Labuan IBFC showcased at Pacific Trustees Masterclass
DOZENS OF FILIPINO investors, entrepreneurs and business decision-makers enhanced their understanding on using the Labuan International Business and Financial Centre (Labuan IBFC) as a base to grow their cross-border businesses.
Despite the busy festive season, they participated in a Masterclass co-hosted by Pacific Trustees Group International (Pacific Trustees) and Labuan IBFC Incorporated Sdn Bhd (Labuan IBFC Inc), as they learnt on ways to capitalize on Labuan IBFC’s position as Asia’s premier international financial hub.
Labuan IBFC, located off the coast of East Malaysia, provides a safe and holistic ecosystem for businesses, acting as a gateway for companies to Southeast Asia while implementing an efficient and flexible tax system.
Datuk Iskandar Mohd Nuli (in photo), executive chairman and CEO of Labuan IBFC Inc., and Mdm. Mari-Len Ngu, managing director and CEO for Global Private Clients at Pacific Trustees, presented the session at The Westin Manila last Dec. 21.
Mr. Iskandar explained that Labuan, as an offshore financial hub, has a special regulatory and tax framework that sets itself apart from the rest of Malaysia.
“It is one country, but two systems. At Labuan, everything is regulated by the Labuan Financial Services Authority (Labuan FSA). One authority handles everything and this allows for seamless connectivity and improves the ease of doing business,” he said.
Mr. Iskandar further shared about Labuan’s advantages of having a holistic ecosystem for business, ranging from companies, banking and wealth management to trust companies, capital market and insurance. The ecosystem also covers leasing, digital market and commodity trading.
“Trading or investment holding companies do not need to create a new company in Labuan. A FIlipino company can open a branch or subsidiary in Labuan, and may even use the same set of [board of directors],” he said.
He added that as Labuan is currency neutral, it allows for free movement of funds; as long as the transactions are approved by the respective domestic central banks, such as the Bangko Sentral ng Pilipinas.
Ms. Ngu shared her expert knowledge and experience in the wealth management sector in Labuan IBFC.
“Everyone here is good at making money, but not everyone knows how to protect their wealth. When you are successful, you must ensure that you mitigate any potential legal risk that may arise from civil suits. This can be done by setting up a trust through a credible trust company such as Pacific Trustees, which has a 30-year track record of operating as a strong, independent regional trust company,” she said.
She also shared the benefits of setting up a company and a foundation in Labuan, and elaborated on the key differences between the tax framework in the Philippines and Labuan.
Many of the participants of the Masterclass showed immediate interest and posed numerous questions to the speakers, while some requested for private discussions after the session and in the following days.
Following the discussions, several participants signed up for business opportunities in Labuan.
For those keen to explore the option of growing their business and wealth in Labuan, contact Nic Lim at limwk@pacifictrustees.com.