Digital lifestyles, cashless societies, app-based businesses, “smart” nations, virtual services – there is a tremendous amount of excitement in Southeast Asia now about the growth of the digital economy.
The region is a hotspot for digital development, and it already leads the world in some indicators, such as Internet and social media use.
Malaysia wants the digital economy to play a central role in the next chapter of the country’s development—that much is clear. However, what may be less clear is why taxation should be part of the policy mix that will help deliver the country’s digital economy ambitions. This is important because taxes raise the cost of doing business rather than reducing it.