Developing countries such as the Philippines, India, Thailand and Vietnam are looking into decreasing their corporate taxes. This will impact the cost of manufacturing and you will see Southeast Asian countries competing with each other more then ever.
Shifting locations for manufacturers, whether due to political reasons or cost, will naturally result in more mobility movement within APAC.
With the decrease of corporate tax, more movement will be expected in 2017.
- A number of Southeast Asian countries are lowering corporate tax rates in hopes of attracting more foreign companies.
The Philippines plans to slash its relatively high 30% rate to 25% by the end of 2017 -- a centerpiece of its broader tax reform.
Manufacturers from Japan and elsewhere have frequently chosen to set up operations in Thailand and Indonesia rather than the Philippines. The government of President Rodrigo Duterte, who took office in late June, seeks to lure manufacturers to smaller localities to create jobs. The ultimate goal is to close the economic gap between the capital and the rest of the country.
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