June 2017

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

Greetings from Bangkok!  Our annual Thailand Business Mission kicked off today, with a delegation of 33 leading U.S. companies from across multiple industry sectors.  The continued strength of the U.S.-Thailand commercial relationship is reflected in the list of high-level Thai government officials with whom we will meet, including but not limited to: Prime Minister General Prayut Chan-o-cha, Deputy Prime Minister Somkid Jatusripitakon, and the Ministers of Commerce, Digital Economy and Society, Energy, Finance, Industry, Tourism and Sports, and Transportation.  With a new U.S. Administration comes a new opportunity to bolster our 184-year old bilateral relationship, and this mission is a timely opportunity to ensure that our trade and investment grows only stronger.  Ambassador Davies and his embassy team supported us throughout our visit.   We are especially grateful to Ambassador Davies for leading our delegation into see the Prime Minister as well as for hosting a reception for our delegation.

Last week in Washington, D.C., we partnered with the U.S. Chamber of Commerce to host the private sector consultations for the United States – Indonesia Trade and Investment Framework Agreement (TIFA) talks.  At the official private sector consultation, we were joined by the leader of the Indonesian delegation, Iman Pambagyo, the Ministry of Trade’s Director General for International Trade Negotiation, H.E. Thomas Lembong, Chairman of the Investment Coordinating Board and former Minister of Trade, representatives of the Coordinating Ministry of Economic Affairs, Ministry of Justice and Human Rights, Bank Indonesia, the Embassy of Indonesia, and some 23 of our member companies and sectoral industry associations.  This was the largest and most diverse delegation the Indonesians have ever sent to the United States for TIFA talks and marks the first time since 2009 that a cabinet-level official has joined, demonstrating the willingness of Indonesia to engage constructively with the new U.S. Administration.

In addition to the official consultation, we also held a side meeting with Chairman Lembong to discuss his perspective on the commercial relationship and held a roundtable with Assistant USTR Barbara Weisel, who leads the U.S. TIFA delegation.  These meetings gave us the opportunity to reinforce the importance of the commercial relationship and the need to resolve key challenges in trade and investment.  In advance of the meetings, we shared an extensive compilation of the challenges that our members face in Indonesia with both the Indonesian delegation and USTR.  The final paper is available here.  We plan to follow-up on all of these issues during our annual Indonesia Business Mission on August 1-3, for which I hope you will join us.

Looking ahead, we have some key business missions to the Philippines (July 25-27), the ASEAN Secretariat (September 4-8), and Indonesia (August 1-3).  On July 19, we will be hosting the annual ASEAN Agriculture Attaches’ Roundtable in Washington, D.C., providing DC-based members the chance to review and discuss key issues and challenges in ASEAN’s agriculture sector.

Additionally, we are pleased to welcome several career U.S. diplomats to the region later this year, including Mr. Michael Newbill as Deputy Chief of Mission to the U.S. Embassy in Phnom Penh, Cambodia.  We also hosted diplomats who will serve in U.S. Embassy in Indonesia including Mr. Andrew Shaw who will be Economic Counselor and Mr. Peter Lohman who will be the Energy and Mining Officer

For those who may have missed it, we recently launched the latest edition of the ASEAN Matters for America publication, in cooperation with the East-West Center and ISEAS. In this year’s publication, we added sections on the Digital Economy and the role of Agriculture as well as expanded Demographics and Investment sections.  

Lastly, to our members, colleagues, and friends who are observing the holy month of Ramadan, I wish you a period of peace

Highlights

Looking Ahead

  • The Council is currently registering members for the 2017 Philippines Business Mission in Manila  July 25-27.  The deadline for registration is July 11.  Click here to register.  Please contact Riley Smith at rsmith@usasean.org with any questions.
  • The Council is now registering senior executives for its annual ASEAN Secretariat Business Mission on July 31 in Jakarta.  Click here to register.  The registration deadline is July 17.  For more information, please contact Matt Solomon at msolomon@usasean.org or Mario Masaya at mmasaya@usasean.org.
  • The Council is now registering executives for its Annual Business Mission to Indonesia. Please note that the registration deadline is Tuesday, July 18. Click here to register. Contact Artha Sirait at asirait@usasean.org with any questions.

Advocacy

  • In March, the Council followed up on a meeting with Myanmar’s Minister of Commerce and members of our Food & Agriculture Committee, by transmitting a letter advocating that 100 percent of foreign companies be allowed to participate in trade and investment activities in the agricultural sector.  In May, news reports and information from member companies indicated that the Government of Myanmar is planning to liberalize agricultural imports by foreign companies.  Previously, only joint ventures established by foreign and local firms could import fertilizers, insemination seeds, and pesticides.
  • The Council has initiated a new advocacy effort on the development of Cyber Security-related rules and regulations in the Philippines.  The Council has joined the USG-GOP Joint Cybersecurity Special Working Group (JCSWG).  The JCSWG is a dynamic platform to present Council member positions or ideas on Cyber Security as a means of influencing government-to-government efforts.  Members interested in this platform can contact Elizabeth "Maxie" Magsaysay-Crebassa at em.crebassa@usasean.org.  

Intelligence

The Council’s Philippines Committee recently released an Analytical Brief on the potential motivations behind and consequences of President Rodrigo Duterte’s May 23 declaration of martial law across the southern island of Mindanao.  It is available here.

Relationship Building

Please save the date for the following Council events and business missions:

  • 2017 Indonesia Business Mission, August 1-3 in Jakarta, Indonesia
  • 2017 Laos Business Mission, August 31-September 1 in Vientiane, Laos  
  • 2017 ASEAN Economic Ministers’ Meeting (AEM), September 4-8 in Manila, Philippines
  • 2017 Mission to the ASEAN Ministers on Energy meeting (AMEM), September 18-22 in Manila, Philippines
  • 2017 Mission to the ASEAN Ministerial Meeting on Agriculture and Forestry (AMAF), September 28-29 in Chiang Mai, Thailand

Promotion

  • On July 19, the Council will be convening a roundtable of all ten ASEAN Agricultural Attaches based in Washington, D.C.  This annual roundtable will provide members based in DC a chance to review and discuss key issues and challenges in ASEAN’s agriculture sector.  For more information, please contact Hai Pham at hpham@usasean.org.
  • The Philippine Department of Energy (DOE) is hosting the 35th ASEAN Ministers of Energy Meeting (AMEM) and its Associated Meetings in Manila on September 27-29.  In parallel, with the DOE as Official Host, the ASEAN Centre for Energy (ACE) and Leverage International are organizing the ASEAN Energy Business Forum (AEBF) 2017 incorporated with the Powertrends 2017 international exhibition at the SMX Convention Center.  More information on the event, including registration information, can be found here.

Membership

We are pleased to welcome Salesforce.com to the Council as of June 1.  Based in San Francisco, CA, Salesforce.com is a provider of enterprise software, delivered through the cloud, with a focus on customer relationship management (CRM).  They have joined the Council as Corporate members.

Regional Highlights

APEC

Looking Ahead

On November 8-10, the APEC CEO Summit 2017 will be held in Da Nang, Vietnam.  Under the theme of “Creating New Dynamism, Fostering a Shared Future,” the Summit will bring together APEC Leaders from the world’s most dynamic economies, speakers from the world’s top companies, and more than 700 CEOs from across the Asia-Pacific region.  The program will feature two days of interactive discussions, presentations and dialogue on a wide range of issues that will impact the future development of the region, including innovation & entrepreneurship, healthy workforces, sustainability, inclusive growth, and entrepreneurship.

  • To express interest in receiving an invitation for an executive, please complete the form, which can be accessed here.
  • For more information on the event, please visit the APEC 2017 CEO Summit website here.
  • For further information on the CEO Summit or sponsorship of the Summit, please contact Darcie Vaughan at dvaughan@psresources.org

View the Council's latest APEC updates

ASEAN

Major Developments

  • Singapore's Minister of Trade and Industry announced that during its ASEAN Chairmanship year, it will promote e-commerce and focus efforts on expanding the digital economy.  Measures are already being drafted to support those efforts across the ASEAN region.  Provisions include lower barriers to entry into the region and within the region for companies as well as an ASEAN-wide self-certification scheme for exporting companies that meet certain requirements.  The Council welcomes this proposed area of focus by Singapore when it serves as ASEAN Chair in 2018. The Council’s Digital Data Management in ASEAN publication (available here) and ASEAN E-Commerce White Paper (available here) will continue to be used as advocacy tools in recommending reforms and best practices to support ASEAN in reaching its e-commerce economic potential.
  • On June 21, the Council participated in an ASEAN-BAC Exclusive Dialogue.  The consultation covered (1) latest developments and key challenges for businesses operating in ASEAN; (2) participation at various ASEAN Working Groups – ASEAN-BAC as APEX organization representing private sectors; (3) digital Economy updates and activities; (4) SME engagements; and (5) updates on a possible internship project with ASEAN Young Entrepreneurs Council (AYEC). For more information, please contact Mario Masaya at mmasaya@usasean.org.

Advocacy

  • In preparation for the 2017 ASEAN Economic Ministers Meeting in Manila in September, the Council is updating its annual AEM Whitepaper.  The document outlines sector-specific action items to support ASEAN’s integration. The Council’s Industry Committees are in the process of circulating drafts to members.  The 2016 version is available here.  Please contact Matt Solomon at msolomon@usasean.org and Shay Wester at swester@usasean.org with any questions.
  • On June 14, the Council supported USAID’s ASEAN Connectivity through Trade and Investment project (US-ACTI) on a workshop with the newly-formed ASEAN Coordinating Committee on e-Commerce (ACCEC) in Singapore.  The ACCEC was set up in November 2016 to coordinate ASEAN’s e-commerce initiatives and develop an ASEAN Agreement on E-Commerce.  The goal of the workshop was to provide private sector input into the Agreement drafting process.  An agenda can be viewed here.
  • On May 31, the Council's E-Commerce Working Group held a planning call to discuss the workshop, the Mission to the ASEAN Directors-General of Customs Meeting, and the recent Digital Economy Mission to Indonesia, and to review the E-Commerce Working Group 2017 Work Plan.  Notes from the call are available here.  Please contact Matt Solomon at msolomon@usasean.org or Shay Wester at swester@usasean.org with any questions.
  • On May 15, the Council participated in an ASEAN Regional Workshop on a Public-Private Partnership framework for technology development in the agriculture sector in Siem Reap, Cambodia.  At the workshop, the Council made a presentation to ASEAN officials on the private sector’s perspectives on barriers, best practices, and lessons learned in formulating PPPs which included: selection of inappropriate/low impact projects; private sector constraints such as funding and capacity; unclear benefits to participating farmers; lack of monitoring and evaluation and poor prospects of sustainability; and insufficient focus on post-project opportunities.  This engagement followed the Council’s participation in another regional agricultural sector effort focused on increasing the use of Mutual Recognition Agreements (MRAs) to support greater regional harmonization of food safety standards and regulations.  For more information, please contact Sunita Kapoor at Skapoor@usasean.org.
  • On May 23, the Council conducted a one-day workshop titled “Digital Tools for SMEs” in Bangkok, Thailand.  The workshop, sponsored by UPS, was organized by the Council in close collaboration with Thammasat Consulting Networking and Coaching Center, the Office of SMEs Promotion Thailand (OSMEP), and the Federation of Thai Industries (FTI).  More than 80 SMEs participated and learned about good business practices in the digital economy presented by U.S. multinational companies.  In addition to UPS, Council member companies such as Microsoft, Seagate, and PayPal also participated in this workshop.  The topics of the workshop covered challenges and opportunities for Thai SMEs; optimizing the online experience and e-supply chain; cloud computing; storage solutions for SMEs; and digital payment.

Looking Ahead

Please save the date for the 2017 ASEAN Economic Ministers’ Meeting (AEM), scheduled for September 4-8 in Manila.

View the Council's latest ASEAN updates

TPP

  • The TPP-11 group of nations is continuing its efforts to explore ways of bringing the TPP into force without the United States.  A new study on the economic benefits of the TPP without the United States was released this week.  The study can be found here.
  • The Council has noted a significant shift in the Government of Vietnam’s position on the TPP-11 process over the past two months.  In early March, Vietnam did not seem enthusiastic about going forward with the TPP without the United States.  By the end of May, the Government of Vietnam announced its support for the TPP-11 process.  Malaysia is now likely to be the last member of the TPP-11 group to support the process, due to the likelihood of general elections being held later this year.  Other information including recent press reports on the TPP-11 process can be found here.

View the Council's latest TPP updates

Industry Highlights

Customs

Major Developments

On May 16, the Court of Justice of the European Union (CJEU) issued its opinion on the EU-Singapore Free Trade Agreement (EUSFTA), clarifying the role and competencies of the European Commission (EC) in negotiating free trade agreements.  The CJEU concluded that most of the EUSFTA falls under the EC’s exclusive competence, allowing most of the EUSFTA to move forward. However, the CJEU ruled that EU Member States' approval is required for the investment protection chapter’s (Chapter 9) provisions on portfolio investment protection and investor-state dispute settlement (ISDS). The EU and Singapore are now likely to begin implementing the parts of the agreement that are under the EC’s exclusive competence.  Full implementation of Chapter 9 however, will require a longer ratification process by the EU national and regional parliaments and the Chapter may have to be changed to gain approval.

The CJEU’s ruling will also define the competencies of the EC for all future negotiations, which will have to be accounted for in the recently concluded EU-Vietnam FTA and other future negotiations with ASEAN members.  In addition to the FTAs with Singapore and Vietnam, the EU is negotiating FTAs with the Philippines and Indonesia and an Investment Protection Agreement with Myanmar.  The EU’s goal is to use these bilateral agreements as building blocks for an eventual EU-ASEAN FTA, upon which the EU and ASEAN recently agreed to explore resuming talks.  The text of the CJEU decision can be accessed here and the text of the Singapore FTA can be accessed here.

The Philippines is continuing to issue implementing regulations for the Customs Modernization and Tariff Act.  New draft regulations on different parts of the law are scheduled to be issued every week for public consultation from now until at least mid-July.  The latest draft implementing rules, posted on June 15, are on Customs Facility Warehouses and the Customs Container Control Division.  The draft regulations, schedule, and completed regulations may be found on the Department of Finance website here.

Advocacy

  • On June 13, the Council’s Customs and Trade Facilitation committee held a planning call to review the follow-up actions from the ASEAN Directors-General of Customs Meeting and discuss future programming. The ASEAN Directors-General of Customs Meeting was held May 15-17 in Bali, Indonesia, where the Committee’s delegation discussed customs reform with ASEAN’s customs leaders. The Mission report may be found here.
  • The Council, together with the ASEAN Business Advisory Council (ASEAN-BAC) and the EU-ASEAN Business Council, attended the 7th ATF-JCC Meeting on March 26 in Bangkok, Thailand, to provide input for the ASEAN Strategic Action Plan for Trade Facilitation 2017–2025.  The Council's recommendations focused on simplification of certificates of origin, facilitation of e-commerce shipments, and increasing transparency in customs valuation procedures.  The business associations’ joint presentation may be found here.  The Council, along with ASEAN-BAC, is now preparing a joint presentation for a private-sector session at a meeting on the drafting of the ASEAN Strategic Action Plan for Trade Facilitation 2017–2025 (TF-SAP) June 20-21.

View the Council's latest Customs updates

Defense & Security

Major Developments

  • The United States and ASEAN reaffirmed their long-standing defense partnership at the 16th annual Shangri-La Dialogue in Singapore, where topics discussed included the fight against extremist groups and the continued role of the United States in the region.  U.S. Defense Secretary James Mattis responded to expectations of an increasing U.S. commitment to the region with assurances of more cooperation to come, while urging countries to contribute sufficiently to their own security and establish defense partnerships with other nations.  He also met with ASEAN leaders to discuss the situation in Marawi, Philippines, after renewing the United States’ commitment to counter-terrorism.  In his speech, Sec. Mattis provided a sense of the future of U.S. Asia policy, signaling that the new administration would be more focused on continuity than change.  The Trump Administration approach he outlined converged on three familiar priorities: strengthening alliances; encouraging more regional interconnectivity; and developing U.S. military capabilities. The full text of the speech can be found here.
  • Ahead of its ASEAN chairmanship in 2018, Singapore has revealed a series of defense initiatives that it will seek to promote and prioritize during its leadership. They include:
    • Inaugurating ASEAN-China maritime exercises, following a formal proposal from China during the ASEAN-China Defense Ministers’ Informal Meeting (ACDMIM) in October 2015
    • Expanding the Code for Unplanned Encounters at Sea (CUES) to all ADMM-Plus countries
    • Establishing a set of guidelines for air encounters between military aircraft for ASEAN, similar to the U.S.-China Memorandum of Understanding on the Rules of Behavior for Safety of Air-to-Air Encounters

During his address at the 2017 Shangri-La Dialogue, Singapore Defense Minister Ng Eng Hen also announced that Singapore and Vietnam had proposed that ADMM-Plus be annualized to better equip members to deal with urgent challenges.  This proposal is expected to enjoy significant support, as it is in line with a broader calibrated effort already in place to increase the frequency of meetings.

View the Council's latest Defense & Security updates

Energy

Major Developments

  • Vietnamese Prime Minister Nguyen Xuan Phuc unveiled new legislation on April 11 (‘Decision No. 11/2017/QD-TTg’ (Decision No. 11)) aimed at bolstering private investment in the development of solar power projects.  Decision No. 11 specifies a Feed-in-Tariff (FiT) for grid-connected projects and a net-metering scheme for rooftop projects, but a lack of detail on other topics – such as power purchase agreements (PPA) for solar projects – is likely to hinder the development of utility-scale solar power plants.  More information on Decision No. 11 and Vietnam’s efforts to spur development in its renewable energy industry can be found here.  
  • On April 3, Singapore’s Parliament passed Bill No. 17/2017, which serves as an amendment to the 2012 Energy Conservation Act, to tighten the regulatory enforcement of the nation’s energy policy.  Bill No. 17/2017 makes it mandatory for firms to set energy targets, conduct energy consumption audits, and adopt industrial equipment that complies with minimum energy efficiency standards, while providing for harsher penalties for non-compliant companies.  The newly-introduced structured measurement, reporting and verification system for greenhouse gas emissions will also help the Government of Singapore implement its proposed carbon tax scheme, which is slated to take effect in 2019.  More information on the amendment of Singapore’s Energy Conservation Act can be found here.
  • Indonesia's Ministry of Energy and Mineral Resources (ESDM) is reportedly considering changes to existing energy policies in an attempt to reverse the decline in the country’s oil and gas production and lessen its increasing reliance on oil and gas imports.  ESDM Minister Ignasius Jonan said that he hoped the amendments would include financial incentives, such as simplified cost-recovery mechanisms and tax-free importation of drilling equipment.  He said that the aim of the change in energy policy is to boost domestic oil and gas production by attracting up to US$200 billion in investment over the next decade.  More information on Indonesia’s efforts to boost oil and gas production can be found here. 
  • The Council hosted Mr. Andrew Shaw and Mr. Peter Lohman, incoming Economic Counselor and Energy & Mining Officer at the U.S. Embassy in Jakarta, respectively, on June 22 from 10:00-11:00 AM at its offices in Washington, D.C.

Advocacy

  • As part of its participation in this year's ASEAN Economics Ministers (AEM) Meeting in September, the Council is preparing a white paper that covers key sector-specific action items in support of ASEAN integration, including recommendations for improving the energy sector’s investment environment.   Those recommendations can be found here.  As ASEAN member countries continue to develop their energy sectors, the Council continually advocates for in-depth private sector consultation.  The AEM White Paper is an important opportunity to offer such input.  The deadline for input was June 19, but if you would still like to submit comments on the proposed issues, please send them to Riley Smith at rsmith@usasean.org.
  • The ASEAN Centre for Energy has asked for the Council’s assistance in finding speakers who can talk about clean coal technology (CCT) at this year’s ASEAN Energy Business Forum, which will take place in Manila, Philippines from September 27-29.  Members interested in presenting on CCT at the 2017 AEBF should contact Riley Smith at rsmith@usasean.org.

Looking Ahead

The Council will be organizing a mission to the ASEAN Ministers on Energy Meeting (AMEM) in Manila.   AMEM is slated for September 18-22, though this is subject to change.  The Council’s mission will take place over the course of AMEM.

View the Council's latest Energy updates

Financial Services

Major Developments

  • On May 8, President Joko Widodo of Indonesia issued Government Regulation in lieu of Law (PERPPU) No. 1 of 2017, granting Indonesia’s Taxation Directorate General access to financial information held by banks and other qualified institutions such as stock brokerages and insurance companies.  PERPPU No. 1, which is an expedited presidential regulation equivalent to a law, is currently being debated by the DPR so that it can be passed into law permanently.  On May 31, Finance Minister Sri Mulyani Indrawati issued Regulation No. 70 of 2017 (in Bahasa Indonesia) as PERPPU No. 1’s implementing regulation.
  • In compliance with PERPPU No. 1, Indonesia will join the OECD’s Automatic Exchange of Information (AEOI) in September 2018.  Indonesia’s tax authorities have previously stated their intention to use the AEOI framework to crack down on those who did not participate in the tax amnesty program, which ended in March 2017.
  • The Indonesian government has lately been looking for new sources of tax income and intensifying collection and enforcement efforts as part of a plan to increase overall state revenue. President Jokowi plans to invest most of the new income in his infrastructure development plan, supporting long-term economic growth.  The end of banking secrecy could also increase domestic and foreign confidence in the Indonesian tax and banking systems as all firms and individuals will have a more difficult time evading the law.
  • On May 30, the Monetary Authority of Singapore (MAS) completed its two-year investigation of banks involved with suspect transactions of 1Malaysia Development Berhad (1MDB).  The investigation showed breaches of anti-money laundering requirements and control lapses relating to poor screening of these transactions.  MAS has now shut down BSI Bank and Falcon Bank and imposed S$29.1 million (US$21 million) in total against BSI Bank, Falcon Bank, DBS, UBS AG, Standard Chartered Bank, Coutts, Credit Suisse, and UOB.  Four bank employees have been imprisoned and banned from the industry with more individuals expected to be targeted soon.  MAS called its supervisory review of 1MDB-connected institutions the most extensive it has ever conducted and has been cooperating with numerous foreign law enforcement regulators and law enforcement agencies to investigate companies in the United States, Switzerland, Hong Kong, Luxembourg, and Malaysia.  MAS concluded in its statement that this investigation showed gaps in anti-money laundering surveillance and that the investigation holds key lessons for MAS and the industry.  According to MAS, the Singaporean financial industry is now more aware of risks and has stronger AML controls than when the scandal occurred. MAS’s full statement can be found here.
  • On May 8, Philippine President Rodrigo Duterte appointed Nestor Espenilla as the next Bangko Sentral ng Pilipinas (BSP) governor, to take office on July 3.  Mr. Espenilla has worked for BSP for more than 30 years in various roles leading up to his current position as Deputy Governor for Supervision and Examination, where he was known for strictly punishing banks that violated regulations.  President Duterte’s choice of the long-serving technocrat seems to indicate prioritization of policy continuity and a smooth transition from the well regarded current governor, Amando Tetangco, Jr., to Mr. Espenilla, who favors the lowering of reserve requirements for banks and a shift towards the e-commerce-centric National Retail Payment System (NRPS).

View the Council's latest Financial Services updates

Food & Agriculture

Major Developments

  • The Duterte Administration’s proposed tax reform package, approved by the Philippines House of Representatives on 31 May, and currently awaiting passage through the Senate, includes a new excise tax on sugar-sweetened beverages.  The new tax, set at P10-per-litre for beverages containing purely locally produced sugar, is slated to increase by four percent annually, although Finance Undersecretary Karl Kendrick T. Chua indicated that the Department of Finance wanted the annual increment indexed to inflation.  Exempted products include 100 percent natural fruit juices, 100 percent natural vegetable juices, yogurt and fruit-flavored yogurt beverages, meal replacement beverages, weight loss products and all milk products including infant formula.  The measure has received criticism from urban groups and consumers, who contend that it disproportionately targets low-income earners, who constitute 80 percent of the market for such products.  In addition, the imposition of an excise tax on a specific beverage, when more than 80 percent of products are foreign branded and/or manufactured by foreign-invested enterprises, may violate the Philippines’ international commitments on “national treatment” between domestic and foreign products as well as the principle of non-discrimination between foreign and domestic investors.  The latest text of the bill can be found here.  The section on sugar sweetened beverages can be reviewed from pages 48-52.
  • On May 9, the Indonesian Minister of Agriculture, Amran Sulaiman, signed Ministerial Regulation Number 14/Permentan/PK350/5/2017, on the Classification of Veterinary Medicine, to allow companies to submit import recommendations for all antibiotics growth promoters (AGPs) until September 30.  Additionally, recommendations will have a validity period of three months, effectively allowing the import of AGPs and their sale by qualified companies until December.  However, beginning January 2018, AGPs can only be sold for therapeutic purposes.  Meanwhile the use of AGPs in feed will be banned.  All companies selling AGP products are required to resubmit relevant documents to obtain new registration codes as well as the approval to sell AGPs for therapeutic claims.  The Council had earlier submitted industry feedback and recommendations on anticoccidials and Beta Agonist (BA) 1 Ractopamine for the ministerial decree.  The full text of the Regulation, in Bahasa Indonesia, can be found here.
  • The Myanmar Investment Commission issued Notification No. 15/2017 on the List of Restricted Investment Activities on April 10. This listing has removed the earlier restrictions on 100 percent foreign ownership in animal feed and agricultural trading businesses.

Advocacy

  • On May 15, the Council participated in a Workshop on ASEAN Public-Private Partnership (PPP) Regional Framework for Technology Development in the Agriculture Sector in Siem Reap, Cambodia.  The Council reviewed key regulatory challenges in plant science, agricultural trading, and animal health sectors that may prevent private companies from fully investing in a market, and subsequently in committing to PPPs. Examples of potential PPPs were also presented such as the harmonization of international standards in the testing of vaccines at importation (animal health sector); and mobile banking and farm management systems (agriculture trading sector).  The outcomes of this workshop will be presented during the 39th ASEAN Ministerial Meeting on Agriculture and Forestry (AMAF) in Chiang Mai, Thailand September 28-29.
  • From May 30-31, the Council led a delegation of five companies to the Philippines for a Food & Agriculture Industry Mission.  During the mission, which was only the second such mission to the Philippines to focus solely on food and agriculture issues, the delegation discussed how U.S. companies can support the Government of Philippines' (GOP) plans to improve food security and agricultural development initiatives.  The delegation was able to meet with several GOP officials during the mission, including Secretary of Agriculture Emmanuel Piñol; Senator Cynthia Villar, Chair of Philippine Senate Agriculture and Food Committee; Congressman Arthur Yap, Chairman-Economic Committee of the Philippines House of Representatives; and Customs Commissioner Nicanor Faeldon.
  • The Council’s Food & Agriculture Committee is currently consolidating industry inputs, recommendations, and advocacy strategy on the Philippines’ proposed excise tax on sugar sweetened beverages as part of House Bill 5636.  Key advocacy messages pertain to the substantial impact of such an imposition on sugar farmers and small retailers; to broaden the tax base to taxing sugar instead of targeting sweetened beverages.  This would mean a “lower, but broader excise tax base since this would involve all products with sugar content, and not just beverages; and many of the beverage products are foreign branded and/or manufactured by foreign invested enterprises which may violate Philippines’ international commitments on “national treatment” between foreign and domestic investors .

Looking Ahead

  • The Council will be participating in the ASEAN Economics Ministers (AEM) in September 2017.  One of the highlights of this annual engagement is a sectoral white paper of key action items in support of ASEAN integration to the AEM. As ASEAN Member States (AMS) consider different options for accomplishing food self-sufficiency goals, the Council continually advocates that U.S. companies are eager to be part of the solution through trade, investment and capacity building.  The deadline for input was June 19, but if you would still like to submit specific feedback and recommendations, please send them to Sunita Kapoor at skapoor@usasean.org
  • On July 19, the Council will be convening a roundtable of all ten ASEAN Agricultural Attaches based in Washington, D.C.  This annual roundtable will provide members with a chance to review and discuss key issues and challenges in ASEAN’s agriculture sector.  For more information, please contact Hai Pham at hpham@usasean.org.
  • From September 28-29, the Council will be leading a business delegation to the 39th ASEAN Ministerial Meeting on Agriculture and Forestry (AMAF) in Chiang Mai, Thailand.  This annual mission provides a platform for members to engage with the ten ministers of agriculture, senior agricultural officials, and the ASEAN Secretariat.  Some key focus areas include Mutual Recognition Agreements (MRAs) and technology development in the agricultural sector.  For more information, please contact Sunita Kapoor at skapoor@usasean.org

View the Council's latest Food & Agriculture updates

Health & Life Sciences

Major Developments

Thailand's Office of the Council of State is reviewing the 2002 National Health Security Act, potentially changing 14 areas.  Some areas of revision include: broadening the definition of "public health services", financial support that the National Health Security Office (NHSO) receives, and prices set by the committee on public health quality and service improvement.  The government said the changes aim to tackle the challenges NHSO has been facing in ensuring the sustainability of the Universal Health Coverage scheme.  Public consultation on the draft National Health Security Bill is currently being held - comments can be provided online via this link.  There will also be public hearings held in Songkhla Province (June 10), Chang Mai (June 11), Khon Kaen (June 17) and Bangkok (June 18).  A public consultation with industry experts will be held June 20 and 21.

Advocacy

The Council’s Health & Life Sciences Committee has been working to address the suspension of imported medical devices in Indonesia’s e-catalogue.  In March, members met with the national procurement agency (LKPP) and learned that the agency is shorthanded and has requested manpower support from the Ministry of Health to assist with the price negotiation process.  Since then, LKPP has issued an official statement with a list of imported and domestic medical devices that are expected to be registered by May. However, the suspension has still not been lifted.  After discussions with Indonesia's medical devices association, GAKESLAB, on June 2, members are interested in having a GAKESLAB-USABC joint meeting with the Ministry of Health to better understand the continuous delay in lifting the suspension.  This meeting will be open to the pharmaceutical companies facing issues with registering their products on the e-catalogue.  Please contact Ying Hui Tng (yhtng@usasean.org) or Shaveen Sharma (ssharma@usasean.org) for details of the meeting.

Looking Ahead

The Health & Life Sciences Committee is looking to set up a meeting with Indonesia's Ministry of Health to discuss registration and procurement issues related to the e-catalogue.  This meeting will be open to all HLS committee members, including both the pharmaceutical and medical devices companies.  The meeting date is targeted for late June.  Please email Ying Hui Tng at yhtng@usasean.org or Shaveen Sharma at ssharma@usasean.org to learn more.

View the Council's latest Health & Life Sciences updates

ICT

Advocacy

  • On June 6 the Council and AmCham Indonesia submitted a letter to Indonesia Ministry of Industry Director-General I Gusti Putu Suryawirawan, following up on DG Putu’s stated intent for MOI and MCIT to exempt imports of non-handphone, handheld computer and tablet computer from local content requirements.
  • On June 12 the Council submitted a letter to Thailand’s Deputy Prime Minister Somkid and National Broadcasting and Telecommunications Commission (NBTC) Chairman Thares regarding forthcoming regulations on Over-the-Top (OTT) services. The letter requests that the Thai government delay implementation and engage the private sector before making any final decisions.
  • The Council held a call with members to discuss latest developments and strategy around Indonesia’s Government Regulation GR82/2012, specifically regarding data localization. As a follow-up, the Council is drafting a letter to the Government of Indonesia (Bank Indonesia, OJK, and the MCIT), requesting that the government delay implementation of GR82’s data center requirement beyond October.  The Council will continue to work with all relevant agencies to address the issue of data localization in Indonesia.  For notes from the strategy call, click here.
  • Vietnam's Ministry of Information and Communications (MIC) recently agreed to delay implementation of import licensing requirements for cyber information security (CIS) products under the Law on Network Information Security (LONIS), which were set to go into effect this month. The Council had previously submitted comments on MIC's draft Circular, and while subsequent drafts eased some the onerous licensing requirements, the Council welcomes MIC's decision to postpone implementation. MIC is requesting specific input on the list of products that are covered by the Circular.  If you have technical guidance on how this list should be structured, and what precisely it should cover, please email comments to Matt Solomon at msolomon@usasean.org.  The Council, along with partner associations SIA, BSA, and ITI, hosted a call on June 7 with Marta Prado and Sushan Demirjian from USTR who offered a readout of their recent meetings with Vietnam government officials, and discussed other developments in Vietnam's ICT regulatory landscape. Notes from the call are available here.

Looking ahead

The Council is supporting the USTDA-organized U.S.-Vietnam Smart Cities Workshop to promote a discussion on the approaches, solutions and applications for smart, efficient urban infrastructure in Vietnam.  Please contact Vu Tu Thanh at tvu@usasean.org with any questions.

View the Council's latest ICT updates

Infrastructure

Major Developments

  • The Asian Development Bank (ADB) has announced a new, infrastructure-focused country partnership strategy with Myanmar, to support the government’s goals of promoting economic growth and job-creation by facilitating access to rural and urban markets, training a skilled workforce, and modernizing the economy through reform.  James Nugent, Director General of ADB’s Southeast Asia Department, stated that “ADB’s operations will focus on areas that are of fundamental importance to the country’s development”.  The strategy, set to run from 2017 to 2021, will focus primarily on energy, transport, and urban development.  This follows news from earlier this year regarding the ADB’s plans to help Myanmar modernize its transportation infrastructure, providing assistance with planning, contracting, funding procurement, legislation, and using Public-Private Partnerships (PPP) as a key to promoting projects in road and port sectors.  The ADB aims to involve more private companies in infrastructure work, to reduce the fiscal burden on the Myanmar government, while providing corporations with business opportunities and a means of entry into the country’s markets.
  • The Philippines is set to increase infrastructure spending to 7.4 percent of its Gross Domestic Product by 2022, according to National Economic and Development Authority (NEDA) Director-General, and Socioeconomic Planning Secretary Ernesto Pernia.  This increase in spending is targeted at reducing the country’s poverty incidence through the creation of more jobs, with all infrastructure projects running on a 24-hour work cycle to ensure their speedy completion.  On April 18, the Duterte administration unveiled ongoing plans for projects that include subway, road and rail developments to address severe traffic congestion in urban areas and inadequate mass transport facilities.  Budget Secretary Benjamin Diokno expressed his conviction that these projects would usher a “golden age of infrastructure” in the Philippines.  The infrastructure push is part of the government’s “Dutertenomics” policies, which are expected to reduce poverty from 21.6 percent in 2015 to 13-15 percent in 2022.

Advocacy

Japan’s Ministry of Economy, Trade & Industry (METI) is working to identify a joint U.S.-Japan infrastructure project to be announced during President Trump’s regional visit alongside the East Asian Summit in November.  The Council is supporting this initiative through engagement with U.S. companies.  For more information and to provide inputs on the “list of must-haves” for the U.S. Government to raise with the Government of Japan, please contact Sunita Kapoor at skapoor@usasean.org

View the Council's latest Infrastructure updates

Country Highlights

Brunei

Major Developments

  • The Executive Board of the International Monetary Fund (IMF) has concluded the 2017 Article IV consultation with Brunei.  Brunei’s economy has been significantly affected by the 2014 oil price crash with its GDP declining by 2.5 percent in 2016.  Despite this economic downturn, the IMF projects growth to improve in the medium term.  Economic growth and macroeconomic balances are projected to improve significantly beginning in 2019 following the construction of two large FDI projects, including an integrated petrochemical refinery and a fertilizer plant.  These projects are also expected to boost both economic growth due to downstream production and export growth in 2019-2022.  The government also launched a series of reforms in 2015 to support FDI, SMEs and diversification.  Brunei further cemented its commitment to growth when it passed a B$5.3 billion budget for FY 2017/2018 under the theme of balanced expenditure to support sustainable growth.  Please click here for a full report.
  • Brunei’s government agencies are taking initial steps towards establishing a minimum level of salary in the private sector, consistent with Brunei’s TPP commitments. In a joint statement, the Labor Department of the Ministry of Home Affairs and the Energy and Industry Department of the Prime Minister’s office said that the government is aware of rising concerns regarding the well-being of citizens working in the private sector earning insufficient wages, given current costs of living in the country.  The statement came as a response to a letter to the editor that was published in the opinion page of a local newspaper concerning local youths employed in the public sector earning wages that do not meet the increasing costs of living in Brunei.  The letter also touched on the unemployment rate of the Sultanate, and called for government intervention regarding the matter.  The Prime Minister’s Office assured the writer that actions to curb the country’s unemployment issue are in place, including ongoing planning for an apprenticeship program that will help job-seekers build their skills, and organizing business boot camps at the Industry Business Academy (IBA) that allow aspiring entrepreneurs to learn and be mentored on running their own businesses.

Looking Ahead

The Council is currently in the process of selecting a date for the 2017 Brunei Business Mission.  The mission will be a one-day mission, seeking to meet with the Minister of Foreign Affairs and Trade II and the Minister of Energy and Industry, among others.  Please contact Artha Sirait at asirait@usasean.org for more information.

View the Council's latest Brunei updates

Cambodia

Major Developments

On June 4, Cambodia held nationwide commune elections for more than 12,000 municipal positions, the results of which will serve as a litmus test for Cambodia’s political landscape in advance of the 2018 general elections.  While the official results are not expected until later this month, on June 5 both the ruling Cambodia People’s Party (CPP) and its primary opposition, the Cambodia National Rescue Party (CNRP), claimed victory in the elections.  Unofficial results point to a solid, if not resounding, CPP victory.  Overall the campaign and voting periods were peaceful, and voter turnout has been estimated as high as 90 percent.  Hun Sen, who has been Prime Minister since 1985, has warned of civil war if the CPP were to lose the general election. The sway of the youth demographic has driven these elections to be particularly important, with the support of opposition parties seemingly consolidated in the CNRP. The Council will continue to closely monitor the election results as they are released.

View the Council's latest Cambodia updates

Indonesia

Major Developments

  • On June 8, a new OJK Board of Commissioners was appointed following confirmation hearings conducted by the House of Representatives’ Commission XI, which supervises fiscal policy and the financial sector.  The new commissioners are expected to be sworn in by July 20.  Under the 2011 OJK Law, the structure of the OJK Board of Commissioners consists of seven selected commissioners and two ex officio commissioners appointed by the Ministry of Finance and the Board of Governors of Bank Indonesia.  The new OJK Board of Commissioners are: Wimboh Santoso (Chairman position), Nurhaida, Tirta Segara, Riswinandi, Heru Kristiyana, Hoesen, and Ahmad Hidayat.  The commissioners were elected without specialization, and the position and duties of each commissioner will be determined internally by OJK.
  • On May 23, President Joko “Jokowi” Widodo officially established Indonesia’s national cyber agency through President Regulation No. 53 of 2017, under the name Cyber Body and National Encryption Agency (Badan Siber dan Sandi Negara - BSSN) which was first proposed in 2015.  BSSN will operate under the purview of the Coordinating Ministry of Political, Legal, and Security Affairs with the head of BSSN, who has yet to be appointed, reporting to Coordinating Minister General (Ret.) Wiranto.  Structurally, the head of the BSSN will be supported by a Main Secretariat; Deputy of Identification and Detection; Deputy of Protection; Deputy of Monitoring and Restoration; and Deputy of Supervision and Control – all of whom will be appointed in the next four months by the President based on the recommendation of the Coordinating Minister.  With the establishment of BSSN, all related tasks currently performed by MCIT in conjunction with the National Encryption Agency will now be transferred to BSSN.

Advocacy

The Council prepared a policy paper which was submitted to the U.S. Government and the Government of Indonesia for the meeting of both governments in the framework of the 1996 bilateral Trade and Investment Framework Agreement (TIFA) in Washington, DC.  The paper surveys the opinions of U.S. businesses operating in Indonesia and draws attention to important obstacles and opportunities for U.S. businesses in Indonesia.  The final version of the paper is available here.

Looking Ahead

The Council is now registering executives for its Annual Business Mission to Indonesia. Please note that the registration deadline is Tuesday, July 18. Click here to register. Contact Artha Sirait at asirait@usasean.org with any questions.

View the Council's latest Indonesia updates

Laos

Major Developments

The Lao National Chamber of Commerce signed a memorandum of understanding (MoU) with the Thai Chamber of Commerce and Federation of Thai Industries that agreed to expand their cooperation on trade and investment.  Specifically, delegates sought to promote their cross-border electrical energy partnerships, including the continuation of Thai investment in Lao energy infrastructure.  Thailand pledged to support e-commerce, tourism, trade and education in Laos to encourage growth of the Lao private sector.  This memorandum demonstrates that bordering nations’ economic cooperation remains strong.

Looking ahead

Please save the date for the annual Laos Business Mission, 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

  • Malaysian Prime Minister Najib Razak announced 11 projects and initiatives at Cyberjaya’s 20th anniversary celebration on May 31.  The initiatives are expected to provide both program and infrastructure support to further transform Cyberjaya into a global technology hub.  Among the projects announced were Futurise Centre, a research and development facility that will house innovation labs and co-working spaces, and the Cyberjaya Innovation Fund for the Future (CIFF), a fund that will see RM100 million disbursed over a 10-year period for smart city-related projects located in Cyberjaya.  Submissions for the fund are open to both local and foreign partners.  Cyberjaya serves as a pilot project for the government’s broader goal of establishing a culture of innovation and collaboration in Malaysia.  In line with this, high-speed internet that was previously only available to businesses will begin to be available to residents of Cyberjaya.  The fiber optic broadband that offers unlimited capacity is hoped to encourage creative content development and complement data transfer applications in a time in which Malaysia is moving towards digitalized payments.  With the goal of a cashless society in mind, an MOU was also signed between Cyberjaya and Mastercard to implement pilot programs including a mobile ticketing app and a bike-sharing platform expected to begin in July 2017.  More details regarding the 11 projects can be found here.
  • The government of Malaysia will introduce a new cybersecurity law aimed at protecting Malaysians from online threats including money laundering and recruitment and financial sourcing by terrorist groups.  Malaysian Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi announced that the National Cyber Security Agency (NCSA) will be consolidated and placed under the umbrella of the National Security Council (NSC) to further strengthen and coordinate efforts in combating cybercrime.  The bill is expected to be tabled by the Prime Minister’s Department in the next Parliament sitting beginning July 24.
  • On June 13, the World Bank launched the latest Malaysia Economic Monitor. The report highlighted Malaysia’s 5.6 percent growth in the first quarter of 2017, the highest quarterly growth for Malaysia in two years. The Monitor attributed the positive growth to private consumption, supported by rising labor market conditions, private investments and government-led infrastructure projects.

Advocacy

  • On June 20, the Council held a Malaysia Committee Call with a briefing by the Honorable Kamala Shirin Lakhdhir, U.S. Ambassador to Malaysia, on the latest political and economic developments in Malaysia.  For more information, please contact Kim Yaeger at kyaeger@usasean.org.

View the Council's latest Malaysia updates

Myanmar

Major Developments

On May 29, the latest round of peace talks between the Myanmar government and ethnic armed organizations (EAOs) concluded after a six-day conference in Nay Pyi Taw.  No groundbreaking agreement was reached but the increased number of EAOs participating in the conference signals a step in the right direction for Myanmar’s ongoing peace process.  In previous conferences, the government had held firm to its premise that no EAO can partake in the peace talks without first signing the National Ceasefire Agreement (NCA).  This led to a roadblock in the peace dialogue and continued, and in some cases even escalated, the fighting between Tatmadaw (Myanmar’s military) forces and EAOs, particularly in Northern Kachin, Northeastern Shan and Western Rakhine regions.  An interesting development in the lead-up to this latest round of talks was China playing a key role in convincing a bloc of some major EAOs led by the United Wa State Party to partake in the conference.  Having 15 of 21 EAOs present at the conference – eight which have signed the NCA and seven in the Wa-led bloc – represented a symbolic win for the government.  During the discussions, 37 of the 45 principles tabled were signed, the most significant of which was the provision that Myanmar be a federal democracy with states having their own constitution and self-governance within the federal system.  However, one sticking point was the decision that individual deals on state constitutions and self-determination will not be discussed until all negotiating EAOs first pledge non-secession.  This mandate was further emphasized by Myanmar’s Commander-in-Chief Senior General Min Aung Hlaing, who outright claimed that not agreeing to non-secession is a deal breaker for negotiations to continue.  This demand was rejected by the EAOs, many of whom did not appreciate the quid pro quo nature that their states’ rights will only be discussed if they forgo the possibility of secession.  State Counsellor Daw Aung San Suu Kyi delivered an optimistic address at the conference’s closing, urging once again for EAOs to agree to a ceasefire, be open and frank with the government regarding their reservations, and keep the discussions going until a tangible deal is reached. The date of the next round of peace talks is yet to be set.

View the Council's latest Myanmar updates

Philippines

Major Developments

  • On June 13, the imposition of martial law across Mindanao and the fighting between Philippine security forces and ISIS-linked militants in the city of Marawi, located in the north of the island, entered into a third week.  The clashes erupted after security forces attempted to serve a warrant of arrest for Abu Sayyaf leader Isnilon Hapilon, apparently interrupting plans by Abu Sayyaf and the Maute group to take over the city and declare it part of ISIS's caliphate in the Philippines in the process.  As of June 10, the death toll from the fighting was at least 216, including at least 138 militants, 58 government troops, and 20 civilians, according to the Armed Forces of the Philippines (AFP).  The International Committee of the Red Cross estimates that more than 200,000 people have been displaced from their homes because of the fighting.  Despite the concerns that the declaration of martial law has raised, the Duterte Administration has thus far shown restraint in not expanding martial law beyond Mindanao, where there is already a precedent for martial law being declared in the post-Marcos era.  The Philippines’ prospects for economic growth also appear to remain uninterrupted for the time being. An analysis of the motivations and potential consequences of the declaration of martial law in Mindanao can be found in this analytical brief here.
  • On May 31, the House of Representatives passed the first package of the Duterte Administration’s tax reform plan.  The first package includes a new excise tax on sugar-sweetened beverages.  Set at P10-per-litre for beverages containing purely locally produced sugar, the tax is slated to increase by four percent annually.  Exempted products include 100 percent natural fruit juices, 100 percent natural vegetable juices, yogurt and fruit-flavored yogurt beverages, meal replacement beverages, weight loss products and all milk products including infant formula.  The first tax reform package is currently awaiting passage in Senate.  The package’s proposed excise tax on sugar-sweetened beverages comes after the Sugar Regulatory Administration of the Philippines issued an order in March that sought to help local sugar producers by imposing restrictions on High Fructose Corn Syrup (HFCS) imports.

Advocacy

  • The Council is working with companies in the food, beverage and agriculture sectors that would be affected by the proposed excise tax on sugar-sweetened beverages to raise their concerns over the tax with Philippine government officials.  Companies that might be affected by the proposed tax should contact Sunita Kapoor at skapoor@usasean.org and Riley Smith at rsmith@usasean.org.
  • From May 30-31, the Council led a delegation of five companies to the Philippines for a Food & Agriculture Industry Mission.  During the mission, which was only the second such mission to the Philippines to focus solely on food and agriculture issues, the delegation discussed how U.S. companies can support the Government of Philippines' (GOP) plans to improve food security and agricultural development initiatives.  The delegation was able to meet with several GOP officials during the mission, including Secretary of Agriculture Emmanuel Piñol; Senator Cynthia Villar, Chair of Philippine Senate Agriculture and Food Committee; Congressman Arthur Yap, Chairman-Economic Committee of the Philippines House of Representatives; and Customs Commissioner Nicanor Faeldon.

Looking Ahead

  • The Council is currently registering members for the 2017 Philippines Business Mission in Manila  July 25-27.  The deadline for registration is July 11.  Click here to register.  Please contact Riley Smith at rsmith@usasean.org with any questions.
  • The Philippine Department of Energy (DOE) is hosting the 35th ASEAN Ministers of Energy Meeting (AMEM) and its Associated Meetings in Manila September 27-29.  In parallel, with the DOE as Official Host, the ASEAN Centre for Energy (ACE) and Leverage International are organizing the ASEAN Energy Business Forum (AEBF) 2017 incorporated with the Powertrends 2017 international exhibition at the SMX Convention Center.  More information on the event, including registration information, can be found here.

View the Council's latest Philippines updates

Singapore

Major Developments

  • From May 12-July 13, SPRING Singapore is inviting public comments on standards for Cloud Outage Incident Response (COIR) guidelines. First released in February 2016, the COIR guidelines are intended to assist business continuity management and provide greater clarity in how cloud service providers (CSPs) should react in the case of cloud outages. The SPRING Singapore announcement regarding the public comment period, which includes instructions on how to view the draft COIR guidelines, can be found here.
  • On May 8-9, the Council held its 2017 Singapore Business Mission, during which 15 member companies met with senior government officials – including four minister-level officials – to discuss how U.S. companies could help the Government of Singapore (GOS) achieve benchmarks and deliverables for two signature initiatives: the Smart Nation initiative and implementing the recommendations of the Committee on the Future Economy (CFE).  The Mission Report, which includes notes from the Mission’s meetings and proposed follow-up items, can be found here.

Advocacy

  • The Ministry of Finance (MOF) and Singapore Customs are reviewing the Customs Act to support recent policy changes, provide legal clarity on current policies, and improve Singapore Customs’ operational efficiency.  The public consultation period for the proposed amendment ran from May 9-June 5.  The Council received additional inputs after the public consultation's closing date but was able to receive an extension.  The Council submitted comments on the proposed amendments to the Customs Act on June 14.  Please contact Riley Smith at rsmith@usasean.org to learn more.
  • The Council is currently working with BSA | The Software Alliance to raise member company concerns over the adoption of Cloud Outage Incident Response (COIR) guidelines with the Government of Singapore (GOS).  The Council and BSA have collected member companies’ comments on the proposed COIR guidelines and will be presenting them to the GOS before the end of the public consultation period on July 13.  The SPRING Singapore announcement regarding the public comment period, which includes instructions on how to view the draft COIR guidelines, can be found here.  

View the Council's latest Singapore updates

Thailand

Major Developments

  • In another indication of warming bilateral relations since Thailand’s 2014 military coup, on April 30, President Donald Trump invited Prime Minister Prayut Chan-o-cha to come to Washington, D.C.  The invitation was accepted, and while dates have not yet been announced, the Prime Minister’s visit is expected for later this summer.  The phone call and anticipated visit is part of a recent series of successive exchanges between high-level officials in the U.S. and Thai governments, indicating a desire from both sides to ameliorate diplomatic ties under the new U.S. administration. On May 4, Secretary of State Rex Tillerson and Thai Foreign Minister Don Pramudwinai held a one-on-one meeting—one of only two bilateral meetings held alongside the ASEAN Foreign Ministers’ visit. On May 16, Deputy Assistant Secretary for Asia Diane Farrell became the highest-ranking Commerce Department official to visit Bangkok since the coup.  Other examples include meetings between Thai National Security Council Chief Thawip Netniyom and U.S. National Security Adviser General HR McMaster, and an upcoming meeting between Thai Deputy Prime Minister and Defense Minister Prawit Wongsuwan and U.S. Secretary of Defense James Mattis.
  • Prime Minister Prayut Chan-o-cha and the National Council for Peace and Order (NCPO) issued separate statements taking stock of the Thai government’s performance over the past three years, in commemoration of the third anniversary of the May 22, 2014 change of government.  In his speech, Prime Minister Prayut defended his decisions during his three years in office, asserting that he is doing the best he can to promote development and tackle the country’s social and economic issues with the time and resources he has been provided. "If I'm not satisfied, it's because I can't achieve everything [set out by the government's roadmap].  But I've been doing my best according to the budget and the time I've been given," he said, adding, "Some people don't like or don't understand what I am doing. They accuse me of trying to prolong and hold on to power.  But I'll pass on whatever problems I cannot fix [to future governments].” He stated that the government will provide the public with an update on its performance and achievements before the end of the 2017 fiscal year.

Advocacy

  • On June 21, the Council kicked off its annual Thailand Business Mission. The 34 participating companies are meeting with the Prime Minister, Deputy Prime Minister in charge of the economy, the Ministers of Commerce, Finance, Tourism and Sports, Digital Economy and Society, Foreign Affairs, Transportation, Energy; as well as with key officials from the Ministries of Public Health, Industry, Agriculture and Cooperatives, the Bank of Thailand, and the National Broadcasting and Telecommunications Commission (NBTC). The Mission is particularly timely in the lead-up to an anticipated meeting between President Trump and Prime Minister Prayut this summer.  Meeting notes will be circulated in the coming weeks.
  • On June 12, the Council submitted a letter to Deputy Prime Minister Somkid and NBTC Chairman Thares regarding forthcoming regulations on Over-the-Top (OTT) services.  The letter requests that the Thai government delay implementation and engage the private sector before making any final decisions.

View the Council's latest Thailand updates

Vietnam

Major Developments

Prime Minister Nguyen Xuan Phuc visited Washington, D.C., on May 30-31, the first ASEAN leader to come to the United States during the Trump Administration.  The Council and the U.S. Chamber of Commerce co-hosted the Prime Minister for a roundtable, reception and dinner on May 30, featuring keynote remarks from the Prime Minister and newly-confirmed U.S. Trade Representative Ambassador Robert Lighthizer.  Ambassador Lighthizer’s participation sent a strong signal on the continued importance of U.S.-Vietnam trade and investment under the new U.S. administration.  His remarks also mentioned the goods trade deficit with Vietnam, which totals $32 billion, up $7 billion in the past decade—a concern also raised by President Trump and Commerce Secretary Wilbur Ross.

The May 31 meeting between President Trump and Prime Minister Phuc indicated further commitment to strengthening bilateral political, economic and strategic ties between the two nations.  The resulting Joint Statement highlighted commitments on “cooperation in the areas of science and technology, national defense and security, education, people-to-people exchange, humanitarian and war legacy issues, as well as regional and international issues of mutual concern.”  More specifically, in the economic realm, the leaders pledged to address concerns relating to “intellectual property, advertising and financial services, information-security products, white offal, distiller’s dried grains, siluriformes, shrimp, mangos, and other issues,” many of which track the Council’s ongoing work in Vietnam.  The U.S. Department of Commerce announced the signing of 13 deals valued at US$8 billion, including $3 billion going towards American-produced content.  The successful visit was an encouraging lead-in to President Trump’s planned trip to Vietnam and the Philippines in November for the APEC, East Asia and US-ASEAN Summits.

Advocacy

  • Vietnam's Ministry of Information and Communications (MIC) recently agreed to delay implementation of import licensing requirements for cyber information security (CIS) products under the Law on Network Information Security (LONIS), which were set to go into effect this month.  The Council had previously submitted comments on MIC's draft Circular "Detailing the Procedures and Documents for Granting Import Licenses for Cyber Information Security (CIS) Products."  While subsequent drafts eased some the onerous licensing requirements, the Council welcomes MIC's decision to postpone implementation.  Now, MIC is requesting specific input on the list of products that are covered by the Circular. The list is currently organized by HS code, commodity description, and core function (unofficial translation of updated list here), but there may be cases of overlapping or vague descriptions, so that the list is unclear and/or over-inclusive, or cases where the HS code doesn't align with the core-function description.  If you have technical guidance on how this list should be structured, and what precisely it should cover, please email comments to Matt Solomon at msolomon@usasean.org.
  • The Vietnamese Ministry of Labor, Invalids and Social Affairs (MOLISA) recently released the Draft Decree regarding the Law on Social Insurance.  If adopted, the Draft Decree would go into effect on January 1, 2018, and require foreign workers to contribute 8 percent of their salary for compulsory social insurance, and for their employers to make contributions of 18 percent on their behalf, which is the current rate for Vietnamese employees.  Click here for more information.

Looking Ahead

The Council is supporting the USTDA-organized U.S.-Vietnam Smart Cities Workshop on June 21-22 in Hanoi to promote a discussion on the approaches, solutions, and applications for smart, efficient urban infrastructure in Vietnam.  Please contact Vu Tu Thanh at tvu@usasean.org with any questions.

View the Council's latest Vietnam updates