Other Briefings
Philippines and the European Free Trade Association begin FTA Negotiations
The Philippines and members of the European Free Trade Association (EFTA) have begun their first round of free trade agreement (FTA) negotiations in Makati, Philippines. The EFTA is made up of four countries: Iceland, Liechtenstein, Norway, and Switzerland. A completed FTA could have profound effects on businesses in both regions.
Malaysia GST: Implications for Manufacturers
Malaysia has introduced a new Goods and Services Tax of six percent. However, the country’s Customs Department has said that confusion over the new tax will last six months to a year. Consumer concerns regarding the GST have been over price increases, whereas businesses concerns have focused on compliance costs and its effect on competitiveness.
USA, New Zealand to Take Indonesia to WTO on Import Restrictions
The US and New Zealand have asked the World Trade Organization (WTO) for a dispute settlement panel to examine Indonesia’s wide-ranging restrictions on horticulture and animal imports.
April 2015 ASEAN Regional Meetings
There are a number of important ASEAN regional meetings taking place in April, including the 43rd ASEAN Consultative Committee on Standards and Quality (ACCSQ) held in Manila, and the 26th ASEAN Summit, which will be held in Kuala Lumpur.
The Philippines Issues Income Tax Exemptions
The Philippines’ Bureau of Internal Revenue (BIR) has recently issued regulations that are intended to implement an increased individual income tax exemption cap for 13th month pay and other benefits to PHP82,000 (US$1,827), up from its previous level of PHP30,000. These new regulations will apply to workers in both the public and private sectors and are retroactively applicable from January 1, 2015. It is estimated that over half a million employees will benefit from the tax changes.
Indonesia Struggles to Strengthen Weakening Rupiah
Tuesday, March 17th, Indonesia’s central bank, Bank Indonesia, announced that it will hold the country’s key interest rate steady at 7.5 percent. The bank has chosen not to follow the recent regional trend of countries drastically cutting their borrowing costs. Markets have so far met the news positively and the rupiah has strengthened 0.6 percent to 13,165 against the dollar – the largest gain in eight weeks. Indonesia’s government has been struggling to strengthen a rapidly weakening rupiah, the country’s currency. The rupiah is Asia’s worse performing currency against the U.S. dollar this year.
Philippines Seeks to Allay Fears about Upcoming Tax Incentives Management and Transparency Act
The Philippines’ Senate has introduced the Tax Incentives Management and Transparency Act, which attempts to create greater transparency around tax incentives. However, the new legislation has proven controversial – businesses have been fearful that they may lose their current tax breaks.
CLMV in India’s “Act East” Policy
The 2015-2016 Indian budget includes a proposal to set up manufacturing hubs in Cambodia, Myanmar, Laos, and Vietnam.
Cambodia Recognizes First Patent Application
Cambodia has recognized its first-ever patent application, marking a landmark for legal services provision in the country. The country has had a patent law in place since 2003, enacted as part of the countries WTO obligations, however has struggled with the internal mechanisms required to enable it to actively process such applications.
ASEAN Case Study: The Auto Industry and GM
With the ASEAN Economic Community going into effect at the end of this year, many companies are now seriously considering moving their operations to the region. However, the question remains as to where in ASEAN to base your business. As such, it is helpful to consider corporations that have made the move to ASEAN in the past and to try and understand their reasons for doing so. We delve into GM’s expansion into the region and provide snapshots of their operations in a few key countries.
