17 February 2023Analysis

Labuan organises masterclass on IBFC

Stakeholders from the Sarawak business community gathered on 15 February 2023 at a masterclass on the Labuan International Business and Financial Centre (IBFC), which was co-organised by LIBFC and the Sarawak Business Federation (SBF).

The seminar, which was held in Pullman Kuching, showcased speakers which summarised recent developments related to the Labuan jurisdiction and participants comprising investors and players as well as representatives from the private sector and government agencies.

Labuan IBFC executive chairman / chief executive Datuk Iskandar Mohd Nuli delivered opening remarks in which he reiterated that Labuan IBFC is well-positioned to serve as a hub for Sarawak businesses. He further commented, "Labuan IBFC has available business structures that will allow Sarawak businesses and the state government to manage their affairs in the most tax-efficient manner in a low-risk operating environment. Most importantly, establishing a base in Labuan IBFC will ensure all entities a proper and meaningful opportunity to manage their funds independently and legally."

Dato Sri Abang Haji Abdul Karim bin Tun Datuk Abang Haji Openg, president of Sarawak Business Federation, highlighted the need for Sarawak's business communities to engage with Labuan IBFC to gain better understanding in how they can expand and develop their businesses further and at the same time enjoy the benefits and incentives available. He emphasised on the need for more dialogues and engagements so that SBF members will have the opportunity to have continued engagement.

The masterclass kicked off with a briefing on Labuan IBFC, which touched upon the formation of Labuan IBFC, the governance of the jurisdiction as well as recent related legislative amendments. Attendees were also briefed on the product and sectoral offerings by the jurisdiction, as well as available business structures for the establishment of a Labuan base.

This was followed by three briefing sessions, the first of which explained the establishment of a Labuan business through Labuan trust companies. The second seminar enlightened participants on setting up a bank account for business purposes in Labuan, while the last briefing clarified on requirements to set-up an insurance or captive business in Labuan IBFC.

The seminar concluded with the consensus that Labuan IBFC has a leading role to play in serving as a viable hub for Sarawak businesses.