KUALA LUMPUR, Labuan is targeted to be the premier international business and financial centre (IBFC) in the Asia Pacific by five years, according to its promoter Labuan IBFC Inc Sdn Bhd.
"We will measure that by looking at Labuan's business growth. Already we are growing faster than many other jurisdictions," its chief executive officer Martin Crawford told reporters here Thursday.
Crawford said the year-on-year growth has been significant with many of the category groups growing between 30 and 50 percent.
"In fact, one of them grew at 67 percent. But some other jurisdictions (offshore financial centres), they are not growing that well. We are gaining market share and we intend to be the premier IBFC in the Asia Pacific by five years," he said.
Earlier, Crawford presented a paper titled "Why Waste a Crisis -- Unlock Opportunities" at a seminar jointly organised by the Malaysian Institute of Accountants and Labuan IBFC at the Securities Commission.
Labuan was declared an international offshore financial centre in October 1990 with the Labuan Offshore Financial Services Authority (LOFSA) being the regulatory body to spearhead and coordinate efforts to promote and develop Labuan as an IOFC.
However, in early 2008, a rebranding exercise took place with the launch of the Labuan IBFC by LOFSA, a new identity designed to be more reflective of Labuan's new focus.
Asked what could be the benchmark to be a premium IBFC, Crawford said: "Premier is the qualitative statement as well as the quantitative one. It is not just numbers."
"We could relax (legislations) in Labuan and make it very easy and get a lot of numbers but at the end of the day we will also buy in a lot of problems. It is going to be quality growth and not just quantity growth," he said.
"IFBCs around the world all have good attributes but we just want to be known as the premier one. The best of the best," he added.
On its plan to have representatives in other regional centres, Crawford said that Labuan IBFC Inc was working closely with other Malaysian bodies such as Malaysian External Trade Development Corporation (Matrade) and Malaysian Industrial Development Authority (MIDA), which have offices in other locations.
"Right now we are using other agencies to help spread the word. We are training their people to talk about Labuan," he said.
"Ultimately, if we have sufficient funds, we would like to open offices in other locations, probably in the Middle East and Hong Kong," he added.
Labuan IBFC is now focusing on the five key areas of international holding companies, private and public investment funds, captive insurance, Islamic finance, and wealth management products like expatriate pensions.
Asked whether Labuan IBFC was thinking of new focus areas, Crawford said: "The word 'focus' is very important because certain jurisdictions around the world have built a reputation being good in one or two things."
"We don't want to spread ourselves too thin. We want to be very good for those five areas," he said.
On the registration of companies this year, Crawford said it was looking at 15 percent growth for this year despite the global economic downturn.
"The registration of company is still growing. We had a growth of 10 percent when comparing on first quarter to first quarter basis. Some other jurisdictions were minus 20 percent, on that same criteria," he said.
"So there is a big flow of business from some centres towards our centre. We hope that by maintaining our standard and quality we will catch some of that flow and have those companies in Labuan," he added.
According to him, a 10 percent growth can be considered as "quite good" amid the current weak economic scenario.
On the recent announcement allowing Labuan holding companies to establish their operational and management office in Kuala Lumpur, Crawford said: "It is going to be a fantastic offer."
"Many companies that are based in Singapore and Hong Kong are now talking to us, asking when can a Labuan company be in Kuala Lumpur.
With the facility of Kuala Lumpur, talent and infrastructure, it is going to be very significant. We are pushing that," he said.
A reviewed legislation governing all facets of business and operations in Labuan IBFC will be tabled at the current Parliament session, he added.
-- BERNAMA
source: www.bernama.com
