ASEAN SME NEWS

 
Latest ASEAN news

Thai farmers reap THB79.46m in exports from online business matching

Thai agricultural cooperatives clinched export deals worth 79.46 million baht (US$2.41 million) at the latest Department of International Trade Promotion (DITP) online business-matching event.

The July 29-30 event saw 22 companies from nine Asian countries – Laos, Myanmar, Vietnam, Singapore, the Philippines, China, Taiwan, Japan, and India – negotiate contracts with Thai farming co-operatives, the DITP said.

The main items ordered were Thai jasmine rice, white rice, milk tablets, dairy products, and processed beef products. Organic products were highlighted to tap strong international demand focused on health and the environment.

DITP said that to increase value of agricultural products, manufacturing processes should focus on quality, traceability, and certification by a reliable organisation.

The department highlighted the remarkable popularity of Thai milk tablets, citing their high nutrient value and lack of variety in foreign markets.

Online business matching in the first seven months of 2021 (January-July) matched 1,684 Thai traders with 962 foreign importers, yielding estimated total turnover of 13.86 billion baht this year, the DITP said. Agricultural sales accounted for 9.74 billion baht of that turnover.

The business-matching aimed to boost Thailand’s status as a world food producer while raising income levels in the agricultural sector, said DITP deputy director-general Somdet Susomboon.

Directly linking Thai cooperatives with foreign buyers would benefit local communities, he added.

Those who would like to join the business-matching can contact DITP Call Center 1169 or (02) 507 7825 or visit the Thaitrade.com Facebook page.

Source: The Nation Thailand

DITP taps Walmart as new sales channel for Thai exports

Walmart’s online platform has grown quickly to become the second-largest e-retail platform in the US after Amazon. The platform is likely to gain a greater share in the US market going forward.

The Department of International Trade Promotion (DITP) has invited nine Thai trade associations to talks with Walmart on increasing sales channels for Thai goods in international online markets such as the US, Canada, Mexico and Argentina. The aim of the talks is to boost the country's exports.

The nine associations joining the talks are the Thai Furniture Association, Thai Gifts Premiums & Decorative Association, Thai Housewares Trade Association, Thai Lifestyle Products Federation, Northern Handicrafts Manufacturers and Exporters Association, Thai Toys and Children Product Trade Association, Thai Subcontracting Promotion Association, Thai Autoparts Manufacturers Association, and Federation of Thai Industries (furniture and air-conditioning & refrigeration industries).

The move comes after Walmart recognised Thai businesses’ strength in producing high-quality products with a variety of designs, said DITP director-general Somdet Susomboon.

He added that to meet the US market's demand during the Covid-19 crisis, Walmart wants a large number of Thai products, including furniture, housewares, house decor, toys, automotive parts, electric appliances and air-conditioners.

He added that the department is working under Deputy Prime Minister and Commerce Minister Jurin Laksanawisit's policy to encourage businesses to use online trading systems to expand their sales in international markets amid the sluggish economic recovery due to the Covid-19 crisis.

"The department has achieved success in boosting the country’s exports in the first half of this year, with 14.67 billion baht generated from activities operated via online channels," he said.

"We have received a policy directive to speed up the operation in the second half of this year, to generate more revenue for the country."

Among activities in the first half of this year is "Yi Pua [Chinese for middlemen] Online Connect", which gathered over 52 foreign middlemen to purchase and distribute Thai products via several large online platforms from May 24-28.

"This activity generated contracts and exports worth 288 million baht, much higher than the original target of 100 million baht," Somdet said.

He added that the Thai Trade Centre in Chicago had invited retail giants in the US market to purchase and distribute Thai products via Walmart under the "Yi Pua Online Connect" as well.

Walmart’s online platform has grown quickly to become the second-largest e-retail platform in the US after Amazon. The platform is likely to gain a greater share in the US market going forward.

Products being focused on by Walmart Global Sourcing include automotive parts (sun visors and seat covers), furniture (beds and office chairs) and home decorations for Christmas and Easter. These are Walmart's best-sellers, with orders of 1-12 million items per year in each product category.

Source: The Nation Thailand

Thailand set to resume rice export to Iraq after seven years

Thai exporters are currently preparing to export 44,000 tonnes of 100 per cent white rice to Iraq for the first time in seven years after Baghdad had suspended the import of Thai rice.

Government spokesman Anucha Burapachaisri said on his Facebook post on Sunday that he expected the export in the middle of August this year, after which Thai exporters could gradually export more rice to Iraq.

"The government is ready to promote Thai exporters to open more rice markets in addition to the three main markets -- premium, general and niche -- which will be a positive sentiment for Thai rice farmers as well," he said.

He added that the government is also ready to promote Thai exporters to trade agricultural products in Asia, the Middle East and other regions.

"Prime Minister Prayut Chan-o-cha has instructed the Commerce Ministry to promote rice and other Thai agricultural products to increase their share in the global market and compensate for the slowdown in domestic consumption due to Covid-19 and the economic slowdown," he added.

ERC plans to develop free market for LNG trade

The Energy Regulatory Commission (ERC) plans to fully develop a free market for liquefied natural gas (LNG) trade in the next three years to ensure enough gas supply and fair prices.

LNG import had been monopolised by national oil and gas conglomerate PTT Plc since 2011. The Electricity Generating Authority of Thailand entered the market after being granted a shipping licence in 2019.

The ERC later granted licences to six other firms -- Electricity Generating Co, Gulf Energy Development Plc, B.Grimm Power Plc, Hinkong Co, PTT Global LNG Co and Siam Cement Group -- in line with the government's policy to open the LNG market.

ERC secretary-general Khomgrich Tantravanich said steps are being taken to pave the way for the free market on condition that the seven firms are required to sell gas to buyers who do not have long-term purchase agreements with PTT.

The long-term purchase is based on take-or-pay contracts which commit buyers to paying for the fixed amount of gas though their usage may be lower than the amount stated in the contracts.

The seven companies will be first allowed to import LNG from the spot market at 0.48 million tonnes this year, 1.74 million tonnes next year and 3.02 million tonnes in 2023.

Imported LNG will feed gas-fired power plants which produce electricity for use and sale among factories.

In the next step, LNG shippers will be given permission to import gas through long-term purchase contracts.

They will be eventually allowed to re-export gas.

"We want to see free competition under our regulations in order to ensure reasonable electricity prices'' said Mr Khomgrich.

He said at least two firms are likely to compete in the long-term LNG supply but declined to name them.

In 2019, 72% of natural gas supply came from domestic sources, including Malaysia-Thailand Joint Development Area in the Gulf of Thailand, 15% came from Myanmar and 13% from LNG imports.

Source: Bangkok Post

BCG model touted as solution for ailing economy

The bio-, circular and green (BCG) economy is likely the best model in the short term to revitalise a Thai economy battered by Covid-19 outbreaks, says Suvit Maesincee, the former higher education, science, research and innovation minister.

Based on Thailand's strengths in agriculture, its rich natural resources, diversity and physical geography, BCG is the best model to rehabilitate the Thai economy in the short term, said Mr Suvit.

The model aims to create inclusive growth in Thai society, he said.

"BCG development covers not only the grassroots economy, but also community businesses, small and medium-sized enterprises, large businesses, startups and smart farmers," said Mr Suvit, one of the architects of the Thailand 4.0 national strategy focused on added value, high technology and innovation. "BCG can also create development links from local to global, as well as align with the UN Sustainable Development Goals."

He said Thailand's BCG development should focus on five sectors: food, healthcare, sustainable energy, tourism and the creative economy.

BCG development ranges from local tourism promotion to calls for support from large businesses to use more domestic raw materials, as well as produce more domestic R&D and locally skilled personnel without awaiting foreign investment, said Mr Suvit.

"The economic model can improve security in terms of health, food supply, energy, income generation and job creation," he said.

Mr Suvit listed four reasons for the government to promote BCG.

The first reason is BCG is the only S-curve sector to retain high competitiveness given the nation's rich natural resources and diversity of biological resources. Its development could be based on Thailand's bountiful domestic raw materials without waiting for foreign investment or technology, unlike electric vehicles, robotics or aviation, he said.

Mr Suvit said many Thai companies already conducted research on how to create added value from sugar cane and rice.

The government should support a fund to help community businesses and startups upgrade their business because it can create value for other farm products such as tapioca, palm seeds and fruit, he said.

"Many communities have successfully developed businesses from Thai herbs and fruit, such as cosmetics from mangosteen and medicine from herbs," said Mr Suvit. "Those small businesses need the full support of the government to upgrade their quality standards and ensure better access to export markets."

Community tourism that offers homestays at farms and promotes local culture should be seriously developed and promoted because it can create jobs and generate income quickly once the pandemic is controlled, he said.

The second compelling reason for BCG is Thailand can ramp up food exports after the pandemic eases because climate change is expected to bring about food, energy and water shortages, said Mr Suvit.

If the government developed irrigation to cover the farm sector nationwide, with better water management, Thailand could supply more food to the world and generate more income for people in remote areas, he said.

BCG should also be able to narrow income disparities, said Mr Suvit. There are 18 clusters of BCG that can be developed in each region.

The final reason is the government should include BCG development in global forums such as the Asia-Pacific Economic Cooperation, which Thailand is scheduled to host next year, as well as other economic cooperation frameworks, he said.

Mr Suvit described Thailand's current BCG development structure as impractical and said it may fail to boost the economy in the short and medium term.

Prime Minister Prayut Chan-o-cha established two committees in October 2020 to handle BCG development: the BCG economy development committee and a management committee to drive the BCG economy, both chaired by the premier.

The first meeting of the latter in January approved a five-year strategic plan to promote the BCG economy, spanning 2021 to 2026. The government agreed to place the BCG economic model on the national agenda to speed up development because it could increase the value of farm products and the initiative as a whole is part of a global development trend.

Nine subcommittees were esta-­ blished to drive the country's BCG development.

The second meeting, on July 13, approved an action plan for BCG strategic development spanning 2021 to 2027.

However, Mr Suvit proposed the prime minister establish small teams to drive BCG development under his direct supervision. The small teams should set the development agenda and make proposals to the national BCG strategy committee, he said.

The National Economic and Social Development Council and Foreign Ministry should act as co-secretaries to the national BCG strategy committee, said Mr Suvit. The nine subcommittees should be cut to four working committees on food, healthcare, sustainable energy, and tourism and the creative economy, he said.

Source:  Bangkok Post

CTBC banking on Thai SMEs

Photo: Ms Chompoonoot said Thailand is a strategic market for CTBC in Asean.

Taiwan-based CTBC Bank feels Thai SMEs still have room to further develop

Taiwan-based CTBC Bank (CTBC), a major shareholder of Land and Houses Bank (LH Bank), sees high growth potential of Thai small and medium-sized enterprises (SMEs) in the long term, though the SME segment is still facing hardships amid the pandemic, LH Bank president Chompoonoot Pathomporn said in an exclusive interview with the Bangkok Post.

Raising shareholding

CTBC, Taiwan's largest privately held bank, has been seeking to increase shareholding in LH Bank. The Taiwanese bank is intending to acquire additional shares from key shareholders of LH Bank, Piangjai Harnpanij and Pairoj Paisarnsrisomsuk, totalling 10.99% of total shares with voting rights and total paid-up share totalling 4.2 billion baht.

Once the deal is successful, CTBC will have a total shareholding of 46.60%, up from the existing 35.62%. The transaction is subject to approval from regulatory authorities in Taiwan and the Bank of Thailand (BoT), according to LH Bank's recent notification to the Stock Exchange of Thailand.

Ms Chompoonoot said Thailand is a strategic market for CTBC in Asean. The Taiwanese bank also has a presence in Indonesia and the Philippines. The foreign major shareholder sees greater business opportunities in the Thai market, especially the SME segment.

Given the progress of SME development in Taiwan and CTBC for more than 10 years, CTBC sees Thai SMEs still have room to further develop, particularly new generation SME business owners.

The number of younger entrepreneurs and startups in Thailand has been increasing in line with more young people who want to be business owners rather than employees of large corporates.

"New generation entrepreneurs and startups are doing business based on knowledge and technology. With the knowledge-based economy of Taiwan, CTBC has been helping the bank with technology development to support local SMEs grow sustainably in the long run," she said.

SME standards

The business size of both Taiwanese and Thai SMEs is similar. Under strong regulations and long-term development, Taiwanese SMEs have high discipline and standards in business operations covering finance, accounting and tax. Thai SMEs need to develop and standardise business operations in such areas growing in the long term.

Given the Covid-19 impact, especially on local SMEs, some of the bank's SME customers can adjust operations and generate income positively. The bank has been analysing the survivors and found that accountancy is a key factor.

"We have a case study of a client who is a restaurant owner. The customer pays interest on income and expense accounts and cut operating costs amid the pandemic. At the same time, the customer has been moving to the delivery and digital platform. With the adjustment, the client can keep positive income and survive," she said.

Ms Chompoonoot said the bank has studied surviving SME cases in depth as a guidance for other SME customers, besides offering them financial assistance through debt restructuring. For the second half of this year, the bank will focus on helping customers overcome the difficult situation in both financial and non-financial areas.

Apart from debt restructuring, LH Bank has supported additional liquidity to SME clients through the BoT's soft loan scheme. As well, some customers have been demanding a soft loan for business recovery in the fourth quarter of the year.

LH Bank has offered a three-month debt holiday covering both principal and interest for SME customers suffering from the government's measures to contain new infections. The debt moratorium from July 19 to Aug 15 is in line with the BoT's measure opening financial institutions to suspend debt payment for SMEs for at least two months.

Growing trade finance

Given CTBC's expertise in trade finance, LH Bank has gradually expanded the business for the past few years with know-how from the major shareholder. For 2020, the bank showed positive growth of the customer base in this business segment at 30% from the previous year.

The bank expects to maintain the double-digit growth rate this year against the backdrop of rebounding exports in accordance with global economic recovery.

Moreover, Ms Chompoonoot said the bank needs to improve in several areas to facilitate trade finance business expansion, especially technology and digital development.

Trade financial business requires a lot of operational and documentary processes, so these need to be shortened through digital technology offering customers more convenience and efficiency.

"Despite the pandemic, we've been going forward on the existing development and investment plan in preparation for business operation after the outbreak ends and in the longer term," she said.

First-half earnings

Amid the Covid-19 outbreak, the bank still pays attention to helping customers rather than business expansion. However, the bank is satisfied with results for the first half of this year. Despite booking a drop in net profit, the bank showed positive growth in some financial targets and business segments.

LH Financial Group (LHFG), the holding company of LH Bank, announced net profit for the first half at 1.03 billion baht, down 21.93% from the same period of last year, due to the decrease in gains on investment and dividend income and the increase in other operating expenses.

The group recorded net interest income growth of 3.9% in the first half this year, on a year-on-year basis, while net fees and service income increased 25.8%.

As of June, LH Bank booked total loan growth of 5.8% from the end of last year, mainly from conglomerate and corporate loan growth at 12.3% and retail loan growth of 7.3%. But commercial and SME loans dropped 2.6%.

Ms Chompoonoot said the Taiwanese customer base in Thailand is a key segment to facilitate corporate loan growth and the business has continued to grow.

Service quality, forging relationships with foreign customers and responding to their requirements are the key reasons for expanding business in the Thai market.

"The Taiwanese seem cost-conscious investors, while other banks offer them lower interest rates than LH Bank. We've continued to build up the customer base with service quality, understanding and building relationships with them. Pricing is a secondary factor," she said.

Focusing on home loans

Because Land and Houses (LH) Group, a local large real estate developer, is a major shareholder in LH Bank, mortgage loans are another core business of the bank. Even though LH Bank suspended housing loan expansion for the past few years to restructure internal processes, the bank has expanded business for the past few years and shown positive growth.

As of June, the bank booked housing loan growth of 7.7% from the end of last year. The growth rate largely stemmed from upper-income homebuyers who still have high purchasing power despite the pandemic.

For housing loan product, the bank has concentrated on residential projects priced at least 5 million baht.

Meanwhile, homebuyers who buy property priced around 20 million baht are the key segment contributing mortgage loan growth in the first half this year. Besides the strong purchasing power of this customer segment, promotional campaigns are a key factor attracting upper-income homebuyers.

Digital channel

Digital banking is another key area that the bank plans to grow. LH Bank has been upgrading investment features on its mobile banking app and the new version is scheduled to launch at the beginning of next year.

Investment features development would respond to the requirements of the bank's deposit and investment customer base. The bank plans to offer a full range of financial advisory services on the digital platform, generating better fee-based income from the business area.

The bank also aims to maintain brick-and-mortar branches at the existing number of 108 and adapt traditional outlets to advisory centres rather than offering transaction banking services. Meanwhile, banking transactions will be migrated to the digital platform in line with the changing lifestyles of consumers in the digital era.

Source: Bangkok Post

Cambodias' SME goods eyed for Amazon

The Cambodian business community is eager to work with small- and medium-sized enterprises (SME) across the country to list a curated selection of high-quality offerings on Amazon.com, the well-known US e-commerce platform.

Cambodia Chamber of Commerce (CCC) director-general Nguon Meng Tech said the two sides discussed the mechanisms for exporting Cambodian products to the US via Amazon, the preparation of quality and standard requirements, and the use and necessary particulars relating to barcodes.

“I have advised all Cambodian entrepreneurs who are producers to get in touch with amazon.com directly to benefit and set standards that meet their requirements,” he told The Post on August 11. “We can sell our products on the Amazon.com platform, which is the largest online system in the world.”

Bilateral trade between Cambodia and the US remained resilient in the first half of 2021, clocking in at $3.8402 billion, or a 32.8 per cent surge from the $2.8917 billion booked in the same period last year, according US Census Bureau data.

Cambodian exports to the US during the January-June period were valued at $3.6376 billion, climbed 32.4 per cent year-on-year, while imports were to the tune of $202.6 million, rising 40.3 per cent, on August 7.

 

Author: Thou Vireak

Images credits: AFP

Source: The PhnomPenh Post

For full article, please read here.

Original published date: 11 August 2021

 

Thailand offers tax incentives to boost production technology

The Ministry of Industry of Thailand expects Thailand to become a leading country with robotic and automation technology by 2026, following investments in robot-based production systems. The country is emphasising robotics, automation and system integration (SI) development in a move to eventually produce technologies of its own. During this period, the investment value for automation and robotic systems has been around 116 billion baht.

There are also 74 SI-related businesses registered with the Center of Robotic Excellence (CORE). According to the ministry, 25% of factories use automation and robotics technology. More domestic production of robots will also reduce imports of robotic technology by 12%. The government has been promoting robotic and automation systems under the Industry 4.0 scheme (the fourth industrial revolution), which encourages factory operators to blend digital technology with data analysis.

At present, only 2% of Thai industries are considered to be Industry 4.0 using advanced technology in their operations, according to the ministry. Some 28% are in Industry 3.0 with less high technology and 61% in Industry 2.0. Only 9% are in the stage of Industry 1.0, the lowest level of technological development.

Officials believe the ongoing Covid-19 pandemic, which has led to a rise in remote work and automation to avoid crowding at factories, will encourage many countries to adopt more advanced technology. The Board of Investment is offering 50% corporate income tax reduction lasting three years to promote investment in technology upgrades and production efficiency improvements.

Source: Bangkok Post

Read the full article here

Industry Ministry seeking to build gaming industry ecosystem

The Indonesian Ministry of Industry has said it would continue to encourage the development of the local gaming industry by strengthening its value chain and tapping its current potential.

"The effort aims to make the Indonesian gaming industry more competitive globally through a good content industry ecosystem," Director General of Metal, Machinery, Transportation and Electronics Industry (ILMATE) at the Industry Ministry Taufiek Bawazier said at the 'Proud of Games Made in Indonesia' webinar on Tuesday.

The ministry has tried to strengthen the value chain of the content industry by involving several supporting sectors, such as the comics, animation, film, gaming, music, and toy industries, as well as coordinating with related ministries, state-owned enterprises, and private players, he informed.

“Industries based on intellectual property (IP) can collaborate in products and IP development invested by the government and private stakeholders," the director general said in a written statement.

"Furthermore, Indonesia has many potentials. There are 52 million Indonesian gamers. Currently, Indonesia is the largest gaming industry market in Southeast Asia and is ranked 17th in the world," Bawazier informed.

According to data provided by game-focused market research and analytics firm Newzoo, the revenue of the gaming industry in Indonesia increased significantly in 2016-2019. In 2019, Indonesia earned US$1.084 billion from the gaming and eSports industry, the data has shown.

 

 

Source: Antara News

Reporter: Risbiani Fardaniah, Uyu Liman

Editor: Rahmad Nasution

Original published date: 04 August, 2021

 

Read full article here

UAE keen to invest in Indonesia's sugar industry: ministry

The United Arab Emirates (UAE) has expressed interest in investing in Indonesia's farming sector, specifically sugarcane plantations and the sugar industry, secretary general of the Agriculture Ministry, Kasdi Subagyono, informed on Monday.

"We have several offers, like from the United Arab Emirates, where they are offering to develop their business in Indonesia related to sugarcane plantations, then sugar industry, and its derivative industries," he said during a discussion on the ease and acceleration in conducting business in the farming sector post the job creation law.

One of the Agriculture Ministry's priorities is to provide an opportunity for and support the conduct of business in the farming sector to attract investor interest, he added.

The Job Creation Law offers a business licensing mechanism using a risk-based approach, he noted.

This approach provides risk analysis to potential investors and also assistance in business development to entrepreneurs, he said.

According to Subagyono, Indonesia's farming sector is quite promising and has proven to be resilient, with a growth record that has remained positive throughout the COVID-19 pandemic.

This is especially impressive when the positive growth of the farming sector is compared to the negative growth of other sectors, he said.

Data from the Central Statistics Agency (BPS) shows the farming sector recorded its highest growth of 16.24 percent in the second quarter of 2020.

 

 

Source: Antara News

Reporter: Aditya Ramadhan, Fadhli Ruhman

Editor: Suharto

Original published date: 02 August, 2021

 

Read full article here

Indonesia Begins Construction of SE Asia's Largest Solar Power Plant

Indonesia is stepping up its efforts to reach clean energy targets with the construction of a 145 megawatt (MW) floating solar power plant, set to be the largest in Southeast Asia.

The project, with constructions underway in West Java, secured financing from state utility  company Perusahaan Listrik Negara (PLN) and Masdar of United Arab Emirates on Tuesday.

Solar may be Indonesia's best shot of reaching its short-term clean energy target, an energy expert told the Jakarta Globe. The government aims to have 23 percent of energy coming from new and renewable sources by 2025, but by the end of last year, it was only halfway to the target.

Director General of New Renewable Energy and Energy Conservation from the Ministry of Energy and Mineral Resources, Chrisnawan Anditya, said that one of government’s priorities is indeed solar power plants. Besides being fast to create and having a high development potential in the tropical archipelago, they are competitive in price.

In fact, solar panel prices have dropped 60 percent in the last 6 years. With financing schemes from solar developers, Indonesians can even order home panels to be installed for free.

While solar power is now the cheapest it ever was — and the fastest growing renewable energy source worldwide — as of May last year, it  amounted to less than 6 percent of Indonesia’s total power generation. The country still depends largely on coal and fossil fuel-fired plants, accounting to some 85 percent of national electricity sources.

On the other hand, the true potential of solar power remains untapped. The country has the potential to generate 207 gigawatts (GW) of solar power, but only around 0.09 GW or less than 0.1 percent has been utilized. The National Energy Policy (KEN) aims to increase solar power generation to 6.5 GW in 2025 and 45 GW in 2050.

The urgency to shift to clean energy isn't just than a matter of fulfilling the 2025 target or the Paris Agreement, to which Indonesia is a signatory.

Today’s atmospheric carbon levels are the highest they have been in hundreds of thousands of years, leading to catastrophic rise in global temperatures.

Lowering carbon emissions cannot be done without reforms within the power sector, which is responsible for nearly two-thirds of emission growth globally.

 

 

Source: JakartaGlobe

Author(s): Grace Nadia Chandra, Kezia Kho

Original published date: 04 August, 2021

 

Read full article here

ASEAN for Business: Bimonthly Bulletin July 2021 Edition

ASEAN Model Contractual Clauses for Cross Border Data Flow mechanism (MCCs)

Digital data governance has become increasingly crucial in ASEAN. Appropriate regulation is needed to facilitate and protect cross-border data flow, which has been intensifying as the region is becoming more economically integrated and digitized. Recognizing this need and supporting the economic integration and digital transformation in the region, the ASEAN Digital Ministers has approved ASEAN Model Contractual Clauses for Cross Border Data Flow mechanism (MCCs) on 22 January 2021.

MCCs provides contractual terms and conditions that may be included in the legally binding agreements between parties transferring personal data to each other across borders. MCCs aims to harmonize cross-border data flow standards in the region and increase ASEAN Member States (AMSs) capacity in accelerating digital transformation agenda and building a trusted, transparent, and accountable digital environment for businesses. MCCs is developed based on the ASEAN Framework on Personal Data Protection which derives its principles upon the principles of the APEC Privacy Framework or OECD Privacy Guidelines, which lends itself to be interoperable with other global data protection systems such as APEC’s Cross-Border Privacy Rules (CBPR) and EU’s General Data Protection Regulation (GDPR).

The Obligations under the ASEAN MCCs

  • The obligations in ASEAN MCCs are derived from the ASEAN Framework on Personal Data Protection (2016) that are in line with global best practices. The obligations encompass key principles of data protection, including:
  • Providing Legal Basis for Collection, Use, and Disclosure: The Data Exporter warrants that the data is collected, used, disclosed, and transferred in a manner aligned with prevailing laws in AMS. In the absence of such law, Data Subject shall have been notified and given consent to the purposes, where and reasonable and practicable.
  • Baseline Data Protection Clauses: The Data Importer will process the data in accordance with the baseline clauses in the ASEAN Framework on Personal Data Protection (2016) principles related to Collection, Notification, Purpose, Accuracy, Security Safeguards, Access and Correction, Transfers, Retention, and Accountability.
  • Data Breach Notification: The Data Importer shall notify the relevant authorities and Data Exporter as soon as it becomes aware of any loss or unauthorized use, copying, modification, disclosure, destruction of, or access to, personal data under the contract.
  • Due Diligence: Data Exporters are encouraged to conduct due diligence on other parties to meet the requirements of the MCCs. Data Importers are also encouraged to conduct due diligence on them if there is the onward transfer of the data by the Data Importers to third-party importers.

Using the MCCs

The private sectors in AMS may adopt the MCCs, in the transfer of data to other parties in other AMS or in non-AMS. To adopt the MCCs, the private sectors must include the key data protection obligations in their commercial contracts between the parties to the data transfers. The adoption of MCCs is voluntary for business entities in ASEAN, and the parties may modify the contractual clauses as long as it is aligned with the principles in the ASEAN Framework on Personal Data Protection (2016). The parties may also add clauses, as mutually agreed, that are specific to their business process or industry sector, including clauses on specific rules imposed by the sector’s regulatory authority. 

Besides MCCs, private sectors are also free to use any other valid data transfer mechanisms recognized by some jurisdictions within ASEAN, including, but not limited to, self-assessment based assurance that data transferred from overseas is protected to a comparable level of protection, binding corporate rules, certifications, which may include ISO series relating to security and privacy techniques, APEC Cross Border Privacy Rules, and Privacy Recognition for Processor Systems, or other legally recognized mechanisms.

The ASEAN MCCs provide two modules for use in two common transfer scenarios, as follow:

  • Controller-to-Processor Transfer: For use by the Data Exporters who transfer data to Data Importers who are contractors or vendors, who will process data on behalf of the Data Exporters. This also includes onward transfers from data processors to the downstream data processor.
  • Controller-to-Controller Transfer: For use when the Data Exporter transfers data to the Data Importer for its own purposes and may have full control of the data upon receipt.

Benefits of ASEAN MCCs for Businesses

  • Ready-to-use flexible template: MCCs reduce length of negation for contracts and are consistent with ASEAN PDP Principles.
  • Easy ASEAN Adoption: No requirement for new laws and contractual disputes regarding MCCs may be resolved in civil courts. All private sectors, including SMEs may use MCCs.

The full text of the ASEAN MCCs is available at this link.

*****

 Other Recent Updates 

One-stop SME information portal for international oriented business launched

The ASEAN Coordinating Committee on Micro, Small, and Medium Enterprises (MSME) launched ASEAN Access in Bangkok on 16 June 2021. ASEAN Access is a one-stop business information gateway for international-oriented businesses to expand their market outreach in ASEAN and beyond.  The web portal aims to provide trade-related information and market opportunities by connecting businesses to service providers in areas of distribution, transportation and logistics, market research, and consultancy on intellectual properties, laws, and regulations.  The ASEAN Access is administered by the Office of SMEs Promotion Thailand, developed with the support of the Federal Government of Germany and technical assistance from the German Agency for International Cooperation (GIZ). 

ASEAN-EU Comprehensive Air Transport Agreement (AE CATA)

ASEAN and the European Union (EU) and its Member States have concluded the negotiations on the ASEAN-EU Comprehensive Air Transport Agreement (AE CATA) at the Extraordinary ASEAN-EU Senior Transport Officials Meeting held virtually on 2 June 2021. The agreement facilitates the airlines of ASEAN and the EU to fly any number of services between both regions, and also fly up to 14 weekly passenger services and any number of cargo services via and beyond to any third country. The agreement is expected to rebuild air connectivity between ASEAN and Europe in the post-COVID 19 pandemic and open new growth opportunities for the aviation industry in ASEAN and the EU.

*****

The 30th Meeting of the ASEAN Director-General of Customs

The 30th Meeting of the ASEAN Customs Directors-General was held virtually on 8-10 June 2021. The meeting commended the achievements and work progress in the completion of the Strategic Plans of Customs Development (SPCDs) 2016-2020, which has been 99% implemented, and placed Customs as the body with the highest output delivery of 78% under Characteristic A, A Highly Integrated and Cohesive Economy, as reported in the final report of the Mid-Term Review of the ASEAN Economic Community Blueprint 2025. The meeting also welcomed the Live Operation of the ASEAN Customs Declaration Document (ACDD), which started on 31 December 2020 in Cambodia, Myanmar, and Singapore, and followed by Malaysia and Thailand on 31 March 2021. The meeting is looking forward to the Live Operation in the remaining AMS within 2021.

*****

ASEAN Workshop on the Circular Economy

The ASEAN Secretariat conducted an online workshop on Circular Economy (CE) on 30 June 2021, to gather relevant sectoral bodies and stakeholders, including the ASEAN Business Advisory Council and the Joint Business Councils, to discuss the draft Framework for Circular Economy for the ASEAN Economic Community (AEC). The Framework is hoped to guide the work of the AEC on CE, by identifying strategic priorities and priority initiatives, and exploring cross-pillar and cross-sectoral collaborations. The strong support of stakeholders, particularly the private sector, would be crucial in ensuring ASEAN’s transition towards CE. The draft Framework was developed with the Economic Research Institute for ASEAN and East Asia (ERIA).

*****

Unlocking RCEP for Business Webinar Series: Trade in Goods

The ASEAN Secretariat, in collaboration with the East Asia Business Council, organised a webinar on RCEP on 26 July, focusing on goods related chapters of the Agreement. The topics discussed included tariff liberalisation, non-tariff measures, and trade remedies. Noting the importance of SMEs for the region’s economy, panellists highlighted the importance of deeper engagement with the SMEs and recommended the ASEAN Secretariat to hold more sessions involving regional and national business councils. The webinar marked the launch of a series of webinars the ASEAN Secretariat will be hosting throughout the year and the video recording of the first session is available at this link. 

 *****

Upcoming Events

  • ASEAN Senior Economic Officials’ Meeting 3/52 (SEOM) (2 - 4 August 2021)
  • Senior Economic Officials Meetings – Dialogue Partners Consultations (5,11,16 August 2021)
  • 12th ASEAN Connectivity Symposium: Promoting Recovery and Resilience through Connectivity (26 August 2021)
  • 53rd ASEAN Economic Ministers’ (AEM) Meeting (9 September 2021)
  • ASEAN Economic Ministers – Dialogue Partners Consultations (14 - 15 September 2021)

 Click here for previous editions of the ASEAN for Business Bimonthly Bulletin

We use cookies to improve our service for you. You can find more information from our

privacy policy

Accept cookies