ICT Update: November 8, 2018

November 13, 2018: Singapore Roundtable with DAS James M. Sullivan
Please join us for a roundtable discussion with Deputy Assistant Secretary for Services James Sullivan during his visit to Singapore to discuss services trade issues in ASEAN. Mr. Sullivan's office covers financial, digital and internet, supply chain, and professional and business services industries and his full biography can be found at this link. Register for the event here. 

November 13, 2018: 2018 TELMIN Business Mission Planning Call 2
Register here to join the second of three planning calls for our Business Mission to the 18th ASEAN Telecommunications and Information Technology Ministers Meeting (TELMIN).

November 21, 2018: SME Workshop in Hai Phong, Vietnam
The Council is pleased to highlight a sponsorship opportunity in a one-day Small and Medium Enterprise (SMB) workshop titled "Elevating SMBs into Industrial Revolution 4.0 and Inclusive Global Value Chains". Please click here to access the draft agenda. Please contact Bui Kim Thuy at Tbui@usasean.org or Vinsensius Kangen at vkangen@usasean.org with any questions or to express interest.

December 4: 2018 Business Mission to the 18th ASEAN Telecommunications and Information Technology Ministers Meeting
We are now registering senior level executives for our Business Mission to the 18th ASEAN Telecommunications and Information Technology Ministers Meeting (TELMIN) taking place Tuesday 4 December to Thursday, 6 December, 2018 in Ubud, Indonesia. To register, please click here.

Malaysia Introduces Digital Tax in FY 2019 Budget

Malaysia recently announced its 2019 Budget, and introduced a tax on imported online services. Foreign online service providers will have to register with the Royal Malaysian Customs Department and a service tax on imported online services will go into effect on January 1, 2020. Qualifying online services include software, music, videos and any digital advertising provided to Malaysians. According to the Finance Ministry, the tax is aimed at leveling the playing field between domestic and foreign online service providers and sparking greater competition in the e-commerce sector. The Ministry has yet to provide specifics of the taxes including proposed rates. Currently, certain digital transactions are imposed a 10 percent withholding tax (WHT). The WHT applies to Malaysian companies’ transactions with foreign service providers. The Malaysian public has reacted negatively to this announcement as they are concerned that service providers will have consumers absorb the tax by increasing prices. Members of Malaysia’s startup scene are also concerned that the digital tax will create negative sentiment from businesses towards the government, and may result in companies running their businesses from outside Malaysia. Pikom chairman Gamesh Kumar has urged the government to implement this measure in consultation with respective industries.

Other highlights of Budget 2019 on digital economy include the introduction of a Capital Market and Services Act to act as a regulator for digital currencies and token market trading activities, the introduction of property crowdfunding for first-time homeowners regulated by the Securities Commission of Malaysia and the introduction of a RM3 billion (US$721 million) industry digitalization transformation fund with a subsidized two percent interest rate.

This new digital tax follows a growing trend among ASEAN countries of taxing digital services and transactions, such as Thailand’s Value-Added Tax on e-Commerce, which was recently passed by the Cabinet, and Indonesia’s in-development tariffs on intangible goods. Each of these measures shares the goal of attempting to level the playing field between domestic and foreign online service providers, and generate increased revenue from the immense growth of foreign digital providers in their countries.

Thailand’s Draft Cybersecurity Bill Continues to Draw Industry Outcry, PM Orders Review

Thailand’s Draft Cybersecurity Bill has drawn criticism from several stakeholders, including state agencies, domestic business and foreign businesses operating in Thailand, who share concerns about the Bill’s potential to create opportunities for abuse of power and data privacy breaches. The Bill will proceed to the National Legislative Assembly following its expected approval by the Cabinet this month. In response to widespread outcry, Prime Minister Prayut Chan-o-cha has called for review of the Bill this week, according to the Bangkok Post.

Criticism of the Cybersecurity Bill includes questions of its potential to silence public opinion ahead of the upcoming elections, risks to confidential information and concerns that the Cyber Security Agency (CSA) created by the Cybersecurity Bill would have far-reaching powers. General Bunjerd Tientongdee, a member of the National Cybersecurity Committee, said that the Prime Minister and National Legislative Assembly must be informed that the current version of the Bill has serious flaws and that must be amended.

Notably, the CSA would be granted broad powers to seize and hold computers without due process and access an organization’s information and facilities in the event of an anticipated or actual cyber threat. The Cybersecurity Bill also introduced obligations for public and private organizations operating Critical Information Infrastructure in its current version. The Cybersecurity Bill would also allow the CSA to form a joint venture, which would allow it act as both a regulator and an operator, “which can create joint ventures and request financial loans for its operations,” according to the Bangkok Post (for more information, see our previous Update here).

As Thailand works to address emerging cybersecurity threats and bolster its technological capacity and infrastructure, it will be critical for these efforts to achieve the important goal of protecting citizens’ data without stifling innovation or jeopardizing data privacy and confidential information, such as trade secrets. The Cybersecurity Bill’s current punitive measures also impose heavy consequences to firms that cannot comply, which are prescribed in broad language. With concerns coming from various stakeholders, it may be likely that the Cybersecurity Bill’s more vague and heavy-handed language may be revised to strike an effective balance.

State Bank of Vietnam Issues Regulations on Cloud Computing Services

The State Bank of Vietnam (SBV) recently issued Circular No. 18/2018/TT-NHNN (Circular 18) which includes 3 chapters, 6 sections and 55 articles regulating information security in banking operations. Most notably, Circular 18 introduces new regulations on the use of cloud computing services in banking as well as regulations on outsourcing cloud computing services to third party service providers. Among other things, section 6 of Circular 18 sets out some critical steps financial institutions (FIs) must follow before they outsource cloud computing services. Risk assessment is an essential component throughout these steps. First and foremost, FIs must determine the class of information and the level of information system to be outsourced to third party providers. There are three classes of information and three levels of information systems based on level of complexity and confidentiality. Circular 18 provides clear instructions on the classification of these systems. If a third party is hired to perform all administration-related activities of information systems classified at level 2 or higher, FIs will be required to submit a risk assessment report to SVB, who reserves the right to examine the report on a case-by-case basis. In short, SVB employs a notification system which requires FIs to send a report rather than apply for approval. However, it is unclear how frequently and what factors SVB shall choose to review the risk assessment report. Section 6 also recommends several factors FIs should consider when selecting third party providers and specifies provisions an outsourcing contract must entail. Circular 18 also lists out minimum contents FIs must include in their own information security regulations. These regulations must be signed by the legal representative and implemented throughout the organization.

Cloud technology has evolved and matured considerably, disrupting all sectors including banking. Governments have now recognized that it is vital to all institutions’ operations and have taken different stances on the use of cloud technology. The regulations vary by country in the region. In general, FIs are mandated to perform the necessary due diligence and apply good governance and risk management practices to protect sensitive customer data. Singapore requires FIs to adopt a risk-based approach to assure that the level of oversight and controls are commensurate with the materiality of the risks posed by cloud services. However, the Monetary Authority of Singapore (MAS) no longer expects FIs to pre-notify MAS of any outsourcing agreements since 2016. In contrast, Bank Negara Malaysia (BNM) is proposing a system which requires the Bank’s approval for several outsourcing arrangements including arrangement on cloud computing services. BNM also expects that FIs maintain control over third party service providers and their subcontractors. Vietnam’s utilization of a notification system reflects the government’s intention to create a business-friendly environment while retaining some control in conservative sectors.

Circular 18 will become effective on January 1, 2019 replacing Circular No. 31/2015/TT-NHNN. It applies to all credit institutions (except for people’s credit funds and microfinance institutions), foreign bank branches and organizations providing intermediary payment services

• Update on the Vietnam Law on Cybersecurity (LOCS) Draft Implementation Decree
  On November 3, Vietnam's Ministry of Public Security (MPS) published the official draft decree for the Law on Cybersecurity (LOCS) on November 3. The Council is seeking members' comments on the official draft decree by EOD December 2 SGT. An English translation of the full decree is attached (as well as the accompanying document of the Prime Minister's decision). Please submit all comments on the LOCS draft decree to Ella Duangkaew (eduangkaew@usasean.org) and Vu Tu Thanh (tvu@usasean.org) by EOD December 2 SGT.  Please contact Vu Tu Thanh and Ella Duangkaew with any questions or for a full update on the official release with key take-aways, preliminary analysis and next steps.
• Indonesia GR82 Update
  On October 30, the Council sent a letter to Indonesia's Cabinet Secretary, providing input given in four main areas: (1) data definition and scope, (2) right to be “forgotten”, (3) data access for law enforcement, and (4) sector categorization of Article 83. The letter was based on an unofficial Sept. 24 draft. Currently, an English translation is in the process and will be available shortly. As of now, the draft amendment is before the President for review. For any questions or for a copy of the letter, please contact Artha Sirait (asirait@usasean.org) or Angga Antagia (aantagia@usasean.org).
• Technical Workshop on Thailand Personal Data Protection Bill (PDPB) Implementation
  On October 30, the Council, in partnership with AsiaDPO, hosted a technical workshop with the Ministry of Digital Economy and Society (MDES) and the Electronic Transactions Development Agency (ETDA) within MDES, to discuss the implementation of the recently revised Personal Data Protection Bill (PDPB). Workshop participants were primarily data protection officers or privacy experts that provided practical examples on how provisions of the PDPB would impact Thai citizens and consumers. The workshop directly follows a public hearing period for the PDPB, for which the Council submitted joint industry comments for on October 2. For more information on the workshop, or for a copy of the Council's joint submission on the PDPB, please contact Ella Duangkaew (eduangkaew@usean.org). 
• Customs Technology Workshop with the ASEAN Customs Procedures and Trade Facilitation Working Group
  On October 22, the Council held a day-long workshop alongside the October meeting of the ASEAN Customs Procedures and Trade Facilitation Working Group (CPTFWG). The event featured a series of panel discussions and breakout sessions on how emerging technologies such as blockchain, data analytics, track and trace and networked platforms could support customs processes and ASEAN economic integration, and the policy considerations for their adoption. Council member companies were joined by the Australian Border Force, the Singapore Customs Networked Trade Platform Office, and the Customs Administration of the Netherlands to discuss their latest work on digital systems and how public-private partnerships could facilitate trade and customs operations. More information about follow-up opportunities and the event’s outcomes will be distributed soon.

Integrating IT for better public service Borneo Bulletin Online 8th Nov 2018
The use of information technology (IT) can facilitate, expedite and expand access to delivering a better service to the public, said Permanent Secretary (Corporate Affairs and Public Administration) at the Prime Minister’s Office (PMO) Haji Roslan bin Haji Taja’ah. He made this statement at the prize presentation ceremony of the 21st National Quality Control Circle (KKC) Convention at the PMO yesterday.

Sultan calls for wise use of technology Borneo Bulletin Online 6th Nov 2018
His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam yesterday reminded the people to use technology wisely for the purposes of strengthening their religious faith, instead of allowing themselves to be controlled by technology.

Online harassment a rising concern Khmer Times 8th Nov 2018
A report by LIRNEasia yesterday showed that 26 percent of internet users have experienced online bullying, unwanted sexual advances and stalking. The report showed that online harassment was higher among women and that most occurred on the social media platforms Twitter, Instagram and Facebook.

Prep for digital revolution must start now, ADB official says Khmer Times 4th Nov 2018
The government should start refashioning its institutions and policies as soon as possible to adapt to the fourth industrial revolution (4IR), which is already impacting all aspects of Cambodian society in ways that are hard to anticipate, an Asian Development Bank (ADB) economist said Friday. Speaking at a high-level seminar on 4IR and regional cooperation, Jayant Menon, ADB lead economist on trade and regional cooperation, said 4IR is transforming social, economic, and political systems in unpredictable ways.

Transport Ministry to address potholes via app Khmer Times 2nd Nov 2018
The Public Works and Transport Ministry on Wednesday announced that it will launch a mobile application for residents throughout the Kingdom to report road damage. The announcement was made during the launch of a truck driving school on the same day by Transport Minister Sun Chanthol, who said that the ministry is now preparing “Road Care”, a mobile application that residents can utilise to report potholes by taking a picture and sending it to the ministry.

Information Ministry combats fake news Khmer Times 26th Oct 2018
The Information Ministry yesterday called on journalists to combat fake news disseminated online during a workshop on “Combatting Fake News for Cambodian Journalists” in Phnom Penh. Sponsored by the United States embassy in Cambodia and organised by Thmey Thmey news, the workshop aimed to educate journalists on how to prevent and combat the spread of fake news.

Indonesia to launch startup database as reference for digital industry development Yahoo! News 7th Nov 2018
Indonesia is enjoying a massive growth of its digital industry, as indicated by the increasing number of tech startups operating in the country. It even managed to have four unicorn startups already; the second biggest number in Southeast Asia after Singapore. To support President Joko Widodo’s Digital Energy of Asia vision, it is not sufficient for Indonesia to rely solely on initiatives by industry stakeholders. There is also an urgency to support the vision by providing a comprehensive startup database.

Jokowi wants more unicorns to emerge The Jakarta Post 28th Oct 2018
President Joko “Jokowi” Widodo has expressed hope over Indonesia producing more unicorns in addition to its four existing startups that are valued at over US$1 billion – Tokopedia, Go-Jek, Traveloka and Bukalapak.

Inside the government-run war room fighting Indonesian fake news South China Morning Post 25th Oct 2018
Indonesia has established an army of engineers aimed at containing the spread of hoaxes and fake news ahead of the presidential election next year. More than 187 million people are expected to cast their votes when the country goes to the polls on April 17. With six months of campaigning left, a deluge of political and social narratives – true and false – are being distributed to shape voters’ views.

Govt to determine mechanism to confirm owners of social media accounts The Star Online 5th Nov 2018
The government is in the process of determining the most appropriate method of identifying valid owners of social media accounts in the country, said Communications and Multimedia Minister Gobind Singh Deo.

Digital tax triggers generally negative public reaction The Star Online 3rd Nov 2018
The public’s response towards the digital tax to be imposed on foreign online services is generally negative, while local game studios do not see it benefiting them either. According to Budget 2019, all imported services, including online ones like software, music, videos and digital advertising, will be levied with a service tax starting Jan 1, 2020.

Gobind: Five years a realistic target for rural broadband The Star Online 3rd Nov 2018
Budget 2019’s target to get rural communities high-speed broadband within five years is “realistic”, according to Communications and Multimedia Minister Gobind Singh Deo. “We can actually set a bigger target for the speed. But to have a minimum target is realistic. 30Mbps is achievable within a short period of time,” he said.

Regulatory framework for ICOs and digital asset exchange in Q1 2019 : SC The Sun Daily 2nd Nov 2018
The Securities Commission of Malaysia today announced that it will put in place a regulatory framework to regulate digital asset exchanges and initial coin offering, which will take effect in the first quarter of 2019.

Malaysia counts on tech to boost manufacturing The Straits Times 1st Nov 2018
Malaysia yesterday unveiled a plan to boost its manufacturing sector through technology, hoping to attract investment in high-tech industries to counter slowing economic growth. The National Policy on Industry 4.0, named Industry4WRD, will support efforts to rely more on technology, and less on capital and labour, to increase productivity.

Myanmar eyes e-commerce for jobs, trade and economic growth Mizzima Myanmar News and Insight 5th Nov 2018
Government officials, donors and partners have met to consider the United Nations Conference on Trade and Development (UNCTAD)'s appraisal of how e-commerce can boost Myanmar's economy and the next steps forward. The power of e-commerce to create jobs and increase trade in Myanmar was in the spotlight on 30 October, as government officials, development partners, donors and the private sector met in the southeast Asian nation’s capital Nay Pyi Taw to discuss ways to support online business, according to a press release.

Internet freedom rating drops in Myanmar: FEM Mizzima Myanmar News and Insight 1st Nov 2018
Myanmar’s nascent internet freedom has declined in 2018 for the second year in a row under the NLD according to US-based Freedom House’s annual report launched today. Myanmar’s score deteriorated from 61 to 63 in 2017 and worsened again to 64 in 2018. Myanmar is now almost as bad as Thailand’s military government, and significantly worse than the authoritarian regime in Cambodia.

Consortium of Davao’s Dennis Uy, China Telecom declared 3rd telco BusinessMirror 8th Nov 2018
MISLATEL Consortium—the group led by Davao-based businessman Dennis A. Uy and state-owned China Telecom Corp. Ltd.—was declared as the provisional third telco player in the Philippines, after submitting the only compliant bid on Wednesday’s much-awaited selection process for the new major player in the local telco industry.

Converge ICT backs out of third telco bid ABS-CBN News 7th Nov 2018
Converge ICT and its partners, KT Corp and Teltech said Wednesday they decided not to bid for the Philippines' third telco slot. While the industry outlook is "financially viable," conditions for its participation are "commercially unviable," the 3 firms said in a joint statement. The prospective third telco is "required to incur an inordinate amount of funds and carry out commitments at a pace that is not required of the current dominant service providers," according to the statement.

Honasan is next DICT chief; appointment paper out soon Inquirer 5th Nov 2018
Senator Gringo Honasan is the next Secretary of the Department of Information and Communications Technology (DICT), Executive Secretary Salvador Medialdea confirmed on Monday.

PH’s second microsatellite launched into space today Manila Bulletin News 29th Oct 2018
The Philippines will launch today the DIWATA-2 microsatellite, marking the country’s third venture into space under the P840-million PHL-MICROSAT Program of the Department of Science and Technology (DOST).

Philippines gets voting seat in international privacy body BusinessMirror 26th Oct 2018
The Philippines has secured a seat in the five-member panel of the International Conference of Data Protection and Privacy Commission (ICDPPC), notwithstanding the country’s nascent status in data privacy regulation. The National Privacy Commission (NPC) said on Thursday that Manila clinched a voting seat in the Executive Committee of the ICDPPC. The commission is an international conference of 119 independent regulators from different countries exploring high-level proposals on data privacy and protection.

Singapore announces formation of world's first commercial cyber pool Asia Insurance Review 5th Nov 2018
Singapore is establishing the world's first commercial cyber risk pool to strengthen the region's resilience to cyber threats, announced its Finance Minister Heng Swee Keat at the opening of the 15th Singapore International Reinsurance Conference on Monday.

COI on cyber attack: More will be done to deepen cyber-security awareness of SingHealth employees The Straits Times 5th Nov 2018
SingHealth said it plans to introduce a series of measures for all 28,000 employees to deepen their understanding of cyber safety, after hackers used a phishing ploy to enter its network and mount Singapore’s worst-ever data breach.

Singapore well-placed to be e-commerce hub, with its tech-readiness, infrastructure: Economist survey The Straits Times 5th Nov 2018
Goods imported into Singapore take slightly over 30 hours to clear the border compliance process. This might sound like a long time, but it is almost a third of the time that goods imported into Indonesia might take. Indeed, Singapore is the quickest when it comes to export and import times, compared to neighbours such as Malaysia, Indonesia, Philippines, Vietnam and Thailand.

SingHealth cyber attack COI: Senior manager reluctant to report attack because he did not want to deal with pressure The Straits Times 31st Oct 2018
Chat messages that showed a bottleneck in the reporting of suspicious network activities came under the spotlight, as the third phase of public hearings on the SingHealth cyber attack started on Wednesday (Oct 31). "Once we escalate to management, there will be no day no night," one message went, meaning that there will be a lot more work and pressure.

AI businesses on the rise in Asean Bangkok Post 29th Oct 2018
Singapore is one of the Southeast Asian countries aiming to be a leader and business centre in artificial intelligence (AI) in line with its industrial transformation policy. The so-called Industry 4.0 revolution has been taking place in Asia-Pacific nations, including Thailand, providing significant opportunities for AI development.

Singapore sets up world's first commercial cyber risk pool Channel NewsAsia 29th Oct 2018
Singapore is setting up the world’s first commercial cyber risk pool as part of efforts to develop the region's capacity to deal with threats from cyber attacks, Finance Minister Heng Swee Keat announced at the 15th Singapore International Reinsurance Conference on Monday (29 Oct). “The pool will commit up to US$1 billion in capacity, and bring together both traditional insurance and insurance-linked securities markets to provide bespoke cyber coverage," he said.

First ICO portal en route Bangkok Post 8th Nov 2018
The first initial coin offering (ICO) portal is likely to be certified this month, with the first authorised ICO offering possibly in December, says the Securities and Exchange Commission (SEC). "At least one ICO portal will be certified in November, then we can approve each ICO offering, which might start in December," said SEC secretary-general Rapee Sucharitakul.

Panel OKs draft on spectrum recall, including compensation Bangkok Post 8th Nov 2018
The telecom committee of the communications watchdog approved a regulatory draft on Wednesday on the recall of unused spectrum for auctions to serve future 5G adoption. The board of the National Broadcasting and Telecommunications Commission (NBTC) will hold a meeting on Nov 20 for official approval, aiming to put the regulation into effect on Dec 1. The draft is in line with Section 27 of the amended Frequency Allocation Act, effective since June. The section states that the regulator must recall spectrum slots, many of them held by state agencies with inefficient usage, to be reallocated via auction.

900MHz licence purchased by DTAC Bangkok Post 29th Oct 2018
Total Access Communication (DTAC) subsidiary DTAC TriNet won a 900 megahertz licence for 38.06 billion baht, in a sole bidder auction Sunday. The nation's third largest telecom company was left alone to bid after its bigger rivals -- Advanced Info Service (AIS) and True -- stayed out as they had already secured 900MHz licences.

Blockchain tech seen as a tool to curb corruption The Nation 28th Oct 2018
Experts and social entrepreneurs have placed high hopes on benefiting from the advanced blockchain technology that would be able to play a major role in curbing corruption and enhancing transparency in social justice. “Blockchain could be used to promote transparency of information for anti-corruption and to increase the power of investigation,” said Torplus Yomnak, founder of Hands Social Enterprise. “Blockchain could be used to promote transparency of information for anti-corruption and to increase the power of investigation,” said Torplus Yomnak, founder of Hands Social Enterprise. He was speaking at a seminar last week organised by Thailand Institute of Justice on “Blockchain technology for transparency and accountability”.

SEC issues warning on renegade ICOs Bangkok Post 27th Oct 2018
The Securities and Exchange Commission (SEC) has warned the public about investing in nine digital tokens and initial coin offerings (ICOs) that have not been authorised by the market regulator. An SEC investigation found that there have been posts on social media platforms, such as Facebook and YouTube, publicly promoting investment in digital assets and ICO offerings.

Vietnam rolls out web monitor to control 'false information' Channel NewsAsia 1st Nov 2018
Vietnam said on Wednesday (Oct 31) it has set up a web monitoring unit that can scan up to 100 million news items per day for "false information", in a move that tightens its grip on internet freedom. The one-party state has rolled out a series of measures to boost its control of online communication, which critics say is aimed at punishing activists who use Facebook and YouTube as their main platforms.

Vietnam cyber law will guard against fake news, terrorism - security ministry The Star Online 31st Oct 2018
A Vietnamese cybersecurity law that global technology companies and rights groups have warned could undermine development and stifle innovation, will protect the country from increasing cyber threats, the security ministry has said. Legislators approved the law in June, overriding strong objections from companies like Facebook and Alphabet Inc's Google, rights groups and Western governments including the United States.

Firms urged to embrace mobile marketing Vietnam Net Bridge 29th Oct 2018
More than 400 executives representing local and foreign businesses, brands, agencies, publishers, and technology companies took part in the 2018 Mobile Marketing Association Forum held in HCM City on Friday to discuss the opportunities and challenges for enterprises from the explosive growth of mobile marketing.

Ministry of Information and Communications moves closer to establishing ICT Industry Department Vietnam Net Bridge 29th Oct 2018
The Prime Minister recently gave approval in principle for the Ministry of Information and Communications (MIC) to set up an ICT Industry Department to promote the production of made-in-Viet Nam terminal equipment and boost the electronics industry.

VN completes modernisation of banking sector Vietnam Net Bridge 29th Oct 2018
The State Bank of Viet Nam (SBV) on Thursday held a conference to close the Financial Sector Modernisation and Information Management System Project (FSMIMS).

IT application makes easier for tax payers Vietnam Net Bridge 29th Oct 2018
The processing time for tax credit claims has now been cut down by 75 percent compared to the procedures in 2015. This has been a result of the shift to information technology application, making it easier for tax payers to complete the paperwork.

Biotechnology to be made a focus in science and technology development scheme: conference Vietnam News 27th Oct 2018
Biotechnology will be promoted in the science and technology development scheme of Việt Nam, contributing to socio-economic development, said Dr. Phan Ngọc Minh, Vice President of the Việt Nam Academy of Science and Technology (VAST), at the nationwide biotechnology conference held on Friday in Hà Nội.