How Cargo Insurance is Changing with New Technologies Like AI, IoT, and Geopolitical Influences

 1. The global cargo insurance market reached $22.64 billion in 2024, growing 1.6% from 2023, and is projected to reach $106 billion by 2032 with a 4.1% CAGR. Europe leads with 37.68% market share, while Asia-Pacific grows fastest at 35.15% due to e-commerce and regional trade.

2. Geopolitical and environmental risks such as the Ukraine war, Red Sea disruptions, inflation, and climate-driven disasters (floods) have increased premiums and triggered stricter underwriting.

3. Common coverage includes fire, explosion, collision, storms, piracy, theft, mishandling, and salvage costs. Exclusions are inherent vice, ordinary leakage, delays, war, strikes, and cyber risks unless specifically added. Recent risk shifts include rising fire incidents from lithium batteries and EVs, surging cargo theft, more frequent floods, and cyberattacks like ransomware.

How Foreign Investors Can Use Malaysia’s Double Taxation Agreements

 1. Malaysia’s extensive network of Double Taxation Agreements (DTAs) is a central feature of its attractiveness as an investment destination. These treaties provide certainty in the treatment of cross-border income, reduce the risk of double taxation, and establish clear rules for when and how foreign-sourced income will be taxed in Malaysia.

2. For foreign investors, leveraging Malaysia’s DTAs can mean meaningful tax savings and more efficient business structuring.

3. Malaysia has signed 73 comprehensive DTAs with jurisdictions across Asia, Europe, the Middle East, and the Americas, along with several limited agreements that cover specific income types or sectors. These treaties set out mutually agreed-upon rules for the taxation of business profits, dividends, interest, royalties, and other forms of income, ensuring consistent treatment between partner countries.

4. The network also strengthens Malaysia’s position as a regional base for multinational operations by aligning with international tax standards and reducing tax uncertainty for cross-border transactions.

Korea Sees Unprecedented Wave of Small Business Closures

 1. In an online community of more than 1.8 million small business owners, a user in Jeonju, North Jeolla Province, wrote on Friday: “Am I the only one whose business is falling apart?”

2. “The restaurant near my shop went out of business and has since been replaced by a rental space, and the walnut pastry store next to it also shut down,” the user continued. “This feels serious and unsettling.”

3. The post was soon flooded with sympathetic replies, including: “Business is so dead I can’t even think straight” and “I opened my chicken shop at 4 p.m. and only made 120,000 ($87) won by 8 p.m.”

4. These accounts from small business owners offer a vivid snapshot of the hardships many are enduring — struggles that are reflected in the data.

The implications of G7 agreement on the global minimum tax

 1. The G7 countries on 28 June reached a compromise on the global minimum corporate tax. The United States under President Trump had said it would withdraw from the international deal that provided for the tax, brokered in 2021 by the Organisation for Economic Co-operation and Development, and would levy a ‘revenge tax’ on countries applying the global minimum to US companies. The G7 agreement removes that threat for now, but at the price of a ‘side-by-side’ system in which US companies will be to some extent protected.

2. The agreement could be seen as a defeat for Europe and other G7 countries, which have conceded a carve out for American businesses. This concession rewards threats by the US and does not send a signal of power at a time when Europe and other economies face challenges from the US. However, it may contradict the expectations of those who thought the minimum tax would not survive President Trump’s second term.

Malaysia Expands SST from July 1: What Businesses Should Know

1. Malaysia will implement a significant expansion of its Sales and Services Tax (SST) framework starting July 1, 2025. Announced as part of the government’s fiscal consolidation strategy under Budget 2025, the revised SST rules are designed to broaden the tax base without burdening essential goods or lower-income households.

2. For businesses, particularly those in the services sector, the SST expansion introduces new compliance obligations, registration requirements, and tax exposure across a wider range of activities.

Indonesia’s Consumer Stimulus: Impacts for Foreign Investors

1. Indonesia’s bold US$1.5 billion stimulus package, unveiled in late May 2025, is set to ripple through Southeast Asia’s largest economy — and foreign investors should be paying attention.

2. While the measures are aimed at boosting local household consumption, the indirect effects could reshape demand patterns across consumer goods, retail, energy, transportation, and financial sectors, opening fresh opportunities for foreign businesses.

Digital resilience as a practical blueprint for SMEs in Malaysia

1. Over the past two years, Malaysia has counted roughly one million micro, small and medium enterprises (MSMEs). Together, they generate close to two-fifths of national GDP and supply nearly half of all jobs. According to the SME Association of Malaysia, as many as 90-95 per cent of firms with more than ten employees have already moved key operations online. Whether those investments translate into lasting advantage now hinges on how confidently businesses turn digital promise into measurable performance.

2. Government policy is firmly behind them. National programmes such as the Malaysia Digital Economy Blueprint and the forthcoming ASEAN Digital Economy Framework Agreement aim to deepen connectivity, broaden market access and raise the region's collective digital skill base. The opportunity for growing Malaysian firms is therefore to convert high-level ambition into everyday gains that lift productivity at scale.

Singapore Is Warning of a Recession: Here’s What to Look For

 1. After a better-than-expected start to 2025, the government is warning of a growing risk that the economy may slip into its first technical recession since the pandemic.

2. Beh Swan Gin, permanent secretary at the trade ministry, emphasized that such a contraction — defined as two consecutive quarters of contraction — “doesn’t necessarily equate to a full-blown economic recession.” The government maintained its full-year growth forecast at a cautious 0% to 2%.

3. As the impact of the US-led tariff escalation begins to bite, Singapore is the first Southeast Asian country to flag the risk of a technical recession, an event that has only happened twice in the past 20 years — at the start of the Covid-19 pandemic in 2020, and during the global financial crisis, when the city-state had four straight quarterly contractions beginning in June 2008.

4. The newly re-elected government of Prime Minister Lawrence Wong is already spending billions of dollars in subsidies and handouts to help households cope with the rising cost of living and create more jobs. But with such a high dependence on global trade, the nation’s economic path this year is likely to be dictated by the unpredictable trade battle between the US and China.

Should investment promotion agencies focus more on attracting research, development, and innovation?

 1. While tariffs (or the risk of them) dominate headlines, and governments and companies globally fret about the consequences, one simple and obvious fact is worth remembering: tariffs only affect physical goods. Although some services trade and investment will get caught up in the turmoil, the same does not hold true for most cross-border investment into research, development, and innovation (RD&I). RD&I activities involving sensitive technologies may be subject to outbound FDI screening, such as the US Outbound Investment Security Program. Otherwise, companies remain free to conduct research (almost) anywhere in the world.

2. For many investment promotion agencies (IPAs), attracting manufacturing investment remains the ultimate prize. ‘The bigger, the better’ still applies for the investment that many IPAs seek to attract. Large manufacturing projects are prioritized because of their job creation and supply chain impacts and potentially transformative nature.

3. However, manufacturing’s share of global FDI has been declining for decades and represented only 13% of greenfield projects globally between 2020 and 2023 (source: UNCTAD). At the same time, corporate expenditures on R&D have been growing rapidly, with data from the World Intellectual Property Organization (WIPO) showing an increase of roughly 40 percent between 2019 and 2023. In most countries, corporate R&D now significantly exceeds R&D spending by governments and academia, reflecting the importance of innovation for companies of all sizes.

Malacca Emerges as Malaysia’s Electric Vehicle Manufacturing Hub

1. Malacca is stepping into the spotlight as one of Malaysia’s most promising electric vehicle (EV) manufacturing hubs. With billions in investment commitments, growing local job creation, and government-backed incentives, the state is positioning itself as a key driver of Malaysia’s green mobility ambitions under the National Energy Transition Roadmap (NETR).

Malaysia’s Global Minimum Tax: Key Implications for Multinationals

 1. Malaysia has implemented the Global Minimum Tax (GMT) as part of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS).

2. Under Malaysia’s GMT framework, two key tax mechanisms have been introduced to ensure compliance with the 15 percent minimum effective tax rate. The Domestic Top-up Tax (DTT) applies to Malaysian entities, ensuring they meet the required tax threshold, while the Multinational Top-up Tax (MTT) is designed for MNEs operating in Malaysia to align their global income taxation with international standards.

3. Companies falling below this threshold must file a top-up tax return, with transitional penalty relief available to support businesses during the initial implementation phase.

4. This framework, effective from January 1, 2025, is part of Malaysia’s commitment to aligning its tax policies with OECD guidelines and maintaining competitiveness within the ASEAN region.

What you need to know about China’s green energy certificate regime

1. Following China’s release of guidelines for the promotion of GEC, here is what companies should know if they plan to enter the trading market.

2. Citing GEC rules, global law firm Norton Rose Fulbright noted that these certificates serve proof of the environmental attributes of green energy electricity. One GEC unit corresponds to 1,000 kilowatt-hours of green energy power, with a validity period of 24 months.

3. These certificates are being issued by the Qualification Management Center for Electricity Business of the National Energy Administration.

Aftercare by investment promotion agencies – overlooked or overrated?

1. Aftercare by investment promotion agencies – overlooked or overrated?  

2. Aftercare is key function of investment promotion agencies (IPAs) and most IPAs claim to provide some level of support to existing foreign investors in their location. IPAs should approach aftercare in a targeted way to use their resources effectively and generate the greatest results.

3. There are good reasons for IPAs to focus on aftercare. Helping existing investors to expand can sometimes be easier than attracting new ones, resulting in higher returns on the IPA’s efforts compared to bringing in new investors. Positive relationships with existing investors can lead to “repeat business”, as companies continue to add new (and often higher value) activities to their operations with the IPA’s support. Satisfied investors can also be valuable allies for attracting new investors, by providing testimonials or even referrals to their own corporate networks. In some cases, aftercare interventions by IPAs can prevent companies from leaving or at least mitigate the impact of relocations or closures.

4. Despite the many benefits, our experience shows that only few IPAs place significant emphasis on aftercare. Attracting and supporting new investors typically consumes most of an agency’s resources while aftercare is often done sporadically, when time allows or when changes in the investment environment make focusing on existing investors expedient (for example, during a pandemic).

5. Are IPAs missing an opportunity by not focusing more on aftercare? The answer depends on how an IPA approaches aftercare and what results it wishes to achieve.

What Foreigners Need to Know About Taxable Income in Malaysia

Malaysia operates a territorial tax system, meaning income derived from within the country is subject to taxation. For foreigners living or working in Malaysia, understanding taxable income is crucial to ensure compliance and avoid unnecessary liabilities.

Trump effectively pulls US out of global corporate tax deal

 1. President Donald Trump on Monday declared that a global corporate minimum tax deal "has no force or effect" in the U.S., effectively pulling America out of the landmark 2021 arrangement negotiated by the Biden administration with nearly 140 countries.

2. Trump, in a presidential memorandum issued hours after taking office, also ordered the U.S. Treasury to prepare options for "protective measures" against countries that have - or are likely to - put in place tax rules that disproportionately affect American companies.

3. The European Union, Britain and other countries have adopted the 15% global corporate minimum tax, but the U.S. Congress never approved measures to bring the U.S. into compliance with it. The U.S. has a roughly 10% global minimum tax, part of Trump's landmark 2017 tax cut package approved by Republicans.

Using off-the-shelf AI solutions for investment promotion

1. Artificial intelligence (AI) has rapidly emerged as a technology that is expected to transform the way we work and live. Companies across every industry are scrambling to adopt AI and harness its potential for exponential productivity gains. Investment Promotion Agencies (IPAs) are also exploring the different ways in which AI can enhance their performance. 

2. While some IPAs are seeking to develop in-house tools, this requires technical skills, access to data, and financial resources that are beyond the reach of many agencies. As an alternative to developing their own tools, IPAs can make use of a growing number of AI-powered solutions available in the market, which can serve as a cost-effective gateway to test new technologies. In this article, we provide examples of off-the shelf tools that IPAs can apply to different areas of their day-to-day work.

Sustaining Malaysia’s FDI Rebound: Promotion is Good, Facilitation Better by FULCRUM

1. Malaysia has always valued foreign direct investments (FDI) as it contributes toward employment, exports and technology transfer, besides enabling the country to join regional production networks. It is therefore not surprising that the remarkable rebound in FDI in 2021 was celebrated with much media fanfare, especially since FDI has been on the decline since 2016. 

Technology readiness levels

1. Many programs fund or otherwise support projects at different stages of development. These are the 9 technology readiness levels, with 1 being the least ready and 9 being already used in real-life conditions.

Helping small businesses thrive in the digital economy

1. Leaders across the public and private sectors have long recognized the importance of supporting small businesses. Across OECD countries, small- and medium-sized businesses (SMEs) represent around 99% of all firms, are a main source of employment and generate 50% to 60% of value added on average.

2. But it isn’t just about economies, it is about stronger communities and greater social inclusion. And by helping small businesses accelerate their digital journeys, it has a multiplier effect in building much wider access to the digital economy.

Return On Value vs Return On Investment (ROV vs ROI)

1. Considering the laissez-faire origins of modern capitalism, it makes sense that Milton Friedman, a prominent economist during the latter half of the 20th century, claimed the only social responsibility of a business was to increase its profits.

2. His view favored the Return on Investment (ROI) which is still a popular way to measure the profitability of an asset.

3. However, ROI only looks at financial benefits of a business decision and ignores things like:

a. Customer satisfaction

b. Employee retention

c. Regulatory compliance

d. Environmental sustainability

4. However, the return on value (ROV) considers a venture’s monetary and non-monetary benefits.

5. Like how an increase in the production of goods to meet a quarterly financial goal, will affect employee productivity in the following months.

6. Let us look deeper at ROV and how businesses can use it to make investment decisions that grow customer and employee loyalty – without exploiting humans or the environment.