Regional Round-Up

CAMBODIA

Looking Back: 2020 and Gazing Into: 2021

Looking Back: 2020

The COVID-19 pandemic has undoubtedly affected and changed the way we perform work and conduct business transactions. In 2020, the Royal Government of Cambodia ("RGC") has issued several regulations and granted tax exemptions to mitigate the public health and economic consequences of the pandemic.

Meanwhile, the RGC still continues to work on the regulatory developments regardless of the COVID-19 pandemic implications. Some of the key developments involve the evolvement toward E-Government such as putting in place online platforms for business registration and/or approval, the adoption of regulations that strengthen the licensing requirements for telecommunications business operations, and the enactment of the law on commercial gambling.

Gazing Into: 2021

The new draft Law on Investment has been prepared and is aimed to be adopted in 2021. The draft law will further address RGC’s international obligations towards investors by way of multilateral and bilateral agreements (which contain provisions  on national treatment, most-favoured nation treatment, and investment guarantee), rights and obligations of investors, the strengthening of the one window services (i.e. elimination of approval processes, reduction of registration time, putting in place online platforms), the determination of the industries subject to incentives, and real tax incentives and additional investment incentives.

In addition, the following draft laws are in the pipeline:

• Draft law on commercial contract;

• Draft law on cybercrime; and

• Draft law on competition.

Full Report

Click on the link below for the full report which provides summaries of the key legal and case law developments related to the above areas:

• Regional Round-Up 2020: Cambodia

CHINA

Looking Back: 2020 and Gazing Into: 2021

Looking Back: 2020

2020 has been a very unusual year for China and the world. During the first quarter of 2020, after being struck by, and then having gradually recovered from, the COVID-19 pandemic, the central government of China and various ministries at the central governmental level have released temporary policies, reliefs and guidelines to support the enterprises affected by the pandemic. The local governments have also issued temporary policies and reliefs in accordance with the guidelines issued by the central government. These measures are aimed at helping enterprises - especially small- and medium-sized enterprises (SMEs) - relieve the burden caused by the pandemic and overcome the difficulties faced during this period and resume normal production and operations as soon as possible.

On the other hand, with the growing tensions between China and the United States (as well as certain other foreign countries) over trade and technology in 2020, China has promulgated and/or amended various regulations and/or policies, which signal China's intention to enhance the protection of its emerging technologies and intellectual properties for reasons of both national security and strategic importance. In addition to the PRC Foreign Investment Law and its Implementation Regulation, both of which have come into effect since 1 January 2020, other regulations and/or policies that were introduced include, among others, the Amendment to Copyright Law, the Amendment to Patent Law, the Amendment to Antitrust Law (draft for public comments), the promulgation of Data Security Law (draft for public comments), the promulgation of Personal Data Protection Law (draft for public comments), the promulgation of Regulation on Unreliable Entity List, and the adjustments of Catalogue of Technologies Prohibited or Restricted from Export.

In addition, the most important change in the legal landscape in 2020 has definitely been the promulgation of the PRC Civil Code, which was adopted by the 13th National People's Congress and has come into effect on 1 January 2021. The PRC Civil Code consists of 1,260 articles in seven parts, including general provisions, property, contracts, personality rights, marriage and family, inheritance, tort liability, and supplementary provisions. The PRC Supreme Court issued relevant judicial interpretations for the Civil Code on 30 December 2020 and 31 December 2020 and it may be expected that more judicial interpretations and regulations will be issued. The Civil Code is the most extensive legislative document in China to date, which symbolises a milestone in the development of China's legal system.

Gazing Into: 2021

Given the status of the pandemic and the current geopolitical situations of the world, 2021 will continue to be a significant year. Although facing various challenges, China is still expected to continue with its market-based reform by implementing its first Civil Code and the new Foreign Investment Law, and further eliminating foreign investment restrictions to meet its commitments under the Regional Comprehensive Economic Partnership Agreement.

Five judicial interpretations on the Civil Code were released by the PRC Supreme Court on 30 December 2020 and 31 December 2020, and all of them have taken effect from 1 January 2021.  The 2020 versions of the Negative Lists for Foreign Investment and the Catalogue of Industries for Encouraged Foreign Investment were released in June 2020 and December 2020, respectively.

A number of implementation rules and regulations in relation to the Civil Code and foreign investment are expected to come in 2021.

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

• facilitation of foreign investment;

• increased regulatory enforcement of export control and tightened national security review of foreign investment;

• reshaping of fragmented legal framework for data protection; and

• addressing extraterritorial infringements.

Full Report

Click on the link below for the full report which provides summaries of the key legal and case law developments related to the above areas:

• Regional Round-Up 2020: China

INDONESIA

Looking Back: 2020 and Gazing Into: 2021

Looking Back: 2020

The first half of 2020 saw unprecedented impact to countries around the world, including Indonesia, due to the COVID-19 pandemic. Various measures and relief were introduced not only to alleviate pressure, but also to ensure continuous operation. In the capital markets sector, the Financial Services Authority (OJK) embraced technology by allowing electronic submission of reports and disclosure and the holding of a virtual general meeting of shareholders.

2020 also saw extraordinary growth to Indonesia's e-commerce industry. In late 2019, the Government started to regulate this industry by enacting the E-Commerce Regulation (Government Regulation No. 80 of 2019), and in 2020, the Government introduced more regulatory measures, including mandatory registration and licensing.

On the natural resources front, the Government amended Indonesia's Mining Law. The amendment touched on a host of key issues, including centralisation of authorities and conversion and transfer of mining licenses.

Finally, the second half of 2020 was a milestone in Indonesia's legal landscape as the Government enacted Law No. 11 of 2020 on Job Creation, commonly known as the Omnibus Law. The Omnibus Law affects 78 laws, covering various matters from employment, land, and ease of doing business, to name a few.

Gazing Into: 2021

Following the enactment of the Omnibus Law, the Government is currently preparing implementing regulations in the form of presidential regulations and government regulations. As of November 2020, there are 44 drafts in circulation, consisting of 40 government regulations and four presidential regulations. These drafts are publicly available, and relevant stakeholders and the public are invited to give their input.

In addition, the Government will also be adjusting some existing regulations to ensure that they conform to the Omnibus Law.

On the capital markets front, certain major Indonesian unicorns have begun planning and gearing up for an IPO.

Full Report

Click on the link below for the full report which provides summaries of the key legal and case law developments related to the above areas:

• Regional Round-Up 2020: Indonesia

LAO PDR

Looking Back: 2020 and Gazing Into: 2021

Looking Back: 2020

In 2020, in order to reduce the impact of the COVID-19 pandemic on businesses, various legal and regulatory changes have been introduced. 2020 has also seen foreign nationals being permitted to own condominiums, and the Lao Civil Code 2020 and the amended Law in Insurance coming into operation. 

In addition, Laos' Tax Law has been repealed and replaced by the Law on Tax Administration, the Law on Income Tax, and the Law on Consumption Tax to enhance tax administration in Laos.

Gazing Into: 2021

In addition, Laos' Tax Law has been repealed and replaced by the Law on Tax Administration, the Law on Income Tax, and the Law on Consumption Tax to enhance tax administration in Laos.

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

• promoting the development of small and medium-sized enterprises (SMEs);

• opportunity and challenge of digital system toward the socio-economic development in Laos;

• Official Launch of Transmission Lines Connecting Laos to Cambodia; and

• Lao Visits Laos (Lao Thiao Lao) - While the tourism industry in Laos has been affected by the loss of international visitor arrivals, a domestic tourism campaign called "Lao Visits Laos" ("Lao Thiao Lao") is beginning to take shape. The Lao Thiao Lao Marketing Campaign kicked off recently to promote domestic tourism.

Full Report

Click on the link below for the full report which provides summaries of the key legal and case law developments related to the above areas:

• Regional Round-Up 2020: Laos

MALAYSIA

Looking Back: 2020 and Gazing Into: 2021

Looking Back: 2020

The year 2020 has brought about unprecedented challenges and changes to life as we know it. To meet these challenges, Malaysia, like many other economies, adopted measures to mitigate the economic and social impact of the COVID-19 pandemic. Such measures included the implementation of Movement Control Orders ("MCOs") to curb the spread of COVID-19 and the provision of financial assistance through an economic stimulus package to targeted individuals, small and medium enterprises and industries.

In this regard, the Temporary Measures for Reducing the Impact of the Coronavirus Disease 2019 (COVID-19) Act 2020 came into force on 23 October 2020. Further, several legislative amendments and initiatives were implemented to address the changes and challenges brought about by the pandemic. These included the extension of time for corporations to conduct their virtual annual general meetings, proposed amendments to the Insolvency Act 1967 to mitigate the financial ramifications of the pandemic, guidance on compliance with personal data protection requirements in relation to the collection, processing and storage of personal data by businesses during the MCO, and issuance of the Malaysia Cyber Security Strategy 2020 – 2024.

We also looked at creating awareness about the risks of corruption to companies in light of the coming into force of Section 17A of the Malaysian Anti-Corruption Commission Act 2009 on 1 June 2020.

Additionally, there have been key developments in areas such as trade, employment and renewable energy which include:

• Malaysia becoming a signatory to the Regional Comprehensive Economic Partnership (RCEP) Agreement, which is expected to lower trade barriers;

• the expansion of coverage of the Employees' Minimum Standards of Housing, Accommodations and Amenities Act 1990 to cover all employees in addition to those employed to work on estates;

• case law development on what constitutes sexual harassment;

• case law development on when an employee's fixed term contract is, in reality, a permanent contract;

• the launch of the fourth competitive bidding process for the development of up to 1,000MWac of large scale solar power plants in Malaysia; and

• the issuance of Guidelines for the Reporting Framework for Beneficial Ownership of Legal Persons.

Gazing Into: 2021

As we progress into 2021, we expect to see developments in several areas of law including the following:

• Insolvency (Amendment) Bill 2020;

• Companies (Amendment) Bill 2020;

• Industrial Relations (Amendment) Act 2020; and

• Malaysian Space Board Bill 2020.

Full Report

Click on the link below for the full report which provides summaries of the key legal and case law developments related to the above areas:

• Regional Round-Up 2020: Malaysia 

MYANMAR

Looking Back: 2020 and Gazing Into: 2021

Looking Back: 2020

2020 was a year of numerous regulatory changes, in particular to address the economic and social ramifications of the COVID-19 pandemic. Ongoing stringent measures were imposed in September as the second wave of the pandemic took hold in the country. Directives were issued to implement Stay-at-home measures and travel bans, and to give out allowances for employees insured under the Social Security Board (SSB) in the private sectors.

The Government of Myanmar continued its steady implementation of electronic systems in order to streamline various processes. In particular, the trademark regime has been transformed from a 'First-to-Use system' to a 'First-to-File system', together with the introduction of the E-filing system for Trademarks. An E-filing system and payment platforms was also introduced for taxpayers by the Internal Revenue Department (IRD) to be in-line with the Stay-at-home practices introduced to address the COVID-19 pandemic.

A significant change to the corporate market came in the form of the new Insolvency Law, seeking to modernise the old regime and introducing new alternatives to liquidation. Additionally, Industrial Zones are being promoted through the newly enacted Industrial Zone Law by the Parliament.

Gazing Into: 2021

A major development in the regulatory framework in Myanmar comes in the form of modernising the electronic commerce market through the introduction of the E-Commerce Guidelines. In the area of trademarks, the official commencement date of the filings is expected to be announced in 2021. The second phase of the E-filing system for trademarks is also expected to be introduced, allowing owners of marks to register by themselves.

Another major shift in the governance of Myanmar is the completed elections in the country, seeing another landslide win by the ruling majority party, National League for Democracy. This is expected to result in changes to personnel in all the Ministries, which may affect the regulation of certain laws. Additionally, the term of the State Counsellor of Myanmar Law of 2016 will need to be extended as the current statute only provides for a term of up to the end of the second session of the Hluttaw – which is due to expire soon.

Additionally, the Law to Prevent an Increased Quantity of Imports, which was passed by Parliament in 2019, will take effect on 1 July 2021. The Law seeks to protect domestic production from increased imports and is expected to significantly impact the market.

Full Report

Click on the link below for the full report which provides summaries of the key legal and case law developments related to the above areas:

• Regional Round-Up 2020: Myanmar 

PHILIPPINES

Looking Back: 2020 and Gazing Into: 2021

Looking Back: 2020

To optimise the efforts in responding against the health and economic costs posed by the COVID-19 pandemic, the Philippine government enacted laws and regulations to facilitate regulatory relief measures to the most affected sectors of the country.  These measures included: (i) the liberalisation of the grant of incentives for the manufacture and importation of critical equipment, including exemption from import duties, taxes, and other fees; (ii) the adoption of measures to facilitate and minimise the disruption of national end-to-end supply chain to ensure the availability of medicines; (iii) various directives to government agencies to provide relief such as waiver of fees and extensions of deadlines; and (iv) movement and travel restrictions to minimise the transmission of COVID-19 in communities.

Majority of government offices also shifted to electronic and online platforms for processing permits and licenses, and allowed online or electronic payments of fees to ensure that government services continued while maintaining the safety of concerned stakeholders.

Significant amendments were also introduced by the Philippine Supreme Court (SC) in the conduct of court litigation and processes in the country.

Other key areas with important developments include:

• promulgation of the 2020 Revised Rules of Procedure for Intellectual Property (IP) Rights Cases;

• tax regulations on voluntary assessment and payment program (VAPP) and transfer price auditing; and

• introduction of sustainable financing framework.

Gazing Into: 2021

Towards the end of 2020, the Philippine Congress passed the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act which aims to provide tax relief and incentives to corporations, and stimulate investments in the country.  It is hoped that this will spur investments in the country in 2021.

The House of Representatives (HoR) have also passed bills on the liberalisation of foreign investments. These bills aim to amend the old Retail Trade Liberalization Act and Public Services Act to adapt to the changing landscape and encourage foreign investments in the Philippines.

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

• issuance of regular contractors' licences to foreign-owned contractors;

• strengthening E-commerce in the country through the proposed Internet Transactions Act and the establishment of an Electronic Commerce Bureau;

• imposition of Value-Added Tax (VAT) on Digital Transactions;

• improving internet services through the proposed "Better Internet Act"; and

• implementation of the 2020 Investment Priorities Plan.

Full Report

Click on the link below for the full report which provides summaries of the key legal and case law developments related to the above areas:

• Regional Round-Up 2020: Philippines

SINGAPORE

Looking Back: 2020 and Gazing Into: 2021

Looking Back: 2020

In 2020, in order to manage the impact of the COVID-19 pandemic, the Singapore Government has implemented legal and regulatory changes concerning, among other things, temporary reliefs for contractual obligations, financial reliefs for businesses and individuals significantly affected by the pandemic, measures facilitating the holding of virtual general meetings and remote dispute resolution proceedings.

In the area of dispute resolution, changes to the legislative framework and case law developments in international arbitration and shipping further develop Singapore's position as a dispute resolution hub in the region. 

Significant updates were made to Singapore's insolvency and bankruptcy statutes and case laws, enhancing Singapore's competitiveness as an international hub for restructuring and insolvency.

As ESG (environmental, social and governance) issues are drawing increasing attention from all quarters, various initiatives have also been rolled out to support the adoption of ESG standards.

Other key areas with important developments include:

• introduction of a legal framework for a new corporate structure for investment funds, variable capital companies (VCC);

• court holdings on legal issues concerning cryptocurrency and regulation of digital payment token;

• guidance on responsible adoption of technology such as artificial intelligence (AI) and data analytics solutions, internet of things and related cyber security issues; and

• enhancement of business conduct requirements for financial institutions (FIs). 

Gazing Into: 2021

The Future Economy Council which is tasked to drive the growth and transformation of Singapore's economy for the future has identified sustainability as a key growth area. Apart from the initiatives rolled out by the Singapore government in 2020, more may be implemented to support Singapore's vision to become a centre for ESG-related solutions and services.

Proposed changes to the Personal Data Protection Act have been passed and are awaiting implementation.

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

• 5G roll-out and various issues arising from digitalisation;

• increased adoption of mediation as an alternative dispute resolution mechanism;

• cross-border trade in the Asia Pacific following the signing of the Regional Comprehensive Economic Partnership (RCEP) Agreement; and

• transition from Singapore Dollar Swap Offer Rate (SOR) to Singapore Overnight Rate Average (SORA) for a range of financial products.

Full Report

Click on the link below for the full report which provides summaries of the key legal and case law developments related to the above areas:

• Regional Round-Up 2020: Singapore

THAILAND

Looking Back: 2020 and Gazing Into: 2021

Looking Back: 2020

One of the most significant changes and developments in 2020 would be the introduction of several laws to manage the COVID-19 pandemic. These include, among others, those empowering the Bangkok and provincial governors to order the closure of places posing risk of transmission of the virus, imposing a curfew during specific hours, introducing financial and tax measures to support businesses and individuals, relaxing requirements on holding meetings and submitting annual reports for the corporate sector, and extending the deadline for land and building tax payments.

In the area of dispute resolution, civil mediation before litigation was introduced to provide more options for resolving civil disputes, which would in turn help reduce the number of cases in the Court.

In recognition of the disruption caused by the COVID-19 pandemic, the planned May 2020 implementation of the Personal Data Protection Act ("PDPA") was delayed for certain types of data controllers for a one-year period, and standards for maintaining the  security of personal data to be adopted by such data controllers during this period were issued.

In the area of competition law, there were substantial inroads made into the enforcement of the 2017 Trade Competition Act and the issuance of decisions and subordinate laws to clarify its intended scope and application. For example, the Office of the Trade Competition Commission ("OTCC") issued an important decision conditionally approving the acquisition of the local retail business of Tesco by the Charoen Pokphand Group (CP), which was seen as the first major test of the 2017 Trade Competition Act. A new notification was also issued to clarify unfair business practices in respect of online food delivery platforms and business operators, an issue on which OTCC had received numerous complaints since the start of the COVID-19 pandemic.

The following are certain other key developments in 2020:

• amendment to the market dominance test under competition law;

• amendment to the Revenue Code on the issue of collecting value-added tax on foreign e-services;

• notifications setting out the criteria for the classification of the utilisation of land and buildings as residential or agricultural, for the purposes of determining tax rates; and

• Thailand becoming the 137th signatory state of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. 

Gazing Into: 2021

Due to the recent increase in the number of COVID-19 infections in December 2020, the Government announced the latest extension of the Emergency Decree to 28 February 2021, and that subsidiary laws issued thereunder to be effective until further notice. Additional measures were implemented to control the movement of foreign workers within the country so as to mitigate the spread of the virus. The Government has also reintroduced measures to support businesses and individuals, such as the reduction of contributions to the Social Security Office ("SSO"), and compensation from SSO payable to employees who are absent from work due to the COVID-19 pandemic. Major developments in the first quarter of 2021 would likely continue to focus on the COVID-19 pandemic controls and support.

All of the provisions of the PDPA will become fully effective on 1 June 2021 after the postponement in 2020 of its coming into operation. A number of subsidiary laws are expected to be passed to set out further details of the requirements under the PDPA.

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

• adoption of civil mediation before litigation as an alternative dispute resolution mechanism;

• increased enforcement of the 2017 Trade Competition Act; and

• ongoing development of 5G after the roll-out in 2020.

Full Report

Click on the link below for the full report which provides summaries of the key legal and case law developments related to the above areas:

• Regional Round-Up 2020: Thailand

VIETNAM

Looking Back: 2020 and Gazing Into: 2021

Looking Back: 2020

2020 was a year of hardship for many in Vietnam, as the country was faced with a series of disasters, such as the COVID-19 pandemic, the floods in central Vietnam, and the Mekong Delta droughts. However, it was also a year that defined the resilience and fighting spirit of the Vietnamese people, the result of which has seen Vietnam being regarded worldwide as a COVID-19 success story.

Social distancing measures and extensive travel restrictions were rapidly imposed, and the Government also rolled out a multitude of initiatives towards supporting affected individuals and businesses.

Other key areas with important developments include:

• enactment of investment laws such as the Law on Investment 2020 and the Law on Enterprises 2020;

• incentives and regulatory changes to facilitate foreign direct investment (FDI);

• focus on clean energy; and

• EU-Vietnam Free Trade Agreement (FTA).

Gazing Into: 2021

2021 will see many of the laws enacted in 2020 come into effect, such as the Law on Investment 2020 and the Law on Enterprises 2020. This year will also see the Labour Code 2019 come into effect.

However, over the course of 2020, the Government has been developing legislation that would further regulate cybersecurity and content control in the network environment. With draft decrees that have been publicly released, it is likely that these will be passed as laws in 2021, although the extent of controls that will ultimately be laid down remain to be seen.

Full Report

Click on the link below for the full report which provides summaries of the key legal and case law developments related to the above areas:

• Regional Round-Up 2020: Vietnam