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Offshore Market

The document discusses offshore markets and Labuan International Business and Financial Centre (Labuan IBFC) in Malaysia. Some key points: 1. Offshore refers to activities outside a company's home country, often done to benefit from favorable tax laws or relaxed regulations. There are several types of offshore activities including offshore business, investing, and banking. 2. Labuan IBFC is a special economic zone in Malaysia that aims to develop Labuan as an international financial center. It offers a variety of business structures and professional services while maintaining high standards of integrity. 3. Labuan Financial Services Authority regulates and oversees the development of Labuan IBFC, with the goal of making it an active offshore financial center

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75 views

Offshore Market

The document discusses offshore markets and Labuan International Business and Financial Centre (Labuan IBFC) in Malaysia. Some key points: 1. Offshore refers to activities outside a company's home country, often done to benefit from favorable tax laws or relaxed regulations. There are several types of offshore activities including offshore business, investing, and banking. 2. Labuan IBFC is a special economic zone in Malaysia that aims to develop Labuan as an international financial center. It offers a variety of business structures and professional services while maintaining high standards of integrity. 3. Labuan Financial Services Authority regulates and oversees the development of Labuan IBFC, with the goal of making it an active offshore financial center

Uploaded by

zamri
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Offshore market

Chapter 8
Introduction
• The term offshore refers to a location outside of one's home country. The term is
commonly used in the banking and financial sectors to describe areas where
regulations are different from the home country.
• Offshore refers to any (business) activity that takes place outside an entity's home
base.
• The term may be used to describe foreign banks, corporations, investments, and
deposits. 
• A company may legitimately move offshore for the purpose of tax avoidance or to
enjoy relaxed regulations.
• Offshore financial institutions can also be used for illicit purposes such as money
laundering and tax evasion.
• Increased pressure is leading to more reporting of foreign accounts to international
tax authorities.
Offshore market
There are several types of offshoring:
1. Offshore Business
2. Offshore investing
3. Offshore banking
Benefits of offshore market
1. Favorable tax laws, which is why they're commonly referred to as
tax havens
2. Reduced risk and greater growth potential
3. Significant cost savings for businesses
4. Protection of assets, especially during times of instability
5. Loose regulations
6. Confidentiality
Characteristics of the offshore financial center.
1. Low or no taxes
2. Services are mainly for non-residents clients
3. There are no or limited FOREX control
4. Geographical proximity to a major eEconomy
5. There are good communications and connectivity/networking
6. A set of practice/procedure that supports bank secrecy
7. A high degree of political stability/personal safety
Labuan FSA
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).
Functions of Labuan FSA
1. Promote and develop Labuan as an international centre for
business and financial services; 

2. Develop national objectives, policies and priorities for the


orderly development and administration of international
business and financial services in Labuan; and 

3. Act as the central regulatory, supervisory and enforcement


authority of the international business and financial services
industry in Labuan. 
Labuan IBFC
• Labuan International Business and Financial Centre (IBFC) is a special
economic zone of the Malaysian government based on the island of Labuan
off the Borneo coast.
• Labuan has been designated as a financial centre and free trade zone by
the Malaysian government.
• These entities are highly capable in offering professional services ranging
from trusteeships, secretarial and administrative services to business
structure and solutions.
• At the same time, these entities have also continually enhance themselves
to stay ahead of the curve by offering cost-effective solutions, processes,
and facilities within an operating environment that demands high integrity
standards and levels of professionalism.
Labuan IBFC
• Labuan International Business and Financial Centre (Labuan IBFC) presents a comprehensive suite of
solutions, striking an ideal balance between client confidentiality and compliance with international best
standards and practices.

• Its business-friendly environment, anchored by a simple and attractive tax system, is well-supported by a
robust, modern and internationally-recognised legal framework enforced by its regulator, Labuan Financial
Services Authority (Labuan FSA).

• 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 burgeoning markets.

• Strategically located in the heart of Asia Pacific, Labuan IBFC is well positioned to tap into one of the
fastest growing regions in the world, presenting the perfect opportunity for businesses seeking to connect
with Asia’s economies and beyond.
Key areas that Labuan IBFC focused on developing Labuan
as a reputable offshore financial center

1. Develop an active International Offshore Financial Centre for Malaysia


2. Review existing rules and regulations to facilitate expansion in the scope of core
businesses
3. Adopt a consultative and market driven approach to create a conducive tax and
business environment.
4. Adopt a consultative and market driven approach to create a conducive tax and
business environment
5. Establish a well-balanced regulatory policy and supervisory framework
6. Strengthen Islamic banking and finance as well as Islamic insurance (takaful)
7. Enhance the Labuan International Financial Exchange (LFX)
8. Enhance the e-commerce gateway (ECG)
professional services Labuan IBFC

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