Newsflash ASEAN

Dear reader 

Welcome to the Q4/2024 edition of our ASEAN Newsflash.

As another year rapidly draws to a close, we delve into the latest legislative developments in this edition. It was a pleasure meeting many of you at our Forum events in Kuala Lumpur and Ho Chi Minh City in November, where we discussed current legal, tax, and financial topics, and exchanged insights on upcoming regional trade dynamics. For those who could not attend, our presentations are available upon request.

In Indonesia a draft regulation has been issued requiring local corporations and foreign in-vestment companies to conduct an annual legal audit, aiming to enhance legal certainty. The practical impact on companies remains to be seen after the law’s full implementation. Additionally, the Indonesian government continues its efforts to attract domestic and for-eign investments to the new capital, Nusantara, by offering new incentives. The Malaysian 2025 Budget announcement includes an increase in labor costs, which employers need to prepare for. Other key initiatives include a dividend income tax for individuals, an exemption from tax on certain foreign-sourced income received in Malaysia for resident individuals, and the introduction of a carbon tax on the iron and steel, as well as energy industries, by 2026. In Singapore, the Ministry of Manpower has banned non-Singaporean entities from using Employer of Record services to sponsor work visas, closing a common loophole for foreign businesses without a local presence. Additionally, the Income Tax Amendment Bill 2024 introduces new tax credits for companies.

We wish you a pleasant year-end and a joyful festive season!

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