The global minimum corporate tax – agreed upon by a Group of 20 finance ministers this month – is set to re-chart the course of international investment flows, creating new uncertainties for Southeast Asian nations that have been striving to lure foreign capital and financial expertise.

Final agreement on the 15 percent minimum-tax plan, originally agreed to by Group of 7 (G7) developed economies in early June, is not expected until October. It could also be years before it takes effect. But its adoption may force nations in the fast-developing Southeast Asian region, still struggling to overcome the impact of coronavirus pandemic lockdowns, to rely more on their domestic consumer markets and their supply of cheap labor for future economic growth, according to analysts.

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