Duo prepares for the hydrogen economy
Thailand is advancing towards a hydrogen economy with efforts from both business and the state. PTT Global Chemical (PTTGC) and Bangkok Industrial Gas, the largest producers of petrochemicals and industrial gas in Thailand respectively, have partnered to explore hydrogen fuel development. This initiative aligns with the Energy Policy and Planning Office’s (Eppo) plan to incorporate hydrogen fuel in the revised power development plan (PDP), aiming for hydrogen to constitute 5% of the total power supply between 2024 and 2037. Initially, blue hydrogen, produced from natural gas with carbon capture and storage, will be utilized. The collaboration aims to help both companies achieve a net-zero target by 2050, with a focus on developing infrastructure and stimulating demand and supply within the hydrogen business chain to support future demand in sectors like automotive and aviation.
Bangkok Industrial Gas, affiliated with US-based Air Products, the largest hydrogen business operator by investment, is keen on hydrogen fuel technology. Air Products has invested in the world’s largest green hydrogen production complex in Neom, Saudi Arabia, which uses renewable energy for green ammonia production. This ammonia, produced through electrolysis and bonded with nitrogen, can be shipped safely and cost-effectively, with hydrogen being separable for use as fuel. The Thai collaboration is still deciding whether to pursue blue or green hydrogen, which is produced using renewable energy to split water molecules.
https://www.msn.com/en-xl/news/other/duo-gears-up-for-hydrogen-economy/ar-BB1mUdb1
Editor’s Note: Thailand’s push towards a hydrogen economy sees major players like PTT Global Chemical and Bangkok Industrial Gas joining forces to explore hydrogen fuel development. With plans aligned with the Energy Policy and Planning Office’s goals, the initiative aims to incorporate hydrogen into the power supply, targeting 5% by 2037. Whether opting for blue hydrogen from natural gas with carbon capture or green hydrogen from renewable sources, the collaboration strives to pave the way for a sustainable future, focusing on infrastructure development and stimulating demand across various sectors.
Widodo meets with Elon Musk to talk on digital acceleration and investments
President Joko Widodo (Jokowi) and Elon Musk, CEO of SpaceX and Tesla, discussed accelerating Indonesia’s digital transformation and potential investments in a meeting in Bali. President Widodo highlighted the country’s rapid digital advancement and investment opportunities in infrastructure, government technology, digital economy, and digital society sectors. He encouraged investment from Musk’s companies, including SpaceX, Tesla, Neuralink, and Boring Company. Widodo also expressed hopes for Starlink to partner with Indonesian Internet providers to offer affordable Internet access, prioritize consumer protection, and provide cheaper rates for public services, such as community health centers and remote schools. Additionally, Widodo praised Musk’s participation as a speaker at the 10th World Water Forum, emphasizing the significance of water management.
Elon Musk expressed his honor at participating in the forum and his enthusiasm for his visit to Bali. He mentioned the goal of providing Starlink connectivity to support education and health facilities in Indonesia. His visit underscored global investors’ interest in Indonesia’s digital economy and potential collaborations to enhance digital infrastructure nationwide. Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, Foreign Minister Retno Marsudi, State Secretary Minister Pratikno, and Investment Minister Bahlil Lahadalia accompanied Widodo during the meeting. The previous day, Musk and Health Minister Budi Gunadi Sadikin conducted a Starlink Internet trial at Sumerta Klot Community Health Center in Denpasar to support health services, particularly in remote areas without Internet access, by enhancing the uploading of medical records and disease screening processes.
Editor’s Note: President Joko Widodo and Elon Musk convened in Bali to discuss Indonesia’s digital acceleration and potential investments, focusing on sectors like infrastructure, government technology, and the digital economy. Widodo encouraged investment from Musk’s companies, including SpaceX and Tesla, while expressing hope for collaborations to improve Internet access and support public services like healthcare and education. Musk, enthusiastic about providing Starlink connectivity, highlighted the importance of enhancing digital infrastructure nationwide, indicating global investor interest in Indonesia’s digital economy.
Senior Official says Musk will “consider” opening a Battery Plant in Indonesia
Elon Musk, CEO of Tesla, is considering Indonesia’s proposal to establish an EV battery plant in the country, according to Luhut Binsar Pandjaitan, the coordinating minister for maritime affairs and investment. This proposal was made during a meeting between Musk and Indonesian President Joko “Jokowi” Widodo at the World Water Forum in Bali. Jokowi also proposed investments in an artificial intelligence center and a SpaceX launchpad on Biak island. Since taking office in 2014, Jokowi has aimed to turn Indonesia into a global hub for EV battery production, leveraging the country’s vast nickel reserves. Indonesia has imposed a ban on raw nickel ore exports to encourage local refining and has sought foreign investment in nickel processing and battery manufacturing.
Indonesia has been courting Musk and Tesla for several years, with Jokowi meeting Musk at SpaceX in Texas in 2022 to discuss integrating Tesla’s supply chain in the country. During Musk’s first visit to Indonesia, he launched the Starlink network, providing internet connectivity to remote areas of the archipelago. While Musk has not made formal investment announcements, he indicated a likelihood of investing in Indonesia. A Tesla investment would significantly boost Indonesia’s EV ambitions, complementing investments from Chinese and South Korean firms in nickel processing and battery production. Other U.S. tech firms, such as Microsoft and Apple, have also shown interest in Indonesia, with Microsoft planning a $1.7 billion investment to expand cloud services and AI infrastructure.
Musk to ‘Consider’ Opening Battery Plant in Indonesia, Senior Official Says – The Diplomat
Editor’s Note: Elon Musk is contemplating Indonesia’s proposal to establish an EV battery plant in the country, as revealed by Luhut Binsar Pandjaitan, the coordinating minister for maritime affairs and investment. This proposal, discussed during a meeting with Indonesian President Joko Widodo, aligns with Indonesia’s goal to become a global hub for EV battery production, leveraging its significant nickel reserves. While Musk has yet to make formal announcements, such an investment from Tesla could greatly bolster Indonesia’s ambitions in the electric vehicle sector, complementing existing investments from other countries and tech giants like Microsoft and Apple.
Draft law seeks to limit profit shifting
The Revenue Department anticipates that draft legislation aimed at taxing multinational enterprises (MNEs) to curb profit shifting to low-tax countries will be implemented by 2025, potentially increasing tax revenue by 12 billion baht annually. Director-general Kulaya Tantitemit stated that the draft, which includes the Top-up Tax Act, aligns with the OECD’s Pillar 2 principles and involves secondary legislation. The draft has been submitted to the Office of the Secretariat of the Cabinet, awaiting inclusion in the cabinet agenda. Subordinate laws are also being drafted, expected to be ready before the Top-up Tax Act’s enactment. The legislation, aligning with OECD and G20 resolutions, aims to prevent tax base erosion and profit shifting by setting a global minimum corporate tax rate of 15%.
Under this framework, MNEs shifting profits to subsidiaries in countries with tax rates below 15% would pay the difference in taxes. The cabinet approved the legislation’s principles in March 2023, and the Revenue Department has since drafted the legislation, conducting public hearings as required by the constitution. These hearings indicated that MNEs are prepared to comply with the new rules, as they align with international standards. Discussions during the hearings addressed practical issues, including differences between Thai accounting standards and those used for calculating the Top-up Tax. The draft law stipulates that companies benefiting from the BoI’s Investment Promotion Act remain unchanged, but MNEs with an effective tax rate below 15% in Thailand will need to pay a top-up tax to meet the 15% threshold.
https://www.bangkokpost.com/business/general/2795880/draft-law-aims-to-curtail-profit-shifting
Editor’s Note: The Revenue Department is anticipating the implementation of draft legislation aimed at taxing multinational enterprises (MNEs) to prevent profit shifting to low-tax countries by 2025. Expected to increase tax revenue by 12 billion baht annually, the legislation aligns with OECD’s Pillar 2 principles and involves secondary legislation, awaiting inclusion in the cabinet agenda. MNEs shifting profits to countries with tax rates below 15% would be required to pay the difference in taxes under this framework, aimed at preventing tax base erosion and profit shifting.
Solar rooftop purchasers will receive a tax break
The Department of Alternative Energy Development and Efficiency (DEDE) plans to finalize a new tax reduction scheme for households installing rooftop solar panels by mid-year to reduce electricity bills and carbon dioxide emissions. Households purchasing solar panels with a power generation capacity of less than 10 kilowatts, costing under 200,000 baht, are eligible to participate, according to DEDE director-general Wattanapong Kurovat. The Revenue Department will determine the tax reduction calculation for the scheme.
DEDE anticipates that 90,000 households will join the program between this year and next, requiring a budget of 20.2 billion baht. The initiative is projected to decrease electricity consumption by 585 million kilowatt-hours annually, significantly contributing to energy savings and environmental benefits.
https://www.bangkokpost.com/business/general/2794574/solar-rooftop-adopters-set-to-win-a-tax-break
Editor’s Note: The Department of Alternative Energy Development and Efficiency (DEDE) is set to introduce a tax reduction scheme for households installing rooftop solar panels by mid-year, aiming to lower electricity bills and carbon emissions. Eligible households purchasing solar panels with a capacity of under 10 kilowatts and costing less than 200,000 baht can participate, with the Revenue Department determining the tax reduction calculation.
Firms get ready for the next CBAM phase
Local businesses, particularly SMEs, need support to enhance their manufacturing environmental standards in light of the European Union’s Carbon Border Adjustment Mechanism (CBAM), says the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB). The CBAM, aimed at promoting the use of renewable energy to lower carbon footprints, began its transitional phase last October, requiring importers of specific goods to report greenhouse gas emissions without financial adjustments. Starting January 1, 2026, importers will need to pay a levy for CBAM certificates.
The JSCCIB, in collaboration with the International Chamber of Commerce-Thailand, is taking steps to mitigate CBAM’s impact on Thai exports, according to Montri Mahaplerkpong, vice-chairman of the Federation of Thai Industries. The second phase of CBAM in 2026 will affect more products, with the third phase covering all EU exports. To help Thai manufacturers, particularly SMEs, adapt to these changes, the JSCCIB plans to establish new environmental standards and educate businesses on international laws. This process, expected to take three years, involves setting standards addressing carbon dioxide emissions and other CBAM-related measures through discussions among businesses and state agencies.
Editor’s Note: Local businesses, particularly SMEs, are gearing up for the next phase of the European Union’s Carbon Border Adjustment Mechanism (CBAM), which will require importers to pay a levy for CBAM certificates starting January 1, 2026. To mitigate the impact on Thai exports, the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) plans to establish new environmental standards and educate businesses on international laws over the next three years in collaboration with the International Chamber of Commerce-Thailand.
Bangkok Land plans to build a smart city in Mueang Thong Thani
Bangkok Land, listed on the Stock Exchange of Thailand (SET), is set to transform Mueang Thong Thani into a smart city district, including a new seafood and fruit center to attract tourists to Nonthaburi. The development aligns with the launch of the Pink Line monorail service next year. CEO Paul Kanjanapas highlighted that this initiative aims to boost revenue for local businesses and residents while promoting sustainable practices and leveraging artificial intelligence technologies. The company is collaborating with food delivery and ride-hailing services to develop an application to create job opportunities and address taxi scams. Additionally, they plan to encourage exhibition organizers to use local restaurant catering services.
In the short term, Bangkok Land plans to expand the Ruamjai fresh market into a center for fresh seafood and local fruit, sourced directly from farmers and fishermen to ensure fair prices. This market will include 300 dining seats and a new durian warehouse. The Pink Line monorail’s new stations within Mueang Thong Thani will support the smart city plan, with one station connecting to Impact Challenger Hall and another near a lakeside area slated for expansion. The company also plans to offer more rental units for condo owners, develop a new five-star hotel, and collaborate with the National Innovation Agency to attract startups focused on smart living technology, providing a testing ground for innovations like self-driving technologies.
https://thethaiger.com/news/national/bangkok-land-to-transform-muang-thong-thani-into-smart-city
Editor’s Note: Bangkok Land, listed on the Stock Exchange of Thailand, is undertaking a transformative project to develop Mueang Thong Thani into a smart city district, complementing the upcoming Pink Line monorail service launch. CEO Paul Kanjanapas emphasized the aim to enhance local revenue, promote sustainability, and leverage AI technologies while collaborating with food delivery and ride-hailing services to address community needs. Plans include expanding the Ruamjai fresh market into a seafood and fruit center, developing new infrastructure, and fostering innovation in smart living technology through partnerships with the National Innovation Agency.
Vietnam asks Foxconn and Others to reduce power usage in order to prevent blackouts
Apple supplier Foxconn and other manufacturers in Vietnam have been asked to voluntarily reduce their electricity use by 30% at assembly plants in the north to prevent power shortages in the coming months. This request follows significant losses due to power outages last year. While the cutback is not mandatory and has not impacted production, it reflects authorities’ efforts to encourage energy conservation. State-owned Bac Giang Power Company (BG PC) has coordinated with industrial parks to implement electricity savings, emphasizing that power load adjustments and production plan modifications by enterprises significantly affect the power system.
The push for energy-saving measures comes after a heatwave last year caused widespread power blackouts, affecting major manufacturers like Foxconn, Samsung, and Canon, with an estimated $1.4 billion loss. This power shortage has raised concerns among global firms considering operations in Vietnam, including those seeking alternatives to China. Despite these challenges, Apple has increased its supplier base in Vietnam, and the country continues to attract energy-intensive industries like semiconductor manufacturing. To meet higher electricity demand, the government has delayed maintenance for coal-fired power plants and encouraged nationwide energy-saving measures to avoid shortages.
Editor’s Note: Vietnam has urged Apple supplier Foxconn and other manufacturers to voluntarily reduce electricity usage by 30% at assembly plants in the north to prevent power shortages, following significant losses due to outages last year. While not mandatory, the request reflects authorities’ efforts to promote energy conservation amid concerns about power supply stability and its impact on industrial operations.
Using a circular economy to create “green living” with Far Eastern Polytex Vietnam
Far Eastern Polytex Vietnam (FEPV), a subsidiary of the esteemed Far Eastern New Century Corporation (FENC), plays a crucial role in the global production of food-grade rPET and recycled ocean polyester filaments. FENC is dedicated to advancing environmental sustainability and has been a trailblazer in the circular economy. With the establishment of the first PET bottle recycling plant in Taiwan (China), FENC continuously enhances its recycling technologies, converting waste materials into a diverse array of high-quality rPET applications. These applications encompass food and non-food packaging, functional apparel, shoe materials, home goods, and automotive materials. FENC’s commitment extends globally, with projects underway to expand recycling and re-manufacturing capacity in Taiwan (China), Japan, the US, and upcoming rPET plants in Vietnam, Malaysia, and the Philippines, reinforcing its leadership in sustainable practices within the polyester industry.
As part of its sustainability initiatives, FEPV collaborates with AEON Mall to implement the first rPET closed-loop project in Vietnam, reinforcing FENC’s sustainable footprint in the region and fostering future partnerships. FEPV further demonstrates its dedication to environmental stewardship through the ECO Event 2024, held at AEON Malls across Vietnam from May 25 to June 5. This event promotes eco-conscious living by incentivizing waste exchange for valuable gifts and educating consumers, especially the younger generation, on the importance of PET bottle recycling. Additionally, the ECO CONTEST 2024, targeting students aged 11-13 at select AEON Malls in southern Vietnam, encourages environmental activism under the theme “The Green Generation – Acts for the Environment,” fostering a culture of sustainability among youth.
https://www.asiafinancial.com/vietnam-asks-foxconn-others-thttps://en.vneconomy.vn/creating-green-living-through-a-circular-economy-with-far-eastern-polytex-vietnam.htmo-cut-power-use-to-avert-blackouts
Editor’s Note: Far Eastern Polytex Vietnam (FEPV), a subsidiary of Far Eastern New Century Corporation (FENC), is leading the charge in promoting environmental sustainability through its circular economy initiatives, particularly in PET bottle recycling and rPET production. Collaborating with partners like AEON Mall, FEPV is implementing closed-loop projects and hosting eco-conscious events like the ECO Event 2024 to educate consumers and encourage environmental stewardship, reinforcing FENC’s commitment to sustainable practices in Vietnam and beyond.
Trade Ministry relaxes import laws
The Indonesian government has issued a new regulation aimed at easing import restrictions for certain goods, marking the third policy revision since March to address disruptions caused by earlier restrictions. The Trade Ministry’s latest regulation, issued on Friday, aims to facilitate the entry of essential goods and raw materials, responding to concerns from local businesses struggling with stringent import restrictions that led to significant delays and a backlog of shipments at major ports. The amendment removes many raw and auxiliary materials from the list of prohibited or restricted items under the Harmonized System (HS), easing import processes and aligning with businesses’ aspirations for eased imports of raw material, auxiliary goods, and capital goods.
Shinta Kamdani, chairwoman of the Indonesian Employers Association (Apindo), welcomed the new regulation, emphasizing its synchronization with businesses’ needs and its role in fostering healthy business competition by addressing import restrictions for consumer goods and illegal products. The revisions aim to alleviate the backlog of approximately 26,000 containers at major ports, including Tanjung Priok and Tanjung Perak, by relaxing restrictions for various product categories such as electronics, shoes, clothing, bags, valves, cosmetics, household goods, traditional medicines, and health supplements. While some categories now require only a surveyor report (LS) instead of an LS plus an import permit (PI), technical approval (Pertek) from the Industry Ministry has been removed for certain products like electronics, shoes, clothing, and bags, streamlining import procedures and reflecting the government’s commitment to address businesses’ concerns.
https://business-indonesia.org/news/trade-ministry-eases-import-regulations
Editor’s Note: The Indonesian government has introduced a new regulation to ease import restrictions for essential goods and raw materials, marking the third policy revision since March to alleviate disruptions caused by earlier restrictions. This move aims to address concerns from local businesses grappling with stringent import regulations, which resulted in significant delays and backlogs at major ports. The amendment removes many raw and auxiliary materials from the list of prohibited or restricted items under the Harmonized System, streamlining import processes and reflecting the government’s commitment to support businesses’ needs and foster healthy competition.
Malaysia set for data centre, AI boom with Google’s RM9.4b investment, say experts
KUALA LUMPUR: The latest significant investment of US$2 billion (RM9.4 billion) by technology giant Google in Malaysia will elevate the country’s appeal as a data centre hub in the region, said an analyst. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the government should leverage on this opportunity to attract further investments that can enhance the complexity and diversity of the Malaysian economy.
“Google’s entry is expected to significantly enhance Malaysia’s appeal as a preferred destination for data centres. Malaysia offers extensive land, sustainable energy supply and a skilled workforce, creating an ideal ecosystem for companies looking to establish data centres,” he told Bernama. Google has announced its new investment of US$2 billion (RM9.4 billion) in Malaysia, including the development of its first data centre in the country and Google Cloud region to meet the growing demand for cloud services locally and around the world, as well as artificial intelligence (Al) literacy programmes for students and educators.
Editor’s Note: Google’s investment of US$2 billion in Malaysia, including the establishment of data centers and AI initiatives, is a significant boost to the country’s technological infrastructure and economic prospects. This move not only enhances Malaysia’s appeal as a data center hub but also fosters innovation, collaboration, and the development of a robust AI ecosystem, positioning the country favorably for future growth and global competitiveness.
Taiwan semiconductor players confident on business prospects in Malaysia
KUALA LUMPUR: Taiwan-based semiconductor companies are optimistic about business prospects in Malaysia’s semiconductor industry, given its solid foundation and thriving semiconductor ecosystem that offers potential long-term growth. Semiconductor integrated circuit (IC) design solutions provider, FusionSIP Technology Pte Ltd’s general manager, Eigen Fu said the company is planning to open its first design service centre in Malaysia this year.
He said the company is in the midst of surveying potential locations that would house its centre in the country. “We want to set up the biggest design centre in Southeast Asia, maybe somewhere near Kuala Lumpur due to its logistics advantages,” he told Bernama on the sidelines of SEMICON Southeast Asia 2024.
Editor’s Note: The optimism expressed by Taiwanese semiconductor companies regarding Malaysia’s semiconductor industry underscores the country’s growing reputation as a favorable destination for tech investment. With plans for expanding operations and introducing innovative solutions, Malaysia’s semiconductor ecosystem is poised for further growth, potentially strengthening its position in the global electronics market and contributing significantly to its economy.
SITA sees upward trend on IT spending by airports, airlines worldwide
KUALA LUMPUR: Airports and airlines worldwide are spending more on IT infrastructure as the future of air transport will be highly driven by digitalisation, according to SITA. SITA, the global leader in technology solutions for the air transport industry, said IT infrastructure spending among airports and airlines would have reached an estimated RM213.5 billion (US$45.3 billion) in 2023.
SITA Asia Pacific president Sumesh Patel said out of the total amount, about RM50.9 billion (US$10.8 billion) are expected to have been spent by airports while airlines might have spent some RM162.6 billion (US$34.5 billion) last year.
Editor’s Note: The increasing investment in IT infrastructure by airports and airlines underscores the pivotal role of digitalization in shaping the future of air travel. Embracing technologies like Electronic Travel Authorization and Digital Travel Credentials not only enhances passenger experience but also streamlines operations, paving the way for a more efficient and seamless travel journey.
Sarawak inks deal with MNOs to enhance connectivity in the rural areas
KUCHING: Sarawak has signed a Smart600 multi-operator core network (MOCN) agreement with four mobile network operators (MNOs) to enhance the digital connectivity in the rural areas of the state. The agreement was signed between Sarawak Digital Economy Corporation Bhd (SDEC) and CelcomDigi Bhd, Maxis Broadband Sdn Bhd, U Mobile Sdn Bhd and YTL Communications Sdn Bhd.
SDEC, in a statement, said the service was “aligned with the Sarawak government’s aspiration to ensure comprehensive network coverage in the (state)”.
Editor’s Note: The signing of the Smart600 MOCN agreement between Sarawak and four mobile network operators is a significant step towards enhancing digital connectivity in rural areas, aligning with the state’s ambition to bolster its digital infrastructure. Sarawak’s commitment to expanding its digital telecommunication initiatives, as outlined in its Digital Economy Blueprint 2030, reflects a forward-thinking approach aimed at driving economic growth, fostering innovation, and creating new job opportunities in the region.
US$2b empowerment from Google
KUALA LUMPUR: Google has committed US$2 billion (about RM9.4 billion) to establish its first data centre and cloud region in Malaysia, which will be the largest investment in its 13 years of operation here. The investment is estimated to support more than US$3.2 billion in contributions to Malaysia’s gross domestic product and 26,500 jobs by 2030, according to a Google-commissioned evaluation by AlphaBeta, which is part of Access Partnership.
Google said in a statement the data centre and cloud region will be located in Sime Darby Property Bhd’s Elmina Business Park in Selangor. “The data centre will power services including Search, Maps and Workspace, and will help deliver AI services, while the cloud centre will offer services to local firms and public sector organisations, it said. “Malaysia and Google are partnering to advance our shared work to create a supportive ecosystem for innovation and unlock the potential of digital transformation,” Google parent Alphabet president Ruth Porat said in the statement.
Editor’s Note: Google’s commitment to invest US$2 billion in Malaysia for establishing its first data center and cloud region is a significant milestone for the country’s digital economy. This investment not only strengthens Malaysia’s position as a hub for data centers and cloud services but also presents immense opportunities for economic growth, job creation, and technological advancement across various sectors.
https://www.nst.com.my/business/economy/2024/05/1057531/us2b-empowerment-google