Malaysia's industrial output grows faster-than-expected in March, May 2024 official data shows

 1. Malaysia’s industrial output rose at a faster-than-expected pace in March from a year earlier with the manufacturing sector leading broad gains, the Department of Statistics Malaysia (DOSM) said.

2. The industrial production index — which measures output from factories, mines, and power plants — climbed 2.4% in March compared to the same month in 2023. That was better than the median 1.9% increase predicted in a Bloomberg survey but slower than February’s 3.1% year-on-year growth.

3. On a month-on-month basis, the index rebounded 7.5% in March from February’s decline of 6.3%.

4. The latest reading dovetails with modest improvement in factory output in major exporters China, South Korea, Vietnam and Taiwan over the same month. However, industrial production fell in Singapore while that of the US, Japan, and Thailand declined further in March.

Thailand releases draft Top-up Tax Act to implement the global minimum tax rules under BEPS 2.0 Pillar Two

1. On 1 March 2024, the Thai Revenue Department released a draft legislation for an adoption of the Global Anti-Base Erosion Rules (GloBE rules) in Thailand, aligning with the Organisation for Economic Co-operation and Development's (OECD) Base Erosion and Profit Shifting (BEPS) 2.0 Pillar Two project. The draft legislation was open for a public consultation from 1 March 2024 to 15 March 2024.

2. This draft legislation is a response to the Cabinet's resolution on 7 March 2023 to collect the Top-up Tax in Thailand for in-scope multinational enterprises (MNEs). The Cabinet assigned the Thai Revenue Department with drafting the associated regulations and guidelines. (For background, see EY Global Tax Alert, Thailand plans to implement global minimum tax rules under OECD BEPS 2.0 Pillar Two, 10 March 2023.)

Investment Promotion Agency Qatar (Invest Qatar)'s Strategies

1. Significant investments in transport infrastructure projects, such as Hamad International Airport, Hamad Port and Doha Metro, form a crucial part of Qatar's strategy. The emphasis on human capital development through initiatives like Education City and strategic partnerships with international universities highlights the nation's commitment to nurturing talent. Additionally, regulatory reforms, including the liberalisation of foreign ownership laws and progressive visa policies, contribute to making Qatar an attractive destination for skilled professionals.

2. Public-Private Partnerships (PPPs) are identified as a cornerstone of Qatar's economic diversification efforts, fostering a business ecosystem that prioritises productivity, competitiveness and private sector-led growth. The May 2020 PPP law is underscored as a significant milestone, providing investors with confidence and predictability. Diverse sectors, including education, health care, real estate, tourism and energy, present promising opportunities for collaboration.

3. Collaborations with global tech giants, such as Microsoft and Google, showcase the country's favourable investment climate and growth potential. Ongoing partnerships to develop innovation centres reinforce Qatar's dedication to advancing key sectors like energy, health care and transport.

Encouraging Local Businesses to Embrace Technology

1. Encouraging local businesses to adopt your technology can be a challenging task. However, by understanding their pain points, offering personalized support, and highlighting the benefits of your solution, you can increase the chances of successful adoption. 

2. Start by identifying the specific challenges faced by local businesses in your industry and tailor your approach to address their unique needs. Provide personalized support through various channels, such as phone, email, or in-person meetings, to help them overcome any obstacles they may face. 

3. Additionally, emphasize the benefits of your technology, such as increased efficiency, cost savings, and improved customer relationships, to demonstrate its value to their business.

Thai manufacturing sector shrinks for 5th month amid ASEAN slowdown

1. The purchasing managers' Index (PMI) for the ASEAN region fell for the third straight month in December, dropping 0.3 points from November to 49.7.

2. The fall reflected a rapid decline in new orders, to the lowest level in 28 months. This led to a decrease in new export orders and weakened overall output, marking the slowest growth in the manufacturing sector in 27 months.

How can Small Businesses Benefit from Industry 4.0

1. You might think that Industry 4.0 only applies to large-scale industries, but many benefits also apply to SMEs, including increased efficiency and productivity, giving you greater business flexibility. This leads to enhanced profitability and better customer satisfaction. 

2. Industry 4.0 technologies provide you with more and better information to improve decision-making in your business. You'll find out how to optimise your organisational processes so that you'll save time and resources. In doing so, you'll deliver more services or products quickly and cost-effectively. It's a win-win situation.

RAMI 4.0 Reference Architectural Model for Industrie 4.0

1. The RAMI 4.0, Reference Architecture Model Industrie 4.0 (Industry 4.0), was developed by the German Electrical and Electronic Manufacturers' Association (ZVEI) to support Industry 4.0 initiatives, which are gaining broad acceptance throughout the world. 

2. Industry 4.0 (also termed Industrie 4.0) is a holistic view of manufacturing enterprises, started in Germany, with many worldwide cooperative efforts including China, Japan, and India. Industry 4.0 concepts, structure, and methods are being adopted worldwide to modernize manufacturing.

A New Generation of Robots Can Help Small Manufacturers

1. Automation is fundamentally changing industries and workplaces. The International Federation of Robotics predicts that in a decade, more than half of production operators will be working with robots. Big companies? They’re already there, harnessing advanced technology and optimizing their output. Small and medium-sized enterprises (SMEs)? Not so much.

2. Let’s take a moment to think about why this matters. Representing a whopping 99% of businesses, they’re the cogs and gears of U.S. and European economies — the backbone of job creation, supply chains, economic growth, and innovation. Overall, their role in building national economic resilience cannot be underestimated.

3. The fact that SMEs have typically been slow to harness the benefits of automation matters because a slow pace of adoption is often what prevents businesses from achieving the resilience and efficiency needed to remain competitive. When SMEs lag behind, we all feel it. Manufacturing continues to decline in key markets such as the U.S. and the UK, with both reporting ongoing manufacturing downturns since the start of the Covid-19 pandemic.

Providing the right levels of support to small and medium-size enterprises

 1. Government agencies and NGOs with a good understanding of SME subsegments can better tailor their programs to meet SMEs’ unmet needs. We have researched SME support programs across the world and categorized them into a matrix of ten approaches. Some are tailored to a single subsegment while others address one of the six unmet needs for all or most subsegments.

2. For all these categories, the specifics of how they are implemented matter; therefore it is difficult to draw universal best practices from them. However, it can be instructive to consider the following ways these programs are helping to close the productivity gap for SMEs.