MAINLAND CHINA TOPS APAC FOR BUSINESS COMPLEXITY - GBCI REPORT

KUALA LUMPUR, June 4 (Bernama) -- Mainland China has ascended to 11th place as the most complex Asia Pacific (APAC) jurisdiction within this year’s Global Business Complexity Index (GBCI), moving up from 15th position last year.

It is followed by Kazakhstan at 10th place, with Indonesia at 16th and South Korea at 19th. This year’s study found Mainland China’s complexity to be driven by the localisation of e-invoicing in accounting, leading to new requirements around management and digital archiving.

Furthermore, Hong Kong, SAR has also seen a rise in this year’s GBCI rankings, from 74th in the previous two years to 76th, maintaining its position as a key Asian hub and as the least complex APAC jurisdiction within the study.

Despite the intricate nature of the country’s banking methods, Hong Kong’s low and straightforward tax system and its adoption of artificial intelligence and outsourcing strategies to address high salary demands, remains attractive.

“This year, Hong Kong, SAR has maintained its position as the least complex APAC jurisdiction, while countries such as Indonesia, Malaysia, and Vietnam have improved their rankings after bringing in significant changes.

“The APAC region continues to serve as one of the primary growth catalysts for both our clients and our own organisation and I hope this report continues to be an invaluable resource for business decision makers and researchers,” said TMF Group Head of APAC, Shagun Kumar in a statement.

Meanwhile, Indonesia’s reduced complexity stems from simplifications around market entry, such as lowering capital requirements to incorporate, lowering severance payments, and the introduction of a golden visa scheme.

Within the rest of the APAC region, Malaysia’s implementation of an e-invoicing system is helping to streamline financial processes, reduce costs and enhance transparency. Likewise, Vietnam’s digitalisation efforts such as online tax report filing are also saving businesses on both time and costs.

In the 11th edition of the GBCI launched by TMF Group, a provider of compliance and administrative services, the annual report analyses 79 jurisdictions globally, offering data on key aspects of doing business around the world.

-- BERNAMA