Other Briefings
The Philippines’ Inclusive Business Program to Provide a Range of Incentives to Foreign Investors
The Philippines is currently accepting applications from companies to participate in its Inclusive Business (IB) program. The program is intended to help reduce poverty across the nation by encouraging businesses to set up their operations in areas that have been identified as economically disadvantaged. In return for basing their operations in these areas, businesses will be granted a range of financial and other incentives. The program will initially focus on the areas of Marivetes (Bataan), Cavite, Mactan (Cebu), and Baguio.
Singapore to Reduce Property Taxes for HDB Flats
The Singaporean government has announced a range of property tax and other cost reductions for those living in Housing and Development Board (HDB) flats. Starting January 1, 2015, HDB flat owners of three-, four-, and five-room units will see a three percent reduction in their annual rent. Additionally, owners of one-room and two-room HDB flats will continue to pay no property tax. This will be the second year that the Inland Revenue Authority of Singapore (IRAS) has imposed progressive property tax reductions in order to reflect the cooling down of the property market – a slowdown mainly due to government intervention.
Thailand Postpones VAT Hike
Thailand’s Prime Minister Prayut Chan-o-cha announced the postponement of the country’s proposed value-added tax (VAT) hike on December 2, 2014, citing unfavorable economic conditions. Thailand’s growth forecasts have been downgraded by ANZ’s Roy Morgan from 1.3 percent to 0.9 percent for 2014, and from 4.8 percent to 4.2 percent for 2015.
Key Industries for Investment in ASEAN
As ASEAN continues its transition to greater economic integration with the implementation of the ASEAN Economic Community in 2015, the region is seeing strong growth in a number of industries. Among the key business areas are electronics, information and communications technology, textiles and apparel, and medical devices.
Asia Heavyweights Show Interest in Singapore-Malaysia High Speed Rail Link
Japan, China, and South Korea have all shown interest over the last month in bidding for the proposed Malaysia-Singapore high-speed rail link. The project was originally announced in September 2010 and if completed will connect Singapore and Johor Bahru to Kuala Lumpur. Official agreement between the two countries was made in February 2013 to complete the project with the target date of 2020.
Thai Economy Sees Improvement Due to Increased ASEAN Integration
The level of Thailand’s imports and exports has expanded for the first time since April 2013. In year-on-year (YoY) comparisons, both imports and exports have increased. In the Ministry of Finance’s most recent report, June YoY comparisons show the total value of exports is up by 3.9 percent with improvements in both intra-ASEAN and European trade. After signs of slowing this past year, producer and consumer confidence also now appear to be improving.
McKinsey Sees Room for ASEAN Improvement and Future Growth
In its recent report on achieving sustained economic growth in Southeast Asia, the global management consulting firm, McKinsey, highlighted key areas for improvement in ASEAN, particularly the need to improve labor productivity, which still remains low.
Myanmar Hosts 25th ASEAN Summit
On November 12th, the 25th Association of Southeast Asian Nations (ASEAN) Summit held its opening ceremony in Myanmar’s capital Naypyidaw. The Summit is ASEAN’s highest policy-making body. This gathering is of particular importance since there is now less than one year to go before the implementation of the ASEAN Economic Community (AEC).
ASEAN Tax and Regulatory Update
In this article we highlight some of the recent tax and regulatory actions taken in the ASEAN region. The importance of ASEAN continues to grow, with 2015 set to see the implementation of the ASEAN Economic Community (AEC). The AEC seeks to “transform ASEAN into a single market and production base, a highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy.” Collectively, ASEAN represents a market of some 600 million people, with a combined GDP of about US$2.5 trillion and upwards of US$1.5 trillion in trade flowing throughout the region.
Economic Growth Puts Vietnam on Track to Become Largest ASEAN Supplier to the U.S.
The American Chamber of Commerce (AmCham) predicts that Vietnam will become the largest ASEAN supplier to the United States by the end of 2014 – with a net export value of around US$29.4 billion. This would be a historical achievement for a nation surrounded by supply giants. In fact, Vietnam is likely to become the wealthiest Southeast Asian country in terms of trade. Additional statistics indicate that bilateral trade with the United States will surge to US$57 billion by 2020, cementing Vietnam’s prominence as a valuable hub for foreign investment and trade.
