• PSP4311 :

FINANCIAL MARKET

• HUTOMO DANU SAPUTRO

• AKMAL BIN HASSAN
• AZZAR AIMAN

LABUAN FINANCIAL
INSTITUTIONS - IBFC
 Labuan is an offshore, Malaysian island, which has the
benefit of low tax regimes while still retaining the
WILAYAH protection of Malaysia’s laws and regulations. This means
PERSEKUTUAN Labuan entities benefit from nearly all the Double
Taxation Agreements (DTAs) Malaysia has signed with
LABUAN over 70 countries while profiting from tax exemptions
under the Labuan International Banking and Financial
Center (IBFC).
 INVEST IN LABUAN
• Labuan is located off the coast of the eastern Malaysian state of Sabah and
borders Brunei by sea. The territory is strategically located in close geographical
proximity to financial capitals like Hong Kong, Jakarta, Kuala Lumpur, and
Singapore.
• Though prominently a financial hub, Labuan has five main industries: financial
services; oil and gas; tourism; halal products; and fishing.
• Since its establishment as a Free Trade Zone (FTZ) in 1990 – now referred to as
Labuan IBFC – Labuan has become a premium offshore financial center for
regional companies looking to expand internationally
  No tax for non-trading companies
 A tax rate of 3% or a flat rate of MYR 20,000 (approximately USD
6,700) for trading companies
 No capital gains tax
 A highly developed legal infrastructure
 Strategic location and optimal time zone
 Strong economy and low operating costs.
 English is the main business language
WHY INVEST
 Access to the double taxation agreements of Malaysia, the
HERE? largest in the region
 Four new laws passed in 2010 to protect business interests and
assets, keeping Labuan at the cutting-edge of the business and
financial world
 One-stop centre for banking, leasing, ship registration and
insurance services
 Internationally accepted standards of practices, overseen by
professional bodies including the IMF, the World Bank
  There are currently 14,201 companies registered in
Labuan with an additional 52 trust companies and 151
foundations.
 Labuan FSA in 2017 approved three investment banking
According to the licences bringing the total number of approved banks
Labuan Financial to 54.
Services  Labuan FSA in 2017
Authority’s 2017 approved 14 insurance and insurance
related licences, comprising six captives, four broke
Annual Report rs, two reinsurers, one life insurer and one general
insurer.
 Finally, Labuan has 380 leasing companies.
 Labuan International
Labuan I B F C Business and Financial
Center
 Its under Labuan FSA, has a comprehensive, modern and
globally-recognised regulatory framework.
The jurisdiction’s adherence to international standards
and best practices in financial services and prudential
supervision, including protocols on anti-money laundering
and exchange of information and regulatory requirements
set by the OECD reinforces Labuan IBFC’s commitment to
ensuring a safe and secure business environment.
What is
Labuan IBFC Labuan IBFC boasts a wide range of business
and investment structures facilitating cross-
border transactions, business dealings and
wealth management needs. These unique
qualities offer sound options for regional
businesses going global or global businesses
looking at penetrating Asia’s markets.
Labuan I B F C
Objectives & Functions
Labuan Financial Services Authority (Labuan FSA) was established on 15 February 1996 under the Labuan Financial
Services Authority Act 1996. Labuan FSA is the statutory body responsible for the development and administration of
the Labuan International Business and Financial Centre (Labuan IBFC).

The objectives of Labuan FSA include the following:

• To promote and develop Labuan as an international centre for business and financial
services;

• To develop national objectives, policies and priorities for the orderly development and
administration of international business and financial services in Labuan; and

• To act as the central regulatory, supervisory and enforcement authority of the

international business and financial services industry in Labuan.
IMPACT TO THE CONSUMERS as
Individual
IBFC and all companies under it definitely impact the
consumers as we columned between citizen of Labuan, and
the organisations/companies.

To the Individuals/citizens:
• IBFC opens many job fields to the local consumers
• IBFC under Labuan FSA implement NO TAX to Labuan
area
• IBFC indirectly giving more opportunity for adding up
the number of businesses in Labuan, especially for
SMEs as a subsidiary to the big companies
• MANY MORE.
THANK YOU