international

Indonesia’s Ministry of Finance has introduced a regulation requiring eCommerce platforms to collect income tax from sellers, as part of efforts to enhance tax compliance among online merchants. Effective from 14 July, the new directive mandates online marketplaces operating in the country to withhold and remit a 0.5 per cent income tax on sellers with annual earnings exceeding 500 million rupiah. Prominent platforms affected by the regulation include TikTok Shop and Tokopedia, both under China’s ByteDance, Shopee owned by Singapore’s Sea Ltd, Lazada of Alibaba Group, and Blibli operated by Global Digital Niaga, a subsidiary of Indonesia’s Djarum Group. The regulation exempts specific categories of sellers such as courier services, mobile credit vendors and jewellery traders. Under the framework, online merchants are obliged to submit their sales invoice details to their respective eCommerce platforms, which will relay the information to Indonesia’s Tax Directorate General. Although the rule took immediate effect, eCommerce operators have been granted a one-month grace period to achieve full compliance. Rosmauli, spokesperson for the Tax Directorate General, noted that the regulation was implemented in response to a significant surge in online marketplace transactions across Indonesia. This trend, she highlighted, was accelerated by the Covid-19 pandemic and further supported by widespread smartphone adoption, rising Internet penetration and innovations in financial technology that have simplified online transactions. “Therefore, regulation that simplifies tax administration is necessary, particularly for businesses transacting via electronic systems,” Rosmauli said on Monday, as reported by Antara. She emphasised that the initiative also seeks to establish a level playing field between digital and traditional businesses. Similar measures have already been adopted in countries such as Mexico, India, the Philippines and Turkiye. -The Jakarta Post

Malaysia-based delivery platform Haloje Delivery is set to enter the Singapore market next month, building on its recent expansion into Indonesia as part of a broader strategy to reinforce its Southeast Asian footprint. Operated by Techzilla Global Solution Sdn Bhd, the platform is positioning itself to capitalise on Singapore’s reputation as a logistics and digital hub, which founder and director Jalluddin Abu Hassan described as a strategic choice for its next phase of growth. “Singapore is a mature and competitive market, which makes it ideal for testing and refining our service offerings. We will tailor our services to local needs, focusing on efficiency, punctuality, and technology integration,” Jalluddin told Bernama. Haloje Delivery is also targeting niche cross-border delivery services between Johor Bahru and Singapore, aiming to address a segment that remains underserved by larger platforms. In Indonesia, the company’s subsidiary PT Haloje Delivery Indonesia signed a memorandum of understanding earlier this month with Persatuan Ummat Islam, an organisation with more than 20 million members, to support the development of the digital economy within local communities. Having launched in late 2024 in Bekasi, West Java, approximately 20 kilometres east of central Jakarta, Haloje Delivery currently offers a range of services including food delivery, courier services, medicine delivery, groceries, and mobile prepaid credit top-ups. “Our approach in Indonesia is highly community-based, working closely with local organisations and entrepreneurs to ensure alignment with on-the-ground needs,” Jalluddin said. The company’s regional expansion efforts are supported by the Malaysia Digital X-Port Grant Programme under the Malaysia Digital Economy Corporation (MDEC), which is designed to help Malaysian technology companies scale globally. While operations in Malaysia have already achieved profitability, Jalluddin emphasised that the company is continuing to reinvest in technology, marketing, and talent to drive growth. He revealed that RM800,000 has been invested in Indonesia and RM200,000 in Singapore to date, with active efforts underway to secure additional funding from investors and strategic partners. “We are seeking partners who can offer not just capital, but also strategic value to accelerate our growth across ASEAN,” he said. Established in 2018, Haloje Delivery has been downloaded over 1.6 million times, initially focusing on rural and suburban areas in Malaysia before expanding into urban markets. The platform now holds Malaysia Digital Status and is a key partner in MDEC’s eRezeki programme, a national initiative aimed at empowering lower-income groups by enabling them to earn additional income through digital work. Jalluddin underscored Haloje Delivery’s ambition to become the leading community-based delivery platform in ASEAN, describing Indonesia and Singapore as critical markets due to their high growth potential and advanced digital readiness. -Bernama

City Developments Limited (CDL) announced on Tuesday, 15 July, that Mr Philip Yeo will be stepping down as a director of the company effective 31 July. Mr Yeo, 78, has served on CDL’s board for 16 years as a non-independent, non-executive director. According to the company’s filing with the Singapore Exchange, Mr Yeo’s retirement comes without any unresolved differences in opinion on material matters between him and the board. His notice of retirement follows a turbulent period at CDL, marked by an internal dispute earlier this year between Executive Chairman Kwek Leng Beng and his son, Group CEO Sherman Kwek. The conflict reached a head in February when the elder Mr Kwek accused his son of attempting a boardroom coup and initiated legal action over alleged governance lapses. This came after Sherman Kwek had moved to appoint new independent directors without full board consent. Mr Yeo had aligned himself with Mr Kwek Sr during the controversy, publicly criticising the younger Mr Kwek and taking issue with his handling of the matter. He also expressed disapproval after Sherman Kwek identified Dr Catherine Wu, an associate of Mr Kwek Sr, as a central figure in the disagreement. Although the lawsuit was withdrawn within two weeks of its filing—with all board members reportedly agreeing to reconcile in the interest of the company and its stakeholders—the aftermath of the episode continued to reverberate within the boardroom. At CDL’s annual general meeting in April, Mr Yeo voiced strong dissatisfaction over the way certain board members had proceeded with director appointments earlier in the year, describing the actions as “totally improper”, according to Bloomberg. City Developments shares closed down 0.2 per cent at S$5.57 (US$4.33) ahead of the announcement. -CNA

Chinese automotive giant Geely has announced plans to privatise its premium electric vehicle subsidiary Zeekr, in a transaction valuing the unit at approximately US$6.83 billion. The move is part of Geely’s broader corporate strategy to streamline its operations and enhance competitiveness in an increasingly saturated EV market. According to statements released on Tuesday, Geely will acquire the remaining shares of Zeekr it does not already own for US$2.687 per share, equivalent to US$26.87 per American depositary share. This offer represents an 18.9% premium on Zeekr’s last traded price on 6 May. The deal is anticipated to complete in the fourth quarter of this year. Geely currently holds a 62.8% stake in Zeekr. The company initially proposed a US$2.2 billion buyout in May, which has since been increased to approximately US$2.4 billion. Zeekr made its debut on the U.S. stock market in May 2024, achieving a valuation of US$6.8 billion and becoming the first major Chinese firm to list in the United States since 2021. Founded in 2021, Zeekr serves as Geely’s flagship premium EV brand, designed to showcase its proprietary technologies in electric vehicle architecture and battery systems. The planned buyout reflects a shift in Geely Holding’s strategic direction. The group, once known for its ambitious global acquisition spree, is now prioritising operational efficiency and cost control. The pivot comes in response to mounting margin pressures and an intensifying price war in China’s domestic EV market. As part of its corporate restructuring, Geely has realigned its operations into two core divisions: Geely Auto, targeting the mass-market segment, and Zeekr Group, which will continue to focus on premium offerings. In March, Geely further consolidated its internal technology development efforts by merging three separate business units working on digital cockpit systems into a unified 2,000-strong engineering team, with the aim of driving both efficiency and innovation across its product lines. -Reuters

Nissan Motor Co Ltd has confirmed it will end vehicle production at its Oppama facility by the close of its 2027 fiscal year, in a strategic move to streamline operations under its global restructuring plan. The Japanese automaker, which reported a net loss of ¥671 billion last year, stated the production activities currently carried out at the Oppama plant, located just outside Yokohama, will be transferred to an existing facility on the southern island of Kyushu. The announcement is part of a broader effort by Nissan to consolidate its manufacturing footprint, with plans to reduce the number of its vehicle production plants from 17 to 10 by fiscal year 2027. Oppama, one of six domestic plants operated by Nissan, employed approximately 3,900 staff as of October last year. The site, which has been operational since 1961, played a pivotal role in the brand’s history and was notably the first to produce the Nissan LEAF—widely recognised as the world’s first mass-market electric vehicle. The decision to halt production at Oppama reflects the company’s response to mounting financial pressure and increased competition, particularly from rapidly expanding Chinese electric vehicle manufacturers. Nissan’s business challenges have been compounded by the collapse of merger discussions with Honda Motor Co Ltd earlier this year. The proposed deal, which would have seen Nissan become a subsidiary of Honda, was abandoned in February. Once viewed as a potential pillar of stability, the abandoned merger was part of Nissan’s wider turnaround strategy, which also included a significant reduction in its global workforce by 15 per cent. The company has faced several reputational and operational setbacks in recent years. The 2018 arrest and subsequent escape of former chairman Carlos Ghosn continues to cast a long shadow, while credit ratings agencies have since downgraded Nissan’s status to “junk”. Moody’s, in particular, cited “weak profitability” and an “ageing model portfolio” as key concerns. In a further blow, Nissan scrapped a recently approved US$1 billion battery plant project in southern Japan earlier this year, citing adverse business conditions. The firm is also considered among the most vulnerable Japanese automakers to the 25 per cent tariff on Japanese vehicle imports imposed by US President Donald Trump. Industry analysts note that Nissan’s customer base in the United States tends to be more price-sensitive than those of its competitors, amplifying the potential impact of such trade policies. As Nissan continues to battle financial headwinds and shifting market dynamics, the closure of the Oppama plant marks a significant chapter in its transformation strategy, signalling both a nod to its storied past and a pragmatic step toward its future ambitions. -AFP

Tesla has officially entered the Indian automotive market with the opening of its first showroom in Mumbai, showcasing its premium electric SUV, the Model Y. The move marks a significant step in the company’s long-anticipated expansion into the world’s third-largest car market. The company is offering the Model Y rear-wheel drive at ₹6 million (approximately US$70,000), while the long-range rear-wheel drive variant is priced at ₹6.8 million (around US$79,000). These prices are considerably higher than in other key markets: in the United States, the Model Y starts at US$44,990; in China, at 263,500 yuan (US$36,700); and in Germany, at €45,970 (US$53,700). Tesla’s Mumbai showroom, located within a gated office complex in the city’s financial district, was tightly secured during its unveiling. The Model Y, partially covered in black and grey drapes, was visible through the showroom’s glass façade, as police guarded the venue. Access to the premises was restricted, with minimal public presence and limited visibility into the space. Elon Musk’s interest in the Indian market has been longstanding, driven by the country’s growing base of affluent consumers who have shown increasing demand for luxury goods, from real estate to high-end jewellery and automobiles. However, the Indian electric vehicle (EV) market remains in its early stages, with EVs accounting for just 4% of total car sales. The Indian government aims to increase this share to 30% by 2030, offering incentives such as tax concessions for foreign automakers willing to commit to local manufacturing. These incentives, however, have thus far done little to sway Musk toward substantial domestic production commitments. Tesla’s entry arrives at a time when competition in India’s premium EV segment is intensifying, with established German brands such as BMW and Mercedes-Benz already present. Meanwhile, local players such as Tata Motors and Mahindra continue to dominate the mass-market EV segment. The launch of Tesla’s Mumbai showroom also coincides with Vietnamese EV manufacturer VinFast’s pre-booking campaign for its VF7 and VF6 electric SUVs in India, signalling a broader push into one of the most promising, albeit infrastructure-challenged, automotive markets globally. -Reuters