Deputy Finance Minister Liew Chin Tong calls for ASEAN minimum tax pact, urging regional cooperation to prevent harmful competition and build economic resilience
KUALA LUMPUR: Deputy Finance Minister Liew Chin Tong has called for the establishment of an ASEAN-wide minimum tax agreement. He suggested the Chartered Tax Institute of Malaysia (CTIM) lead regional tax experts in formulating the initiative.
Liew proposed that CTIM share these ideas with counterparts across ASEAN to establish a regional tax floor. He drew inspiration from the existing Global Minimum Tax agreement during a speech at the CTIM 35th Anniversary Commemorative Lecture.
He argued that ASEAN nations must stop assuming capital is excessively mobile, especially for investments requiring physical supply chains. Countries should avoid a damaging ‘race to the bottom’ in tax cuts, workers’ rights, and environmental standards.
“There are only so few places to run to,” Liew stated, emphasising the need for regional cooperation. He said Malaysia, Vietnam, Singapore, and others must maximise benefits for their own corporations and workers from foreign investment.
This means ensuring high local content so Malaysian companies benefit and that Malaysian workers are well-paid by foreign investors. Liew noted Malaysia is transitioning from a “trading nation” to a “technology nation”.
“Our common purposes are to see a strong middle class in Malaysia and an economically secure people,” he told the audience. He also called for a thriving industry built on technology and a resilient nation amid global chaos.
ASEAN should lead in innovation and technology creation to provide good jobs, he added. This would sustain a strong middle class through robust domestic and regional demand.
