KUALA LUMPUR: The introduction of the new legislations in Labuan International Business and Financial Centre (LIBFC) in 2010 has generated a lot of interest among the foreigners.
The new legislations were the Labuan Financial Services and Securities Act 2010, Labuan Islamic Financial Services and Securities Act 2010, Labuan Foundations Act 2010 and Labuan Limited Partnerships and Limited Liability Partnerships Act 2010.
First Fiduciary (Labuan) LLP partner, Datin Isharidah Ishak, said the new legislations had encouraged foreigners to come and set up foundations and limited liability partnerships because they were confident of LIBFC’s legal system.
Isharidah, who provides wealth management service, said there was a lot of excitement, especially in terms
of wealth management vehicles, mainly the foundation as well as limited liability partnerships, protected cell companies and trusts.
“The new Acts are more promising, the potential now is being highlighted internationally also,” she told Bernama in an interview.
Isharidah said the Labuan Foundation Act created a vibrant wealth management industry and provided a more efficient vehicle.
She said the Act, which administered the foundations in LIBFC whether it’s for charity of private/succession planning, was a legal vehicle foundation which could be used to protect the clients’ wealth after their death.
She said the Act was not available in common law practice such as in Malaysia but in LIBFC.
“By virtue of that, many foreigners were attracted to Labuan, because they are aware of the fact that Labuan is an attractive jurisdiction for their business expansion and also to manage their wealth,” she said.
Isharidah said the infrastructure in Labuan was good and the regulatory framework of the Labuan Financial Services Authority was governed by Bank Negara Malaysia.
“Also, Labuan has a good public infrastructure.
The schools and the roads are good and there are many features that are attractive to woo these sort of people that are looking for vehicles to structure their wealth,” she said.
LIBFC, previously known as the Labuan Offshore Financial Centre, offers global investors and financial service providers the advantages of a business-friendly regulatory regime legislation and access to the majority of Malaysia’s extensive
network of over 70 double-taxation treaties. — Bernama