Malaysia's midshore hub offers transparent yet flexible
structures to facilitate expansion and growth
Manila, 30 June 2016 ― Labuan International Business and
Financial Centre (Labuan IBFC) encourages businesses in the
Philippines to use the jurisdiction to facilitate expected increase
in trade and investments following the 'Qualified ASEAN
Banks' (QABs) bilateral agreements inked between the
Philippines and Malaysia.
The agreement allows banks in both countries to operate in
either country, through a mutual recognition to boost trade and
investment between the two nations.
"Under the agreement, business entities looking to expand
overseas will greatly benefit as the QABs can provide financial
support for this expansion," said Labuan IBFC Inc Sdn Bhd CEO
Danial Mah Abdullah at his opening remarks of Labuan IBFC ASEAN
Roadshow 2016 in Manila.
Danial added that the bilateral trade relationship between the
countries has always been strong and dynamic and it is a testament
to the commitment of both countries to strengthen the
intra-regional trade and investment.
Malaysia and the Philippines were the first among the ASEAN
members to initiate such bilateral pacts as part of the efforts to
improve market access and operational flexibilities.
"This will certainly spur businesses in the Philippines to
expand overseas and this is where Labuan IBFC can play an effective
facilitative role in increasing cross-border trade and investments
," he added.
"We believe Labuan IBFC's unique solutions ― as
the gateway to Asia and a midshore international business and
financial centre ― make the jurisdiction a natural choice for
business enterprises in the Philippines.
"By offering a regional 'home' to businesses across
the region, Labuan IBFC's role as key facilitator of trade
within the region is reinforced," Danial said.
Transparency remains a top priority for Labuan IBFC
The current issue relating to the so-called Panama Papers has
heightened the demands for greater transparency and effective
exchange of information across all international financial
Considering that Labuan IBFC has a long term strategic outlook
to facilitate legitimate investors to expand their businesses in
the region, the laws and regulations have been purposely enacted to
ensure the centre operates in a sound, prudent and transparent
manner so that the business is sustainable for the years ahead.
"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
"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 is incumbent
for Labuan IBFC to be committed to the global standards and
requirements on transparency and exchange of information, in
addition to providing a business friendly operating
"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
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 and
intermediation point for investors and businesses into the
"Investors and businesses gain access to a larger and more
extensive marketplace in ASEAN while operating in a tax and
currency neutral environment in Labuan IBFC," said the
The event in Manila consisted of presentations on 'Going
Regional: Opportunities and Challenges for a Home Grown
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.html
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