Vientiane, 17 September 2024: ERIA President Tetsuya Watanabe presented the ERIA Policy Brief on the Global Minimum Tax (GMT) at the 27th ASEAN Investment Area (AIA) Council Meeting in Vientiane, Lao PDR. The meeting, chaired by H.E. Malaithong Kommasith, Minister of Industry and Commerce (MOIC) of Lao PDR, was attended by ASEAN Economic Ministers and the ASEAN Secretary-General.

In his presentation, President Watanabe highlighted the implications of the GMT for ASEAN Member States. He emphasised that tax incentives are no longer the primary tool for attracting foreign direct investment (FDI). Instead, ASEAN should focus on factors more closely aligned with investors' decision-making processes, such as macroeconomic and political stability, talent development and availability, competitive labour costs, the rule of law and transparency, as well as access to physical and digital infrastructure.

During the meeting, the ASEAN Secretariat and several Member States expressed their appreciation for ERIA's policy paper. The ministers noted that the GMT presents an opportunity for ASEAN to reconsider its investment strategies and maintain its competitiveness as a destination. They also encouraged ERIA to continue its work on this important subject.

Photos Credit: ASEAN Secretariat