Singapore, 30 May 2016 ― Labuan International Business and Financial Centre (Labuan IBFC) sets to target high net worth individuals (HNWIs) looking for wealth management solutions and business owners in Singapore looking to internationalise or regionalise their businesses.
Speaking at the recent Singapore chapter event as part of the nine-city Labuan IBFC Roadshow 2016 across ASEAN, CEO of Labuan IBFC Inc Sdn Bhd Danial Mah Abdullah said, "Without a doubt Asia Pacific has a huge potential for private wealth management activities with the amount of HNWIs expected to be the major drive".
He added that the number of HNWIs in the region is growing at an annualised rate of 10.3% according to Asia-Pacific Wealth Report 2015 published by Capgemini and RBC Wealth Management.
"This positive growth augurs well for Labuan IBFC to attract more international players and to develop its jurisdiction to become a premier wealth management hub in ASEAN in the near future.
"To cater to this growing need; Labuan IBFC provides one of the widest range of wealth management solutions for wealth creation and wealth preservation in Asia, either in conventional or Islamic space," Danial said.
Home to more than 55 international banks, 200 licensed insurance related entities; and 38 trust companies; Labuan IBFC has seen a positive and sustainable growth in its business activities.
"The growth clearly reflects the robust and steady growth of the industry as well as the rising demand in Labuan IBFC's products and services." Danial said.
He went on to add that the jurisdiction offers the widest range of wealth solutions in Asia, either in conventional or Islamic.
These include solutions for wealth creation and wealth preservation such as private foundations and trusts that can be structured according to needs while adhering to strict international standards of governance, compliance and transparency.
"We believe that Labuan IBFC stands out as the ideal midshore jurisdiction with our balanced supervisory and regulatory framework," he added.
Transparency remains a top priority for Labuan IBFC
Labuan IBFC welcomes the demands for greater transparency and effective exchange of information across all international financial centres as the Panama Papers issue has greatly demanded for such requirements.
"We welcome this development as business activities in Labuan IBFC have always been conducted under a strong set of rules and regulations that ensure the orderly establishment and operations of Labuan business entities including the licensing of financial institutions.
"Indeed the international focus on traditional offshore financial centres to some extent has allowed Labuan IBFC to stand out as one of the centres that abides to the international standards and best practice of good governance and transparency," Danial said.
He explained that as Labuan is part of Malaysia, it extents that Labuan IBFC be also committed to the global standards and requirements on transparency and exchange of information, in addition to providing a business friendly operating environment.
"We believe that as businesses have to adopt the new normal of higher transparency requirements, it would be natural for them to consider establishing substance in a well-regulated jurisdiction which facilitates cross border transactions and investments. We would like to say that this jurisdiction is Labuan IBFC," the CEO added.
An ideal entry point for international businesses
The economic integration through the ASEAN Economic Community has allowed Labuan IBFC to be positioned as an ideal entry point for investors and businesses into ASEAN.
"Investors and businesses can gain access to a larger and more extensive marketplace in ASEAN while operating in a well-regulated and business friendly environment in Labuan IBFC," said the CEO.
The Singapore chapter is one of the countries that Labuan IBFC Roadshow 2016 was visiting and the roadshow will also take place in Manila in the Philippines and emerging economies of Cambodia, Laos, Vietnam and Myanmar. The roadshow kicked off in Jakarta, Indonesia and has since visited Bangkok in Thailand and Hong Kong.
The Labuan IBFC Roadshow 2016 aims to target business owners in the region looking to internationalise or regionalise their businesses by offering Labuan IBFC's diverse products and services in a regulated yet cost-efficient and business-friendly environment.
Themed 'A Natural Choice for Growing ASEAN Businesses and Private Clients', the event on Friday consisted of presentations on "What are International Business and Financial Centres: An Introduction to Labuan IBFC" by Danial and "Going Regional:
Opportunities for Asian Companies" by executive director of PricewaterhouseCoopers Taxation Services in Malaysia, Jennifer Chang.
A panel discussion on "How can Asian Home Grown Businesses and Families Develop into Regional Powerhouses?" was also held during the event. For more information, please refer to http://www.labuanibfc.com/events.htm.
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