Labuan IBFC

The island of Labuan was designated as Malaysia’s official offshore financial hub in 1990, operating under the official moniker, Labuan International Offshore Centre, until the end of 2007. During that time the centre grew both in reputation and financial standing.

The name Labuan International Business and Financial Centre was introduced in January 2008 to reflect the jurisdictions’ growth and burgeoning international status, and was accompanied by an aggressive rebranding and marketing exercise.

The jurisdiction’s marketing arm, Labuan IBFC Inc. Sdn. Bhd., was incorporated in July of the same year as the official agency sanctioned by the Malaysian government to market, promote and otherwise serve as the world’s point of contact for the Labuan International Business and Financial Centre.

Going forward Labuan IBFC continues to structure new products, services and regulatory environment such that it is able to play an integral and legitimate role in international trade and finance, while offering significant advantages for corporations and individuals.

Highly flexible tax framework

While the Labuan Offshore Business Activity Tax Act of 1990 (LOBATA) remains in and of itself one of the most business-friendly and flexible such frameworks in the world, offshore companies operating from Labuan may additionally – and as an alternative to LOBATA – opt to be taxed under the Malaysian Income Tax Act of 1967. This has been mandated to allow such companies to further benefit from Malaysia’s extensive double tax agreements with 68 countries globally.

Progressive legislative environment

Where legislation is concerned, currency is the best currency. The global legal landscape is highly fluid – and an offshore jurisdiction that’s unable to evolve along with it will soon find itself playing catch-up. Towards the end of remaining current, and perhaps more importantly, relevant, legislation governing all facets of business and operations in Labuan is continuously reviewed, and where necessary, updated. As of now, several advantageous changes to existing statutes are underway, with several more in the offing.

Strategic location

Labuan IBFC’s position – strategically located between the two growing economies of China and India – as well as Labuan's proximity to several other regional financial centers puts Labuan IBFC in a unique position for tapping the many rapidly growing investment opportunities in the South East Asia.

Deep focus on Shariah-compliant products

Malaysia is fast becoming the world’s financial hub of choice, in line with the Central Bank’s stated goal of becoming an International Islamic Financial Centre (MIFC). LOFSA’s role as one of the original participating members on the working group to establish Malaysia as such means we share, and have unique access to, that country’s expertise. This only serves to further strengthen Labuan IBFC's offering with regard to Shariah compliant financial products.