Regional Round-Up

CAMBODIA

Looking Back: 2022 and Gazing Into: 2023

In 2022, as part of its efforts to improve the economy of Cambodia, the Royal Government of Cambodia continued to work on relevant regulatory developments.

Some of the key developments relate to the enactment of a new law on food safety, the amendment of the Law on Commercial Enterprises and the Law on Commercial Rules and Register, and further development of the construction industry and pension scheme.

• Draft law on cybercrime;
• Draft law on the protection of private data;
• Draft law on commercial contracts;
• Draft law on access to information;
• Draft sub-decree on the formalities and procedures of food inspection and seizure;
• Draft prakas on the management of business licence for accounting and auditing;
• Draft guideline on digital sale of insurance; and
• Draft of regulations related to the government securities business of the accredited custodian agent.

• Regional Round-Up 2022: Cambodia

CHINA

Looking Back: 2022 and Gazing Into: 2023 (will be available at a later date)

INDONESIA

Looking Back: 2022 and Gazing Into: 2023

As Indonesia continues to recover from the COVID-19 pandemic in 2022, the Government issued and updated policies in a number of different areas. Among the key notable developments in Indonesia are the passing of Indonesia’s personal data protection law, the enactment of a regulation on intellectual property-based financing and peer-to-peer lending, and the issuance of a regulation that the Indonesian Government hopes will accelerate the development of renewable energy in Indonesia.

On 30 December 2022, the Government issued Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation ("Government Regulation") to revise Law No. 11 of 2020 (more commonly known as the Omnibus Law). The Government Regulation amended several laws from different sectors, which were amended by the Omnibus Law. The amended sectors of the Omnibus Law are employment, tax, water resources, and halal products. While most of the amendments are not drastic, there are major changes to some laws, for instance No. 13 of 2003 on Manpower, and No. 33 of 2014 on Halal Product Assurance. We expect further developments on this front in 2023. Click here for more information.

From the technology sector, the Personal Data Protection Law ("PDP Law") may also be subject to alterations or updates. Since the PDP Law stipulates a two-year transitional period beginning 17 October 2022, the majority of its provisions will not be implemented immediately. During this two-year transition period, it is likely that the Government will evaluate and implement potential changes or updates to the Law. Click here for more information.

Last but not least, it is important to monitor the newly promulgated Law No. 1 of 2023 on the Indonesian Criminal Code, which took effect on 2 January 2023. This Law replaces the previous Dutch colonial-era Criminal Code. Even though the regulation will enter into force three years after 2 January 2023, we anticipate additional information regarding this regulation following its promulgation. Click here for more information.

Full Report

• Regional Round-Up 2022: Indonesia

LAO PDR

Looking Back: 2022 and Gazing Into: 2023

In 2022, while Laos faced the pandemic’s economic consequences,  the Lao Government reinforced key elements of its economic strategy, and hinted that the pandemic had encouraged a shift in its economic emphasis. The Government released various legal and regulatory issuances to enhance the socio-economic status of the country. 2022 saw the issuance of (i) the Notice on  Modifying the Country's Minimum Monthly Wage; (ii) the Decision on the Exchange Services of Commercial Banks and Representative Exchange Shops; and (iii) the Decree on Technology Account.

In addition, the Government  has also collaborated with the private sector to promote and develop a tax payment system through the M-Money mobile phone system in order to strengthen the country's digital economy, reducing the use of cash in the collection of tax revenues and the expenditures of the Ministry of Finance ("MOF").

The Bank of Lao PDR ("BOL") also issued a notice to BOL's authorities in all departments nationwide, public commercial banks, joint commercial banks, private banks and branches of foreign commercial banks to announce the implementation of  the Amended Law on Foreign Exchange Management in their respective work fields.

The position of Lao PDR as a landlocked country has prompted the Government to turn the country into a "land-linked" nation. This is achieved by the introduction of significant rail infrastructure and routes connecting Lao PDR to southwest China, as well as Vietnam and Thailand. Consequently, light manufacturing zones are springing up and the tourism industry is booming.

In order to make the currency exchange service effective and balance the demand and the supply of foreign currencies in the country, BOL issued the Decision on Currency Exchange Services to set out the principles and regulations relating to currency exchange services of commercial banks, which aims to foster the ability to adapt to the economic situation in each period and help in maintaining the stability of the national currency.

With the strong growth and development of digital technologies such as big data, the development of digital government, digital economy and digital society, Lao PDR also intends to strengthen and promote its digital system with the recent publication of the Draft Amendment of the Law on Electronic Transactions in the Official Gazette for public comments. 

• With inflation surging to 34% in Lao PDR, many households are struggling to pay for their basic necessities, and some government employees are taking second jobs or quitting their government jobs to earn more in the private sector. Amidst this development, the Lao Government has issued regulations from time to time to control inflation and stabilise and centralise the national currency;

• The Lao Government has announced a full reopening of tourism, allowing persons to enter the country without the need to test for COVID-19, in accordance with Notice of Prime Minister’s Office No.1914/PMO dated 23 December 2022 ("Notice"). The Notice eliminates the requirements to: (i) present  vaccination certificates when entering the country; and (ii)  test for COVID-19 with a rapid test kit (i.e  ATK or Antigen Test Kit) within 48 hours before leaving the country of origin for Lao citizens, foreigners, and stateless persons who will travel to Lao PDR; and 

• Deputy Prime Minister Sonexay Siphandone has been elected as the new Prime Minister, succeeding Phankham Viphavanh. Sonexay, the 9th Prime Minister of Lao PDR, garnered the most votes at the 4th Ordinary Session of the National Assembly.

• Regional Round-Up 2022: Laos

MALAYSIA

Looking Back: 2022 and Gazing Into: 2023

The recent downtrend of daily COVID-19 cases has led to the gradual opening up of businesses and workforce returning to offices in Malaysia. 2022 saw various amendments to the law and new regulations coming into force, and some notable case law developments and enforcement trends are as follows:

• new licensing requirement on the provision of cloud services;
• extension of Part IV of Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 to initial exchange offerings, digital custodians and digital asset advisors, and explicit broadening to equity crowdfunding, crowdfunding, peer-to-peer lending and other recognised market operator platforms;
• new guidelines on personal data protection notices under the Personal Data Protection Act 2010;
• new edition of the Communications and Multimedia Content Code;
• the Malaysian Franchise (Amendment) Act 2020;
• the new Geographical Indications Act 2022;
• the Malaysia Digital Initiative which is a new digital economy initiative that replaces the Multimedia Super Corridor agenda; and
• case law trends on how the Malaysian courts have dealt with insider trading under the Capital Markets and Services Act 2007.

Gazing Into: 2023

Following a change of Government in November 2022, Malaysia expects to see significant developments in several areas of law including the following:

• Energy & natural resources;
• Technology, media & telecommunications;
• Data protection;
• Employment & benefits; and 
• Competition & antitrust.

Click on the link below for the full report which provides summaries of the key legal developments related to the above areas.

• Regional Round-Up 2022: Malaysia

MYANMAR

Looking Back: 2022 and Gazing Into: 2023

After two years of the military coup, the State Administration Council (SAC) has made several changes in policy in the administrative and business sectors. 

The national state of emergency was initially set to be lifted by 31 January 2023. The caretaker government led by the State Administration Council (SAC) would have then completed its two-year term and be required to transfer its powers to the Natiional Defense and Security Council (NDSC) according to the Constitution.

However, it has been announced that the national state of emergency will be extended to another six months. 

It is highly likely that political instabilities in Myanmar will continue, increasing not only tension in the political landscape, but also negatively impacting the means and ways of doing business and investment in Myanmar.

Full Report

Click on the link below for the full report which provides summaries of the key legal developments related to the above areas.

• Regional Round-Up 2022: Myanmar

PHILIPPINES

Looking Back: 2022 and Gazing Into: 2023

2022 marked a year of significant transitions in the Philippines. Not only did the Philippines gradually transition from the stricter quarantine regulations brought about by the spike of Omicron COVID-19 cases at the beginning of the year to less restrictive measures, it also ushered in a new administration on 30 June 2022 headed by President Ferdinand Marcos Jr.  Apart from these, there have also been much-needed substantial legal developments in the areas of corporation law and foreign direct investments aimed at easing foreign equity restrictions and, in part, as economic recovery measures from the effects of the COVID-19 pandemic.

Additionally, significant strides have also been made in the areas of sustainability, banking and finance, and intellectual property.

With a new President taking the helm of one of the hardest-hit economies in the COVID-19 era, novel solutions are being proposed and executed by policymakers in the Philippines to ease the burdens shouldered by the low-income public, particularly in the areas of energy & resources and tax. Measures are likewise being explored and implemented in the fields of technology, media, and telecommunications to regulate the growing e-commerce market and protect the public from cyber-crimes and digital frauds. Regulators in the corporate sector will also begin introducing new developments in the areas of banking and finance as well as sustainability.

• Regional Round-Up 2022: Philippines

SINGAPORE

Looking Back: 2022 and Gazing Into: 2023

Staying focused on fulfilling Singapore's commitments under the United Nation's 2030 Sustainable Development Agenda and Paris Agreement, in 2022, the Singapore Government continued to roll out various measures and incentives to help businesses and its people transition to sustainable development and sustainable living. According to a study by McKinsey (as reported in January 2022), an extra S$3.5 trillion is required each year for the world to get to net-zero in 2050. Therefore, financing is critical to support Singapore's commitment to achieve net zero emissions by 2050.

To this end, the Singapore Green Bond Framework was launched to lay the foundation for the issuance of green bonds by the Singapore Government to finance expenditures in support of the Singapore Green Plan 2030, such as green infrastructure projects. 

To boost investors' confidence on sustainable financing products, the Monetary Authority of Singapore (MAS) has tightened the disclosure and reporting guidelines for retail ESG funds. Investors and financial institutions now have access to better quality environmental, social and governance ("ESG") data on ESGnome, an online disclosure portal set up by Singapore Exchange (SGX) to improve ESG reporting by listed issuers. 

Singapore endeavours to grow our digital economy and maritime industry while advancing our climate change agenda. So, environmental sustainability standards are introduced for data centres,  the Green Ship Programme and Green Port Programme were enhanced to incentivise the use of low or zero-carbon marine fuel and a legislative framework was put in place to govern and facilitate charging of electric vehicles.  

The "social' and "governance" elements in ESG are not overlooked as directors and chief executives of companies are to observe the principles in a new Code of Practice to prevent lapses in workplace safety and health and companies are required to keep a register of nominee shareholders. 

As part of Singapore's continuing efforts to further enhance its capabilities and attractiveness as an international dispute resolution and debt restructuring hub, a new framework for conditional fee agreements was introduced and the Singapore International Commercial Court (SICC) is given jurisdiction over international restructuring and insolvency matters.

Even before the "crypto winder" descended on us in mid-2022, MAS has cautioned that cryptocurrency trading is highly risky and not suitable for retail investors. A set of guidelines outlining restrictions on promoting digital payment tokens (incl. cryptocurrencies) to the Singapore public were issued. As the cryptocurrency market suffered a setback in 2022, Singapore emerges as the crypto restructuring hub. The Singapore Courts granted the first reported freezing injunction against "persons unknown" for stolen cryptocurrency assets.  Separately, another landmark decision by the Singapore Courts recognised non-fungible tokens (NFTs) as property.

The following developments took place in line with the Singapore IP Strategy 2030, a 10-year blueprint to strengthen Singapore's position as a global intangible assets and intellectual property ("IP") hub:

• new simplified track for IP litigation;
• legislative changes enabling a more efficient and business-friendly IP registration system;
• enhanced IP border enforcement measures.

To combat the proliferation of online scams, banks and financial institutions are required to implement security measures to deal with scams and e-commerce marketplaces are given safety ratings.  In addition, cybersecurity service providers are subject to a new licensing framework.

Other key areas with important developments include:

• New converged Code of Practice for Competition in the provision of telecommunication and media services was issued.
• Tax incentive schemes for family offices in Singapore were enhanced.
• New guidance to financial institutions on assessing responsible artificial intelligence (AI) use was issued.
• Trade sanctions were imposed on Russia in response to its invasion of Ukraine. 

Gazing Into: 2023

Following from the 26th Conference of Parties (COP26) to the United Nations Framework Convention on Climate Change ("UNFCC") in 2021, Singapore announced in October 2022 that it will raise its national climate target to achieve net zero emissions by 2050. This is part of Singapore's Long-Term Low-Emissions Development Strategy ("LEDS") document to the UNFCC.

Among other things, the following key areas will be actively explored to support Singapore's LEDS:

• Leveraging low-carbon hydrogen as an alternative fuel and industrial feedstock. The National Hydrogen Strategy was announced to support this.
• Strengthening collaborations with international partners on carbon markets, green finance and low-carbon technologies. A global carbon marketplace based in Singapore was launched to provide for secure and reliable high-quality carbon credit trading.
• Implementing an effective carbon tax regime. Legislative changes to the Carbon Pricing Act 2018 were passed by Parliament to increase carbon tax rate progressively from 2023 to 2026.
• Scaling up use of solar power as renewable energy alternatives. There have been active developments in the area of solar energy, which remains Singapore's most promising renewable energy source.

In September 2022, the Monetary Authority of Singapore ("MAS") published the "Financial Services Industry Transformation Map (ITM) 2025" which outlines the vision of further developing Singapore as a leading financial centre in Asia. The strategies to do so include, among other things, developing the potentials in the following areas:

• Development of innovative solutions to scale up sustainable and transition financing. The Green Finance Industry Taskforce in Singapore aims to finalise a new taxonomy for Singapore-based financial institutions that will help businesses and investors identify with greater certainty projects and investments that promote sustainability. This would in turn encourage more capital flow towards sustainability activities.

• Enhancement of payments connectivity. Apart from embarking on innovative projects like Project Nexus and Project Orchid, Singapore regulators are proposing regulatory changes to support innovation in e-payment landscape and strengthen participation in SGQR code scheme.

• Building an innovative and responsible digital asset ecosystem. In this regard, MAS sought comments on the regulatory approach for stablecoin.

MAS will maintain its policy against cryptocurrency speculation and tighten the regulation of digital payment token ("DPT") service providers. It has proposed to enhance regulatory measures for DPT service providers to reduce the risk of consumer harm in cryptocurrency trading and to regulate Singapore DPT service providers carrying out activities outside Singapore for the purposes of anti-money laundering and countering of the financing of terrorism.

In addition, the following key trends or developments are to be noted:

• Need for regulatory frameworks to govern responsible use of metaverse as a primary computing platform and the commercialisation of metaverse.
• New obligations on regulated online communication services and internet access service providers to ensure online safety.
• Enhanced corporate governance practices on board renewal and remuneration disclosures for issuers listed on the Singapore Exchange Securities Trading Limited (SGX-ST).
• Proposed legislative changes to address data, digitalisation and corporate transparency issues for business entities in Singapore. 
• Proposed new regulatory framework for collective management organisations for copyright owners.
• Proposed new disclosure framework to increase transparency and commercialisation of intangibles of business entities.
• Enhancements to healthcare services framework to strengthen safeguards for patient safety and welfare.

Click on the link below for the full report which provides summaries of the key legal developments related to the above areas.

• Regional Round-Up 2022: Singapore

THAILAND

Looking Back: 2022 and Gazing Into: 2023

2022 saw a gradual return to normalcy as the COVID-19 pandemic eased. The Thailand Board of Investment ("BOI"), which provides tax and non-tax privileges to local and foreign investors in Thailand, reported that applications for investment promotion in 2022 reached THB664.6 billion (approx. US$20 billion) from a total of 2,119 applications filed. This represents an increase of 39% from 2021’s adjusted figures. The key sectors were electronics, electrical appliances, automotive (in particular, the electric vehicles ("EVs")), supply chain and data centres. Foreign direct investment ("FDI") in these key sectors were made by major multinational players such as Amazon Web Services’ data centre investment.

Legislative amendments which had been placed on hold were implemented, most notably Thailand's Personal Data Protection Act (PDPA) on 1 June 2022, and a number of subordinate laws intended to flesh out key procedural provisions were issued.  The year also saw the ramping up of decision-making and enforcement proceedings under the Trade Competition Act, with a growing emphasis on unfair trade practices and the use of merger controls. Amendments to Thailand's intellectual property laws, such as in the areas of Copyright and Border Control Measures for Counterfeit Goods, have continued to improve the protection available  to  intellectual  property  owners in Thailand. We have brought on board an intellectual property team to assist our clients in these areas.  The Securities and Exchange Commission (SEC) issued several new rules which tighten the standards and requirements for undertaking a Digital Assets business and increase protections available for investors.  At the end of 2022, Thailand enacted the long-awaited Royal Decree on Operation of Digital Platform Services Which Require Notification.  Other significant amendments include changes intended to improve ease of doing business applicable to Thai private and public limited companies, such as with respect to (i) the holding of directors and shareholders meetings; (ii) changes to currency control provisions; and (iii) an increased focus on sustainability.

Investment figures published by the Thailand Board of Investment ("BOI"), which show that applications for investment promotion in 2022 reached THB664.6 billion (approx. US$20 billion), representing an increase of 39% from 2021’s adjusted figures, are interpreted as a sign of Thailand’s recovery from the pandemic and a positive investment outlook for 2023.  A new five-year BOI investment promotion strategy has been approved (2023-2027) to shape investment in Thailand into the "new economy" by enhancing national competitiveness, and strengthening the country's status as a regional hub for business, trade and logistics.

We expect to see companies place an increased focus on compliance in 2023, whether with respect to ensuring that their practices comply with the Trade Competition Act and do not attract the scrutiny of an increasingly active Trade Competition Commission of Thailand (TCCT), ensuring the proper implementation of obligations under Thailand’s six-month old Personal Data Protection Act (PDPA), or pursuing the various options available for protection of Intellectual Property.  We expect to see increased regulatory oversight over areas such as in respect of Digital Platform Service Providers and Digital Asset businesses, with the high profile collapse of various cryptocurrency firms that impacted Thai investors and is the subject of continued monitoring by the Thai regulator. It is also likely that Thailand will see the enactment of enhanced environmental laws in 2023, aimed at addressing climate change and achieving the Thai government’s stated goals, such as carbon neutrality by 2050 and net zero greenhouse gases by 2065.  We expect to see heightened awareness in Thailand of the need to implement environmental, social and governance (ESG) principles in corporate decision-making.

• Regional Round-Up 2022: Thailand

VIETNAM

Looking Back: 2022 and Gazing Into: 2023

2022 was a pivotal year, as it tested Vietnam's resilience and road to economic recovery following the country's COVID-19 lockdowns and global disruptions to the manufacturing and supply chains. Critical to Vietnam's recovery is its comprehensive transition from its "zero COVID" policy to its "living with the virus" strategy.

Vietnam's future power development plans (including the extent of the country's reliance on clean energy) remained in limbo, with investor patience being tested as the long overdue National Power Development Plan VIII remains pending. It still remains to be seen when and in what form the plans would take.

Nevertheless, for some investors, some level of comfort was provided as the Government passed regulations to set feed-in-tariffs (FiTs) for certain transitional power plants. Investments in this space continued to be driven by environmental, social, and governance (ESG) targets or initiatives.

In the real estate sector, there was a considerable slowdown in transaction activity. This was a result  of a combination of the pandemic, governmental red tape, and severe tightening of credit. Recovery of industry growth was further rocked by the 2022 nationwide scandals concerning Tan Hoang Minh and Van Thinh Phat. Legislation-wise, the Government had issued Decree 02/2022/ND-CP which would materially impact doing business in the real estate sector – both from investment and operations perspectives.

The Government has continued to push for revamp of its existing legislation to align with its digital economy plans and to regulate online content. The year saw the long-awaited guiding decree on the Law on Cybersecurity, as well as drafts of the new Law on E-Transactions and Law on Telecommunications. It also saw the enactment of the new Law on Cinema. 

The foreign investment space also saw significant developments, such as the enactment of legal instruments relating to: 

• the issuance of corporate bonds; and

• tightened supervision over foreign investment.

Gazing Into: 2023

The renewable energy sector and technology sector are likely to see much legislative activity in 2023.

For the renewable energy sector, many await the passage of the National Power Development Plan VIII, as well as the development of a legal framework for certain clean energy initiatives, e.g. transactions involving private offtakers. Nevertheless, investment interest in the space is uncertain because while environmental, social and governance (ESG) targets remain a key driver, investors have been challenged by low anticipated returns in the face of rocketing valuations, uncertain feed-in-tariffs (FiTs) treatment and subsisting curtailment issues.

The technology sector is also likely to see legislative developments in 2023, building upon draft legislations made in 2022 in the fields of electronic transactions, internet services and online content, personal data protection and telecommunications.

The challenges faced by Vietnam's real estate sector are likely to continue into 2023. Nevertheless, the country has taken efforts to revamp its Law on Land – a draft of which was made available in August 2022. Slated for enactment in 2023, the Law in Land intends to align with the current market trends and refine many administrative processes.

Another area that is likely to see development is in the financial sector, with regulations concerning financial technology ("FinTech"), electronic money and anti-money laundering ("AML") to be further refined. The Government has been developing a sandbox scheme for FinTech for the past several years, and 2023 could potentially see this sandbox come into fruition – providing a legal framework for these companies to operate.  In the AML space, the new Law on Anti-Money Laundering will take effect from March 2023 (and guiding regulations may be passed in furtherance to this law). Non-cash payments remains a topic of considerable interest to banks and non-bank players in the financial sector who await the Government's directions as to how it would further refine its regulations on non-cash means of payment (including the use of "mobile money"). 

Full Report

• Regional Round-Up 2022: Vietnam