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.

Small businesses are key to a more sustainable and inclusive world. Here's why

1. Small and medium-sized enterprises (SMEs) are a force to be reckoned with. They make up 90% of businesses globally, create two out of every three jobs worldwide, support the livelihoods of over two billion people, and are indispensable to the smooth functioning of global supply chains.

2. Despite their enormous impact, many are not yet fully engaged on environmental, social, and governance (ESG) issues. It is easy to understand why. The EU, for example, classifies small businesses as those with 11-49 people and revenues below €10 million a year. A medium-sized business has 50-249 people and annual revenues of up to €50 million.

3. Owners and managers in such firms have a lot on their plate, and fewer resources than their larger rivals. They may feel they lack the time, knowledge, capacity or funds to tackle problems like the climate crisis or discrimination against minorities. Others simply do not know where to start. But we do need SMEs to work for a better world – for their own sake and for everyone.

Global FDI in the Food Industry

 1. Between 2019 and 2023, the food sector was the twelfth largest FDI sector in terms of the number of greenfield investments. The food sector accounts for 3.3% of global greenfield FDI projects.

2. Greenfield foreign direct investment is when a company invests abroad to establish a new physical presence or expand an existing operation. Greenfield investments create jobs and/or involve a capital investment into the foreign location. Other forms of FDI, such as mergers and acquisitions, are not included as part of this definition.

3. Combined, the top ten destination countries account for 52.6% of total food FDI projects.

Global FDI in the Biotechnology Industry

 1. Between 2019 and 2023, the biotechnology sector was the twenty-fifth largest FDI sector in terms of the number of greenfield investments. The biotechnology sector accounts for 0.6% of global greenfield FDI projects.

2. Greenfield foreign direct investment is when a company invests abroad to establish a new physical presence or expand an existing operation. Greenfield investments create jobs and/or involve a capital investment into the foreign location. Other forms of FDI, such as mergers and acquisitions, are not included as part of this definition.

3. Combined, the top ten destination countries account for 69.4% of total biotechnology FDI projects.

MQTT vs HTTP for IoT: Detailed Protocol Comparison

1. As the IoT explodes with connected devices, selecting the right communication protocol is all-important to building efficient and scalable IoT solutions. MQTT vs. HTTP are frequently discussed protocols in this regard. Both have their own advantages and ideal applications.

2. Consider a manufacturing plant that uses a real-time asset monitoring solution based on MQTT. On the other hand, a smart home setup might use HTTP for periodic data uploads from smart devices. However, HTTP is not limited to periodic data transfers, nor is MQTT reserved only for real-time asset tracking.

3. Let's review each protocol’s features and how it works in different IoT settings to determine the best uses for each protocol. This article compares MQTT vs. HTTP for IoT applications based on benchmarks. Here, we'll explore the pros and cons of each protocol and discuss their ideal applications.

Making Strategic Sourcing Decisions Based on Total Cost of Ownership

1. You make a product in China. You went it alone. You found someone on the internet and they promised they could manufacture your product to your standards in the time required for the lowest price. Unfortunately, they also made an absolute hash of it.

2. If that wasn’t bad enough, you spent so much time on the phone sorting out quality issues and shipping problems that the “low cost” of the product skyrocketed because of the extra costs of fixing the quality problems (which were stopgap at best) and air freighting your product to customers (an unsustainable solution).

3. You’ve run into a perfect example of what happens when the lowest cost is the ultimate goal rather than looking at the whole picture.

4. As you probably guessed, we certainly aren’t bashing sourcing from China or anywhere overseas. There are great, quality manufacturers and suppliers to be found in China, Vietnam, India and elsewhere. We are, however, believers in approaching sourcing decisions, whether overseas or domestically, from a total cost of ownership (TCO) point of view. Properly used, TCO is a tool that can serve as a vital layer in the decision-making filter of choosing a contract manufacturer or supplier.

How to do Cyber Security Awareness Training for Small Business

1. Imagine if you couldn’t access your computer systems or data. It could lead to an existential threat. Unfortunately, many companies have already gone bankrupt after cyber attacks (e.g. Bicycle manufacturer Prophete, KNP Logistics, Financial services company Travelex, Cloud Nordic, window manufacturer Swiss Windows).

2. That’s why prevention is necessary. One key element of required measures: Cybersecurity awareness training. It can help your small business withstand cyber risks.

3. As a small business, you interact daily with your team, customers, potential customers, vendors, government agencies, and many other stakeholders. Organizations don’t operate in bubbles.

4. To build and maintain these relationships, digital communication channels are essential. We can’t avoid using the internet or email; it’s a business necessity to stay connected and reachable.

5. While these tools are useful, they leave your business exposed and vulnerable. That’s because malicious actors also use these channels for their fraud attempts.

6. As long as humans use computers and apps, we are targets because every good hacker knows it’s easier to hack humans than systems. This fact is underscored by the FBI Internet Crime Report, which states that fraud attempts via email (phishing) are the top crime type.

7. In other words, cyber risks are unavoidable. The good news is that it’s a risk you can do something about.

America’s industrial transformation needs a Marshall Plan for small businesses and their workers

1. There’s broad agreement on at least one thing about this year’s election outcome: Americans want more good jobs and an affordable cost of living, especially for working families. A question now emerges: Can our nation’s leaders leverage a budding industrial renaissance that hinges, far more than we recognize, on the capabilities of America’s small businesses and their workers? 

UNCTAD: FDI trends in H1 2024

 1. In the first six months of 2024, UNCTAD's preliminary data shows there was a slight (1%) increase in global foreign direct investment (FDI).

2. UNCTAD’s Global Investment Trends Monitor suggests global FDI has remained weak in the first six months of 2024. Excluding European conduit economies that hold investment funds before these reach their final destination, global FDI rose by just 1%.  

3. The value and number of international project finance deals decreased by 30%, keeping aligned with 2023’s downward trend. The value of cross-border mergers and acquisitions also decreased by 5%. High financing costs and inflationary pressures were the main drivers of the weak figures. The marginal 1% increase, at least, halts the downward slide of the past two years and signals a more optimistic outlook on the future of financial conditions.

4. The trends differed across regions and economies, where some were bolstered by a surge in global semiconductor investment.  

Malaysia-Canada Trade Surges 41% Amid Strengthening Economic Ties, as Malaysia Explores New Free Trade Deals to Mitigate Geopolitical Risks

1. Malaysia and Canada are deepening their economic ties, with bilateral trade reaching RM8.05 billion as of August 2024, marking a significant 41 per cent increase year-on-year, according to the Ministry of Investment, Trade and Industry (MITI).

2. MITI reported that bilateral trade surged by 25 per cent following Canada’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which also facilitates duty-free access for goods, eliminating tariffs on Canada’s key exports.

3. “This growth was driven by a 68.1 per cent surge in Malaysian exports to Canada and a 16.8 per cent rise in imports from Canada, with key sectors such as clean technology, agriculture, and aerospace fostering closer trade relations,” the ministry said in a statement to Bernama, here.

The Future Of Manufacturing: Technology Trends For 2025 And Beyond

1. The manufacturing sector is undergoing a technological and sustainable revolution. Industry 4.0 technologies like AI, IoT, and digital twins are enhancing efficiency, resource optimization, and eco-friendly practices. 

2. By 2025, software innovations will focus on carbon neutrality, energy efficiency, and cloud solutions, significantly reducing environmental impacts. AI drives smart production, while IoT transforms production lines into intelligent systems. 

3. Decentralized manufacturing and microfactories increase supply chain agility, despite challenges. The electrification of vehicle fleets and the integration of digital ecosystems in cars highlight mobility sector trends. However, manufacturers must address cybersecurity and balance cost-efficiency with innovation to adapt to global challenges

4. Here are FORBES and Forrester’s prediction for manufacturing in 2025 

Bắc Ninh: Vietnam’s Top FDI Location and Emerging Industrial Real Estate Hub

1. In the first nine months of 2024, Bắc Ninh province has established itself as a frontrunner in attracting foreign direct investment (FDI) within Vietnam, achieving over US$4.2 billion in investments.

2. This notable influx is largely credited to a robust investment climate characterized by advanced infrastructure and a skilled labor force, which positions Bắc Ninh as a highly appealing destination for foreign investors. 

3. The provincial Department of Planning and Investment reported that foreign investors committed US$1.56 billion to 339 projects, marking an impressive year-on-year increase of 82.2% in total investment and a 28.4% rise in project numbers.

4. Further reinforcing its investment appeal, Bắc Ninh saw 147 FDI projects adjusting their capital expenditures over the same period, leading to an additional allocation of US$2.68 billion. This flexibility demonstrates the province’s proactive approach to fostering business growth and optimizing the operational environment for foreign enterprises.