to eliminate its regulatory restrictions on a U.S. shared economy transportation technology innovator after obtaining a better understanding of both the benefits being generated to the economy by their unique business model.
    • The Government of Vietnam adopted Resolution 34, a proposal by the Ministry of Industry and Trade, to remove price caps for milk products for children under 6 years old on April 1.
  • As a result of the Council’s 2017 Malaysia Business Mission in late March, the Council is pursuing advocacy efforts in the following areas:
    • The Council is working with one member on transmitting recommendations to the Government of Malaysia about the implementation of the new hotel tourism tax policy.
    • The Council is working with another member on developing a national and state level advocacy strategy to support a proposal for public-private partnerships in the mining sector.
  • The Council is engaging the Government of Indonesia on the implementing rules and regulations related to Law No. 18, which includes ending the issuance of import permits of antibiotics and hormones used as commercial animal feed additives as of January 1.  The subsequent disruption in a number of agricultural industry supply chains could have a significant negative impact on animal disease prevention and food production.  The Council’s efforts are focused on clarifying the provisions of the law that banned imports of antibiotics and hormones for animal feed, but allowed for the treating of animals; requesting a grace period for industry compliance, and advocating that antibiotics and hormones also be permitted to be used for animal therapy.
  • The Council will be represented by Indonesia’s Country Committee Chair, Martin Gil, President Director of Indonesia, Coca-Cola Indonesia, during Vice President Pence’s visit to Indonesia.

Relationship Building

Please save the date for the following Council Events and Business Missions:

  • Indonesia’s Coordinating Minister for Maritime Affairs, Natural Resources and the Environment Luhut Binsar Panjaitan , April 23 in Washington, DC
  • Digital Economy Mission to Indonesia, April 26-27 in Jakarta, Indonesia
  • ASEAN Foreign Ministers, May 4 in Washington, DC
  • 2017 Singapore Business Mission, May 8-9 in Singapore
  • ASEAN Matters & ASEAN Congressional Caucus Launch, May 16 on Capitol Hill in Washington, DC

Promotion

The Council will be launching the latest edition of our popular ASEAN Matters study with the East West Center and ISEAS on May 16th on Capitol Hill in conjunction with the launch of the ASEAN Congressional Caucus.   A Singapore launch is planned later in the year.   This year’s version adds sections on the importance of Agriculture and Technology to the relationship and expands the discussion of demographics to include a growing middle class as well as highlights the youth demographic of the region.

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

Regional Highlights

ASEAN

Looking Ahead

Please mark your calendars for the 2017 ASEAN Economic Ministers’ Meeting (AEM), tentatively scheduled for August 27-September 2 in Manila and ASEAN SOM and Foreign Ministers in DC.

Major Developments

The Council is still seeking feedback on its 2017 E-Commerce Work Plan.  The E-Commerce Working Group, housed within the ASEAN Committee, will coordinate amongst the Council’s country and sector committees (particularly ICT, Financial Services, and Customs) to streamline all internal planning and external engagement on e-commerce.  Please review the draft work plan, and contact Matt Solomon at msolomon@usasean.org with any feedback.

View the Council's latest ASEAN updates

Industry Highlights

Defense & Security

On April 17, the Council, in coordination with Lockheed Martin International (LMI), organized the Vietnam Defense Attachés’ Tour.  The Attachés visited LMI's facility in Washington, D.C. for a tour of its Concept and Development Center (CADC) on Littoral Combat Ships, followed by a discussion with industry experts on defense procurement trends and priorities for the next fiscal year.  Members interested in a similar opportunity should contact Jack Myint at jmyint@usasean.org.

View the Council's latest Defense & Security updates

Energy

Major Developments

  • On March 20, the strategy group of the National Climate Change Secretariat (NCCS) of Singapore announced that it was carrying out a public consultation on the proposed carbon tax that was mentioned in Singapore’s 2017 Budget.  The Government intends to implement the carbon tax in 2019.  The public consultation period will last from March 20-April 20.  More information on the carbon tax and the public consultation can be found here and here.
  • On March 2, following a meeting between Malaysia’s Green Technology and Climate Change Council (MTHPI), the Malaysian government renewed its Green Technology Financing Scheme (GTFS) from 2018 to 2022 with a RM5 billion (approximately US$1.13 billion) allocation.  The scheme’s second round ensures that green technology projects continue to receive funding and support in order to promote industry growth.

Looking Ahead

On April 25, Singapore's Energy Market Authority (EMA) is organizing a Workshop on “Workforce Resilience in the Energy Sector”.  This Workshop will serve as a platform for greater discussion on key human resource challenges in the energy industry and facilitate dialogue on best practices in strengthening energy workforce resilience among the APEC economies.  The Council is assisting EMA with the event and Senior Vice President and Regional Managing Director Ambassador Michael Michalak will moderate one of the panels.  More information on the workshop can be found here.

Advocacy

On March 30, the Council submitted input to the Indonesian Minister for Energy and Mineral Resources, Ignasius Jonan, on upholding contract sanctity, avoiding the criminalization of civil disputes, and freeing the mining export restrictions.  The submission was facilitated via the Power Working Group at the U.S. Embassy in Jakarta.

View the Council's latest Energy updates

Financial Services

Major Developments

On April 6-7, the Council held its annual Mission to the ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM) in Cebu, Philippines to join AFMGM events and host the leaders in sideline meetings.  The delegation delivered a policy paper that reviewed the ASEAN financial integration agenda and presented new issues for the digital economy, cybersecurity, and financial inclusion.  The delegation also joined the ASEAN Finance Ministers Investors Seminar for the first time, where Council members spoke on panels covering trade facilitation and ASEAN’s growing consumer class.  More information on the Mission will be distributed soon.  AFMGM’s joint statement, which reaffirmed the financial integration agenda, may be accessed here.

View the Council's latest Financial Services updates

Food & Agriculture

Major Developments

Earlier in April, the State Bank of Vietnam (SBV) issued regulations on implementing a USD4.4 billion credit package with preferential interest rates for high-tech agriculture. These regulations will be implemented this month through commercial banks.  To be eligible for preferential loans with interest rates 0.5 – 1.5 percent lower than current average rates, projects must operate in the high-tech and clean agriculture industry.

Advocacy

  • On March 17, the Council’s Food and Agriculture Committee met with Myanmar Minister of Commerce H.E. U Than Myint in Nay Pyi Taw to discuss the government’s efforts in developing the private sector and SMEs as well as trade liberalization and facilitation.  On March 31, the Council sent a letter to the Minister of Commerce U Than Myint to reiterate how wider participation by foreign companies in the trade of agricultural commodities and how full ownership in the agricultural and livestock sector can bring various benefits and add value to local businesses and consumers in Myanmar.
  • On April 19, the Council held a conference call between Food & Agriculture committee members affected by the Philippines Sugar Order No. 3, which gives the Sugar Regulatory Administration (SRA) authority to regulate imports of high-fructose corn syrup (HFCS).  During the call, members discussed an industry approach of engagement and next steps, including how the upcoming Food & Agriculture Industry Mission to the Philippines could serve as a strategic platform to raise this issue.

Looking Ahead

To view a list of the Council’s upcoming engagements for Food & Agriculture committee members, please click here.

View the Council's latest Food & Agriculture updates

Health & Life Sciences

Major Developments

  • On March 31, Myanmar State Counsellor Aung Sung Su Kyi announced the launch of Myanmar’s new National Health Plan (NHP) for 2017-2021.  The first medium-term NHP under the auspices of the democratically-elected government, it aims to guarantee an Essential Package of Health Services to the entire population by 2030, and places priority on addressing disease, health inequity, and healthcare sector investment and development.  This announcement is one step closer to achieving universal health coverage (UHC) in Myanmar, which has set a goal of achieving UHC by 2030.
  • The Indonesian Ministry of Health (MoH) is taking steps to locate domestic sources for raw material for the pharmaceutical industry, in an effort to reduce the country’s dependence on imports.  Maura Linda Sitanggang, Director-General for pharmaceuticals and medical equipment, stated that investment in research and development towards domestic substitutes has increased, adding that “Indonesia's pharmaceutical industry is expected to manufacture raw materials in Indonesia, so that in 2025 Indonesia will be able to reduce reliance on imported raw materials”.

View the Council's latest Health & Life Sciences updates

ICT

Major developments

On March 30, the Office of the United States Trade Representative (USTR) released its annual National Trade Estimate Report (NTE), available here, which includes a focus on barriers to digital trade.  The Report recognizes four categories of digital trade barriers: Data Localization Barriers, Technology Barriers, Barriers to Internet Services and Other Barriers. The Report presents country-specific findings for seven ASEAN countries, including concerns regarding Cambodia’s draft e-commerce law, Indonesian requirements around data localization, draft regulation on over-the-top services (OTT) and provisions of the e-commerce roadmap, Lao Decree 327 on Information Management on the Internet, Malaysian foreign ownership cap on telecommunications, Philippines requirements for cloud service providers, Thailand’s draft National Cybersecurity Bill and Computer Crime Act, and Vietnam’s draft OTT regulation, requirements for online advertisers and Decree 72 on internet services.

Advocacy

On March 10, the Council received notice from the Info-Communications Media Development Authority (IMDA) of Singapore that its cloud outage incident response (COIR) guidelines would be developed as a voluntary standard, not as a set of prescriptive local standards. This was in response to a February 9 joint letter from the Council and BSA | The Software Alliance (available here), recommending that Singapore adopt standards developed through international based best practices processes that are widely used across markets.  IMDA will hold a two-month-long public consultation—from May 5 to July 6—once the revised guidelines are available.

Looking ahead

On April 26-27, the Council will lead its inaugural Digital Economy Industry Mission to Indonesia.  The delegation will engage the Indonesian government and private sector on issues including data localization, OTT, TKDN, cyber security, data privacy, e-payments, and e-commerce.

View the Council's latest ICT updates

Infrastructure

Major Developments

The Asian Development Bank (ADB) has released figures that mark Vietnam’s public and private infrastructure investment as the highest in Southeast Asia, accounting for an average of 5.7 percent of the country’s gross domestic product (GDP).  In comparison, Indonesia, the Philippines, Malaysia, and Thailand allocate less than 3 percent of their GDP to infrastructure improvement.  The high priority placed on infrastructure development in Vietnam is aimed at helping promote the nation’s attractiveness to foreign investors.  Foreign direct investment (FDI) increased to a record $15.8 billion in 2016, with the economy forecasted to expand by more than 6 percent per annum until 2019.  In order to support such high levels of investment, Vietnam’s national transport sector has been instructed to mobilize private capital to offset the $32.6 billion difference between the Ministry of Transport’s budget requirements and its real capital allocation.  On March 16, Prime Minister Nguyễn Xuân Phúc highlighted transport infrastructure at a meeting with Ministry representatives, saying that it plays a key role in Vietnam's socioeconomic development.  During the Council’s inaugural business mission to the 22nd ASEAN Transport Ministers Meeting in November 2016, Vietnam’s Vice Minister of Transport, Nguyen Hong Truong, updated the delegation that transport infrastructure projects are modeled after public-private partnerships (PPPs) that have a range of 40 to 60 percent sharing; and a feasibility study on high speed railroad projects will be conducted in 2017, with target implementation in 2020.

Looking Ahead

  • Global Infrastructure Investors Summit 2017
    Supported by Preqin, LTIIA and large names in infrastructure investment, the Global Infrastructure Investors Summit (GIIS) is an annual private C-level event serving as an exclusive platform for large institutional investors, fund managers, asset managers, banks, government representatives and advisers representing the Americas, Asia, Europe and Australia for networking and establishing partnerships for future projects.  The Summit will be held on June 1 in London. Interested parties can register here. 
  • Global Think Tank Summit 2017
    The Asian Development Bank Institute (ADBI) and the Think Tanks and Civil Societies Program (TTCSP) of the University of Pennsylvania will be holding the Global Think Tank Summit 2017 in Yokohama, Japan on May 2-3.  Interested parties may contact Dr. Stefan Angrick (E-mail contact form here). 

Country Highlights

Brunei

Major Developments

The FinTech Unit of the Monetary Authority of Brunei Darussalam (Autoriti Monetari Brunei Darussalam - AMBD) has launched a regulatory sandbox to facilitate the development of FinTech companies in Brunei.  This unit was recently established following the issuance of Brunei’s Financial Sector Blueprint and is responsible for issuing the regulatory and developmental strategies to facilitate the use of financial strategy in the financial sector.  The sandbox is intended to serve as a software testing ground, allowing for the execution of software or programs for evaluation, monitoring or testing in a controlled environment.  AMDB has also developed its FinTech regulatory guidelines for the sandbox to further support and encourage the industry growth and at the same time, ensure the stability of Brunei’s financial industry.  The official AMBD guidance is available here.

View the Council's latest Brunei updates

Cambodia

Major Developments

Prime Minister Hun Sen has silenced rumors that all of late Deputy Prime Minister Sok An’s roles would transfer to current Deputy Prime Minister and Minister in Charge of the Council of Ministers Bin Chhin.  Instead, DPM Sok An’s portfolios would be reassigned to the following ministries:

  • Apsara Authority, National Authority of Preah Vihear, and the Cambodian National Commission for UNESCO to Culture Minister Phoeurng Sackona
  • The National Railway Committee and Metal Management Committee to Public Works and Transport Minister Sun Chantol
  • The Engineering Council to Labor Minister Ith Sam Heng
  • The National Association of Cambodian Scouts to Education Minister Hang Chuon Naron
  • The Royal School of Administration to Civil Service Minister Pich Bunthin
  • The Royal Academy for Judical Professions to Justice Minister Ang Vong Vathana

Deputy PM Bin will retain the following roles:

  • The Royal Academy of Cambodia
  • State Secretariat of Civil Aviation
  • National Authority for Land Dispute Resolution
  • The government’s task-force in the UN-backed Khmer Rouge tribunal within the Council of Ministers
  • The one-window information service in the Council for the Development of Cambodia, which oversees foreign investment
  • Other roles include: assisting the Prime Minister in leading the Council of Ministers’ judicial council and organizing responses to National Assembly members; assisting the Prime Minister in the government’s anti-corruption efforts; and working on inter-country adoption issues

View the Council's latest Cambodia updates

Indonesia

Major Developments

  • Following the G20 Finance Ministers and Central Bank Governors’ meeting in March, Indonesian Finance Minister Sri Mulyani has publicly expressed her concerns that there is an uncertainty regarding policy coordination between the world’s top economies.  She noted that there is an ongoing inward-looking protectionism which will affect many developing countries, including Indonesia.  This year’s G20 meeting broke away from the tradition of advocating for free trade, and only made a token reference to the issue in their communique on March 18.  Minister Sri Mulyani further stated that the inability of G20 to issue a strong statement regarding free trade creates anxiety regarding the direction of global economic policy and the Finance Minister also highlights that the U.S.’ policy stance on the issue will have a huge impact on the rest of the world. 
  • At a recent Investment Coordinating Board (BKPM) National Coordination Meeting in Bali, the BKPM reiterated its hope to attract IDR863 trillion (USD64.6 billion) in FDI in 2018, which is a 27 percent increase from the 2017 goal of IDR678.8 trillion, amid the global race to be the most attractive investment destination in the world.  As a comparison, the investment realization in 2016 was IDR612.9 trillion, which was a 12.4 percent increase from IDR545.5 trillion in 2015.  Azhar Lubis, BKPM Deputy for Investment Monitoring and Implementation, stated that the number should be an encouragement for Indonesia to work harder to realize this ambitious goal.  The Indonesian government has been working to encourage more foreign direct investment into the country.  BKPM has also announced its plan to standardize investment procedures in the country, in response to complaints regarding different registration forms and tedious procedures in various regional administrations.  BKPM Chairman Thomas Lembong had previously stated that investors trying to invest in several regions are often frustrated with having to deal with different regional standards.  Under Chairman Lembong’s leadership, the BKPM is aiming for a more intensive coordination between various government agencies to meet Indonesia’s 2017-2018 investment goals.
  • Indonesia’s Constitutional Court recently ruled that the central government no longer has the authority to revoke problematic regional regulations.  The court upheld a challenge by the Indonesian Regency Administration Association (Apkasi) against certain provisions in Law No. 23 of 2014 on Regional Government which previously provided the central government (through the Minister of Home Affairs), with the authority to revoke regional regulations that are in contradiction with the central government’s regulations.  In an effort to deregulate policy to nurture a more attractive investment market, President Joko Widodo’s administration has been revoking certain regulations that it deemed problematic.  Speaking to the press, President Joko Widodo stated that he respects the ruling though his administration will continue with deregulation policies to the extent permitted by the law.

Advocacy

The Council has prepared a Sense of American Business in Indonesia Paper, which was used as a basis for discussion with the White House National Security Council in light of Vice President Pence’s visit to Jakarta.  The paper highlights opportunities as well as challenges facing the U.S. private sector in Indonesia.  The Council would like to thank members for their feedback and advice provided during the preparation of the Paper.

Looking Ahead

  • On April 23, the Council will host a roundtable with H.E. General (Ret.) Luhut Pandjaitan, Coordinating Minister for Maritime Affairs to discuss investment opportunities and policy trends in Indonesia.  The Coordinating Ministry for Maritime Affairs oversees the Ministry of Energy and Mineral Resources, Ministry of Transportation, Ministry of Maritime Affairs, and Ministry of Tourism. Click here for more information.  Please contact Artha Sirait at asirait@usasean.org with any questions.
  • The Council is sponsoring The Economist’s 2017 Indonesia Summit in Jakarta on April 20, bringing together policymakers, leaders from foreign and domestic businesses, academia and international experts to discuss various developments in Indonesia.  Please click here for more information.  

View the Council's latest Indonesia updates

Laos

Major Developments

The Office the U.S. Trade Representative’s annual National Trade Estimate (NTE) Report on Foreign Trade Barriers (available here), released on March 30, highlights a 25.6 percent increase in U.S. goods exports to Laos, to $31 million.  U.S. imports from Laos increased 21.6 percent to $55 million.  While still relatively low (Laos was the United States' 178th largest goods export market in 2016), the inauguration of bilateral Trade and Investment Framework Agreement (TIFA) talks provided a mechanism by which to address remaining barriers to increased trade and investment.  The NTE Report addresses issues such as the uneven implementation of sanitary and phytosanitary standards; duplicative, arbitrary, or selectively enforced tax provisions; lack of access to certain services sectors; and corruption.

Looking ahead

Please save the date for the annual Laos Business Mission, taking place from August 31 to September 1 in Vientiane. Registration information is forthcoming. Please contact Matt Solomon at msolomon@usasean.org with any questions.

View the Council's latest Laos updates

Malaysia

Major Developments

On March 22, Prime Minister Najib Tun Razak launched Malaysia’s Digital Free Trade Zone.  The Prime Minister stated that the world’s first Digital Free Trade Zone will benefit entrepreneurs by providing a conducive business environment for digital companies.  It is designed to be a one-stop digital hub for e-fulfillment, satellite services, and e-services.  The initiative is a part of Malaysia’s recent National E-Commerce Strategic Roadmap, which includes the goal of doubling e-commerce growth from 10.8 percent to 20.8 percent by 2020.  The Digital Free Trade Zone was created in collaboration with the Malaysian Digital Economy Corporation (MDEC) and Jack Ma, the founder of Alibaba.  For more on the Digital Free Trade Zone, click here to access MDEC’s presentation from our 2017 Malaysia Business Mission.

Advocacy

On March 27-29, the Council led the 2017 Malaysia Business Mission with twenty member companies participating.  The delegation met with Prime Minister YAB Dato' Sri Najib Tun Razak, Deputy Prime Minister Dato' Seri Dr. Ahmad Zahid Hamidi, Minister of International Trade and Industry Dato' Sri Mustapa bin Mohamed, and Minister of Finance II YB Datuk Johari Bin Abdul Ghan among others.  The mission was a great opportunity to reaffirm the U.S. business community’s commitment to Malaysia and encourage the Malaysian government to continue trade liberalization through free trade agreements, particularly the Regional Comprehensive Economic Partnership (RCEP) and Trans-Pacific Partnership (TPP).  Click here for the mission’s press release.

On April 20, the Council hosted a small lunch for Finance Minister II YB Datuk Johari Bin Abdul Ghan in Washington. The Minister will be traveling to Washington to participate in the IMF and World Bank meetings.

View the Council's latest Malaysia updates

Myanmar

Major developments

The Myanmar Investment Law (MIL) 2016 and its implementing rules took effect on April 1 (see our analysis of the Law here). After three rounds of public consultation (see the Council’s submission here), the finalized Rules were released on March 30 and can be accessed here.

The Rules, meant to clarify the requirements, rights, and obligations under the MIL, cover the following:

  • Definitions of terms
  • Investments requiring permits from the Myanmar Investment Commission (MIC) pursuant to MIL Art. 36 (such as investments exceeding $20 million in communications, technology, transport infrastructure, energy infrastructure, urban development infrastructure, extractive/natural resources, agricultural, urban land or media sectors; certain investments in conflict-affected areas, and capital-intensive investments exceeding $100 million)
  • Prohibited and restricted investments (under MIL Arts. 41-42). The types of restricted investments (i.e. which sectors are off limits to foreign investors or require joint ventures) will be issued in a separate MIC notification. Joint ventures under MIL Art. 42(c) will require at least 20 percent direct interest from the Myanmar investor(s).
  • Promoted sectors, which were issued by a separate MIC notification on April 1. It can be accessed here.
  • Procedure/criteria for submission/review of investment proposals (in sectors requiring permits) and endorsement applications (if applying for land rights/tax incentives)
  • Establishment of a “one-stop service”, which will be offered through an Investor Assistance Committee to liaise with relevant departments across Union Ministries
  • Investor responsibilities (i.e. inspections, record keeping, social and environmental assessments, etc.)
  • Mandatory insurance requirements for MIC permit holders and businesses that enjoy tax incentives
  • Penalties

View the Council's latest Myanmar updates

Philippines

Major Developments

  • On March 24, Philippines Secretary of Agriculture Emmanuel Piñol announced that an order giving the Sugar Regulatory Administration (SRA) the authority to regulate imports of high-fructose corn syrup (HFCS) would be suspended for six months to give food and beverage companies time to make the necessary adjustments to their production lines.  However, the suspension order had yet to be signed and put into effect.  Secretary Piñol’s announcement came after several major companies in the agriculture and food and beverage sectors raised concerns that, if enacted immediately, the order would cause severe disruptions to supply chains and operations.  More information on the SRA order can be found here.
  • At the end of February, President Rodrigo Duterte approved the 2017 Investment Priorities Plan (IPP).  The 2017 IPP is essentially a list of investment activities that the Philippine government wants to incentivize.  Initially drafted by the Department of Trade and Industry’s Board of Investments, the IPP is based off the government’s dual goals of achieving 7-8 percent GDP growth from 2018 to 2022 and reducing poverty from over 21 percent in 2015 to 14 percent in 2022. More information on the 2017 IPP, including a list of priority industries for investment, can be found here.

View the Council's latest Philippines updates

Singapore

Major Developments

  • During late February and early March, Singapore’s Parliament sat as the Committee of Supply to examine each Government Ministry’s expenditure plans for fiscal year 2017.  The Committee of Supply debates are part of Singapore’s annual budgeting process, and it is through the debates that a clearer picture of how each Ministry’s budget allocation will be implemented emerges.  More information of the 2017 Committee of Supply debates, especially those for the Ministry of Communications and Information, can be found here.
  • On March 20, the strategy group of the National Climate Change Secretariat (NCCS) of Singapore announced that it was carrying out a public consultation on the proposed carbon tax that was mentioned in Singapore’s 2017 Budget.  The Government intends to implement the carbon tax in 2019.  The public consultation period will last from March 20-April 20.  More information on the carbon tax and the public consultation can be found here and here.

Looking Ahead

  • The US-ASEAN Business Council is registering senior-level executives for its annual Business Mission to Singapore on May 8-9.  The deadline for receipt of registration and mission materials is Monday, April 24.  The Council has confirmed meetings with the following Government of Singapore officials:
    • Minister for Trade and Industry (Industry)
    • Coordinating Minister for Infrastructure & Minister for Transport
    • Minister for Education (Higher Education & Skills)
    • Senior Minister of State, Ministry of Foreign Affairs
    • Assistant Managing Director, Economic Development Board
  • On April 25, Singapore's Energy Market Authority (EMA) is organizing a Workshop on “Workforce Resilience in the Energy Sector”.  This Workshop will serve as a platform for greater discussion on the key human resource challenges in the energy industry and facilitate dialogue on the best practices in strengthening energy workforce resilience among the APEC economies.  The Council is assisting EMA with the event and Senior Vice President and Regional Managing Director Michael Michalak will moderate one of the panels.  More information on the workshop can be found here.

Advocacy

On March 9, Singapore's Ministry of Health (MOH) announced that it would not proceed with plain tobacco packaging following a public consultation period that ended last March.  As part of that public consultation, the Council submitted a letter to the Director of the Substance Abuse Division at the Health Promotion Board, arguing that the introduction of plain packaging would violate Singapore's obligations to protect IPR and to abstain from enacting measures that serve as unnecessary obstacles to trade.  Rather than implement plain packaging, MOH said it would hold another public consultation on the issue later this year.   

View the Council's latest Singapore updates

Thailand

Major developments

  • On April 6, His Majesty King Maha Vajiralongkorn signed Thailand’s new constitution into force, starting the countdown to planned elections no later than November 2018.  The final draft of the constitution incorporates several changes suggested by the King since the constitutional referendum in August 2016. For more information see our recent Update here.
  • The latest U.S.-Thailand TIFA talks took place on April 3 in Bangkok (USTR press release here), during which the two sides discussed opportunities for enhanced trade relations, including addressing barriers to U.S. exports to Thailand. The meeting came just three days after the Trump administration announced its intention to direct the United States federal government to increase its scrutiny of foreign trade practices and relations, issuing two executive orders that individually call for tougher anti-dumping enforcement, and a U.S. Commerce Department and U.S. Trade Representative review of the root causes for U.S. trade imbalances with a list of countries, including Thailand. Click here for the Council’s analysis.

Looking ahead

  • On April 21, the Council will host a roundtable with H.E. Apisak Tantivorawong, Thai Minister of Finance, in Washington, DC. The Minister will discuss recent changes to the excise tax and customs regimes, the liberalization of the insurance sector, and other issues. Registration is now closed.
  • Please save the date for the 2017 Thailand Business Mission, taking place from June 21-23 in Bangkok.  Registration information is forthcoming.  Please contact Matt Solomon at msolomon@usasean.org with any questions.

View the Council's latest Thailand updates

Vietnam

Major Developments

On March 30, the Office of the United States Trade Representative (USTR) released the 2017 National Trade Estimate Report (NTE), a report that emphasizes the importance of enforcing U.S. trade laws as a priority in the Trump Administration’s “America First” trade agenda.  The NTE lists trade barriers in promoting free and fair trade in 58 countries.  For Vietnam, regulations regarding the following were identified as key barriers to digital trade: online advertising, over-the-top services, and internet-based content services.

For more details on the regulations and for access to the complete 2017 USTR National Trade Estimate Report, please click here.

Advocacy

As a result of the follow-up efforts from the Council’s Business Mission to Vietnam in March, regulations regarding the following issues have been resolved: tax policy, customs on certificate of origin, price control, and regulations on new business models.

Looking Ahead

If you are interested in attending either the APEC Symposium on Trade and Innovation on May 19 in Hanoi hosted by the Vietnam Ministry of Industry and Trade, or the US APEC Business Coalition side meetings during the APEC Ministers Responsible for Trade Meetings on May 20-21, Hanoi, please contact Hai Pham at hpham@usasean.org.

View the Council's latest Vietnam updates