Malaysia’s 2019 Budget, India-China DTAA Updated – China Outbound
Our weekly round up of other news affecting foreign investors throughout Asia.
On November 2, 2018, Malaysia’s Minister of Finance Lim Guan Eng tabled the country’s much anticipated 2019 budget.
The budget focuses on three areas – implementation of institutional reforms; socio-economic well-being of all Malaysians; and the fostering of an entrepreneurial economy.
In the latest move to check tax evasion by multinational companies operating in both China and India, the two countries signed a protocol to amend the existing Double Taxation Avoidance Agreement (DTAA).
The protocol, among other things, updates the existing provisions for the exchange of information to the latest international standards.
Although China and the United States have agreed a 90 day truce in their trade war, and suspended the threat of additional tariffs, the issue has played to Russia’s advantage – almost certainly an unintended consequence by Washington.
Beijing has turned to alternative crude and natural gas suppliers since August, when it became apparent the threat of US tariffs were real, benefiting Russia’s energy industry.
There are calls for US dollar trade in China and Russia – the largest of the Belt & Road nations – to either be replaced by a return by to a gold or similar asset backed currency such as oil or gas reserves, or the creation and development of alternative basket of currencies, and including the Euro as a reserve currency.
According to a recent report by the World Bank, Vietnam ranks among the top five countries in private participation in infrastructure (PPI) projects in the first half of 2018.
A total of 34 countries attracted investments, with China, Turkey, Vietnam, India, and Brazil being the top five, accounting for 66 percent of the total investment, up 10 percent compared to last year.