How MSMEs fuel economy-wide production and jobs

1. MSMEs create enormous value for economies around the world. They account for roughly half of global GDP. That share varies significantly among economies. In Portugal, Israel, Indonesia, Italy, and Kenya (ordered by decreasing share of value added), the share is larger than 60 percent. In the United States, Nigeria, and India, it is less than 40 percent.

2. They are also significant employers, accounting for roughly 40 percent of all employment and 70 percent of employment in the business sector, which we define as excluding the farm, government, and finance sectors. That share is as high as 96 percent in Kenya, where MSMEs account for half of all employment.

Medicon Valley: how the initiative shaped biotech ecosystems in Denmark and Sweden

1. With a combined market value of over $7 billion, the life science sectors in Sweden and Denmark are thriving, with over a thousand healthcare companies being set up over the past few years. Much of this is owing to the cross-border cluster that spans regions of eastern Denmark and southern Sweden, the Medicon Valley.

2. Racking up more than DKK 45 billion ($6.64 billion) in investments, the Medicon Valley is home to Danish multinational company Novo Nordisk, which runs the world’s largest insulin plant. A driver in diabetes treatment, its diabetes pill Rybelsus was approved by the U.S. Food and Drug Administration (FDA) as a first-line treatment to lower blood sugar levels, earlier this year.

3. In the frontline of this cluster is the Medicon Valley Alliance, a non-profit organization that works to strengthen collaboration between the Danish and Swedish life science sector, with an interest in promoting the hub as an attractive destination for setting up healthcare companies, according to David Zepernick, director, member engagement and communication at Medicon Valley Alliance.

'Brainport is an economic success story, but also the place where everyone should have opportunities'

1. The success of the Brainport region is leading to significantly more jobs and residents in the coming years. The region is gearing up for a jump in scale, putting pressure on society. Every resident must be able to participate, but that does not happen by itself. In addition to support from the national government, the business community is investing in measures in the areas of talent development, accessibility, housing and equal opportunities through the Brainport Partner Fund. NXP is one of the companies that have joined the fund. Director Jean Schreurs of NXP Netherlands: “Brainport should not only be an economic success story, but also a place where everyone gets opportunities.”

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.