Southeast Asia & World Briefs: Thailand legalizes same-sex marriage; Gloal expansion of ASEAN-based organised crime
Welcome to Friday, readers!
Fewer major stories these last few days, and I shall not force you to read more if there’s no such justification for it. We start off with a celebration for Thailand to be the first in the region to legalise same-sex marriage. And we have updates on Malaysia’s attempt to raise their tax revenue via high-value goods tax (HVG).
And happy Friday (and Easter) to you all…
Table of Contents
Social/Economic
🌈 Thailand Set to Become First in Southeast Asia to Legalize Same-Sex Marriage
🌐 Global Expansion of Organized Crime Networks Yields Up to $3 Trillion Annually
🇲🇾 Malaysia Delays Implementation of High-Value Goods Tax Amid Calls for Reform
Other Quick Global Stories
Australia: After decades of economic resilience, Australia now faces challenges
Harshest white-collar crime: Sam Bankman-Fried jailed for 25 years after his crypto-related embezzlement crime.
Social/Economic
Thailand Set to Become First in Southeast Asia to Legalize Same-Sex Marriage
Thailand's House of Representatives votes overwhelmingly in favor of the "marriage equality" bill, marking a significant step towards becoming the first Southeast Asian nation to legalize same-sex marriage.
With 400 out of 500 lawmakers backing the legislation, the bill now advances to the Senate and, following endorsement by the king, will become effective 120 days after its publication.
The amendment will recognize same-sex marriages for individuals over 18, granting them rights to inheritance, tax allowances, and child adoption, among others.
LGBTQ Advocacy Pays Off: After more than a decade of activism, LGBTQ rights in Thailand are set to expand significantly, positioning Thailand as a progressive leader in Asia and boosting its appeal as an LGBTQ-friendly destination.
Legalization is anticipated to enhance Thailand's "pink economy," potentially increasing LGBTQ tourism, which already plays a significant role in the country's economy.
Prime Minister Srettha Thavisin's administration plans more progressive laws, including recognizing gender identity and legalizing commercial surrogacy for LGBTQ couples, aiming to host WorldPride in Bangkok in 2028.
Global Expansion of Organized Crime Networks Yields Up to $3 Trillion Annually
Organized crime rings have leveraged the pandemic to scale up human trafficking and cyber scam operations, now posing a global threat.
While drug trafficking remains a major revenue source, these organizations have broadened their criminal portfolio to include human trafficking, cyber scams, and more.
The illicit income flowing through the global financial system is estimated at $2 trillion to $3 trillion annually, with a single crime group capable of earning $50 billion a year.
Human Trafficking Crisis: The expansion has led to a global human trafficking crisis, with victims lured into cyber scam centers under false pretenses.
Efforts to combat these crimes include significant crackdowns in Cambodia, Myanmar, and Thailand, alongside successful anti-money laundering operations in Singapore.
Malaysia Delays Implementation of High-Value Goods Tax Amid Calls for Reform
The anticipated High-Value Goods Tax (HVGT) in Malaysia, set for a May 1 rollout, has been deferred, sparking relief among industry stakeholders.
Deputy Finance Minister Lim Hui Ying cites the necessity for more discussions with the industry to refine tax principles and legislation.
The government will announce a new date for the HVGT's implementation, focusing on finalizing aspects like categorization and tax rates for high-value goods.
Why more Tax?: Malaysia has rolled out multiple new taxes, including the low-value goods tax (LVG) and an increase in the digital goods tax (DGT), amid a sluggish economic environment.
The newly imposed capital gains tax (CGT) and the upcoming high-value goods tax (HVG) aim to increase revenue but face criticism for their market impact and effectiveness.
There is alo an increase in the sale and services tax (SST) from 6% to 8%, expected to significantly drain the public's finances, particularly affecting small and medium-sized enterprises (MSMEs) and the general populace.
Tax System Review Urged: Experts argue for a comprehensive review of Malaysia's taxation system, criticizing it for inefficiency, revenue-raising inadequacy, and market distortion.
Alternative Tax Proposals: Proposals for simpler, less distorting taxes, such as a small tax on electronic payments, are presented as more efficient solutions for raising revenue without harming economic activity or low-income groups.
Targeted Impact: The HVGT aims to exempt low-income groups by targeting goods beyond a certain value threshold, ensuring minimal impact on their cost of living.
To mitigate the tax's potential impact on tourism, a scheme will allow foreign tourists to claim refunds for taxed high-value goods purchased in Malaysia.
HVGT will not apply in specific regions and zones, including popular tourist destinations and free zones, to encourage economic activity.
Other Quick Global Stories
Australia: Australia's decades-long streak of economic resilience ends, facing a recession in 2020 due to COVID-19 and struggling with persistent economic challenges.
High inflation, soaring rents, and escalating mortgage rates have pushed families to seek food relief and financial support in unprecedented numbers.
Prices for essentials, including a 24% increase in bread since 2021, along with a volatile job market and growing inequality, are pressing concerns.
Rent in Melbourne up by nearly 50%, and home ownership becomes an elusive dream for many, worsening the housing affordability crisis.
Experts criticize the over-reliance on the housing market, insufficient housing supply, and inadequate renter protections as key factors exacerbating the crisis.
Sam Bankman-Fried Jailed: The former CEO of FTX, received a 25-year prison sentence for embezzling $8 billion from customers, a term less than the possible 110 years but more than his defense's request.
He must also forfeit $11.2 billion in assets, marking a significant financial penalty alongside his prison term.
The case highlights the perils within the cryptocurrency sector, showcasing the consequences of its minimal regulation through the dramatic collapse of FTX.
This sentence is among the heftiest for white-collar crimes recently, underscoring the severity of Bankman-Fried's actions.