Latest news with #OrganisationforEconomicCooperationandDevelopment
Arab Times
a day ago
- Business
- Arab Times
Kuwait moves to diversify revenue with new MNE tax framework
KUWAIT CITY, June 30: The Ministry of Finance announced on Sunday the issuance of the executive regulations for the Multinational Entities Group Tax Decree-Law, describing it as a major milestone in Kuwait's economic reform agenda and a testament to the country's commitment to achieving financial stability and diversifying its revenue streams. In a statement, the Ministry confirmed that Ministerial Resolution No. 55 of 2025 has been issued to implement Decree-Law No. 157 of 2024, which governs the taxation of multinational entities (MNEs) operating in Kuwait. The legislation includes the introduction of a supplementary Domestic Minimum Tax (DMTT), developed in accordance with the Organisation for Economic Cooperation and Development's (OECD) second pillar of the global tax framework. The Ministry noted that the executive regulations aim to clarify the law's provisions, define implementation procedures, enhance transparency, and provide clear guidance to relevant stakeholders in line with international best practices and standards. Minister of Finance and Minister of State for Economic Affairs and Investment, Eng. Noura Al-Fassam, emphasized that the implementation of these regulations marks a significant step in the nation's reform journey. 'This is a key development that contributes to creating a fair investment environment and promoting tax justice,' she said. Al-Fassam added that the new legislation aligns with Kuwait's development strategy, New Kuwait 2035, which seeks to diversify income sources and reduce reliance on oil revenues. She stated that initial projections indicate potential annual revenues of approximately KD 250 million from the new tax, thereby enhancing the state's capacity to build a resilient and sustainable economy capable of meeting future challenges. The Minister also revealed that the Ministry is planning to organize a series of awareness workshops in the near future. These sessions will aim to support the implementation of the law and provide detailed explanations of the executive regulations to the relevant authorities and specialists. Dates and details of the workshops will be announced in due course.
Time of India
4 days ago
- Business
- Time of India
Israel-Iran tensions wake-up call for Asia's dependence on Middle East oil
Hanoi: Asia's dependence on Middle East oil and gas - and its relatively slow shift to clean energy - make it vulnerable to disruptions in shipments through the Strait of Hormuz, a strategic weakness highlighted by the war between Israel and Iran. Iran sits on the strait, which handles about 20 per cent of shipments of the world's oil and liquefied natural gas, or LNG . Four countries - China, India, Japan and South Korea - account for 75 per cent of those imports. Japan and South Korea face the highest risk, according to analysis by the research group Zero Carbon Analytics, followed by India and China. All have been slow to scale up use of renewable energy. In 2023, renewables made up just 9 per cent of South Korea's power mix - well below the 33 per cent average among other members of the Organisation for Economic Cooperation and Development, or OECD. In the same year, Japan relied more heavily on fossil fuels than any other country in the Group of Seven, or G7. A truce in the 12-day Israel-Iran war appeared to be holding, reducing the potential for trouble for now. But experts say the only way to counter lingering uncertainty is to scale back reliance on imported fossil fuels and accelerate Asia's shift to clean, domestic energy sources. "These are very real risks that countries should be alive to - and should be thinking about in terms of their energy and economic security," said Murray Worthy , a research analyst at Zero Carbon Analytics. Japan and South Korea are vulnerable China and India are the biggest buyers of oil and LNG passing through the potential chokepoint at the Strait of Hormuz, but Japan and South Korea are more vulnerable. Japan depends on imported fossil fuels for 87 per cent of its total energy use and South Korea imports 81 per cent. China relies on only 20 per cent and India 35 per cent, according to Ember, an independent global energy think tank that promotes clean energy. "When you bring that together - the share of energy coming through the strait and how much oil and gas they rely on - that's where you see Japan really rise to the top in terms of vulnerability," said Worthy. Three-quarters of Japan's oil imports and more than 70 per cent of South Korea's oil imports - along with a fifth of its LNG - pass through the strait, said Sam Reynolds of the Institute for Energy Economics and Financial Analysis. Both countries have focused more on diversifying fossil fuel sources than on shifting to clean energy. Japan still plans to get 30-40 per cent of its energy from fossil fuels by 2040. It's building new LNG plants and replacing old ones. South Korea plans to get 25.1 per cent of its electricity from LNG by 2030, down from 28 per cent today, and reduce it further to 10.6 per cent by 2038. To meet their 2050 targets for net-zero carbon emissions, both countries must dramatically ramp up use of solar and wind power. That means adding about 9 gigawatts of solar power each year through 2030, according to the thinktank Agora Energiewende. Japan also needs an extra 5 gigawatts of wind annually, and South Korea about 6 gigawatts. Japan's energy policies are inconsistent. It still subsidizes gasoline and diesel, aims to increase its LNG imports and supports oil and gas projects overseas. Offshore wind is hampered by regulatory barriers. Japan has climate goals, but hasn't set firm deadlines for cutting power industry emissions. "Has Japan done enough? No, they haven't. And what they do is not really the best," said Tim Daiss , at the APAC Energy Consultancy, citing Japan's program to increase use of hydrogen fuel made from natural gas. South Korea's low electricity rates hinder the profitability of solar and wind projects, discouraging investment, a "key factor" limiting renewables, said Kwanghee Yeom of Agora Energiewende. He said fair pricing, stronger policy support and other reforms would help speed up adoption of clean energy. China and India have done more - but gaps remain China and India have moved to shield themselves from shocks from changing global energy prices or trade disruptions. China led global growth in wind and solar in 2024, with generating capacity rising 45 per cent and 18 per cent, respectively. It has also boosted domestic gas output even as its reserves have dwindled. By making more electricity at home from clean sources and producing more gas domestically, China has managed to reduce imports of LNG, though it still is the world's largest oil importer, with about half of the more than 11 million barrels per day that it brings in coming from the Middle East. Russia and Malaysia are other major suppliers. India relies heavily on coal and aims to boost coal production by around 42 per cent from now to 2030. But its use of renewables is growing faster, with 30 additional gigawatts of clean power coming online last year, enough to power nearly 18 million Indian homes. By diversifying its suppliers with more imports from the US, Russia and other countries in the Middle East, it has somewhat reduced its risk, said Vibhuti Garg of the Institute for Energy Economics and Financial Analysis. "But India still needs a huge push on renewables if it wants to be truly energy secure," she said. Risks for the rest of Asia A blockade of the Strait of Hormuz could affect other Asian countries, and building up their renewable power generating capacity will be a "crucial hedge" against the volatility intrinsic to importing oil and gas, said Reynolds of the Institute for Energy Economics and Financial Analysis Southeast Asia has become a net oil importer as demand in Malaysia and Indonesia has outstripped supplies, according to the ASEAN Centre for Energy in Jakarta, Indonesia. The 10-nation Association of Southeast Asian Nations still exports more LNG than it imports due to production by Brunei, Indonesia, Malaysia, and Myanmar. But rising demand means the region will become a net LNG importer by 2032, according to consulting firm Wood Mackenzie. Use of renewable energy is not keeping up with rising demand and production of oil and gas is faltering as older fields run dry. The International Energy Agency has warned that ASEAN's oil import costs could rise from USD 130 billion in 2024 to over USD 200 billion by 2050 if stronger clean energy policies are not enacted. "Clean energy is not just an imperative for the climate - it's an imperative for national energy security," said Reynolds. (AP)
Korea Herald
15-06-2025
- Science
- Korea Herald
Curious minds, better grades: Study finds curiosity linked to academic success among teens
While many factors a correlated with a student's grade, curiosity — not grit or self-control — emerged as the factor with the biggest link to academic success among 15-year-old students in South Korea, according to a new analysis of the Programme for International Student Assessment (PISA) data. The Korea Education Development Institute revealed the findings in its spring 2025 issue, drawing from the 2022 PISA assessment, which surveyed approximately 5,600 Korean students. PISA, run every three years by the Organisation for Economic Cooperation and Development, evaluates how well 15-year-old students worldwide have acquired the knowledge and skills needed to participate in society. Alongside cognitive subjects like science, mathematics, reading and creative thinking, the 2022 edition also assessed social-emotional competencies such as curiosity, perseverance, emotional control and stress resistance. Korean students in the higher achievement groups scored significantly higher in curiosity than those in lower groups across all subjects. Perseverance also showed consistent correlation, with high scorers outperforming their peers in every subject. Emotional control revealed was not linked to test scores, except in science and math. Interestingly, in stress resistance, lower-achieving students often scored higher than their higher-performing peers in subjects excluding science and math. When comparing Korean students' social-emotional competencies to the OECD average, emotional control stood out as Korea's strongest suit. Korean students scored 0.18 on average in controlling their feelings, outperforming the OECD average of –0.01 by 0.19 points. Korean students also slightly exceeded the OECD average in curiosity and stress resistance, though they fell slightly behind in perseverance. "Students with high social-emotional skills are better equipped to manage stress, maintain healthy interpersonal relationships, and navigate collaborative environments," Lee Ju-yeon, the KEDI researcher, said. "These competencies are essential not only for academic achievement but also for a successful and fulfilling life." The results added the importance of integrating social-emotional learning into educational policy and classroom practices while pointing out how students' ability to self-direct learning is crucial in digital education, as emotional regulation is directly connected to confidence in learning.
Business Recorder
14-06-2025
- Business
- Business Recorder
Reviving growth in an age of uncertainty
EDITORIAL: Since the onset of the second Trump presidency, the global economy has been contending with the far-reaching consequences of the White House's impulsive and poorly calibrated trade policies, epitomised by the abrupt imposition of steep tariffs on major trading partners in a misguided effort to shrink the US trade deficit. The immediate aftermath saw stock markets falter, businesses brace for instability, and currency and bond markets reel from heightened volatility. Yet beyond the initial shock, one could argue that the deeper and more enduring damage stemmed from the erosion of policy predictability and a collapse in confidence in coherent governance. This climate of uncertainty has become a tangible drag on global economic growth, as underscored by last week's Organisation for Economic Cooperation and Development's (OECD) Economic Outlook report, which revised its projections downward — from 3.3 percent global growth in 2023 to an anticipated 2.9 percent through 2025 and 2026. These figures represent a notable downgrade from the organisation's March forecast — 3.1 percent for this year and three percent for next year — reflecting deteriorating confidence in the international economic landscape. The OECD has warned that this trajectory could darken further should protectionist tendencies intensify, risking higher inflation, fractured supply chains and financial market instability. We have already witnessed this dynamic in action. When the US first imposed its tariffs, several affected nations responded in kind, unleashing a damaging cycle of economic tit-for-tat. So what began as an aggressive unilateral strategy soon spiralled into a broader crisis of uncertainty, deterring investment, paralysing supply networks and casting a shadow over global markets that still hasn't abated. Beyond the turbulence caused by erratic trade policies, the OECD has sounded another urgent alarm regarding the growing strain on public finances worldwide. With government debt already at precarious levels, nations now face rising demands on other fronts: military expenditures, green energy investments and the mounting costs of aging populations, particularly in developed countries. Additionally, rising interest rates have sent debt servicing costs soaring, squeezing budgets already stretched thin. The strain is most acute for developing economies, many of which face looming debt refinancing needs amid tightening global financial conditions. Meanwhile, inflated equity valuations in major markets have left financial systems vulnerable to sudden shocks. Together, these fiscal headwinds threaten to further dampen an already faltering global recovery, transforming what might have been temporary challenges into entrenched structural weaknesses. In its report, the OECD has provided a policy roadmap for restoring economic stability, which emphasises four critical interventions. Firstly, it has advocated for a return to cooperative trade relations, with a concerted effort to reduce tariffs and ease tensions. Avoiding further trade fragmentation is paramount as this would provide the surest foundation for recovery. Secondly, central banks should remain vigilant against inflation while preparing to ease policy rates once conditions permit, provided trade tensions don't escalate and inflation expectations remain stable. Thirdly, on the fiscal front, governments must ensure that public debt remains on a sustainable path. They must demonstrate the political courage to implement credible medium-term plans, streamlining inefficient expenditures, improving tax systems and targeting support where it matters most. Without such reforms, many nations risk being unprepared when the next crisis strikes. Finally, the OECD has called for boosting investment levels as that will be instrumental to reviving economies and improving public finances. Chronic underinvestment has proved to be a structural drag on growth, so coordinated efforts to remove barriers to both private capital formation and public infrastructure development have become essential. Ultimately, what's needed is collaborative global action on trade, disciplined fiscal stewardship and a return to pragmatic, data-driven policymaking. Ideological rigidity and protectionist impulses will only exacerbate current challenges and delay meaningful recovery. Copyright Business Recorder, 2025
Mint
11-06-2025
- Business
- Mint
Trump's crackdown on migrants: Will the American dream turn sour for Indians?
It is not a good time to be a migrant in the US. Crackdowns on migrants, including on those with legal rights to stay, have increased dramatically in recent months since Donald Trump took over as US president. Los Angeles is currently seeing a wave of violence after migrants resisted arrest by immigration authorities. This resistance is, in turn, fuelling further violent crackdowns on civilian populations in the city. Any long-term changes in US policies on migrants will have implications for Indians who have moved there—including green card holders having permanent resident status and those who have gone to the US for study, work, or to be with family. Indian-origin population in the US was estimated at about 3.4 million in 2023, according to the Organisation for Economic Cooperation and Development (OECD). The Indian diaspora is the second-largest foreign population in the US, after the Mexican diaspora. Over the previous three decades, Indians have increased their share in each of the visa types issued by the US to non-immigrants for four main purposes: tourism, studies, work, and to visit dependents. In 2022-23, Indians accounted for 86% of the US's H-4 visas (intended for dependents of foreign workers), 78% of H1-B visas (work visas), and 29% of student visas. In addition, and perhaps more importantly, Indians accounted for about 14% of US green cards issued in 2022, up sharply from about 8% a decade earlier. Post-covid surge The broader context is that overall migration to the US, including by those on non-permanent visas (like student visas, but excluding tourists), has risen sharply in the post-covid period. While estimates by different arms of the US government vary sharply, the rise is unmistakable. The Congressional Budget Office, whose estimate of 3.3 million net migration to the US in 2024 is among the highest, predicts that net migration will fall to 2.6 million in 2025 and 1.6 million in 2026. The post-covid surge was partly a recovery from the sharp slump caused by the pandemic, when strong international travel restrictions were in place. It is also a result of economic weakness in source countries in the post-covid period and a strong demand for workers in the US itself. According to a study by the Hamilton Project in the US, the surge in immigration added 0.1 percentage points to the US GDP in each of the years from 2022 to 2024. Indians abroad Post-covid, inward migration soared not just in the US but in high-income countries collectively. As per the OECD, its 38 member countries saw 'unprecedented levels" of around 6 million new migrants in 2022, excluding those from war-hit Ukraine. In 2023, per OECD's estimate, about 150 million people living in its member countries were foreign-born, whith about a third of them living in the US. About 6.5 million Indians live in OECD countries, over half of them in the US. Indians now make up about 10% of the foreign-born population in countries such as Canada, Australia, and the UK. Some of these countries are imposing restrictions on migration, although several of them have ageing populations and depend on migrants to fill gaps in their labour force. Remittance economy As part of his clampdown on foreign migrants, Trump has proposed a 3.5% tax on foreign remittances by non-citizens in the US. This comes at a time when the US, and rich Western countries in general, have become more critical to India's remittance economy. In 2023-24, India received remittances of $118.7 billion. Less than a decade ago, West Asian countries such as the UAE were the principal source. Now, it's the US, with its share rising from 22.9% in 2016-17 to 27.7% in 2023-24, as per the Reserve Bank of India. It's debatable what effect any tax on such remittances may have. A large proportion of remitters could use non-official channels to avoid the tax. According to RBI, 78% of Indian migrants to the US are employed in high-income sectors such as management, business, and science. In contrast, workers in the Gulf have tended to be manual labourers employed in construction or real estate. These may be uncertain times for all. is a database and search engine for public data
