Congratulatory Remarks By Mr. Nik Mohamed Din Bin Nik Musa, Director-General of Labuan FSA at The Inauguration Ceremony of Taishin International Bank, Labuan Branch

26th November 2021

Congratulatory Remarks By

Mr Nik Mohamed Din Bin Nik Musa
Director-General, Labuan FSA

Mr. Thomas Wu, Chairman of Taishin Bank, Taiwan
Mr. Welch Lin, President of Taishin Financial Holdings
Mr. Oliver Shang, President of Taishin Bank
Mr. Hank Sieh Sin-Han, Principal Officer, Taishin International Bank Labuan Branch

Ladies and gentlemen, a very good morning [Zao-shang-hao].

1. First and foremost, I would like to express my gratitude to Taishin International Bank Labuan for inviting me to be here today, to mark the inauguration ceremony of Taishin International Bank, Labuan Branch. On behalf of Labuan FSA and the financial community of Labuan IBFC, let me extend our heartfelt congratulations to Taishin International Bank, and to its board members, the management and staff.

2. This is a truly auspicious occasion, as Labuan IBFC is now home to a family of four Taiwanese banks. As at October 2021, there are 70 banks doing business in Labuan IBFC. On that note, I would like to applaud Taishin Bank for making the strategic decision to establish a presence here, and for selecting Labuan as a jurisdiction to conduct business in the Asia Pacific region. This bodes well for Labuan IBFC, which has always intended to broaden its products and services to investors, business corporations, and individuals in the region, including Taiwan.

3. Last year (2020), Malaysia’s trade with Taiwan recorded as RM91.5 billion (almost USD22 billion). In 2020, Taiwan was Malaysia’s:
  • 5th largest global trading partner
  • 8th largest exports destination
  • 5th largest source of imports
At the national front, MATRADE (or Malaysia External Trade Development Corporation) has extended its Memorandum of Understanding (MOU) with Taiwan External Trade Development Council (TAITRA) for another two years until April 2022 and through the cooperation stated in the MOU, both organisations believe it will enhance bilateral trade cooperation and trade promotion in the field of Halal, F&B, ICT, healthcare and e-Commerce.

4. Since 2011, Taiwan has remained as one of the largest import sources, alongside China, Singapore, the United States and Japan. These countries accounted for 54.4% of total imports in 2020. Based on the strong external demand with the advantages of Taiwan’s high-tech and communications industries (including e-commerce), the market’s export growth momentum is expected to increase in years ahead. As such, Taishin Bank's establishment in Labuan IBFC is timely in order to support bilateral trade between Malaysia and Taiwan while also expanding its wholesale banking business in the ASEAN market.

5. Thus, the presence of Taishin Bank Labuan will establish a strategic foothold in the region by expanding opportunities through its diverse range of products and services, which include trade finance, export bills, collections, notification, account opening as well as import and export settlements. Taishin Bank will be able to provide customers with a competitive edge through its expertise in foreign currency exchange services and its focus on the domestic syndicated loan market. Simultaneously, it will entice additional market participants from ASEAN to use Taishin Bank as a platform for conducting their business in Labuan IBFC.

Ladies and Gentlemen,

7. As a new player in Labuan, industry players must ensure their systems are cyber resilient in order to mitigate cyber risks, strengthen their surveillance, and improve their procedures and risk management for cyber security. Additionally, industry participants should place a greater emphasis on control and audit trail data to ensure that their records are kept current and to conduct KYC and CDD on their clients.

9. As an innovative and forward-looking financial intermediation centre, Labuan IBFC has kept up with the rapid changes brought about by digital innovation. We give businesses in Labuan IBFC access to advanced technological innovations by investing in a wide range of emerging and high-growth industry sectors, including digital financial services—digital banking, digital exchanges, crypto trading platforms, e-payment systems, and blockchain tokens. This includes the use of technology in regulatory and supervisory activities such as SupTech and RegTech. Businesses are attracted to Labuan because of its stable regulatory and legal framework, as well as its pro-business environment.

11. We encourage Taishin International Bank Labuan to leverage its membership in the Association of Labuan Banks by actively engaging with other members in order to develop business and foster a vibrant intra-Labuan business across the industry. Additionally, we hope that you will bring the necessary expertise and technology to Labuan through your operations here, to assist us in growing and strengthening the talent and competency pool in Labuan and the financial centre.

Ladies and Gentlemen,

12. On this note, allow me to congratulate [zhùhè] to Taishin International Bank Labuan on its auspicious opening and extend our best wishes for a prosperous banking business journey in Labuan IBFC in the years to come.

Thank you.

Mr Nik Mohamed Din Bin Nik Musa
Director-General, Labuan FSA
Copyright © Labuan FSA 
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