Deputy Investment, Trade and Industry Minister Liew Chin Tong says there is an urgent need for Asean member states to work towards an agreement not to circumvent the global minimum tax (GMT) as countries begin to adopt the tax.
He was speaking to reporters after his opening remarks at the Asean Economic Opinion Leaders Conference: Outlook for 2025 in Kuala Lumpur today.
00:00The idea of a global minimum tax is to ensure that everyone pays the same rate, at least, a minimum tax, so that countries collect taxes.
00:18There are multinationals who are asking different governments to give rebates or cash grants, so that they continue to enjoy whatever they have to pay in global minimum tax, in order to circumvent global minimum tax.
00:35So, this shouldn't happen. And we should be working together. So, ASEAN states, we should talk to each other, so that we all resist this pressure to give rebate or to give cash grant, in order for multinationals to enjoy the same tax holiday.
00:58There are multinationals who are asking different governments, and maybe the Malaysian government, to give rebates.
01:10But this is contrary to the basis of global minimum tax, so that governments can collect taxes.
01:21And with the tax, we can manage other needs, such as training, vocational training, or providing education to our people, in order to meet the needs of the industry.
01:43Do you have any message to the ASEAN governments?
01:48No, I just want to say that this could happen, and ASEAN governments need to work together, so that we can have a common vision, a common stance, so that we don't have to face pressure.
