[US-ASEAN] President's Newsletter: June 2019

Dear Members,

For those of you observing, I hope you had a wonderful Eid!

You will notice a new look to this monthly message, which I am pleased to present to you in the same month we celebrate our 35th anniversary at our annual gala, as well as my own ten-year anniversary with the Council.

As usual, I will continue to share my selection of top developments in ASEAN and advocacy efforts the Council has advanced. To see our full spectrum of advocacy activities and comprehensive analysis in industry- and country- specific updates, I encourage you to visit the links below.

Thailand will see a new prime minister and government assume official duties. On June 11, Prime Minister Prayut Chan-o-Cha received a royal endorsemen t. On June 5, Thailand’s Parliament elected current Prime Minister Prayut Chan-o-cha as Prime Minister for the next government, an outcome that did not surprise many but was not assured only a few weeks ago. Prime Minister Prayut received 251 out of 500 members of the lower House of Representatives and all but one of 250 votes in the Senate. Next, the new prime minister must form a Cabinet and deliver a policy statement to Parliament outlining all coalition party views, which must take place within 15 days of an official swearing-in ceremony. The exact dates are not yet clear but are expected by July. The Council will keep members updated.

Official results from the General Elections Commission (KPU) of Indonesian elections confirm President Joko “Jokowi” Widido’s victory. Runner-up, former General Prabowo Subianto has contested the result of this election and has taken his argument of fraud to the Constitutional Court. The Constitutional Court will hold a preliminary hearing on June 14 and make a final ruling by June 28. The current belief is that the suit is unlikely to overturn the result. A small cabinet reshuffle may happen after the Constitutional Court ruling on June 28 and is likely to precede a more substantive reshuffle closer to the October 20 swearing-in of the President and Vice President. We have reason to believe that new economic-focused ministries may be formed as part of a restructuring of the Indonesian government for President Jokowi’s second term.

In the Philippines, May 13 midterm Congressional and local elections resulted in sweeping wins for supporters of President Rodrigo Duterte in the Senate, without a single seat won by a candidate from the opposition “Ocho Derecho” party. President Duterte’s allies also retained control of the House. Observers expect the Congress to focus on a second tax reform package and possibly attempt to shift the nation’s government to a federal system, which would require amending the country’s constitution. The move to a federal system would help distribute wealth to the countryside more equitably. The 18th Congress will convene July 22.

The Council just wrapped up its annual mission to the ASEAN Customs Directors General Meeting, which took place in Vientiane, Laos. The Mission is a centerpiece of our Customs and Trade Facilitation Committee and focused this year on opportunities to leverage technology and data in facilitating cross border e-Commerce and addressing anti-Illicit trade and counterfeit goods. Additionally, delegates discussed industry participation in the Mutual Recognition Agreement around Authorized Economic Operator Programs, supporting the WTO Moratorium on Customs Duties on Electronic Transmissions.

We will also soon launch the fourth edition of “ASEAN Matters for America” in partnership with the East-West Center and ISEAS-Yusof Ishak Institute. The latest trade data and trends in the 2019 edition of “ASEAN Matters” reinforce ASEAN’s role as a partner for American economic growth, now and into the next decade. It also makes a strong case for why the United States matters for ASEAN. We look forward to sharing the exact findings with you in the coming days.

All the best,
Alex