City Credits Opening Ceremony Representative Office Beijing
17 July, 2010

Grand Hyatt Hotel, Beijing, China

Y.Bhg Tan Sri Dato Hanafiah Hussain, Chairman of CCIBL

Mr Budiman Effendi, Board of Director of CCIBL
Y.Bhg Dato Abdul Rahman Abdullah, CEO of CCIBL

Attending Officials on behalf of the People’s Republic of China Government

Distinguished Guests 

Ladies and Gentlemen

A very good morning to all of you.

First of all, let me thank the City Credit Investment Bank Limited (CCIBL) for giving me the opportunity to say a few words on this auspicious occasion. I am indeed honoured and pleased to be here today, to witness the official opening of CCIBL Beijing representative office.

CCIBL is a licensed Labuan investment bank registered with the Labuan Financial Services Authority (Labuan FSA) of Malaysia under the Labuan Banking Act 1990. Since its establishment in 2002, CCIBL has been performing well, and I am pleased to mention today that CCIBL is the first Labuan based bank to set-up a representative office in the People’s Republic of China. I applaud and congratulate CCIBL for taking this bold initiative. I believed that the initiative taken by CCBIL to open a Representative Office in Beijing is a testimony of their confidence in the potential and business opportunities available in the People’s Republic of China, especially in Beijing.

Ladies and Gentlemen,

City Credit Group is one of the homegrown boutique financial institutions from the Labuan IBFC. Back then, City Credit was granted with a money broking license and approval was then given for CCIBL to undertake investment banking business. The investment banking license allows CCIBL to be involved in additional financial activities including corporate finance, financial consultancy and advisory services as well as loans and credit facilities.

Subsequently, CCIB Asset Management Limited Labuan was licensed to undertake asset management business in 2005. I believed that the Group’s rapid expansion as a financial service provider in Labuan IBFC in such a short period reflects the confidence of the shareholders and management of City Credit Group of the business environment in Labuan IBFC.

It is also encouraging to note that City Credit Group has been active as financial service provider in Labuan IBFC since its establishment. Judging from the number of people that has employed and the significant increased in the assets of the investment bank since it commenced operations in 2002, City Credit Group has make a name for itself in Labuan. The statistics shows that the Group has the highest number of employees in Labuan compared to other financial institutions and its assets increase by more than 2,000 percent as at December 2009 compared to when it first started business in October 2002. In addition, CCIB Asset Management Limited Labuan has also launched a total of 9 funds with approved fund size of USD2.4 billion.

Ladies and Gentlemen,

Allow me to say a few words with regard to the Labuan IBFC where Labuan Financial Services Authority (Labuan FSA) is the sole regulator. For year ending December 2009, Labuan IBFC has continued to demonstrate resilience and to record positive growth as Labuan continues to benefit from being at the centre of a high growth region, despite the challenging economic conditions and changes in the world financial landscape.

Labuan IBFC is now home to more than 300 international financial offering a diversified range of products and services, available both under conventional and Islamic principles. These financial institutions include among the top international banks and reinsurance companies serving more than 7,000 companies from over 90 countries, reflecting the international stature of the centre. In terms of segregation by regions, 57.4% were from the Southeast Asia and the Pacific region, 15.7% from the Far East, 13.6% from Europe and the remaining from Americas, Middle East and Africa. To-date, there are 60 banks, 160 insurance and insurance related companies, 148 leasing companies, 20 fund managers and 23 trust companies operating in the Labuan IBFC.

To add to the statistics, recently Labuan FSA has given its approval for the first financial institution from the People’s Republic of China to establish investment banking operation in Labuan. At the same time, we have also received similar interest from other financial institutions from the People’s Republic of China indicating their intention to set-up operation in Labuan IBFC. This initial interest augurs well as Labuan IBFC has a lot of products and services, structures be it conventional or Islamic, to offer to the Peoples Republic of China.

With Labuan’s strategic location between the fast growing economies including the People’s Republic of China and India as well as proximity to regional financial centres, it has positioned itself as a critical gateway for tapping investment opportunities in the rapidly growing Asia-Pacific region. With a relatively low operational cost of doing business, modern infrastructure including airport, telecommunications, extensive and favorable tax treaties with over 60 countries, Labuan can be an important business and financial centre in the Asia Pacific region for the businesses coming to Malaysia or can use Labuan IBFC as a gateway for investment into this region.

Ladies and Gentlemen,

In regard to government to government relationship, Malaysia and the Peoples Republic of China has fostered a very good bi-lateral relationship be it in trade, finance and business sectors. Since 1997, Malaysia’s total trade with the People’s Republic of China has consistently registered double-digit growth annually. Last year, Malaysia's total trade with China exceeded US$36 billion. In the first three months of 2010, total trade between both countries was valued at US$10.63 billion, up from US$6.87 billion in the same period last year. As a result, the People’s Republic of China has become Malaysia’s largest trading partner. I certainly hope that this trend will continue to grow stronger and better from years to come.

In fact, the relationship between the People’s Republic of China and Malaysia not only involves trade but also in the area of finance. Building on the Joint Action Plan on Malaysia-China Strategic Cooperation between the Government of Malaysia and the Government of the People's Republic of China, the China Banking Regulatory Commission and the Central Bank of Malaysia had signed a Memorandum of Understanding (MoU) in November 2009 to forge deeper cooperation between the two regulatory authorities on banking supervision, including the sharing of information and in the promotion of regional financial integration. The MoU signifies the strengthening of a collaborative partnership between the Government of the People's Republic of China and the Government of Malaysia and marks an important milestone in enhancing the regulatory cooperation and the economic and financial linkages between the People's Republic of China and Malaysia.

It is my wish, therefore, that in the near future, Labuan FSA could also sign similar agreement with the Chinese regulatory authorities to foster close collaboration and co-operation not only on related issues but also on areas such as exchange of information, consultation as well as training initiatives. Today’s occasion can be the first step to the future relationship between Labuan FSA and the Chinese regulatory authority.

Ladies and Gentlemen,

On this note, once again I would like to congratulate CCIBL for establishing your presence in the People’s Republic of China and wishing you well in your pursuit of business opportunities in the People’s Republic of China. I sincerely hope that this official opening of CCIBL’s Beijing representative office will foster excellent cooperation and further goodwill, not only amongst the financial community and investors in general, but also the peoples of China and Malaysia in particular.

Thank you.
Copyright © Labuan FSA 
Generic Popup