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The Group of Seven (G7) nations announced on Saturday that they have reached a significant agreement to exempt United States multinational corporations from the global minimum tax regime applied by other countries. This marks a notable diplomatic success for the administration of President Donald Trump, which has lobbied extensively for such a carve-out. According to a statement issued by Canada, which currently holds the G7’s rotating presidency, the accord introduces a “side-by-side” mechanism. Under this framework, US multinational enterprises will be taxed solely within the United States on both domestic and overseas earnings. This dual-track approach is positioned as a stabilising force in the global tax landscape. The agreement, the G7 noted, was facilitated in part by proposed revisions to the US international tax system contained in President Trump’s flagship legislative package — a comprehensive domestic bill still under consideration in Congress. These pending tax changes were key to shaping the compromise. “The side-by-side system could provide greater stability and certainty in the international tax system moving forward,” the statement said, emphasising a long-term vision of reduced friction in cross-border tax administration. The development is the latest evolution in global tax reform efforts that have gained traction since 2021, when nearly 140 countries reached a landmark accord under the aegis of the Organisation for Economic Co-operation and Development (OECD). That initiative, which drew heavy criticism from President Trump at the time, was built on two foundational “pillars”. The second of these mandates a minimum global corporate tax rate of 15%. Although the G7 has expressed unanimous support for the exemption of US firms, the final decision rests with the OECD, which must formally endorse any deviation from the global framework. In its communiqué, the G7 stated its commitment to “expeditiously reaching a solution that is acceptable and implementable to all.” On Thursday, US Treasury Secretary Scott Bessent foreshadowed the announcement, citing progress toward a “joint understanding among G7 countries that defends American interests.” He also made an appeal to US legislators to eliminate Section 899 from the Trump administration’s legislative agenda. Section 899, informally labelled a “revenge tax”, would permit Washington to impose additional levies on foreign-owned corporations and investors originating from jurisdictions perceived to enforce discriminatory taxation on American businesses. The clause has provoked apprehension among global investors, who argue that it could deter foreign direct investment into the US. The agreement reached by the G7 signals an important pivot in global tax diplomacy and underscores the influence of US domestic policy debates on international fiscal architecture. -AFP

Payments Network Malaysia (PayNet) has announced a strategic partnership with Alipay+ and Weixin Pay to stimulate inbound tourist expenditure, particularly from Chinese and regional travellers, by enhancing access to digital payment services across Malaysia. This collaboration will activate three summer campaigns integrated with the DuitNow QR ecosystem, Malaysia’s national interoperable QR code standard, which currently connects to over 2.5 million merchants. Visitors can transact directly using their existing mobile wallets without the need to download additional applications. Participating merchants include a broad spectrum of businesses, ranging from retail outlets and dining establishments to tourism service providers. The initiative seeks to improve the convenience of cross-border payments while driving the adoption of digital solutions among micro, small and medium-sized enterprises (MSMEs) nationwide. Alipay+ currently facilitates the use of 15 international e-wallets in Malaysia, including Alipay for users from China. PayNet reports that DuitNow QR transactions made through Alipay+ during the December 2024 travel period generated six times more revenue for local merchants compared to the same period in the previous year. Running from 26 June to 14 July, the first of the summer campaigns features a lucky draw for AlipayCN and Alipay+ users transacting via DuitNow QR, with prizes including an all-expenses-paid trip for two to watch the Arsenal–Tottenham Hotspur match in Hong Kong. A second initiative, “Eat, Play & Save”, operates from 15 June to 30 September, offering discounts at selected food and tourism-related merchants. From 15 July to 15 September, Weixin Pay users will be able to collect digital badges through DuitNow QR purchases, which can be redeemed for discount vouchers. Additionally, Weixin Pay customers will benefit from preferential foreign exchange rates when using DuitNow QR in Malaysia. PayNet projects that participating businesses could see up to a 20% uplift in sales as a result of the campaigns. “This is what smart tourism looks like: seamless for travellers, transformative for our MSMEs. By enabling tourists to use their home wallets via DuitNow QR, we are opening up more than 2.5 million Malaysian businesses, many of them small and family-run, to global spending power. It’s a digital solution with real-world economic impact,” said Gary Yeoh, Chief Marketing Officer at PayNet. The organisation is targeting a more than 130% year-on-year increase in DuitNow QR transactions through Alipay+ and Weixin Pay in 2025. Payments Network Malaysia (PayNet) has announced a strategic partnership with Alipay+ and Weixin Pay to stimulate inbound tourist expenditure, particularly from Chinese and regional travellers, by enhancing access to digital payment services across Malaysia. This collaboration will activate three summer campaigns integrated with the DuitNow QR ecosystem, Malaysia’s national interoperable QR code standard, which currently connects to over 2.5 million merchants. Visitors can transact directly using their existing mobile wallets without the need to download additional applications. Participating merchants include a broad spectrum of businesses, ranging from retail outlets and dining establishments to tourism service providers. The initiative seeks to improve the convenience of cross-border payments while driving the adoption of digital solutions among micro, small and medium-sized enterprises (MSMEs) nationwide. Alipay+ currently facilitates the use of 15 international e-wallets in Malaysia, including Alipay for users from China. PayNet reports that DuitNow QR transactions made through Alipay+ during the December 2024 travel period generated six times more revenue for local merchants compared to the same period in the previous year. Running from 26 June to 14 July, the first of the summer campaigns features a lucky draw for AlipayCN and Alipay+ users transacting via DuitNow QR, with prizes including an all-expenses-paid trip for two to watch the Arsenal–Tottenham Hotspur match in Hong Kong. A second initiative, “Eat, Play & Save”, operates from 15 June to 30 September, offering discounts at selected food and tourism-related merchants. From 15 July to 15 September, Weixin Pay users will be able to collect digital badges through DuitNow QR purchases, which can be redeemed for discount vouchers. Additionally, Weixin Pay customers will benefit from preferential foreign exchange rates when using DuitNow QR in Malaysia. PayNet projects that participating businesses could see up to a 20% uplift in sales as a result of the campaigns. “This is what smart tourism looks like: seamless for travellers, transformative for our MSMEs. By enabling tourists to use their home wallets via DuitNow QR, we are opening up more than 2.5 million Malaysian businesses, many of them small and family-run, to global spending power. It’s a digital solution with real-world economic impact,” said Gary Yeoh, Chief Marketing Officer at PayNet. The organisation is targeting a more than 130% year-on-year increase in DuitNow QR transactions through Alipay+ and Weixin Pay in 2025. -Fintech News

HDB Financial Services Ltd’s US$1.5 billion (approximately RM6.34 billion) initial public offering has emerged as the most actively subscribed major Indian listing in at least four years, driven by robust demand from both foreign and domestic institutional investors. The non-banking financial arm of HDFC Bank Ltd, India’s leading private sector lender, attracted bids exceeding two billion shares by Friday afternoon in Mumbai, significantly surpassing the 130.4 million shares on offer, according to data published by the Bombay Stock Exchange. Participation was led by global institutional investors, domestic mutual funds and financial institutions. High net-worth individuals—those placing bids exceeding one million rupees (RM49,000)—also demonstrated significant interest. Meanwhile, the retail portion earmarked for small investors was fully subscribed. With demand for the issue exceeding available shares by over 15 times, HDB Financial’s listing represents the most substantial oversubscription since food delivery platform Eternal Ltd’s US$1.4 billion IPO, which drew more than 29 times coverage, exchange records show. This offering comes at a time of renewed confidence in Indian equity markets, as the NSE Nifty 50 Index edges to within 5% of its record high from September. The strong reception signals resurging appetite for large-scale public issues and could set the tone for several high-profile deals anticipated later this year, including prospective listings from Tata Capital Ltd and LG Electronics Inc’s India unit. India has re-emerged as one of the most dynamic global markets for equity fundraising in 2024. Following a period of subdued activity, IPOs, block trades and institutional placements have gained renewed momentum. HDB Financial secured 33.7 billion rupees through its anchor book allocation, with key institutional participants including Life Insurance Corporation of India—the country’s largest insurer—and a range of domestic mutual funds. Notably, global asset managers such as Morgan Stanley and Allianz SE were also among the cornerstone investors. -Bloomberg

CarUX, a smart cockpit solutions provider and subsidiary of Taiwan’s leading display manufacturer Innolux Corporation, has announced the acquisition of Japan’s Pioneer Corporation in a landmark transaction valued at 163.6 billion yen (approximately $1.1 billion). The agreement, signed with global investment firm EQT, will see CarUX assume full ownership of Pioneer, a former heavyweight in Japan’s consumer electronics sector. The move is aimed at enhancing CarUX’s footprint in the Asia-Pacific region while significantly expanding its global product portfolio. Pioneer, renowned for its innovation in automotive sound systems and Human Machine Interface (HMI) software, brings decades of experience and a well-established network of automotive partnerships, including with industry giant Toyota. According to CarUX and Innolux Chairman Jim Hung, the acquisition will unlock strategic synergies by integrating CarUX’s display and touch technology expertise with Pioneer’s established audio and software capabilities. “The acquisition brings strategic synergies for both CarUX and Pioneer,” said Hung, underlining the alignment of the two companies’ technological and operational strengths. The deal arrives at a time when CarUX is preparing for a public listing in the United States, announced earlier this year. The enhanced product offering and broader market access provided by the acquisition are expected to support the company’s growth ambitions on the global stage. Pioneer’s President and CEO Shiro Yahara welcomed the acquisition, stating that the collaboration would enable both companies to “create the future of mobility experiences”. Hung also revealed at a press briefing that Pioneer reported revenue of 240 billion yen in the fiscal year ending March 2024, and maintains a robust financial structure — a factor that was key in finalising the acquisition. Once a trailblazer in consumer electronics, Pioneer made headlines in 1997 for launching the world’s first plasma television. However, amid increasing global competition, the company saw its consumer electronics influence wane. Pioneer was previously acquired in 2018 by Baring Private Equity Asia for $900 million, resulting in its delisting from the Tokyo Stock Exchange. Baring was subsequently acquired by Swedish investment firm EQT AB in 2022. This strategic acquisition marks a significant milestone for CarUX, reflecting its ambitions to lead innovation in next-generation automotive cockpit solutions. -Reuters