Labuan is located off the north west coast of Borneo and is one of three tax free islands in Malaysia. It was designated an international financial center in 1990. All goods sold in Labuan are free of Malaysian tax. From it’s humble beginnings Labuan’s offshore legislation received several upgrades over the years, including the world’s first Islamic Act, spanning every aspect of Sharia-compliant financial services. Over the last few years Labuan has seen strong growth:
The Labuan Financial Services Authority (FSA) has announced that the Labuan International Business and Financial Centre (IBFC) achieved a major milestone by surpassing the 10,000 companies mark during the third quarter of this year.
As of August 31, 2103, a total of 10,003 companies had a presence in Labuan IBFC comprising 641 licensed entities and 9,362 normal Labuan companies, of which 4,660 are operating.
The licensed entities are granted licenses by Labuan FSA to conduct financial services in or from the Labuan IBFC, including banking, Islamic financial services, insurance and insurance related business, as well other financial businesses approved by Labuan FSA. In addition, Labuan trust companies are licensed to provide trust, secretarial and fiduciary services to support the conduct of international business in the Labuan IBFC.
More than 70 percent of the Labuan companies originated from the Asian region. This reflects Labuan IBFC’s aim to foster regional financial integration in facilitating cross-border trade and investment in the regional emerging market. Nonetheless, the jurisdiction has also witnessed sustainable interest from investors in Europe and America, as well as the Middle Eastern region.
It was confirmed that Labuan FSA will continue to enhance its legislative framework to be on a par with international standards, as it positions Labuan IBFC “as a mid-shore jurisdiction with a robust regulatory framework and the flexibility and competitiveness of an international financial center.”
For further information about the business opportunities in Labuan check out the website of the Labuan International Business and Financial Centre