Bird’s Eye View on Why Choose Labuan

1. Being part of Malaysia, sharing common time zone with major Asian cities, complementing financial centres of Hong Kong, Singapore & Shanghai

2. A leading business and financial center in Asia Pacific with growing reputation and track record

3. Robust and well-balanced legal and regulatory framework

4. A complete range of solutions for business and investment structures for cross border transactions, business dealings and wealth management needs

5. A tax-efficient jurisdiction to facilitate businesses

6. Access to Malaysia’s Double Tax Treaties (DTA) with more than 70 Countries.

7. Investment Protection Agreement (IGA) with more than 50 Countries. Protect your investment in the event that it is being nationalized

8. No Exchange Control Regulations – Free Flow of Funds. Stop Tax Haven Abuse Act does not apply in Labuan, Malaysia

9. Free Trade Agreements:

a) ASEAN Free Trade Area (AFTA / ATIGA)
b) ASEAN-CHINA Free Trade Area (CAFTA / ACFTA)
c) ASEAN-KOREA Free Trade Area (KAFTA / AKFTA)
d) ASEAN-JAPAN Comprehensive Economic Partnership (JACEP / AJCEP)
e) ASEAN-INDIA Free Trade Area (AIFTA / IAFTA)
g) Malaysia-Pakistan Comprehensive Economic Partnership Agreement (MPCEPA)
h) Malaysia-Japan Economic Partnership Agreement (MJEPA)
i) Malaysia-New Zealand Free Trade Agreement (MNZFTA)
j) Malaysia-India Comprehensive Economic Partnership Agreement (MICEPA)
k) ASEAN-EU Free Trade Area (under negotiation)
l) ASEAN-US Free Trade Area (under negotiation)

Typical Contents of FTA :

a) National Treatment & MFN Treatment

National Treatment: Each Member State shall…accord immediately to investors and their investment…treatment no less favourable than that it accords to its own like investors and investments…, and

Most Favoured Nation (MFN) Treatment: Each Member State shall accord immediately and unconditionally to investors and investments of another Member State, treatment no less favourable than it accords to investors and investment of any other Member State with respect to all measures affecting investment…

b) Fair and Equitable Treatment
Guarantee of “fair and equitable treatment and full protection and security”. The “full protection and security” guarantee requires the host government “defend the investor or investment against others, for instance, rebel forces”. The “fair and equitable treatment” guarantee provides a type of international due process that protects against unacceptable conduct by the host government.

c) Compensation for Expropriation

d) Liberalization of Service Sector and Equity,
• Cross Border Supply
• Consumption Abroad
• Commercial Presence
• Movement of Natural Persons

e) Mutual Recognition of Qualifications and Experience

10. Balance of Confidentiality and Compliance which includes appropriate degree of confidentiality

11. Tax Residency Certificate available for Labuan Entity and Individual

12. Immigration regulations are liberalized for expatriates

13. Infrastructure – International Business Financial Centre (IBFC), Duty Free Status, Competitive Investment Cost, Low Operating Cost Environment, Strategic Location and Modern Infrastructure facilities (including medical, transport and telecommunications complete with a deep sea port), Professional support available for offshore development

14. A complete range of solutions for business and investment structures for cross border transactions, business dealings and wealth management needs

15. Full fledge banking i.e. Onshore and Offshore Banking | Opening of bank Accounts Nationwide, Singapore, Hong Kong, USA etc | Multiple Currencies Accounts with interest bearing | Fixed Deposit/Certificate of Deposit/Time Deposit (FD/CD/TD) | Current Account | Credit Card | ATM | Corporate Debit Card | Buy, deposit & withdraw Gold Bullion and other gold products | High security Internet Banking System | Letter of Credit and other trade facilities