Regional Round-Up

Your Snapshot of Key Legal Developments in Asia

Issue 4 – Q4 2023 (Year in Review Edition)

COVER STORY

COVER STORY
CAMBODIA
CHINA
INDONESIA
LAO PDR
MALAYSIA
MYANMAR
PHILIPPINES
SINGAPORE
THAILAND
VIETNAM
Looking Back: 2023 and Gazing Into: 2024

Throughout the year, we have been keeping you up to date on noteworthy developments across the region with our Regional Round-up Publications. As we enter 2024, we are pleased to share with you our 2023 year-in-review of the Regional Round-up for our Regional Offices in the Rajah & Tann Asia network.


In each jurisdiction, we recount the key milestones in the path that has been travelled in 2023, as well as consider the terrain of the road that lies ahead in 2024. In the "Looking Back: 2023" section, we take stock of the past year and highlight the key legal and regulatory developments affecting each jurisdiction in 2023. In the "Gazing Into: 2024" section, we look ahead to some key areas of development that you should take note of in the year to come, referencing the legal and business trends shaping up potential legislative and regulatory changes in each jurisdiction.


We hope that this year-in-review edition of the Regional Round-up provides some perspective and insight into the legal landscape of the jurisdictions across the region. As always, please feel free to contact our lawyers in our Regional Offices if you have any queries or for further discussion.


CAMBODIA

Looking Back: 2023 and Gazing Into: 2024

Looking Back: 2023


More than two decades after the Government enacted the law on taxation, it promulgated in 2023 a new Law on Taxation. Some other significant changes that took place in 2023 include the issuance of regulations on (i) the law on competition; (ii) the introduction of a financial technology ("FinTech") regulatory sandbox; (iii) the investigation and recall of unsafe or non-compliant foods; and (iv) the issuance of a sub-decree on the implementation of the Law on Investment. 2023 also saw the adoption of rules for the provision of mediation services in Cambodia.


Gazing Into: 2024


Gazing into 2024, Cambodia expects to see further actions in relation to the following:

  • Draft law on personal data protection;
  • Draft law on cybercrime;
  • Draft law on cybersecurity;
  • Draft Sub-Decree on microinsurance;
  • Draft Prakas on guidelines on reinsurance;
  • Draft Prakas on the rules and procedures of insurance inspection;
  • Draft Prakas on corporate governance for insurance companies; and
  • Implementing regulations in relation to the environmental and natural resources code.

Full Report


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



CHINA

Looking Back: 2023 and Gazing Into: 2024

Looking Back: 2023


2023 is a year of both recovery and challenge. Following the lifting of all COVID-19 restrictions in China, 2023 has witnessed indicators of rebound in key segments of China's economy such as growth in gross domestic product ("GDP"), consumption, services and industrial output. However, at the same time, areas such as foreign investment and private investment have lagged, indicating potential concern on the unbalanced recovery of economy. Considering this, the National Development and Reform Commission (NDRC) of China released the Notice on Further Strengthening and Effectively Promoting Private Investment and Striving to Mobilize the Enthusiasm of Private Investment (关于进一步抓好抓实促进民间投资工作努力调动民间投资积极性的通知, "Notice") in July 2023 to boost private investment. This includes 17 measures such as encouraging private capital in major national and key industry supply chain projects, providing financial and resource support to private investors, and fostering a healthy and transparent environment for private investment, etc. For foreign investment, the State Council of China released the Opinions on Further Optimizing the Foreign Investment Environment and Strengthening the Foreign Investment Attraction (关于进一步优化外商投资环境加大吸引外商投资力度的意见, "Opinions") in August 2023, which includes 24 measures for attracting foreign investments in China. The measures include (i) expanding channels for foreign investment and facilitating the foreign exchange management system; (ii) ensuring the national treatment status of foreign-invested enterprises; (iii) establishing institutions and mechanisms that are in line with international standards; (iv) strengthening the protection of foreign investment and facilitating investment operations; and (v) providing various financial and tax support. Both the Notice and the Opinions show China's determination to boost its economy, attract and utilise private and foreign investment more vigorously and effectively, and promote high-level opening up to the outside world.


At the same time, to further support the increasing development of the digital technology industry, China has continued to improve its legislation in the areas of data protection and cybersecurity with further detailed implementation and supporting rules and regulations issued in 2023. In December 2022, China's Ministry of Industry and Information Technology issued Measures for Data Security Management in the Field of Industry and Information Technology (Trial Version) (工业和信息化领域数据安全管理办法(试行), which came into effect on 1 January 2023, to provide relevant data security requirements for companies in the industry and information technology sector. In March 2023, the National Information Security Standardization Technical Committee released the draft of Certification Requirements for Cross-Border Transmission of Personal Information (信息安全技术-个人信息跨境传输认证要求(征求意见稿)) which aims to provide the standards for the third-party certification of companies engaged in the cross-border transfer of personal information. In support of the regulation of "Standard Contract Measures for Exporting Personal Information" (个人信息出境标准合同办法)'s coming into force on 1 June 2023, the Cyberspace Administration of China ("CAC") issued the Guidelines for the Filing of Standard Contracts for Exporting Personal Information (First Edition) (个人信息出境标准合同备案指南(第一版)), which is a supplementary and implementation rule to guide relevant companies to file its standard contract for the cross-border transfer of personal informaiton. Together with the improvements of China's legal regime in relation to the protection of personal information and restrictions in the cross-border transfer of personal information, China has also tried to faciliate cross-border data flows for companies based in China. On 28 September 2023, CAC released the Draft Regulation on Regulating and Facilitating Cross-Border Data Transfer (规范和促进数据跨境流动规定(征求意见稿)), which, if formally issued substantially in its present form, will likely benefit many international companies' businesses by easing the strict requirements for the export of personal information outside the Chinese mainland.


Last but not least, to respond to today's comprehensive international relations, on 28 June 2023, the 14th National People's Congress of the People's Republic of China ("PRC") passed the Foreign Relations Law (中华人民共和国对外关系法), which provides a comprehensive framework for the development of China's foreign relations and is China's first fundamental, guiding, and comprehensive law on foreign relations since the establishment of the PRC. China also issued other related laws such as the amended Counter-Espionage Law (中华人民共和国反间谍法) on 26 April 2023 and signed various memorandums of understanding with other countries to further develop its policies for international affairs (including the "One Belt One Road" initiative).


Corporations are the most important market entities. In order to further improve the modern enterprise system and further promote the sustained and healthy development of the socialist market economy in the PRC, on 29 December 2023, the Standing Committee of the PRC National People's Congress passed the amendments to the PRC Company Law, which will come into effect from 1 July 2024.


Gazing Into: 2024


In 2024, China will commemorate the 75th anniversary of the founding of the People's Republic of China ("PRC"), which coincides with the crucial implementation of the "14th Five-Year Plan (十四五规划)". During the meeting of the Political Bureau of China's Central Committee in December 2023, a comprehensive analysis and study of the economic work for 2024 took place, emphasising the importance of adhering to the general keynote of seeking progress while maintaining stability.


Following this guiding principle, in the coming years, China is committed to the ongoing improvement of relevant laws and regulations to create an enhanced market environment and attract investments, including:


  • enhancing corporate governance and capital system in the PRC Company Law;

  • ongoing revisions of the Capital Account Guideline of Foreign Exchange to enhance efficiency and clarity; and

  • strengthening and improving patent application and regulation.

In the data and cybersecurity sector, the majority of the core laws and regulations in the field were enacted from 2017 to date, and the main regulatory framework has been essentially established. Practical guidelines and norms, as well as industry-specific legislation, will become the focus of legislative work going forward. The introduction of these guidelines and norms indicates that China is moving towards a stage of regulatory stability in this sector within the country.


Additionally, online gaming companies in China may face stricter regulation and oversight, as the recently released Draft Administrative Measures for Online Games (defined below) place heavier restrictions for this industry.


Full Report


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



INDONESIA

Looking Back: 2023 and Gazing Into: 2024

Looking Back: 2023


In 2023, Indonesia underwent significant financial regulatory changes to enhance market transparency and investor protection. The Indonesia Stock Exchange ("IDX") introduced a Watchlist Board to monitor companies with unusual market activities, and launched Indonesia's carbon exchange, governed by the Financial Services Authority ("OJK"). Simultaneously, the BUMN Omnibus Regulations reshaped corporate governance for State-Owned Enterprises ("SOE"), with a focus on transparency and efficiency. 


Gazing Into: 2024


In 2024, significant legal and regulatory developmets are expected in three key sectors, namely, renewal energy, electric vehicle and digital data economy (in particular with regard to Artificial Intelligence ("AI").


Full Report


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


LAO PDR

Looking Back: 2023 and Gazing Into: 2024

Looking Back: 2023


In 2023, Laos had its share of challenges amidst a global backdrop of economic crises, the spillover effects of conflicts in Ukraine, as well as the Israel-Hamas war, not to mention the fact that inflation in Laos remained high in 2023. The Government released various legal and regulatory issuances to enhance the socio-economic status of the country. 2023 also saw the issuance of (i) the Notice on  Minimum Wage Increase; (ii) the Notice on List of Goods Requiring Import-Export Registration; (iii) the Notice on Use of the Accounting Program for the Non-Banking Financial Institution Proposed to Be Established; and (iv) the Amended Law on Electronic Transactions.


In addition, the National Assembly voted to approve the draft of the Law on Payment System (Revised Version) following the presentation made by the deputy governor of the Bank of Lao PDR ("BOL") on the reasons for the need to revise the law. The Law on Payment System 2017 has been in force for six years, and serves as the main basis for the development of the online payment system of Laos to facilitate its expansion and improvement.


BOL also issued a Notice on Determining the Limits of Electronic Money Services to commercial banks, non-banking financial institutions and legal entities that are electronic money service providers in Laos. 


Gazing Into: 2024


Laos is preparing to take up the Chairmanship of the Association of Southeast Asian Nations ("ASEAN") for the third time in 2024. Unlike its previous experiences as chair in 2004 and 2016, 2024 may prove to be even more demanding as Laos is expected to lead ASEAN through another tumultuous year of challenges. Like previous chairs, Laos has promised to keep ASEAN relevant by enhancing its resilience and promoting its centrality to overcome these challenges. As a small and landlocked country in ASEAN, Laos is vested in amplifying its interest and broadening its economic options. As such, it has pulled out all the stops to succeed in its Chairmanship.


In order to facilitate and monitor the flow of foreign direct investment to effectively contribute to the socio-economic development of the country, BOL issued the Decision on the Management of Foreign Exchange on Direct Investment From Abroad.  The decision sets out the principles, regulations and measures relating to the management of foreign exchange arising from direct investments from abroad, for purposes of fostering the ability to adapt to various economic situations that Laotians may face. 


In 2019, foreigners were allowed to own condominium units in Laos under the amended Law on Land. With the substantial growth and development experienced by Laos in recent years,  it intends to promote investment in the country  with the recent publication of the Decree on Condominium.


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


  • Inflation has increased consumption costs, reduced household spending on food, education, and health, and depleted savings, thereby placing many households at risk of falling into poverty. To restore economic stability, it is crucial that ongoing debt renegotiations are successfully concluded and more revenues are raised to minimise spending on human capital;

  • The Ministry of Information, Culture and Tourism (MICT) has revealed key target milestones and achievements of the tourism industry in Laos for the first six months of this year, along with plans to welcome over four million visitors through the tourism campaign "Visit Laos Year 2024", aiming for a revenue of US$712 million. The Government has also renovated its infrastructure, produced various tourism advertising materials and quick response (QR) codes containing information on tourism sites in Laos, and created a tourism handbook, along with other initiatives that align with the 2021-2023 tourism development plan


Full Report


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



MALAYSIA

Looking Back: 2023 and Gazing Into: 2024

Looking Back: 2023


Following the transition in government at the close of 2022, 2023 paved the way for a return to normalcy for the nation after the COVID-19 pandemic and ushered in fresh direction and policies from the new government. These were introduced in lockstep with the Ggovernment’s aspiration to shift to a high value green economy and position itself as a digital economy powerhouse.


In 2023, generative AI also began to make its presence felt with its transformative potential prompting the Ggovernment to reassess existing regulatory frameworks and establish a regulatory environment that would not only encourage innovation, but also safeguards against potential risks and ethical concerns associated with the widespread adoption of generative AI.


Notable key developments and trends from 2023 include:


  • new General Code of Practice of Personal Data Protection under the Personal Data Protection Act 2010;

  • amendments to the LEAP Market Transfer and Recognised Approved Adviser Framework;

  • launch of Malaysia's National Energy Transition Roadmap;

  • revised consent and disclosure requirements for customer information under new Policy Document on Management of Customer Information and Permitted Disclosures for financial institutions;

  • additional requirements under Revised Policy Document on Risk Management in Technology for financial institutions; and

  • new Guidelines on Technology Risk Management for the capital markets sector; and

  • enforcement of prohibition against forced labour under the Employment Act 1955.

On the dispute resolution front, the Malaysian High Court in Elisabeth Regina Maria Gabriele Von Pezold & Ors v Republic of Zimbabwe [2023] MLJU 2657, for the first time in Malaysia, recognised a foreign award made by an arbitral tribunal established under the Convention on the Settlement of Investment Disputes between States and National of Other States and thereby reaffirmed Malaysia's continued commitment in respecting the principles of international law and comity. In another landmark ruling in the case of Wiramuda (M) Sdn Bhd v Ketua Pengarah Hasil Dalam Negeri [2023] 4 MLJ 753, the Malaysian Federal Court held that taxing the compensation received in respect of compulsorily acquired lands is unconstitutional as it would deprive the landowner of their the same deprives the landowner's right to adequate compensation guaranteed under Article 13(2) of the Malaysian Federal Constitution.


Gazing Into: 2024


In 2024, we expect to see developments in several areas of law including:


  • the introduction of sales tax on low value goods on online marketplaces;

  • the potential impact of the upcoming EU's Corporate Sustainability Due Diligence Directive;

  • the long-awaited amendments to the Personal Data Protection Act 2010;

  • upcoming draft Cybersecurity Bill; and upcoming Code of Ethics and Governance for Artificial Intelligence ("AI").

Full Report


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


MYANMAR

Looking Back: 2023 and Gazing Into: 2024

Looking Back: 2023


In 2023, the State Administrative Council ("SAC") introduced changes and initiatives that have impacted  the business sector. 


Gazing Into: 2024


Although the SAC extended the state of emergency for six months until February 2024, it is likely to maintain the current state for an unforeseeable future due to the ongoing escalation of armed conflicts nationwide. The escalation in fighting since October 2023, including in the main trade corridor between Myanmar and China, is likely to further challenge the turnaround of Myanmar's economy.


Full Report


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


PHILIPPINES

Looking Back: 2023 and Gazing Into: 2024

Looking Back: 2023


The legal developments in 2023 mainly centre around the Government's efforts to adopt mechanisms to improve existing laws/frameworks and impose standards in various fields of law.  To make transactions with the Government easier, the Government is gradually embracing the use of technology, either as an initiative or an improvement to an existing framework, in the areas of data privacy, intellectual property, and digital banking. Similarly, for investments, government institutions are now mandated to establish mechanisms to facilitate doing business in the country. In the financial sector, the Government has proposed guidelines for the sustainable finance taxonomy and in the assessment of returns of unit investment trust funds to help takeholders make informed decisions. Finally, a decision of the Highest Court sets out the public policy exception in confirming or denying arbitral awards regardless of the timeliness of  their filing.


Gazing Into: 2024


Legal developments across the country have flourished in 2023 as seen in government agencies tightening their guidelines in enforcing laws in the labour sector and the finance sector. New developments are taking place in the area of corporate sustainability, with a new set of guidelines ready to be implemented in 2024. Developments are also sought to be introduced in the agriculture sector as bills make their way to the legislative arm of the Government. Finally, the Judiciary revisits the decisions by the Highest Court to define a legal framework conducive to the development of a free, vibrant, and competitive market. This is a significant effort in the fairly new legislation in the area of competition law


Full Report


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


SINGAPORE

Looking Back: 2023 and Gazing Into: 2024

Looking Back: 2023


In October 2022, Singapore announced that it will raise its national climate target to achieve net zero emissions by 2050 and to reduce emissions to 60 million tonnes of carbon dioxide equivalent (MtCO2e) in 2030 after peaking emissions earlier. 


These commitments aim to help attain the Paris Agreement goals of controlling the rise of global temperature. At least US$2.5 trillion is required each year until 2030 to meet these goals. In addition to green finance, transition finance is much needed to support a sizeable number of businesses and sectors in the region that are brown or less green to become green or greener over time. 


To mobilise capital for Asia's transition, the Monetary Authority of Singapore ("MAS") launched the Finance for Net Zero Action Plan. The Singapore Exchange (SGX) has also highlighted the potential of Sustainability-Linked Bonds ("SLBs") as a form of transition finance and addressed concerns about credibility of these instruments.


Apart from the public sector, the private sectors as well as community and individuals play a role in Singapore's decarbonisation journey. The following key legal and regulatory initiatives were put in place to prompt all players to contribute to this journey:


  • Guidance on credible climate transition plan for issuers listed on the Singapore Exchange Securities Trading Limited (SGX-ST);

  • Sustainability standards for data centres;

  • Legal framework for safe charging of electric vehicles ("EVs"); and

  • Legislative changes to help reduce packaging and food waste.

The advent of ChatGPT in late 2022 has accelerated the evolution and use of artificial intelligence ("AI") and generative AI. AI will undoubtedly reshape how we live, work and play. Acknowledging the importance of responsible development and deployment of AI technologies and solutions, Singapore regulators have rolled out the following initiatives:


  • AI Verify Foundation by the Infocomm Media Development Authority ("IMDA") to develop AI Verify testing tool for the responsible use of AI;

  • Generative AI Evaluation Sandbox by IMDA and AI Verify Foundation; and

  • Veritas Toolkit version 2.0 by MAS to enable the responsible use of AI in the financial industry.

As the global economy becomes increasingly driven by innovation and intangibles, the value of an enterprise is no longer limited to tangible assets. Cognisant of this shift, Singapore has taken the step to develop and launch an intangibles-specific disclosure framework.


With more cryptocurrency platforms in Asia facing financial challenges, Singapore positions itself as the restructuring jurisdiction of choice. The Singapore courts have demonstrated that Singapore's restructuring and insolvency framework is equipped to deal with the restructuring of cryptocurrency companies, despite the unique challenges presented by such companies. Singapore courts also recognise the enforceable property rights of crypto assets


The digitalisation of trade has been the subject of increasing focus, with accelerating developments in both the technology and the legal framework required to support the necessary transformation. In this regard, Singapore positions itself as a leader in trade digitalisation by successfully executing the world's first fully paperless, live cross-border trade via the Electronic Transferable Record. The Trade Finance Registry was launched as a centralised record of trade finance transactions in Singapore to mitigate the risk of duplicate financing for the same underlying trade.


Economic sanctions have become a powerful and frequent political instrument for governments to achieve foreign policy objectives. However, the Singapore Court of Appeal's decision in Kuvera emphasises that principles governing contractual interpretation take precedence notwithstanding the geopolitical significance of sanctions.


Other key legal and regulatory developments to note include:


  • New Code of Practice that requires designated Social Media Services to enhance online user safety and curb the spread of harmful content on their service;

  • Hague Service Convention taking effect in Singapore to offer simplified mechanism for cross-border service of judicial or extrajudicial documents;

  • Tax Exemption Schemes for Single Family Offices updated to bolster the development of wealth management industry;

  • New regulatory framework for collective management organisations for copyright owners;

  • New anti-money laundering and countering of terrorism financing ("AML/CFT") measures for property developers;

  • Additional Buyer's Stamp Duty ("ABSD") for the sale and purchase of residential property raised to promote a sustainable property market; and 

  • New business conduct requirements for corporate finance advisers. 


Gazing Into: 2024


The meteoric rise of generative artificial intelligence ("Generative AI") has been one of the loudest headlines in 2023, with the initial hype quickly translating into real-world impact. The "Proposed Model AI Governance Framework for Generative AI" issued by the AI Verify Foundation and Infocomm Media Development Authority ("IMDA") on 16 January 2024 acknowledges that while Generative AI "holds significant transformative potential, it also comes with risks". 


The Proposed Framework seeks to set forth a systemic and balanced approach to address Generative AI concerns while continuing to facilitate innovation. This has been Singapore's approach in adopting generative AI or AI solutions. The National AI Strategy 2.0 was launched to introduce key shifts to propel Singapore as a leader in the AI field as Singapore sets sight on developing Southeast Asia's first large language model ("LLM") ecosystem.


Alongside these innovations, the Monetary Authority of Singapore ("MAS") is collaborating with the financial industry and technology partners to develop a risk framework for the responsible use of Generative AI for the financial sector. In addition, the Personal Data Protection Commission ("PDPC") proposes to issue new Guidelines governing the use of personal data by organisations to develop and deploy AI systems that embed machine learning. 


Singapore and ASEAN are continuing their efforts systematically to attract green investments in Singapore and the region with an aim to deliver each Southeast Asian country's climate goals. In December 2023, Singapore launched the Singapore-Asia Taxonomy for Sustainable Finance that focuses on phasing out coal-fired power plants. The ASEAN Taxonomy for Sustainable Finance is expected to be updated in Q1 2024 to help the ASEAN region advance our sustainable finance agenda. The uniqueness of both the Singapore and ASEAN Taxonomy is the inclusion of transition activities and the use of a traffic light-based system in supporting companies in their transition journey. These could catalyse the much needed funding in projects that encourage decarbonisation by reducing dependence on coal power in the region. 


Within the Southeast Asia region, Singapore is currently the only nation with a carbon tax regime in place. Changes to the Carbon Pricing Act 2018 took effect on 1 January 2024 to support an effective carbon tax regime by introducing the concept and value of carbon credit and enabling the implementation of the International Carbon Credit ("ICC") Framework.


Other key developments in the pipeline that will drive environmental, social and corporate governance ("ESG") investments in 2024 and beyond include:


  • Proposed Guidance Note to specifically address how businesses can collaborate to achieve environmental sustainability objectives without breaching competition laws. ·  New digital platform that will allow seamless reporting of and access to ESG data.

  • New Code of Conduct for ESG rating and data product providers to provide assurance on the reliability and independence of ESG rating and data products.

  • Proposed mandatory climate reporting requirements on companies listed on the Singapore Exchange Securities Trading Limited ("SGX-ST") and large non-listed companies.

  • Proposed Guidelines on Transition Planning for banks, insurers and asset managers.

  • New platform leveraging on AI and data analytics that will support sustainable finance in the real estate sector.

  • New Guidelines to address concerns on greenwashing conduct.

MAS continues to progressively implement regulatory measures on consumer protection for digital payment token service providers in 2024 with the objective of making Singapore's regulatory regime one of the strictest in the world in governing retail access to cryptocurrencies. 


Complementing this effort, Singapore is committed to implementing the Crypto-Asset Reporting Framework ("CARF"), which will enhance the global system of automatic exchange of tax relevant-information on crypto-assets to detect and deter tax evasion.


Distinguishing stablecoin from cryptocurrencies, MAS is of the view that stablecoins, if well regulated, can potentially play a useful role as digital money. Therefore, MAS is deveoping a rigorous regulatory framework for stablecoins regulated in Singapore.


The ASEAN Economic Ministers has launched the negotiations on the ASEAN Digital Economy Framework Agreement which is projected to double the regional digital economy from US$1 trillion to US$2 trillion by 2030.


As more commercial transactions and financial exchanges move to digital platforms, the security of transactions is paramount. With the proliferation of scams and malicious cyber activities, the Online Criminal Harms Act which has been passed but is not yet in force will, among other things, require designated online services providers to put in place systems and processes to counter scams and malicious cyber activities. Further, MAS and IMDA propose to implement a Shared Responsibility Framework that would impose anti-scam duties on financial institutions ("FIs") and telecommunication operators.


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


  • A new Significant Investments Review Act will be enacted to subject entities that are critical to Singapore's national security interests to ownership and control requirements.

  • A new electronic information sharing system named Collaborative Sharing of Money Laundering / Terrorism Financing Information & Cases ("COSMIC") will be set up to enable the disclosure, publication and sharing of risk information between prescribed FIs to more effectively prevent and deter money laundering, terrorism financing and proliferation financing.

  • It is proposed that the Cybersecurity Act 2018 be amended to, among other things, safeguard entities in charge of key digital infrastructure (other than Critical Information Infrastructures) by increasing oversight over their cybersecurity and requiring compliance with minimum standards. Such entities may include cloud service providers and data centre operators.

  • A new Workplace Fairness Legislation will be enacted to protect workers who are facing challenges due to discrimination.


Full Report


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



THAILAND

Looking Back: 2023 and Gazing Into: 2024

Looking Back: 2023


Thailand's new government officially took office on 5 September 2023, with Srettha Thavisin, who belongs to the Pheu Thai Party, named Prime Minister by Parliament, after a period of uncertainty following the 14 May 2023 election in which the Move Forward Party ("MFP") won the election on a progressive platform but was unable to form a government.  The Pheu Thai Party, which placed second in the election, then formed a broader coalition with a couple of major parties and the MFP became the opposition.  The Government is focusing heavily on foreign and economic policies, and issues such as energy costs.


There have been significant developments on various fronts in order to achieve these goals. For instance, to faciliate and encourage business and foreign investments, there have been amendments to the Civil and Commercial Code, changes to the private placement rules, etc..  Thailand has also expedited its entry into AEO Mutual Recognition Arrangements which provide benefits to Authorised Economic Operators.


There is also progress on the Sustainability and Environment front with a new draft Climate Change Bill. The Government is further considering restructuring carbon taxes on vehicles based on carbon emissions, where lower carbon emissions correspond to lower tax rates. In addition, there are incentives to faciliate sustainability financing


On the Technology, Media & Telecomunications front, there is new regulation for digital platform service providers and a new law regulating technological crime.


Gazing Into: 2024


Thailand's economic and foreign policy has seen much recent development. Taking an overview of these trends, we can get an indication of the expected outlook for 2024.


Thailand remains committed to its aspiration to graduate from an upper middle-income to a high-income country by 2037 as outlined in the 20-year national strategy (2018-2037).  A key component of this strategy is "Thailand 4.0", which encapsulates Thailand's vision to become a value-based and innovation-driven green economy and move away from producing commodities to promoting technology, creativity and innovation in focused industries and, increasingly, in services. Thailand is also working on the Bio-Circular-Green (BCG) economy model, which involves a strategy and reform agenda on how to achieve the Thailand 4.0 vision and long-term objectives related to the Sustainable Development Goals (SDGs). One of the key instruments to Thailand's progress towards a "New Economy" is the Investment promotion and facilitation policy under the Board of Investment ("BOI"). The policy provides both tax-based (e.g. corporate income tax exemptions and import duty exemptions) and non-tax privileges (e.g. waiver of foreign ownership restrictions) for promoted projects. 


In its press release, BOI reported that between January-September 2023, it received a total of 1,555 project applications, totaling THB516.8 billion in value, reflecting a 22% year-on-year increment. The key sectors which have received investment incentives are the electrical appliances and electronics (E&E) industry, the agro-industry and food processing sector, the automotive and parts industry.


According to the Ministry of Commerce’s Trade Report, in 2023, China was Thailand's largest trading partner, followed by the United States ("US"), Japan, Malaysia, and Taiwan.


  • Exports. Thailand's five major trading partners for exports were (in descending order): the US, China, Japan, Australia and Malaysia.  The principal products were: (i) motor cars, parts and accessories, (ii) automatic data processing machines and parts, (iii) precious stones and jewellery, (iv) rubber products, and (v) refined fuels.  Fresh, frozen and dried fruit were 10th on the list of principal export products.

  • Imports. Thailand's five major trading partners for imports were (in descending order): China, Japan, the US, United Arab Emirates and Taiwan. The principal products were: (i) crude oil, (ii) machinery and parts, (iii) electrical machinery and parts, (iv) electronic integrated circuits, and (v) chemicals.


Full Report


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



VIETNAM

Looking Back: 2023 and Gazing Into: 2024

Looking Back: 2023


2023 was a year that saw Vietnam weather a challenging global economic climate, and had its resilience tested since the economic impact from the COVID-19 pandemic. Domestic companies faced difficulties accessing capital, while those in the manufacturing sector (including textiles/garments and electronics) faced another year of turmoil as production orders remained stagnant. Despite these challenges, foreign direct investment ("FDI") inflows remained strong – a testament that foreign investors remain optimistic of the country's growth potential.


Significant moves were witnessed in the energy sector, as the long-awaited National Power Development Plan VIII was finally announced.


Together with new policies on electricity pricing (e.g. feed-in tariffs for solar and wind projects) set out in Circular 19/2023/TT-BCT. These developments provided certainty to investors in the energy sector. 


Woes in the real estate sector continued in 2023, as a spillover from Vietnam's long-running anti-graft campaigns against major real estate players (among the most notable being the Van Thinh Phat group). It has also seen developers and other stakeholders face credit crunches, including major players such as No Va Land, Hung Thinh Group and Sun Group. Despite the challenges, reforms to Vietnam’s real estate laws were put in motion in 2023, including the Law on Real Estate Business, the Law on Housing, and the Law on Land, which will be instrumental to provide clarity for existing and prospective real estate players. However, investors will need to wait until 2025 (when the laws take effect) to feel the full impact of these developments. 


In the digital economy space, the Decree on Personal Data Protection was passed and came into effect in 2023. This decree represents the country's first unified regulation on personal data protection.  Other instrumental developments include the passing of the Law on Telecommunications, the Law on Electronic Transactions and the Law on Consumer Rights Protection – the latter of which made clear the Government's objectives in ensuring consumers are protected in the online environment (particularly in e-commerce). 


Transactions in the healthcare and pharmaceutical space also flourished in 2023, with the year seeing a spate of investments in hospitals, laboratories and clinics. The new Law on Medical Examination and Treatment was also passed in 2023.


Gazing Into: 2024


In 2024, investors in real estate and technology sectors may benefit from legal developments which may give a boost to investors' confidence. On the other hand, tax changes affecting multinational companies may dampen foreign investors' interests and some uncertainties may arise from legal and/or regulatory changes expected in the energy and banking sectors. Further, industry players in financial technology and digital payments look forward to the long-awaited legal developments in these areas.


Full Report


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






Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.
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