JULY – AUGUST 2025
CHINA
Draft amendment redefines fair pricing
The National Development and Reform Commission and the State Administration for Market Regulation of China on 24 July released a draft amendment to the Pricing Law, originally promulgated in December 1997 and effective from May 1998.
The draft introduces 10 provisions aimed at more precisely defining unfair pricing practices and establishing legal consequences for violations. It also addresses anti-competitive behaviours such as predatory pricing, where market operators sell below cost to drive out competitors, and practices such as abusive bundling of sales using market dominance.
The State Council Information Office invited the public to review and comment on the draft via the above-mentioned agencies’ official websites until 23 August.
HONG KONG
HKMA launches stablecoin rules
The Hong Kong Monetary Authority (HKMA) issued the Stablecoins Ordinance (Cap. 656) and its related implementation guidelines on 1 August 2025. The new rules apply to institutions engaging in the primary issuance of fiat-referenced stablecoins and secondary market transactions with connections to Hong Kong.
King & Wood Mallesons reported that the guidelines focus on establishing norms for stablecoin issuers, offerings and market conduct. For a seamless launch, the regulatory body offered a transitional period specifically for issuance. Activity types principally regulated are the issuance and offering of designated stablecoins.
The HKMA has also released supplementary material including supervision guidelines and guidelines on anti-money laundering and combating the financing of terrorism (AML/CFT), along with explanatory notes detailing the licensing process.
Issuers require a licence from the HKMA to operate unless exempt, and the current licensing process is by invitation only, with the HKMA selecting market participants and providing application forms. The supervision guideline and the AML/CFT guideline outline the standards and expectations for licensing, which include stringent requirements such as reserve assets, fitness, risk management and cybersecurity.
I can say that I probably started enjoying my role and then, without realising it, I reached where
I am today
Bono Adji
Managing director, legal,
Danantara’s Investment Holding,
Jakarta
See full story HERE
INDIA
New banking act elevates audit standards
India’s press information bureau announced on 30 July key provisions of the Banking Laws (Amendment) Act, 2025, to enhance bank governance, protect depositors, improve audits in public sector banks (PSBs), and align co-operative banks with constitutional norms, effective from 1 August.
The act introduces 19 amendments across five major pieces of legislation, including the Reserve Bank of India Act, 1934; the Banking Regulation Act, 1949; the State Bank of India Act, 1955; and the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980.
Key provisions include redefining the threshold for “substantial interest” from INR500,000 (USD5,750) to INR20 million, updating a limit unchanged since 1968. Co-operative bank director tenures (excluding chairpersons and whole-time directors) are extended from eight to 10 years to align with the 97th Constitutional Amendment.
PSBs are authorised to transfer unclaimed shares, interest, and bond redemption amounts to the Investor Education and Protection Fund, aligning with practices under the Companies Act. PSBs are also empowered to offer competitive remuneration to statutory auditors to engage high-quality audit professionals and improve audit standards.
JAPAN
Fresh rules for mobile app providers
The Japan Fair Trade Commission (JFTC) released guidelines on 29 July on the Act on Promotion of Competition for Specified Smartphone Software, passed on 12 June last year, ahead of its implementation on 18 December this year.
According to the document released by the JTFC, the guidelines are structured into five sections comprising the introduction, basic understanding, understanding prohibited conduct and compliance requirements, understanding compliance reports, and co-ordination with relevant government ministries and agencies.
The guidelines provide examples of the conditions for data acquisition by designated providers and website operators. This includes specifying the types of data that can be collected, the purposes for its acquisition, and the recommended practices if a data management framework is in place. Designated providers are also prohibited from using data acquired through specified software to competitively benefit their goods or services.
Designated providers are also advised not to prevent the provision or use of alternative app stores. Financial burdens, technical restrictions or misleading warnings that hinder alternative app stores are prohibited, as well.
Although the act does not mandate a formal data management framework, the JFTC encourages providers to establish one. They recommend that if a framework exists, information should be disclosed in a way that protects the business interests of both the designated provider and related companies.
Providers must also submit detailed compliance reports, including a business overview and terms of software usage, measures taken to comply with the act, justifications for conduct under cybersecurity provisions, and feedback from app providers and users.
MACAU
Procurement law ushers in new practices
The Macau SAR government published the new Public Procurement Law on 28 July 2025 to reform the legal framework governing public procurement, effective from 1 September 2026. MdME reported that the new law consolidates and replaces previous legislation including Decree Laws No. 122/84/M and 63/85/M, while supplementing regulations on public works contracts (Decree Law No. 74/99/M). This law applies to all public entities except for specific contracts related to financial services, monetary policy and the management of public reserves.
The new law introduces principles and duties for participants in public procurement, ensuring transparency, competitiveness and fairness. It also establishes two independent committees: the tender opening committee, tasked with overseeing procurement procedures up to bid submission; and the bid evaluation committee, responsible for evaluating and ranking submissions and recommending contract awards.
Law No. 10/2025 specifies five procurement procedures: public tender; limited tender by prior qualification; competitive negotiation (a new feature); consultation; and direct agreement. Public tenders are mandatory for contracts valued at or above MOP4.5 million (USD556,650). The new competitive negotiation procedure includes multiple stages such as a public act, proposal negotiation, and final evaluation. Negotiations cannot result in less favourable terms than initially proposed.
CAMBODIA
New era for data privacy
The National Assembly of the Kingdom of Cambodia released a draft of its first Law on Personal Data Protection (LPDP), on 23 July. Once enacted, Cambodia will join seven other Asean nations in establishing data privacy legislation.
Hogan Lovells reported the LPDP was set to come into effect after a two-year implementation period, beginning once the law was promulgated, which was tentatively anticipated later this year or early next year.
The proposed law is inspired by the EU’s General Data Protection Regulation (GDPR), focusing on transparent, responsible and ethical data processing. It targets domestic and foreign entities that handle personal data in Cambodia, including those offering goods or services to Cambodian residents, while exempting “natural persons” or individuals acting in a personal capacity and public authorities performing duties within their jurisdiction.
The LPDP includes information that identifies a person. Sensitive personal data is further categorised into biometric, genetic, religious, racial or ethnic origin, health, political opinions or philosophical beliefs, trade union membership, and sexual orientation. However, compared to the GDPR, the LPDP provides fewer specific definitions for certain categories, such as genetic data.
Non-compliance may result in hefty fines or turnover for businesses, alongside criminal penalties.
INDONESIA
Tighter regulations for imports
The Ministry of Trade of Indonesia has introduced Regulation No. 16 of 2025 (General Import Policy and Regulation) and Regulation No. 22 of 2025 (Industrial Goods Import Controls) to refine import policies and enhance controls, effective 30 August.
DFDL reported that the general import policy and regulation revamps the import framework to tighten controls and foster domestic industry growth, introducing a more structured and monitored compliance system. Key provisions include: categorisation of goods as import-free or import-restricted; reaffirmation of the requirement for importers to hold a valid business identification number (NIB) registered as API-U or API-P; procedure updates for amending and renewing licences through OSS and INATRADE; and mandatory taxpayer status confirmation prior to issuing import permits, among others.
The industrial goods import control policy also imposes tighter controls on importing sensitive industrial goods such as steel, ceramics and alcohol-based fragrances. Highlights include import approvals with technical verification and traceability requirements. There are also entry restrictions on certain goods to designated ports with post-border surveillance, as well as import rules for bonded zones, free-trade zones, and special economic zones, with exemptions for special cases. Failure to comply may lead to administrative sanctions or licence revocation.
MALAYSIA
Cross-border insolvency bill progresses
The Cross-Border Insolvency Bill 2025 in Malaysia advanced through the Dewan Rakyat (Malaysia’s house of representatives), successfully passing its first reading on 28 July 2025, and its second and third readings the following day.
Christopher & Lee Ong reported that this legislative move aims to harmonise Malaysia’s approach to multi-jurisdictional corporate insolvency with the UNCITRAL Model Law on Cross-Border Insolvency, offering a transparent and coherent legal structure for such proceedings.
Designed to facilitate effective enforcement and debt recovery, as well as the orderly winding-up of insolvent companies operating across different legal systems, the bill enables the rehabilitation of locally based companies engaged in corporate rescue mechanisms. Embracing the Model Law, the bill also introduces a legal framework that fosters co-operation between Malaysian courts and their foreign counterparts, underpinning fair, transparent and predictable practices in cross-border insolvency cases.
The legal framework established by the bill encourages co-operation among various courts, insolvency practitioners and regulatory bodies internationally, paving the way for more streamlined resolutions in complex insolvency situations distributed over multiple jurisdictions.
MYANMAR
Foreign exchange committee undergoing restructure
The National Defence and Security Council (NDSC) of Myanmar issued an order on the composition of the country’s Foreign Exchange Supervisory Committee (FESC) on 6 August.
Tilleke and Gibbins reported on 19 August that Prime Minister U Nyo Saw chairs the committee, with members including the union minister of investment and foreign economic relations, union minister of commerce, union auditor general, and governor of the Central Bank of Myanmar. The union minister of finance and revenue serves as the committee’s secretary.
The FESC, which was initially established in 2022, oversees and approves foreign currency conversions, granting exemptions to foreign exchange restrictions and authorising overseas transfers of foreign currency. It also supervises the flow of foreign currency in various sectors including domestic and foreign investment, manufacturing, exports and imports, and service-related businesses such as education and healthcare initiatives.
The committee specifically considers and approves the use of foreign currency for the purposes of: importing machinery, vehicles, equipment and raw materials essential for foreign investment and manufacturing operations; facilitating imports of general goods; repayment of loans; payment of interest to foreign lenders; service fees and profit repatriation from investments; and covering the needs of Myanmar citizens abroad, among others.
IN NUMBERS
2,700Number of participants expected at the International Association for the Protection of Intellectual Property’s (AIPPI) World Congress in Yokohama, from 13-16 September
See full story
THAILAND
Ride hailing faces regulatory updates
The Electronic Transactions Development Agency of Thailand introduced a new regulatory measure on 4 July 2025, set to be enforced on 2 October, specifically addressing the operations of ride hailing services for cars and motorcycles.
Lexpertise Law Firm reported that the regulation mandates digital platforms to adhere to comprehensive compliance obligations due to their significant impact on public safety, health, transportation and infrastructure.
The regulation requires ride hailing services to register vehicles as public according to the Department of Land Transport criteria, and mandates drivers to hold a valid public driving licence. Fare collections must align with legal transport fare rates. A vital aspect of compliance is the identity verification of drivers using reliable methods, including face-to-face checks or government and certified identity provider tools, with daily facial recognition scans necessary before the first trip of the day.
For passenger safety and privacy, ride hailing platforms are obligated to support in-app communications without disclosing personal contact details, and ensure the exclusive display of drivers’ names and photos to passengers. Continuous real-time GPS tracking of vehicles during trips is also compulsory.
PHILIPPINES
New tax act to strengthen capital markets
The Capital Market Efficiency Promotion Act (CMEPA), which was signed into law by President Ferdinand R Marcos Jr on 30 May 2025 to overhaul and fortify the National Internal Revenue Code of 1997, took effect on 1 July 2025.
Cruz Marcelo & Tenefrancia reported that the CMEPA was designed to enhance the efficiency and competitiveness of Philippine capital markets through astute tax reforms.
The act’s key policies include simplifying the tax structure for easier compliance and ensuring equitable taxation of passive income. It also aims to improve regional competitiveness, incentivising equity and debt investments, and assist corporate entity capital formation in capital markets.
Consequential amendments under the CMEPA regularise the tax on interest income and royalties. All interest income from sources within the Philippines and foreign currency deposits now incur a uniform final withholding tax of 20%. Royalties, except those from books, literary works and music, also attract the same rate, with the latter enjoying a reduced 10% tax to encourage the arts. It eliminates certain tax exemptions for non-residents under the Expanded Foreign Currency Deposit System to even the playing field.
SOUTH KOREA
Amendments to commercial code passed
The National Assembly of Korea passed amendments to the Korean Commercial Code on 3 July 2025, aimed at strengthening corporate governance, enhancing shareholder equality, and modernising corporate operations.
Yoon & Yang reported that the directors’ fiduciary duty had been expanded to include obligations to shareholders. Directors are now required to protect the general interests of the company’s shareholders while treating them fairly and equally. The amendment increases both litigation risks and exposure to criminal liability for directors and is set to take effect by August 2025.
Public companies will also face stricter requirements for independent directors. The minimum proportion of independent directors on boards will rise from one-fourth to one-third. Large public companies with assets exceeding KRW2 trillion (USD1.5 billion) will need to comply with additional oversight rules. This change is set to take effect between July and August 2026 for public companies.
The voting rights of major shareholders will be limited when selecting audit committee members under the aggregated 3% rule. This regulation will ensure minority shareholders have greater influence in board decisions. The amendment will be implemented by August 2026.
Large-scale public companies must also now hold mandatory electronic shareholder meetings to improve accessibility and transparency.
VIETNAM
Launch of PPP incentives
On 1 July, the government of Vietnam issued Decree No.180/2025 to regulate public-private partnerships (PPPs) in science, technology, innovation and digital transformation. The decree provides guidelines on IP, revenue sharing and access to state-managed data.
Frasers Law Company reported that Decree No.180 highlights four priority fields for PPP projects: (1) high and strategic technologies such as artificial intelligence and blockchain technology; (2) digital infrastructure supporting the government’s digital transformation strategies; (3) shared digital platforms such as the national public service portal; and (4) human resource development in digital technologies through online learning platforms and specialised training programmes.
The decree also provides incentives to encourage participation. R&D expenses can be deducted up to 200% for corporate income tax purposes. Land usage and rental fees may be reduced or waived, and investors can retain ownership of R&D results based on agreed contracts. Eligible projects may receive up to 100% revenue compensation during the first three years of operation. Access to state-managed data will be free for non-commercial projects and discounted for commercial use.
May – June 2025
CAMBODIA
Combating export origin fraud
Cambodia’s Inter-Ministerial Prakas (official proclamation) to curb origin fraud and strengthen compliance with rules governing exports to the US became effective on 12 May.
Foreign investment advisory and tax firm DFDL said the directive of the Ministry of Economy and Finance and Ministry of Commerce applied to all producers and exporters of specified goods bound for the US. Key provisions include mandatory issuance of an origin certification letter (OCL) by the Ministry of Commerce required for US-bound exports, as well as joint investigations into suspected origin fraud by customs and trade authorities.
Violations such as mislabelling and concealment of transshipment will be penalised under Cambodia’s customs and origin rules. The measure follows negotiations amid paused 49% tariff hikes aiming to restore fair trade and halt mislabelling practices.
INDONESIA
Ministry signs MRA Gold Standard
Indonesia’s Ministry of Environment signed a mutual recognition agreement (MRA) with the Gold Standard on 8 May, marking a key milestone in aligning its national carbon certification system with a globally recognised standard.
SSEK Law Firm reported that the partnership supports Indonesia’s efforts to access international climate finance and participate more actively in global carbon markets. The MRA implements article 77 of Presidential Regulation No. 98/2021 and article 68 of Ministry of Environment and Forestry (MOEF) Regulation No. 21/2022, which allow carbon credits certified under foreign standards to be traded in Indonesia if a formal recognition agreement exists.
The agreement enables domestic voluntary carbon projects to be certified under the Gold Standard, provided they also comply with Indonesia’s Sistem Registri Nasional Pengendalian Perubahan Iklim (SRN-PPI), also known as the National Registry System for Climate Change.
My achievement as the first female president
of ICCA … [demonstrates] that barriers are breaking down and that women are increasingly achieving leadership positions within the legal profession
Seradesy Sumardi
President
ICCA
Jakarta
See full story HERE
CHINA
CAC issues cyberspace audit measures
The Cyberspace Administration of China (CAC) has issued the Measures for the Administration of Personal Information Compliance Audit, effective from 1 May.
The finalised measures reflect a more relaxed regulatory stance while detailing compliance audit requirements under the Personal Information Protection Law and Regulations on the Administration of Network Data Security. These laws mandate personal information processors (PIPs) to do periodic audits, particularly when processing more than 10 million individuals’ data, or facing significant risks.
Although immediate audits won’t be mandatory post-implementation, PIPs are encouraged to prepare by assessing data volumes and business scenarios.
MALAYSIA
New data sharing act takes effect
Malaysia’s Data Sharing Act 2025 has officially come into force, introducing a framework for data sharing among public sector agencies that aims to enhance transparency, security and operational efficiency in data management.
Rosli Dahlan Saravana Partnership reported that its enforcement complements earlier legislative efforts supporting Malaysia’s efforts to become a regional data hub, including the Personal Data Protection (Amendment) Act 2024 and Cyber Security Act 2024.
The act defines “public sector agency” and “data”, and establishes procedures for data sharing, including formal request protocols, evaluation criteria and grounds for refusal. It also creates the National Data Sharing Committee, chaired by the secretary general of the digital ministry, to oversee implementation.
JAPAN
Amendments in Pharmaceuticals Act
Japan’s 2025 Amendment to the Pharmaceuticals and Medical Devices Act (PMD Act) was enacted on 14 May in response to recent pharmaceutical quality control violations and supply shortages.
Baker McKenzie reported that the amendment strengthens the regulatory framework across four key pillars: quality and safety assurance; supply stability; research and development support; and pharmacy functions.
Companies must now designate quality and safety managers by law, and establish adverse event monitoring plans, Baker McKenzie reported. To stabilise drug supply, firms must also appoint supply system managers, report disruptions and may be asked to adjust production.
Companies must also develop paediatric drug plans and may receive funding support. Most provisions take effect by May 2027, with supply-related changes fully implemented by May 2028.
MYANMAR
Framework to improve rural roads
Myanmar’s State Administration Council has enacted the Rural Roads Development Law to create a national framework for improving rural connectivity, supporting economic growth and boosting disaster resilience.
Myanmar’s rural road network spans 95,000 kilometres, with more than half awaiting construction or refurbishment, making it critical to the country’s economic growth and disaster resilience goals.
According to DFDL, the law aims to solidify institutional mechanisms, nurturing partnerships between the public and private sectors for road development, maintenance and regulation. The law imposes stringent measures and penalties for non-compliance, ensuring pre-emptive enforcement actions for the protection of rural roadways.
INDIA
Migrating banks to mandated domains
The Reserve Bank of India (RBI) is requiring all Indian banks to migrate their online presence to the domain ending with “.bank.in” by 31 October, 2025.
This follows the RBI’s February statement on improving public trust in the financial sector, with the regulator asking banks and financial institutions to move to specific domains.
The statement said financial and other non-banking financial companies (NBFCs) would be required to have their domain ending with “fin.in”.
Banks must migrate their domains through the Institute for Development and Research in Banking Technology (IDRBT), authorised as exclusive registrar for the domain by the National Internet Exchange of India and Ministry of Electronics and Information Technology.
IN NUMBERS
10.5billions of US dollars in foreign direct investment flowed into Thailand in 2024
See full story
THAILAND
Tighter controls on e-commerce platforms
The Trade Competition Commission of Thailand has announced substantial regulatory measures targeting e-commerce platforms. DFDL reported that the response arises from growing concern over the flood of low-cost imported goods being sold through online marketplaces, which had been undermining local businesses and impacting consumer satisfaction.
Intended to maintain fair competition and consumer protection, the drafted guidelines will be implemented under the Trade Competition Act. Before final adoption, a public consultation phase will allow stakeholders to partake in refining the regulations. The push for swift implementation reflects a broader governmental effort to ensure equitable market conditions.
PHILIPPINES
Tax reforms boost capital market efficiency
President Ferdinand R Marcos Jr has enacted the Philippines Capital Markets Efficiency Promotions Act (RA No.12214), ushering in transformative reforms to the taxation framework for passive income.
Aureada CPA Law Firm reported that key reforms include a notable reduction of the stock transaction tax from 0.6% to 0.1% to stimulate trading activity, and harmonisation of interest income taxes at a flat 20%, replacing varied rates.
Capital gains tax on foreign shares is now aligned at 15%, while documentary stamp tax (DST) on share issuance drops to 0.75%. Mutual funds and unit investment trust funds benefit from new DST exemptions. The removal of tax exemptions on long-term deposits simplifies compliance and employers gain additional tax incentives for retirement account contributions. Strategic line-item vetoes also preserve tax privileges for housing programmes and specific exemptions.
SINGAPORE
SIC seeks feedback on code revisions
Singapore’s Securities Industry Council is seeking feedback on proposed revisions to the Singapore Code on Takeovers and Mergers. The revisions outlined in the consultation paper include a general prohibition on deal protection measures, with certain exceptions, marking a shift from the current focus on regulating break fees.
Rajah & Tann reported that the consultation, inspired by developments in Hong Kong and the UK, aims to address strategic uses of break fees, exclusivity arrangements and bid conduct agreements that may unfairly restrict competitive offers and disadvantage shareholders.
Under the proposals, break fees would mostly be prohibited, except under strict conditions designed to promote fair competition. Further proposals include clarifying timelines and procedures for mergers and acquisitions effected via schemes; and codifying the approach to potential offerors making public indicative offer prices.
SOUTH KOREA
Strengthened rights for designers
The Ministry of Government Legislation announced, on 27 May 2025, a bill amending the Korean Design Protection Act (DPA) to improve design registration procedures, enhance protection for rightful owners and manage system misuse, effective 28 November 2025.
Kim & Chang reported that one of the changes includes the introduction of new grounds for rejecting design applications under partial examination. This measure targets applications that lack novelty or clash with pre-existing designs, addressing concerns over the exploitation of the partial design registration system to claim rights on already disclosed designs. The change also extends the opposition period for designs registered after partial examination. Stakeholders can now lodge oppositions within three months of receiving an infringement notice, provided this is done within one year of the design’s publication.
The amendment also establishes a new court action that allows parties to directly seek a court intervention to transfer design rights to their rightful owner.
VIETNAM
Digital law to bring AI under control
On 14 June, the National Assembly of Vietnam passed the Law on Digital Technology Industry (DTI Law), making it the first country in the world to have enacted an act specifically for regulating digital industrial technologies including artificial intelligence, Nishimura & Asahi reported.
The adoption of the DTI Law, set to take effect on 1 January 2026, was intended to assist the engagement of businesses in developing and implementing technology. Under the law, AI is classified into three categories: high risk, large impact and other types.
A high-risk AI system can pose serious harm when used in certain ways, while a large-impact system is used for multiple purposes. Both will be subject to stringent administration requirements including data management, network safety and security.
Stakeholders engaging in AI will be required to comply with multiple requirements, including those for identification marking.
TAIWAN
Virtual asset service draft act introduced
Taiwan’s Financial Supervisory Commission (FSC) has introduced draft legislation to regulate virtual asset service providers (VASPs) through the new Virtual Asset Service Act. The draft legislation outlines licensing requirements, business scope limitations and stricter qualifications for personnel.
Law firm Lee and Li notes that VASPs must also include virtual asset-related terms in their official name, meet minimum capital thresholds and implement robust internal controls, including information security and continuity plans.
Article 6 of the draft act additionally broadens the definition of VASPs to include asset lenders and allows for future regulatory adjustments. Specific provisions address trading platforms, exchanges, stablecoin issuers, custodians and industry self-regulation, mandating all VASPs to join an industry association. Stablecoin issuers must also secure FSC approval and maintain fully backed reserves.
March – April 2025
INDIA
Oilfields bill revision passed
India’s lower house of parliament, the Lok Sabha, passed the Oilfields (Regulatory and Development) Amendment Bill, 2024, on 12 March to unlock its hydrocarbon potential and accelerate oil and gas exploration and production, according to the Ministry of Petroleum and Natural Gas.
The bill aims to modernise India’s oil and gas sector by improving investor confidence, streamlining regulations and promoting the ease of doing business. It introduces a single permit system replacing multiple licences, and facilitates new technologies like carbon capture and green hydrogen.
Key reforms include shifting from production-sharing to revenue-sharing contracts, deregulating crude and natural gas pricing and enabling infrastructure sharing among operators. The bill also strengthens dispute resolution mechanisms, ensures stable lease tenures and significantly increases penalties for regulatory violations.
CHINA
Stricter SME payment rules
Premier Li Qiang has signed a decree from the State Council to ensure timely payments to small and medium-sized enterprises (SMEs), effective 1 June.
An official State Council press release said major revisions to the previous regulations issued in 2020 include the detailing of work responsibilities, clear requirements for payment deadlines, improvements in supervision and stronger punishments for illegal acts. The new regulations detail the responsibilities of the relevant departments at the central and local levels to ensure timely payments to SMEs. The regulations specifically require that large-scale enterprises pay SMEs within 60 days of the delivery of cargo, projects or services.
The new rules also improve supervision and the settling of complaints to ensure timely payments to SMEs, while stepping up punishment for illegal acts.
HONG KONG
Council approves computer system bill
On 19 March, Hong Kong’s Legislative Council passed the Protection of Critical Infrastructure (Computer System) Bill, set to take effect on 1 January 2026.
According to Hogan Lovells, the law enhances cybersecurity for critical infrastructure to prevent service disruptions due to cyberattacks. The bill categorises critical infrastructures (CIs) into two types: essential services (energy, banking and healthcare); and societal infrastructure (research parks and major venues). A commissioner’s office will oversee implementation, working with designated regulators such as the Hong Kong Monetary Authority and the Communications Authority.
CI operators (CIOs) must establish cybersecurity management units, conduct regular risk assessments, and report security incidents. Penalties for non-compliance range from HKD500,000 (USD64,200) to HKD5 million. The government will designate CIOs in phases, with supporting guidelines issued. Organisations in regulated sectors should begin assessing their cybersecurity readiness to comply with the new law’s requirements.
INDONESIA
Export proceeds retention enforced
New Government Regulation No. 8 of 2025 mandates that exporters of certain natural resource products retain 100% of their export proceeds in the Indonesian banking system for at least 12 months, effective from 1 March.
Orrick reported that this regulation significantly impacts companies engaged in project finance, requiring talks with lenders about onshore accounts and repayment structures. Export proceeds may be used for specific purposes including tax payments, imports and loan repayments for capital goods.
But clarity is needed on whether all such payments can be deducted from the onshoring requirement. Oil and gas exporters remain subject to a 30% retention rule for three months. This policy builds on previous regulations requiring partial retention of export proceeds. Companies should monitor forthcoming guidelines from Bank Indonesia and the Ministry of Finance to understand full compliance requirements.
JAPAN
Thumbs up for AI regulation bill
On 28 February, Japan’s cabinet approved the Bill on the Promotion of Research and Development of Artificial Intelligence-Related Technologies and their Utilization. Clifford Chance reported that the bill outlines general principles for the government, businesses and citizens without imposing strict obligations.
A key provision grants the government authority to monitor AI-related trends, analyse wrongful uses of AI that infringe on citizens’ rights, and develop countermeasures. The government will conduct studies and take necessary measures including providing guidance and advice. These measures will potentially allow public disclosure of AI developers and users who significantly harm citizens’ rights. The bill establishes a framework for AI oversight while remaining flexible, reflecting Japan’s cautious approach to AI regulation.
Businesses will have to deal with changes
driven by streamlined administrative systems.
Initially, this can be cumbersome, but in the long run, it is expected to benefit businesses as they adapt to these changes
Quan Nguyen
Head of Corporate/M&A
DN Legal
Ho Chi Minh City
See full story HERE
MALAYSIA
Bill to boost carbon capture gets approval
Malaysia’s senate approved the Carbon Capture, Utilisation and Storage Bill 2025 on 25 March, a key step to achieving net-zero emissions by 2050.
Pinsent Masons reported that the legislation provides a regulatory framework for CCS (carbon capture and storage) in Peninsular Malaysia and Labuan, although it excludes Sarawak and Sabah, which have separate regulations.
Economy minister Rafizi Ramli said the law, expected to take full effect by 31 March, could contribute up to USD250 billion to Malaysia’s economy over 30 years. While details remain unclear, corporate law expert David Clinch noted that the legislation sets the foundation for Malaysia to become a regional CCS hub. The law allows for further regulations to be introduced by the energy minister and will be overseen by the newly established Malaysia Carbon Capture, Utilisation and Storage Agency.
SINGAPORE
Foreign worker limits lifted
The Ministry of Manpower announced significant changes to the work permit framework, effective from 1 July, Yuen Law reported.
Singapore will remove employment duration limits for work permit holders, allowing them to work indefinitely as long as they meet eligibility requirements. The maximum employment age will also increase from 60 to 63, with the age limit for new applicants rising to 61, supporting workforce continuity and reducing turnover. These updates aim to help industries facing labour shortages retain experienced foreign workers.
As the ministry continues refining workforce policies, companies must reassess their hiring and retention strategies to adapt to these new regulations and ensure workforce stability.
THAILAND
BOT tackles financial fraud
The Bank of Thailand (BOT) has released its Draft Guidelines for Digital Fraud Management, effective from 1 April, aimed at strengthening Thailand’s financial system, combatting emerging fraud threats, and enhancing financial security and trust.
According to Tilleke & Gibbins, the guidelines provide a framework for financial service providers covering fraud prevention, detection, management and customer support.
The guidelines mandate financial institutions, special financial institutions and transferable e-money service providers to comply fully, while other payment providers may adopt them as appropriate. Key requirements include fraud policy oversight by senior executives, robust know-your-customer and customer due diligence procedures, transaction monitoring using AI, rapid fraud response and improved customer support. Institutions must also share fraud-related information with authorities and promote public awareness through monthly fraud education initiatives.
IN NUMBERS
1,800Registrants from the Asia-Pacific attending this year’s INTA Annual Meeting in San Diego
See full story
SOUTH KOREA
Offshore wind act sails through
South Korea’s National Assembly passed the long-awaited Offshore Wind Promotion Act on 27 February, aiming to streamline offshore wind power development.
Kim & Chang reported that the act replaces the current open-door approach, where developers selected sites independently with a government-led system designating official power generation zones.
A new one-stop shop committee will co-ordinate permits across key ministries, potentially granting fast-track approval for up to 28 licences. Existing projects with permits or licences may continue under the current system, but can also opt into the new regime. While the act signals strong support for offshore wind, many implementation details will follow in a forthcoming enforcement decree, which will clarify environmental assessment processes and rights for existing developers. The new framework is expected to enhance regulatory clarity and attract investment.
VIETNAM
Decree sets up energy sales framework
Decree No. 57/2025/ND-CP, issued on 3 March, establishes a legal framework for direct power sales between renewable energy generators and large consumers, according to a Baker McKenzie report.
The new decree retains two direct power sale and purchase models from its predecessor: (1) private grid (model one); and (2) national grid (model two), with key enhancements.
Decree No. 57 clarifies the definition of private grid to include rooftop solar systems, sets a ceiling tariff for model one agreements and expands eligibility for waste-to-power plants. It also refines pricing mechanisms for excess rooftop solar power sales. Under model two, biomass power plants are now eligible, and large consumers can purchase power for electric vehicle charging businesses. These updates improve clarity and broaden participation in Vietnam’s renewable energy market.
January – February 2025
BANGLADESH
VAT Act updated
On 9 January, the interim government amended the Value Added Tax (VAT) Act of 2012, tightening registration rules and raising VAT and supplementary duty rates.
DFDL reported that amid a backlash due to inflation and an economic slowdown, some rates were revised on 22 January.
The key changes include a lower threshold for VAT registration, now mandatory for businesses with an annual turnover exceeding BDT5 million (USD41,300), down from the previous BDT30 million. Additionally, businesses earning between BDT3 million and BDT5 million must enlist for VAT, whereas the previous requirement applied to those with a turnover of BDT5 million to BDT30 million, subject to a 4% turnover tax.
CHINA
Change in AML goes into effect
For the first time in 18 years, China has amended its anti-money-laundering law, with effect from 1 January, replacing the law introduced in 2006. According to the Standing Committee of the National People’s Congress, while most of the amendments under the new law do not introduce new regulatory requirements, several changes have been included.
Among the changes is the establishment of the principle of extraterritorial application, which extends the law’s remit to cover any foreign money laundering and terrorism financing activity outside China that poses a threat to the country’s sovereignty, security and financial order, as well as to the rights and interests of its citizens, legal entities and other organisations.
CROSS-BORDER
Singapore, Malaysia sign SEZ agreement
On 7 January, Singapore and Malaysia signed the Johor-Singapore Special Economic Zone (JS-SEZ) Agreement, following a 2024 memorandum of understanding.
Rajah & Tann reported that the JS-SEZ spans nine flagship areas, including the Iskandar Development Region and Pengerang, to promote cross-border economic collaboration. Key initiatives include investments in 11 sectors such as manufacturing, green energy and the digital economy, targeting 100 projects over a decade to boost economic growth and job creation. Renewable energy development and trading are prioritised, supported by the Invest Malaysia Facilitation Centre – Johor to streamline business setups.
Measures to enhance the movement of people and goods include improved visas, customs clearance and transport links. Incentives include special corporate tax rates, tailored business incentives and reduced taxes for knowledge workers. The agreement aims to solidify bilateral economic ties and attract high-value investments, fostering regional growth.
SOUTH KOREA
AI act introduced
The plenary session of the Korean National Assembly voted to introduce the Act on Artificial Intelligence Development and Establishing a Foundation of Trust (AI Act) on 26 December 2024.
Yulchon reported that the act makes South Korea one of the first jurisdictions after the EU to establish comprehensive legislation regulating AI. The act outlines provisions for ensuring AI transparency and safety, managing high-impact AI systems and conducting fact-finding investigations on AI service providers.
HONG KONG
Treasury shares regime introduced
On 8 January, Hong Kong’s Legislative Council passed the Companies (Amendment) Bill 2024, introducing a treasury shares regime for listed companies incorporated in Hong Kong.
According to Johnson Stokes & Master, this allows companies to repurchase shares and hold them as treasury shares for resale, aligning with the Stock Exchange of Hong Kong’s amended listing rules from June 2024. The amendment ordinance will take effect on 17 April 2025. From that date, companies will be able to hold, sell, transfer or cancel repurchased shares, with the sales or transfers treated as share allotments.
The bill introduces an implied consent mechanism for electronic communication. Members and debenture holders are deemed to consent to receive information via a website if company articles or debenture instruments include such provisions. A one-time notification will activate this mechanism.
Businesses have repeatedly raised concerns about the uncertainty and unpredictability regarding the range of and timing for actions resulting from the Trump administration
Anne Petterd
Head of the Asia-Pacific
International Trade Practice
Baker McKenzie
Sydney
See full story HERE
INDIA
Data protection rules issued
On 3 January, India’s Ministry of Electronics and Information Technology released the draft Digital Personal Data Protection Rules, a key step in establishing India’s personal data protection framework.
IndusLaw reported that these rules align with the Digital Personal Data Protection Act of 2023, offering clarity and structure while avoiding undue complexity. The draft rules, which are open for public consultation until 18 February, propose phased implementation.
The Data Protection Board will be set up immediately after the final version is published, while other compliance provisions will take effect later. A transition period of about two years will be given for stakeholders to comply with the act and the rules, as under the General Data Protection Regulation.
INDONESIA
Luxury goods VAT raised
The Indonesian government has, following the finance minister’s issuance of Regulation No. 131/2024 on value-added (VAT) tax treatment on 31 December 2024, raised the VAT rate from 11% to 12% from 1 January.
According to Baker McKenzie, the VAT increase applies to areas including the import and the delivery of taxable luxury goods such as motorised vehicles. However, for the delivery and the import of taxable goods and services other than luxury ones such as motorised vehicles, the VAT payable remains at 11%.
The VAT increase results from the enactment of Law No. 7 of 2021 on tax regulations harmonisation (HPP Law) in October 2021, which set the timeline for the VAT rate to be adjusted from 11% from April 2022 to 12% from 1 January 2025.
JAPAN
Proposed taxation reforms approved
On 27 December 2024, the Japanese government approved the 2025 Tax Reform Proposals, including adjustments to the tax burden in response to rising prices and working-hour changes, with draft legislation to be presented to the Japanese parliament early this year.
According to the Ministry of Finance, the key proposals include increasing income tax exemptions, adjusting employment income deductions and introducing special exemptions for dependents aged 19 to 22. There are also measures to support child-rearing, including expanded tax credits for housing loans and life insurance premiums.
To boost regional economies, tax incentives for SMEs will be expanded, with adjustments to corporate tax rates. The reform also includes measures to promote investment in startups and enhance Japan’s asset management environment, such as extending the Angel Tax System and raising the upper limit of the minimum trading unit for ETFs in the regular investment frame of the Nippon Individual Savings Account.
IN NUMBERS
211bn USD is Japan’s net foreign direct investment in 2024, according to the nation’s Ministry of Finance
MALAYSIA
Online Safety Bill passes
The Malaysian parliament has passed the Online Safety Bill 2024, aiming to enhance online safety by regulating harmful content and imposing obligations on licensed application service providers (ASPs) and content application service providers (CASPs).
Skrine Advocates & Solicitors reported that the bill targets harmful content such as child sexual abuse, financial fraud and incitement to violence. The bill mandates that ASPs and CASPs implement measures like user safety tools, mechanisms for reporting harmful content, and online safety plans. It also empowers the Malaysian Communications and Multimedia Commission (MCMC) to issue directives and assess compliance. MCMC will also act when users report harmful content. According to Skrine Advocates & Solicitors, the Online Safety Committee will provide advisory support, while the Online Safety Appeal Tribunal will handle disputes. The bill is awaiting royal assent and publication in the Federal Gazette before it becomes law.
MYANMAR
Rules for share transfers updated
The Directorate of Investment and Company Administration has issued new documentation requirements for Myanmar-registered companies making changes to their shares or directors, as of 8 January 2025.
According to Tilleke & Gibbins, to process share transfers a company must submit an application form along with a board resolution approving the transfer, and a signed share-transfer agreement with proof of stamp duty payment. To process director changes, a company must submit an application form along with the new director’s ID or passport, a shareholder resolution approving the change, and the new director’s consent to act, or a signed resignation for departures.
PHILIPPINES
Law promoting natural gas signed
To achieve a stable domestic supply of natural gas, which has been affected by the volatility of import sources, President Ferdinand Marcos Jr signed into law on 15 January the Philippine Natural Gas Industry Development Act, according to the 19th Congress of the Philippines.
The law, which is intended to promote the development of the country’s natural gas industry, includes provisions to ensure transparency and fair pricing for customers, while designating natural gas as a form of transition fuel for a change to renewable energy as part of an effort to address the country’s long-term power supply challenges.
SINGAPORE
Bill passed on workplace fairness
Singapore’s Workplace Fairness Bill passed on 8 January, strengthening the city state’s efforts to promote fair and harmonious workplaces.
According to the Ministry of Manpower (MOM), the bill enhances protections against workplace discrimination while preserving flexibility for employers to meet business needs. It prohibits adverse employment decisions based on protected characteristics such as age, nationality, gender, race, religion and disability, addressing more than 95% of discrimination complaints.
The bill also requires firms to implement grievance handling processes to foster communication and amicable resolution of workplace issues.
MOM emphasises education to promote compliance and introduces calibrated enforcement measures for severe breaches. By fostering trust and collaboration, the bill seeks to create equitable workplaces that support Singapore’s social cohesion and economic resilience.
THAILAND
Updates on foreign land ownership in pharma firms
The Board of Investment (BOI) on 9 December 2024 updated its regulations allowing certain foreign companies with investment promotion privileges to own land under specific conditions. According to Tilleke & Gibbins, the revised rules apply to companies with a minimum paid-up registered capital of THB50 million (USD1.4 million).
Eligible companies can own land for two purposes: office use, and residential purposes for operational-level workers. Office land ownership is capped at 8,000 square metres, while residential land for workers is limited to 32,000sqm. Residential facilities must include common amenities such as parking and kitchens, adhere to BOI approval and be within 10 kilometres of the business operation. These updates aim to enhance investment incentives while regulating foreign land ownership for specific business and residential needs.
VIETNAM
New electricity law in effect
Following the adoption of a new electricity law by Vietnam’s National Assembly at the end of November 2024, the country is set to see the inclusion of new-energy generation sources including solar, wind, ocean and geothermal in an expanded definition of renewable energy starting from 1 February, according to Vietnam-based Frasers Law Company.
Intended to advance the country’s general legislative framework for developing power generation projects using different energy sources, the new law, known as Electricity Law 2024, covers the development of renewable energy including offshore windpower and the prioritisation of large-scale power generation projects for the formation of power plant clusters or renewable energy centres. It facilitates the development of offshore wind power projects by specifically regulating investment incentives.
It is unclear if ongoing offshore wind power projects already permitted for wind measurement or geological and hydrological investigations will be subject to approval under the new electricity law.
