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Malaysian-based Businesses Encouraged to Regionalise via Labuan IBFC
The midshore jurisdiction offers a strategic position in the region linking and facilitating local businesses’ trade and investments across Asia’s economies
Kuala Lumpur, 20 September 2016 – Labuan International Business and Financial Centre (Labuan IBFC) offers cost-effective and flexible solutions such as its captive insurance and leasing businesses for Malaysian companies expanding out into the region. This was one of the key takeaways from the inaugural Labuan IBFC-MICCI Malaysian Roadshow for 2016 in Kuala Lumpur today.
 
“With the Asian Economic Community, investors and businesses, including those based in Malaysia are able to gain access to a larger marketplace in ASEAN. In this regard, Labuan IBFC is an ideal entry point for investors and businesses into ASEAN, operating in a tax and currency neutral environment offered in the jurisdiction."
 
“Without a doubt, Labuan IBFC’s unique qualities offer comprehensive options for Malaysian businesses that are going global to look at penetrating the ASEAN’s burgeoning markets,” said Danial Mah Abdullah, CEO of Labuan IBFC Incorporated Sdn Bhd.
 
According to him, the growth of captives in the midshore jurisdiction is precipitated by the increasing demand from the Malaysian risk owners who seek cost-effective and flexible solutions to manage their own risks.
 
Labuan IBFC is also currently developing a masterplan for Labuan captive business with a hope to become a preferred centre for captive solution.
 
The demand for its leasing business has also been increasingly growing with the total number increased to 374 with total assets leased amounted to USD51.8 billion last year, signifying the continued need for large and heavy equipment such as container ships, aircraft and oil rigs.
 
In addition, the midshore jurisdiction’s commodities trading incentives also offer a cost and fiscal efficient option to the local businesses.
 
Labuan Financial Services Authority’s (Labuan FSA) 2015 Annual Report reported that Labuan IBFC incorporated 836 new companies last year. In the wealth management sector, a key sector for Labuan IBFC, recorded nearly 28% increase in the number of Labuan foundations, bringing the total of number to 166.
 
To further entrench its leadership in the wealth management sector, the midshore jurisdiction also introduced its Labuan international waqf guidelines in 2015, making it the first international financial centre to facilitate the establishment of a waqf in a private wealth management solution.
 
Labuan IBFC also offers trusts, private trust companies and protected cell companies, the latter structures often being used to “house” funds which are in turned owned by trusts, foundations or family offices.
 
During his opening remarks, the CEO said that Labuan IBFC has grown from strength to strength in the 26 years and such has clearly demonstrated by the robustness of the financial centre, notwithstanding a downturn in global trade and investments.
 
He said: “We are fortunate to be in Asia, which allows Labuan IBFC to grow in tandem with the region. At a time when some other centres are recording negative growth rates, Labuan IBFC recorded an increase of over 7% in the number of companies. It is a testament of not only the attractiveness of Labuan IBFC but also the high economic prospects of the region."
 
Danial went on to say “The key to the success of Labuan IBFC lies in its agility. We have worked towards diversifying our growth sectors to sustain the development of the midshore jurisdiction. For instance, we are developing the Labuan captive business to position Labuan IBFC as a preferred Asian centre for captive and self-risk management solutions.”
 
Currently, Labuan IBFC is home to 13,000 companies, 209 insurance companies, 54 banks and 374 leasing companies establishing a strong and sound financial infrastructure.
 
MICCI President Datuk Wira Jallilah Baba said, “We highly encourage the members of MICCI to take advantage of the trade and investment opportunities in Labuan IBFC, especially for companies which export their products and services.”
 
The Labuan IBFC-MICCI Malaysian Roadshow 2016 aims to target local business owners looking to internationalise or regionalise their businesses by offering Labuan IBFC’s diverse services and solutions in a well-regulated yet cost-efficient and business-friendly environment.
 
It seeks to showcase Labuan IBFC’s strategic positioning in the region linking and facilitating trade and investments across Asia’s economies, one of the most economically vibrant regions in the world.
 
The roadshow consisted of a series of half-day masterclass with a focus on introducing the midshore jurisdiction and its offerings, ending with a panel discussion. It will also be in Penang (October 11), Johor (November 17) and Kota Kinabalu, Sabah (November 22).
MEDIA CONTACTS:
LABUAN IBFC
Farah Jaafar Crossby
pressteam@libfc.com
Tel: +603 2773 8977 
Mobile: +6012-326 1216
Audrey Liew
audrey@libfc.com
Tel: +603 2773 8975 
Mobile: +6012-913 8979
Geraldine Lim
geraldine@libfc.com
Tel: +603 2773 8991 
Mobile: +6012-253 8666
Malaysian International Chamber of Commerce & Industry (MICCI)
Zareena Alwee
Zareena@micci.com
Tel: +603 6201 7708
Mobile: +6011 2388 0358
Lynette Thomas
lynette@micci.com
Tel: +603 6201 7708


ABOUT LABUAN IBFC
 
ASIA PACIFIC’S MIDSHORE INTERNATIONAL BUSINESS AND FINANCIAL CENTRE
 
Labuan International Business and Financial Centre (Labuan IBFC) offers global investors and businesses the benefits of being in a well-regulated midshore international business and financial centre, which provides fiscal neutrality and certainty, in addition to being an ideal location for substance creation.
 
Located off the North West Coast of Borneo, Labuan IBFC provides access to Malaysia’s network or more than 80 double taxation agreements and boasts Asia’s widest range of business and investment structures for cross-border transactions, international business dealings and wealth management needs.
 
Well-supported by a robust, internationally recognise yet business-friendly legal framework, Labuan IBFC operates within clear and comprehensive legal provisions and industry guidelines, enforced by its single regulator, Labuan Financial Services Authority.
 
With a focus on enabling cross-border transactions, providing risk management structures, Islamic financial services, commodities trading incentives and wealth management vehicles, we offer solutions to regional businesses going global or global businesses looking at penetrating Asia’s burgeoning markets.
 

About MICCI - Malaysian International Chamber of Commerce & Industry
 
Founded in 1837, the Malaysian International Chamber of Commerce and Industry (MICCI) is Malaysia's longest established trade association.
 
With close to 1000 corporate members representing over 30 countries including Malaysia, MICCI is recognised as one of the most active advocates for the business community.
 
MICCI’s mission is to facilitate and support Members in their goal to successfully develop their business in Malaysia through its engagement with both Federal and State governments.
 
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