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The delegation of over 70 business and institutional leaders from Hong Kong and the Chinese Mainland is the largest and most diverse overseas mission led by the current term of the HKSAR Government so far.

Speaking to the media in Uzbekistan yesterday (June 4), Mr Lee set out the three main objectives of the visit: further explore emerging markets and lay the foundation for long-term economic and trade development; strengthen government-to-government (G2G) relationships and promote closer bilateral co-operation; and build a “hub-to-hub” model of co-operation.

He said the visit had been successful, yielding achievements in eight areas, including:

• Establishing high-level contacts and ties between the HKSAR Government and the Governments of Kazakhstan and Uzbekistan, and reaching consensus on co-operation in multiple areas;
• A total of 96 co-operation agreements and memoranda of understanding (MoUs) were reached during the visit (61 with Kazakhstan, 35 with Uzbekistan), involving specific amounts exceeding US$1.65 billion in total;
• The governments agreed to commence bilateral discussions on agreements in various areas;
• Deepening project matching and research collaboration between Hong Kong and Central Asian region in areas including finance, innovation and technology (I&T), and aviation;
• Demonstrating Hong Kong’s effective role as a platform for going global and achieving substantial results, with Hong Kong and Mainland enterprises joining forces in tapping new markets and bringing synergistic advantages into full play;
• Facilitating more convenient people-to-people exchanges by promoting direct flights, aviation and transport co-operation, and extensions to the mutual visa-free period;
• Promoting exchanges in education, talent and culture to further deepen people-to-people bonds; and
• Advancing a hub-to-hub co-operation model to open up broader room for co-operation between Hong Kong and the Central Asian region.

While in Tashkent (June 3-5), Mr Lee met with local leaders, government officials and business representatives to deepen co-operation between Hong Kong and Uzbekistan in areas including trade, investment, finance, I&T, and people-to-people exchanges.

Mr Lee held meetings with the President of Uzbekistan, Shavkat Miromonovich Mirziyoyev, his Advisor on Strategic Development, Sardor Umurzakov, the Prime Minister, Abdulla Nigmatovich Aripov, as well as the Deputy Prime Minister, Jamshid Khodjayev, to exchange views on furthering mutual co-operation.

Mr Lee highlighted that under the “one country, two systems” principle, Hong Kong enjoys both the China advantage and the global advantage. He said that Hong Kong would continue to play its roles as a “super connector” and a “super value-adder” to further deepen co-operation and exchanges with Uzbekistan on various fronts in line with Uzbekistan’s goal of achieving high-quality development.

Earlier (June 3), Mr Lee met with the Minister of Foreign Affairs of Uzbekistan, Bakhtiyor Saidov, after which they jointly witnessed an exchange of notes between the two places on a mutual visa-free arrangement, which would allow a visa-free period of 30 days for visitors from both sides.

“Moreover, we are glad to have initialed the Air Services Agreement with Uzbekistan, and look forward to launching direct passenger flights between the two places soon,” Mr Lee said, during a high-level business dinner (June 4). The Chief Executive pointed out that Hong Kong and Uzbekistan are important trade and investment gateways to their respective regions – the Asia-Pacific and Central Asia.

“It helps that we are all believers in the Belt and Road (B&R) Initiative, a modern expression of the ancient Silk Road spirit,” Mr Lee said. “Today, China is Uzbekistan’s largest trading partner, and the two countries work closely on major infrastructure and connectivity projects that are revitalising the Silk Road. Hong Kong is a pivotal player in the B&R Initiative, thanks to our world-class professional and financial services expertise.”

The delegation also toured the IT Park Uzbekistan and the Center for Islamic Civilization before concluding its visit in Tashkent.

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As an innovative driver of global payment solutions, Epay made a powerful international impression by showcasing its robust product matrix and vertical industry solutions. Amidst this prestigious gathering of top-tier global decision-makers, Epay emerged as a focal point of the event, drawing significant industry attention with its specialized sector expertise and deep compliance capabilities.

Throughout the event, the Epay booth buzzed with high-energy discussions as a steady stream of industry leaders and representatives gathered for consultations. Against the backdrop of an evolving global trade landscape, the strategic synergy and bidirectional flow between high-growth markets in Europe and the Asia-Pacific region emerged as a primary focus for many attending businesses.

On the floor, Epay’s expert team provided in-depth, tailored consultations for fintech peers, social media platforms, digital marketing agencies, and B2B trading enterprises. Addressing complex pain points such as global pan-entertainment payouts and cross-border supply chain fund flows, the team demonstrated Epay’s core global collection and payout capabilities alongside its flexible API solutions, precisely empowering businesses to expand internationally.

Furthermore, the Epay team engaged in deep-dive strategic dialogues with local commercial banks, international clearing organizations, and financial experts from various countries. Moving forward, Epay remains dedicated to expanding robust local payment networks, leveraging its forward-looking vision to power the global digital economy.

Hashtag: #EPay

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About Epay

Forging Ahead, Driving Digital Growth
The curtain has fallen, but a new journey has just begun. For Epay, the conclusion of this international expedition marks the starting point for a new chapter in empowering global growth.

Standing at the forefront of the global digital economy, Epay remains committed to security as its foundation and innovation as its driving force, continuously building a compliant and rock-solid fintech infrastructure. Looking ahead, Epay will continue to dissolve geographical and financial barriers, marching alongside visionaries worldwide. We look forward to leveraging an even more forward-looking ecosystem to safeguard the global expansion of cross-border enterprises.

With past milestones honored and the future ahead, we look forward to seeing you at our next stop—ChinaJoy in Shanghai!

The exemption, effective from 1 April 2026, covers interest income and capital gains arising from the sale, exchange or transfer of specified government securities by eligible foreign institutional investors and the Bank for International Settlements. President Droupadi Murmu signed the Income-tax Ordinance, 2026 while Parliament was not in session, amending the new direct tax framework that took effect at the start of the financial year.

Foreign investors had been subject to long-term capital gains tax of 12.5% on listed bonds held for more than 12 months and withholding tax of 20% on interest from government securities. By removing the tax burden for eligible investors, the Centre is seeking to improve post-tax returns and make rupee debt more competitive at a time when global funds are weighing currency risk, oil-market volatility and geopolitical uncertainty.

The policy shift comes as the rupee has weakened by more than 5% this year, pressured by crude prices and sustained foreign selling in equities. The currency recovered after the announcement of measures aimed at attracting foreign currency inflows, but traders continued to watch oil prices, reserve levels and the central bank’s market operations for signs of durable support.

Reserve Bank of India kept the policy repo rate unchanged at 5.25% and announced steps to encourage dollar inflows, including support for foreign-currency borrowing by public sector entities, incentives for non-resident deposits and a longer window for exporters to repatriate proceeds. The central bank also revised its growth forecast to 6.6% and raised its inflation estimate to 5.1%, underlining the pressure created by imported energy costs.

The tax relief is aimed at deepening overseas participation in government securities after the inclusion of rupee bonds in major global debt benchmarks. Fully accessible route bonds have already been added to J. P. Morgan’s emerging market debt index and Bloomberg’s emerging market local currency index, widening the pool of passive and active investors that can allocate funds to sovereign debt. A separate decision on inclusion in broader global bond benchmarks is being watched by investors because it could influence medium-term flows.

Debt inflows have remained more resilient than equity flows, but the scale has not been sufficient to offset pressure from the current account and stock-market exits. Foreign investors have pulled large sums from equities this year, while government debt has continued to attract selective buying. Higher hedging costs and expectations of currency weakness have limited enthusiasm among some global investors despite the comparatively attractive yield on rupee bonds.

Market participants expect the tax exemption to help long-only funds, pension funds, sovereign investors and reserve managers that focus on net returns after tax. The measure could also support liquidity in benchmark government securities and reduce borrowing costs at the margin if foreign demand rises. For the Centre, a broader investor base would help absorb a large borrowing programme without placing excessive pressure on domestic banks and insurance companies.

The effect may still depend on factors beyond tax policy. Currency stability, inflation expectations, oil prices, fiscal credibility and the central bank’s approach to liquidity will shape overseas appetite. Investors that hedge currency exposure must still account for hedging costs, while those that remain unhedged face the risk of rupee depreciation wiping out yield gains.

The Ministry of Economy, Trade and Industry has set out a policy proposal calling for the rebuilding of between two and five reactors by the 2040s and up to 14 by the 2050s. The plan would add about 16 gigawatts of nuclear capacity, helping the country meet rising electricity demand from artificial intelligence, data centres, advanced manufacturing and wider electrification.

The proposal reflects a major shift in Japan’s energy strategy. After the Fukushima Daiichi disaster in March 2011, Japan shut all 54 operating reactors, leaving the world’s third-largest economy more dependent on imported liquefied natural gas, coal and oil. Only 15 of the 33 remaining operable reactors have returned to service, while many units face retirement pressure as they approach or exceed their permitted 60-year operating life.

Tokyo’s latest energy plan targets nuclear power at around 20 per cent of electricity generation by fiscal 2040, while renewables are expected to provide 40 to 50 per cent. Thermal power, which still accounts for a large share of supply, is expected to decline but remain important for grid stability and emergency backup. The policy removes earlier language about reducing reliance on nuclear power, replacing it with a call to maximise the use of both renewables and atomic energy.

The renewed push is driven by a combination of economic and geopolitical pressures. Japan imports most of its energy, leaving households and industry exposed to volatile fuel prices, shipping risks and currency swings. The war in Ukraine, instability in the Middle East and tighter global gas markets have strengthened the case within government for expanding domestic low-carbon baseload power.

Electricity demand, which had been broadly flat for years, is also expected to turn higher. The spread of AI computing, semiconductor plants, battery factories and digital infrastructure has increased concern that inadequate power supply could weaken Japan’s ability to attract investment. Officials view nuclear energy as a way to provide stable, large-scale electricity without increasing carbon emissions.

The plan is likely to benefit major utilities including Tokyo Electric Power, Kansai Electric Power, Kyushu Electric Power and Chubu Electric Power, although the sector still faces high regulatory, financial and social hurdles. Reactor replacement requires local consent, safety approval, heavy capital spending and long construction timelines. Japan has not built a new reactor since before Fukushima, and public trust remains fragile.

Safety concerns remain the central political obstacle. The Fukushima disaster, triggered by the March 2011 earthquake and tsunami, forced mass evacuations and left deep scepticism about official oversight of the nuclear industry. Questions over seismic risk, evacuation planning, spent fuel storage and operator transparency continue to shape public debate, particularly in communities near existing plants.

Controversies have added to the challenge. Chubu Electric has faced scrutiny over falsified seismic risk assessment data at the Hamaoka nuclear plant, a facility long viewed as sensitive because of its location in an earthquake-prone area. Incidents of that kind reinforce concerns among critics who argue that Japan should prioritise renewables, storage, grid upgrades and efficiency rather than committing to another generation of nuclear infrastructure.

Supporters counter that renewables alone will not meet Japan’s industrial needs quickly enough, given land constraints, permitting delays and the intermittency of solar and wind power. Offshore wind has long-term potential, while next-generation solar technologies such as perovskite cells are being promoted, but large-scale deployment will take time. Nuclear advocates argue that replacing old reactors with advanced designs could improve safety and reliability while supporting climate targets.

The government’s approach is to rebuild reactors at existing or decommissioned nuclear sites rather than open entirely new locations, a strategy designed to reduce political resistance and use established grid infrastructure. Next-generation reactors are expected to incorporate stronger passive safety systems and improved resilience against natural disasters, although costs and construction schedules remain uncertain.

The plan, worth about $4.3 billion, reflects a sharp turn by Gulf from its traditional base as a power producer into a broader infrastructure group linking electricity generation, telecommunications, cloud services and industrial logistics. The investment push comes as Thailand seeks to position itself as a regional data hub, helped by rising demand for cloud computing, artificial intelligence workloads and data-localisation capacity across Southeast Asia.

Gulf’s strategy is built around a simple commercial premise: AI facilities need vast, reliable and increasingly low-carbon electricity. Data centres are among the most power-intensive assets in the digital economy, and operators are under pressure to secure stable energy supply while meeting sustainability commitments from global technology clients. Gulf’s existing position in gas-fired power, renewable energy and utilities gives it an advantage that pure technology infrastructure firms may struggle to match.

Sarath, Gulf’s chief executive and controlling figure, has spent years reshaping the group from a conventional energy developer into a conglomerate with exposure to telecoms, satellites, digital platforms and cloud infrastructure. The merger of Gulf Energy Development and Intouch Holdings created a larger listed platform linked to Advanced Info Service, Thailand’s biggest mobile operator, and Thaicom, the satellite company. That structure gives Gulf access to telecom traffic, enterprise clients and digital distribution channels that can support its data-centre ambitions.

The investment programme is expected to support new data-centre capacity, related infrastructure and power projects needed to serve hyperscale and enterprise customers. Gulf has already moved into the sector through partnerships involving global technology names and regional operators, while its digital arm has explored cloud and AI services designed for corporate and government clients. The company’s first major data-centre project has become a reference point for its expansion into facilities that can host high-density computing workloads.

Thailand’s broader investment environment has also shifted in Gulf’s favour. Authorities have approved large-scale data infrastructure projects from global technology players, including server and data-processing investments across Bangkok, Samut Prakan and Chachoengsao. Google, Amazon Web Services, Microsoft and ByteDance-linked operations have all announced or pursued major commitments in the country, intensifying competition but also validating Thailand’s role in the regional digital economy.

For Gulf, the opportunity lies not only in renting data-centre capacity but also in selling bundled infrastructure: power, connectivity, cloud access and long-term operational reliability. That model could create recurring income and reduce dependence on regulated returns from power generation. It may also help Gulf deepen its relationship with large technology clients seeking local partners that understand land, energy approvals, grid constraints and domestic regulatory requirements.

The group’s financial position gives it room to move, though the scale of the programme will be closely watched by investors. Gulf reported strong first-quarter earnings for 2026, helped by its energy operations and profit contribution from Advanced Info Service. Revenue growth and core profit gains have strengthened confidence in its ability to finance new projects, but data centres require heavy upfront spending and returns can depend on utilisation rates, long-term contracts and energy costs.

The timing is also sensitive. Across Asia, governments are competing for data-centre investment while confronting pressure on power grids, water use and land availability. Singapore’s cautious approach to new data-centre capacity has encouraged developers to look at Malaysia, Thailand, Indonesia and Vietnam, but each market faces its own constraints. Thailand has industrial land, policy incentives and improving connectivity, yet grid readiness and clean-energy availability remain decisive issues for hyperscale clients.

Gulf’s renewable energy targets are likely to form part of its sales pitch. The company has set out plans to raise the share of renewables in its generation portfolio and reduce carbon intensity, while continuing to rely on gas as a stable baseload fuel. Its long-term LNG supply arrangements also point to a strategy that balances energy security with transition commitments, even as customers demand cleaner electricity for digital operations.

Sarath’s expansion plan underscores how AI is redrawing corporate strategy beyond Silicon Valley. Energy groups, telecom operators and infrastructure funds are increasingly competing for the physical assets behind the digital boom. Gulf’s bet is that Thailand’s AI economy will be shaped as much by power plants, fibre networks and industrial sites as by software models and cloud applications.