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.

 

 

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 centres.

 

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 financial institutions."

 

“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 environment.

 

“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 CEO added.

 

 

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 ASEAN.

 

“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 CEO.

 

The event in Manila consisted of presentations on ‘Going Regional: Opportunities and Challenges for a Home Grown Company.

 

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.