Kuala Lumpur, 1 March 2017 – Labuan International Business and Financial Centre (Labuan IBFC) is expected to intensify its efforts on developing niche sectors such as leasing, captive insurance, commodity trading and wealth management in 2017 as part of its strategic plan to develop the jurisdiction.
Labuan IBFC Inc CEO, Danial Mah Abdullah said: “We believe the changes in the way cross-border investment and trade are conducted due to demands for greater transparency is a business enabler for Labuan IBFC."
He added that as a substance enabling jurisdiction that adheres to the international protocols on transparency and exchange of information, as well as the fact that Labuan IBFC is part of the larger global Malaysian offering, allows it to tap into these strengths to power the next stage of its evolution.
“We will be focusing on developing the niches with high growth potential and these sectors have been showing a positive upward trend in driving the midshore centre’s development in the recent years.
“These sectors are leasing, captive insurance, commodity trading and wealth management. For instance, our Q3 2016 numbers showed that there was an increase of 14% in commodity trading companies operating in Labuan IBFC and about 13.8% increase in the establishment of private and charitable foundations,” said the CEO.
Danial added that Labuan IBFC continues to show sustainable growth with more than 13,000 companies incorporated last year. This reflects the continued growth of the midshore centre despite the uncertainties in the global economy.
“We hope this growth trajectory will continue with the inflow of investors, global corporations and reputable service providers to the centre, especially from markets such as China,” said Danial.
He added: “Businesses operating in Asia or out of the region can still find opportunities, if they take advantage of integration initiatives such as the ASEAN Economic Community. Labuan IBFC could be the ideal entry point for these businesses into the burgeoning market of ASEAN for substance creation".