LABUAN IBFC INDUSTRY PLAYERS APPEAL TO MOF TO ALLOW TRADING ACTIVITIES

By Jailani Hasan

LABUAN, April 18 (Bernama) -- The Labuan International Business and Financial Centre (IBFC) industry players have appealed to the Finance Ministry (MoF) for consideration to allow trading activities within the centre.

Association of Labuan Trust Companies chairman Datuk Chin Chee Kee said this is important for the long-term prosperity of Labuan's business and financial sector, potentially leading to additional revenue for the nation.

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“We have submitted a memorandum to MoF to consider permitting Labuan entities to engage in trading activities. 

“This move would not only increase the number of companies in the IBFC but also contribute additional revenue for the government,” Chin told Bernama after officiating at the launch of Universal Serviced Offices (USO) Labuan's newly-built facility at Financial Park Complex here today.

Trading activities that are no longer allowed include purchasing finished products, including manufactured goods, from one country and reselling them to another country via Labuan entities.

Chin said numerous companies have ceased operations in Labuan and relocating outside Malaysia.

He expressed optimism that allowing Labuan entities to conduct trading activities would encourage more companies to return to Labuan for business operations.

Meanwhile, Chin emphasised that Labuan IBFC should not be compared to established financial centres like Singapore and Hong Kong. 

However, he noted that in comparison to 70 other financial centres globally, Labuan IBFC stands on par in many aspects, complying fully with international standards set by regulators such as the Organisation for Economic Co-operation and Development (OECD).

“Labuan IBFC is a significant revenue contributor to Malaysia and Labuan, attracting industry players from various regions. 

“Therefore, there should be no restrictions on legitimate business activities that contribute to government revenue," Chin said.

He praised the Labuan Financial Services Authority for implementing favourable policies that attract industry players to operate in Labuan, except for trading activities, which remain restricted.

-- BERNAMA