It is a natural choice for Malaysian companies looking to expand beyond the shores
Johor Bahru, 17 November 2016 – Labuan International Business and Financial Centre (Labuan IBFC) offers cost-effective and lucrative solutions to local businesses that are planning to penetrate into the ASEAN's burgeoning markets. This was one of the key takeaways from the Labuan IBFC-MICCI Malaysian Roadshow for 2016 in Johor Bahru today.
Local business owners looking to internationalise or regionalise their businesses could achieve their expansion aims in a cost-efficient way by considering Labuan IBFC.
With ASEAN recognised as one of the most dynamic regions in the world and the economic integration through the ASEAN Economic Community (AEC), investors and businesses, including those based in Malaysia, are able to gain access to a larger marketplace in ASEAN.
For this, Labuan IBFC is an ideal entry point for Malaysian investors and businesses into ASEAN, allowing companies to operate in a tax and currency neutral environment offered in the jurisdiction.
Malaysian businesses are able to leverage on these unique qualities while operating in a well-regulated environment. Among the solutions and services offered by the midshore centre are leasing, commodity trading, wealth management and captive insurance.
Leasing business in Labuan IBFC has been experiencing steady growth over the years with the total number of leasing companies increased to 386 and the total assets leased amounting to USD52.5 billion in September 2016.
Labuan IBFC also identifies immense opportunities in offering risk solutions to companies in the Asia Pacific region. On wealth management, Labuan IBFC offers unique proposition values as the only international financial centre in Asia to have a legislation that offers private foundations and special purpose trusts, including Islamic foundations or waqf.
Currently, Labuan IBFC is home to more than 13,000 companies, 212 insurance companies and 54 banks establishing a strong and sound financial infrastructure.
MICCI President Datuk Wira Jalilah 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."
MICCI Southern Chairman, Christina Tee Kim Chin, who is also the CEO of Cape Manufacturing (M) Sdn Bhd said: "Labuan IBFC provides the best choice of platform to maximise their trade flexibility and opportunity under the same time zone in Asia Pacific region."
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 Kota Kinabalu, Sabah for its final leg on November 22.
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