| ASEAN
Concerns persist over ASEAN economic bloc FT 1st Mar 2015
When Google recently tried to move some engineers urgently from Malaysia to Thailand, the search engine titan hit a roadblock. Thai labour laws meant that getting the permits needed to employ Malaysian engineers in the neighbouring southeast Asian country took far longer than it had expected. “The time it takes to move talent where we want means we can’t move as fast as we would like,” says Sajith Sivanandan, chief executive of Google Malaysia.
Majority of businesses optimistic about ASEAN economic integration Asia Nikkei Review 1st Mar 2015
Nearly 80 per cent of companies operating in the Association of Southeast Asian Nations see growth opportunities in the bloc's planned economic integration this year, shows a US survey. However, almost half of the Indonesian businesses polled see the creation of the ASEAN Economic Community as a threat to their business.
AEC will be a boon to FDI, international experts agree The Nation 1st Mar 2015
More foreign direct investment (FDI) will flow into each Southeast Asian country, especially into infrastructure and innovative products, after the Asean Economic Community becomes fully effective at the end of this year, economic experts said yesterday. At a seminar on "Opportunities in a New Era of Enhanced Asean-Japan Partnership", they agreed that the AEC would be the largest single market in the region and open opportunities to link its members to the rest of the world. That would challenge foreign interests to invest more in Asean.
Asean ministers advances AEC blueprint after two-day retreat Malay Mail Online 27th Feb 2015
Asean economic ministers (AEM) today wrapped up their two-day retreat here with a steady progress made towards implementing the Asean Economic Community (AEC) Blueprint, particularly key measures prioritised by member states. As the regional grouping moves towards the tail-end of the AEC implementation, it has progressively removed trade obstacles such as Non-Tariff Barriers (NTB), which are a clear impediment towards the realisation of the AEC.
Asean consumers deliver opportunities for logistics groups FT 20th Feb 2015
Japan Post on Wednesday agreed to pay A$6.5bn (US$5.1bn) for Australia’s Toll Holdings, a day after Kintetsu World Express, another Japanese company, snapped up APL Logistics, the logistics arm of Singapore-listed Neptune Orient Lines, for $1.2bn. The moves give Japan an expanded footprint in global logistics as world trade patterns are shifting amid a slowdown in China, and the emergence of a new generation of consumers in the 10-country Association of Southeast Asian Nations (Asean).
ASEAN ro-ro project to benefit SEA countries with low shipping cost Manila Bulletin 25th Feb 2015
Member states of the Association of Southeast Asian Nations stand to benefit from the ASEAN Highway Network (AHN) once it is completed. Also dubbed as “ASEAN RO-RO Initiative,” the regional project aims to form an interstate road network connecting the Southeast Asian countries with the goal of providing easy access to key markets and reducing transport cost. No less than President Aquino emphasized in the 2013 BIMB-EAGA (Brunei Darussalam-Indonesia-Malaysia-Philippines-East ASEAN Growth Area) that the Philippines was looking forward to the ASEAN Roll-on, Roll-off (RO-RO) initiative. “The Japan International Cooperation Agency (JICA)-funded feasibility study identifying the route connecting the Philippines to Indonesia represents an important milestone in the implementation of the ASEAN RO-RO Initiative,” the Chief Executive said.
Cambodia
Wage increases ‘will not put off Japanese firms’ Phnom Penh Post 1st Mar 2015
Sharp rises in labour costs this year are doing little to deter Japanese companies looking to do business in the Kingdom, with experts predicting the flow of investment from Japan to remain steady. A 28 per cent increase in the garment sector minimum wage, from $100 to $128, has set a benchmark for many industries in Cambodia and sparked fears of a decline in foreign direct investment. Hiroshi Suzuki, chief economist for Business Research Institute for Cambodia , said that Japanese companies such as Panasonic, Daikin and Sharp had been relocating some of their production back to Japan because of increasing business costs in China and Thailand and the depreciation of the yen. But Cambodia has been an exception.
New border crossing set to make trade easier The Phnom Penh Post 3rd Mar 2015
Planning for the Stung Bot checkpoint on the Thai border is almost finalised, with the construction of new infrastructure to support trade facilitation to be completed by the end of 2018, officials said yesterday. Vasim Sorya, the director general of administration at the Ministry of Public Works and Transportation, said development of the border crossing, connecting Nong Ian in Thailand’s Sa Kaew province to Stung Bot in Banteay Meancheay provinces on the Cambodian side, would include new roads linking the checkpoint to National Road 5 and National Road 58. “We will hold another meeting again Monday next week to get the master plan finalised. The construction is expected to start end of this year and finish in three years,” he said.
Indonesia
Indonesia plans to build new $300m port in south Sulawesi Customs Today 1st Mar 2015
Bantaeng district government in South Sulawesi plans to start constructing in May a IDR4trn ($300m) industrial port as part of the development of Bantaeng Industrial Park, local reports said here the other day. The port — located near the Flores Sea and expected to be completed in 2017 — would be one of the main ports that could facilitate international shipping, Bantaeng district head Nurdin Abdullah was quoted as saying. Currently, the district is working to finish the port’s feasibility study, he added.
Fish processing facilities used to ‘camouflage’ transshipment Jakarta Post 1st Mar 2015
The Maritime Affairs and Fisheries Ministry has leveled accusations at owners of low-yield fish processing units (UPI) for setting up facilities as a ruse to obtain permits and conduct transshipment practices for overseas delivery. The three foreign processing facility operators had been complaining that they were almost forced to shut down ever since the ministry placed the moratorium on license renewals for foreign-made vessels and the open-sea transshipment ban, Susi said. Indonesia obliges all foreign-made fishing vessels to either partner with existing processing units or build their own.
Maersk: Indonesia port access a problem FinanceAsia 1st Mar 2015
Finance Asia spoke to Jakob Friis Sorensen, president director of Maersk Line Indonesia, about the state of the country's ports and what needs to be done to upgrade them.
‘Made in RI’ smartphone rule to roll out midyear The Jakarta Post 28th Feb 2015
A regulation requiring a certain minimum of local content on all 4G mobile phones sold in the country will be rolled out in the first half this year, limiting expansion of international smartphone manufacturers such as Apple. By 2017, the government will require device manufacturers to have at least 40 percent of the contents of 4G smartphones produced locally. Few details have been unveiled on how the transition into this new regulation will take place, given the low capacity of local manufacturers and popularity of international brands. “We will issue a minister regulation in the middle of this year to set a quota on the amount of local content that device manufacturers will have to meet by 2017,” said Communications and Information Minister Rudiantara.
President forms task force to shorten port-dwelling time The Jakarta Post 26th Feb 2015
President Joko "Jokowi" Widodo has decided to set up a task force to address long dwelling times at the country's ports. The President responded to the results of a study that suggested shortening the dwelling times, including at Tanjung Priok Port in North Jakarta, Coordinating Maritime Affairs Minister Indroyono Soesilo said after a limited Cabinet meeting at the Presidential Palace on Wednesday. "The study, conducted at Tanjung Priok Port, among others, particularly recommended that maximum efforts be made to shorten dwelling time," Indroyono said as quoted by Antara news agency. Dwelling time at Indonesian ports averaged seven to nine days compared to less than one day at Singapore's port, he said.
Malaysia
Malaysia well-connected for trade The Rakyat Post 23rd Feb 2015
Malaysia ranks third in terms of being the most connected country in Southeast Asia for trade linkages, according to DHL Global Connectedness Index. The index which measures cross-border flows of trade, capital, information and people also places Malaysia as 21st most connected out of 140 countries. Malaysia is also one of the four Southeast Asian economies including Singapore, Cambodia and Vietnam that stood out for its high depth scores relative to expectations based on structural characteristics such as size and level of economic development.
Profit-margin restriction draws mixed reactions New Straits Times 24th Feb 2015
The restriction on businesses against raising their profit margin upon the Goods and Services Tax (GST) implementation has received mixed response from industries which felt that the government should instead monitor the prices closely from the initial supply chain. Royal Malaysian Customs Department GST Director Datuk Subromaniam Tholasy was reported as saying that traders should not mark up their profit margin three months before and 15 months after the GST enforcement, cautioning them that such action would be tantamount to profiteering. He said the imposition of the restricted period was aimed at curtailing unscrupulous traders from marking up prices to get higher profit margin. “Why must we always think that the costs would go up (upon the GST implementation). There is also the possibility of the prices coming down. We want retailers to keep their absolute net profit margin“, he told Bernama. Subromaniam felt that the electricity tariff cut from March 1 to June 30, 2015 should lower production costs.
Myanmar
Shelves run dry as retailers pull imported alcohol Myanmar Times 1st Mar 2015
Retail outlets removed imported liquor from their shelves last week in response to government pressure on importing foreign alcohol, according to industry sources. Government checks have previously shown that nearly 90 percent of liquor imports cross into the country illegally, while much of the rest comes from duty-free shops. Liquor imports are generally illegal, though there are limited loopholes intended for duty free purchases and hotel imports.
Rural growth relies on access to markets Myanmar Times 22nd Feb 2015
Market access and poor infrastructure still confounds rural development, according to experts. With up 70 percent of the population dependant on income from agriculture to a large degree, it is important that people in rural areas are able to take advantage of opportunities. There are still significant barriers on the road to rural development. City Mart managing director Daw Win Win Tint said it is often more convenient to order goods from overseas rather than from within the country.
Philippines
Bill allows foreign vessels to serve local ports Business World 23rd Feb 2015
A priority bill that will allow foreign vessels to dock in multiple ports across the country was passed in the Senate on the third and final reading on Monday. Senate Bill No. 2486, otherwise known as the Cabotage Law, received 18 affirmative votes during Monday’s plenary session, bringing the proposed measure -- aimed at helping micro, small, and medium enterprises (MSMEs) -- closer to becoming a law. Under the bill, considered as a priority by business groups, local producers and entrepreneurs will be able to cut production and transport costs by allowing im porters and exporters to co-load in foreign ships going in or out of the Philippine waters. Once it becomes law, foreign cargoes will be allowed to go directly to Manila, then proceed to their local destination, instead of the existing procedure where goods are unloaded in Manila, then transshipped to local carriers which will carry these to their local destination.
Port congestion resolved – Palace The Philippine Star 2nd Mar 2015
Manila’s port congestion has been resolved, Malacañang said yesterday, noting the various measures that the government and the private sector have implemented to address the problem. “There was a time that the ports and all the container yards were flooded with empty containers. As of the end of February 2015, this is no longer the situation,” Secretary to the Cabinet Jose Rene Almendras said in a statement. Almendras said the combined efforts of the Cabinet Cluster on Port Decongestion, the Technical Working Group of various agencies and cooperation from the private sector helped normalize operations at the Port of Manila. “Over the past three weeks, the ships with berthing schedules were accommodated accordingly. For ships that arrive unscheduled, they were able to dock within 24 to 60 hours from arrival,” he said.
Customs to electronically process imports by PEZA locators Business World 20th Feb 2015
SHIPMENTS of Philippine Economic Zone Authority (PEZA) locators will be integrated with the Bureau of Customs’ (BoC) electronic system as part of the agency’s efforts to automate duty-free import transactions, Commissioner John Philip P. Sevilla said in an interview. Mr. Sevilla said in an interview on Monday PEZA imports will be integrated into the BoC’s electronic to mobile (e2m) system.
Carriers exempted from local business taxes Business World 19th Feb 2015
Airlines, shipping companies, and transport contractors are exempted from paying local business taxes after the Supreme Court en banc ruled in favor of several local and foreign corporations that contested a levy imposed by the City of Manila. In a Dec. 10 en banc decision announced on Wednesday, the high court struck down a provision in the Manila Revenue Code that allowed the nation’s capital city to levy a local business tax on transport contractors, garages, hired transporters, and public utility vehicles or vehicles for rent.
Incentives are more than just hospitable gestures Business World 19th Feb 2015
This commitment we have as hosts to investors is what the Court of Tax Appeals (CTA) enunciated in a recent decision (CTA EB Case No. 1142, 05 January 2015). The case involved a refund claim by a taxpayer registered with the Philippine Economic Zone Authority (PEZA) of the customs duties it paid on local purchases of petroleum products. The claim was initially denied by the District Collector at the Port of Manila for failure of the taxpayer to establish entitlement to the refund. On appeal, it was also denied by the Commissioner of Customs due to procedural infirmities in perfecting an appeal under the Tariff and Customs Code of the Philippines (TCCP). Fortunately for the taxpayer, the CTA disagreed with the Commissioner of Customs.
Procurement reform touted but EU cites obstacles to bidders Business World 19th Feb 2015
Procurement processes in the Philippines still need further improvement even as agencies have significantly reformed bidding processes, Budget Secretary Florencio B. Abad and European Ambassador Guy Ledoux said yesterday at a forum. Mr. Abad, in his keynote to yesterday’s “Fair Competition, Transparency and Procurement Reform: Attracting European Investments to the Philippines,” said the Aquino administration’s reforms to the procurement system focused particularly on making the latter “fairer, more transparent, and open to public engagement.”
Import permits master list seen cutting BoC transaction time Business World 19th Feb 2015
The Bureau of Customs (BoC) has codified all regulated products that need permits and clearances from various government agencies in a bid to help importers comply with the requirements and eventually cut transaction time with the BoC. BoC Commissioner John Phillip P. Sevilla yesterday said in a briefing that importers, brokers and customs inspectors can now access a “Regulated Imports List” on its Web site which identifies all products that are regulated, the agencies that are mandated to regulate it, the requisite permits and the procedures for getting the latter.
Singapore
Indonesia’s new tax law is bad news for Singapore MoneyWeek 1st Mar 2015
Indonesian president Joko Widodo isn’t going to be very popular in Singapore.He’s recently announced plans to introduce a tax amnesty for Indonesians in a bid to lure investors and companies back to the country. The nuts and bolts of it is that money kept in Singapore and other offshore countries could be repatriated to Indonesia without paying tax on it.
Will Singapore's tax hike on top earners deter top talent? CBS News 1st Mar 2015
Singapore's decision to hike taxes on its top earners has raised questions about whether the unanticipated move may erode the city state's longer-term competitiveness. The nation's low tax regime has long been a magnet for attracting highly skilled talent as well as the super-rich from abroad. In its budget for 2015 delivered on Monday, the government announced an increase in the income tax rate for those in the top tier – residents with a chargeable income exceeding 320,000 Singapore dollars ($256,000) – to 22 percent from 20 percent starting with income earned in 2016.
Singapore Unveils Robin-Hood Budget With Boost to Top Tax Rate Bloomberg 23rd Feb 2015
Singapore took another step toward Western welfare systems and further from low-tax models like Hong Kong. With the first increase in its top income tax rate in decades, the Southeast Asian city’s budget on Monday revealed policy makers’ latest step to address a widening wealth gap. While the richest 5 percent face higher levies, beneficiaries will include senior citizens who will get bigger payouts. The move, which still leaves Singapore with among the lowest tax rates in developed nations, comes amid speculation the ruling party that’s dominated the city in its 50 years since independence may call an election this year. The budget of Prime Minister Lee Hsien Loong’s government attempts to address rising discontent over living costs and a widening wealth gap after the last vote showed diminishing support for his party.
Thailand
Thailand’s Government to Cut Land and Buildings Tax and CIT rates on SMEs ASEAN Briefing 1st Mar 2015
Thailand’s government has announced that it will be cutting the tax rates on its Land and Building tax, as well as on its Corporate Income Tax rates for small and medium-sized enterprises.
Philippines reports on Thailand’s compliance to WTO cigarette tax ruling PhilStar 1st Mar 2015
The Philippines will provide a report on the status of Thailand’s compliance to a World Trade Organization (WTO) ruling on a cigarette tax case this week. In a notice posted on its website, the WTO said the Philippines would give a statement on Thailand’s customs and fiscal measures on cigarette imports from the Philippine during the meeting of the agency’s Dispute Settlement Body (DSB) on Monday.
Cattle export to Thailand carries industry hopes of new live export market ABC News 1st Mar 2015
The largest shipment of live Australian cattle to Thailand in decades carries with it industry hopes of opening a new alternative market to Indonesia. The shipment of about 1000 feeder and slaughter cattle left Darwin port on Sunday - in the second shipment to Thailand after the Australian Government secured an agreed health protocol with the country in December last year.
Draft bills on tax changes ready soon The Nation 1st Mar 2015
The Finance Ministry will propose the legal draft on a buildings and land tax and amendments to the customs and excise tax codes to the Cabinet by the end of this month, while the government's revenue collection was Bt1.1 billion above target for the first four months of fiscal year 2015. The Excise Department's revenue target for the full fiscal year has been raised by Bt27 billion after the increase in fuel-tax receipts from October to January.
Commerce Ministry panel to examine freight rates The Nation 19th Feb 2015
The Commerce Ministry's Trade Competition Committee is scheduled to set up a working committee to investigate plans by freight companies to increase terminal handling charges (THC) next month. Late last year, the Thai National Shippers Council, the Thai Chamber of Commerce and other trade associations filed complaints to the ministry about rising shipping costs. The shipping companies had announced that they would increase fees for dry containers by 62-74 per cent, depending on container size.
Vietnam
Understanding Vietnam's import export regulations Vietnam Briefing 24th Feb 2015
Once an investor has set up their trading company within Vietnam, it is important that their workers gain a strong understanding of the country’s import and export regulations and procedures. Below we lay out the key takeaways that companies must be aware of before starting their trading activities in Vietnam.
Vietnam opens door to hard money and soft power FT 1st Mar 2015
CJ’s Vietnamese cinematic coup is part of a stream of new Japanese and South Korean investment in the country, amid goodwill that contrasts with the troubled relationship between Hanoi and Beijing. While anti-Chinese rioters ransacked hundreds of foreign companies in Vietnam last year after maritime skirmishes between the two countries, Seoul and Tokyo were quietly brandishing hard money and soft power. Analysts say the push by the two east Asian economic leaders reflects a dovetailing of commercial and strategic interests that has a broader regional importance. While Hanoi wants to limit its dependence on Beijing, Japan and South Korea wish to tighten their embrace with the 10 countries of the Asean Southeast Asian grouping that are preparing — some say optimistically — to launch a single market of more than 500m people later this year.
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