20 October 2015

Labuan IBFC reports 12.3% rise in new company registrations in 2014

Labuan International Business and Financial Centre (Labuan IBFC), Asia Pacific’s midshore international business and financial centre, reported strong performance across all financial sectors in 2014, including banking, insurance, leasing, wealth management and Islamic finance, with 12.3% increase in new company registrations compared to the previous year.

The organisation notes that 70% of companies registered in Labuan IBFC originate from Asia, with 57% from Southeast Asia, mainly Indonesia, Malaysia, Singapore and Thailand.

“Labuan IBFC has its strengths in terms of its proximity to strategic Asian markets and sound regulatory framework, with simple as well as competitive tax system. With our balanced supervisory and regulatory framework coupled with our strategic location in the heart of Asia Pacific, we believe Labuan IBFC stands out as the ideal ‘midshore’ jurisdiction from which to base regional business operations for both trading and investment purposes,” said Danial Mah Abdullah, Chief Executive Officer at Labuan IBFC.

At a roadshow in Hong Kong marking Labuan IBFC's 25th anniversary, Danial added that Labuan IBFC can tap on and complement Hong Kong’s position as the gateway to China by providing business solutions including business process outsourcing and effective legal structures through which entrepreneurs can effectively structure their businesses operations.

In the wealth management sector, Labuan IBFC foundations are increasingly used as wealth preservation solutions. There was an almost 40% increase in the number of Labuan IBFC foundations established in 2014 compared to the previous year, with 73% of them originating from Asia.

“As ASEAN grows in economic might, the increase in wealth in the region is outpacing the rest of the world. Companies and private investors looking to expand in ASEAN are in search of effective and legitimate ways of capitalising on this growth, keeping in mind the importance of adhering to international standards and best practices. Labuan IBFC has been fulfilling these needs, with its proximity to strategic Asian markets, sound regulatory oversight and simple and efficient tax framework,” added Danial during the Singapore leg of the roadshow, which was held earlier in the month.

While wealth management is one of the core offerings of Labuan IBFC, the business and financial centre also carries out all aspects of business and financial activity ranging from banking and insurance to Islamic financial services.