Source of image: Atozmarkets Portal
Source of image: Atozmarkets Portal
Mr Ian Lim Teck Soon, Group Chief Underwriter of The Archipelago Group; a leading InsureTech Driven Ecosystem Insurance Company in Asia, has shared his opinion on the financial markets development in Labuan:
“Labuan FSA continues to upgrade its level of financial services including licensing of offshore FX Brokerages. Whilst it’s important to grow this industry, regulations are present at the same time ensuring that robust guidelines and market practices regulating FX Brokers do also tap into major financial money markets or institutions to spread forex risks. Investment and Commercial Banks in Labuan do play this supportive role to the Labuan FX trading industry. Labuan’s banking sector has a healthy asset base of more than USD 50 billion reinforced with strong liquidity and diversified quality assets including FX portfolios.
In the recently reported, Labuan IBFC’s Market Update on 25th March 2019, it is aggressively embarking on an international intermediation role to enable Labuan businesses to continue tapping into opportunities in the Asian region.
Labuan IBFC’s growing prominence as a regional financial hub underpinned through facilitating intra-Asian trade, investments and asset intermediation. This has aided Labuan IBFC to incubate many FinTech start-ups establishing innovative financial services- related businesses; offering a ready suite of structures and solutions in the areas of FX broking, capital market and wealth management businesses.
Labuan IBFC is committed to grow its non-resident owned businesses. There are no restrictions to foreign ownership unlike other jurisdictions requiring local director rules. This is friendly for international business.
Labuan IBFC registered double-digit growth of 12.5% or 1,059 incorporations in 2018, mainly from the Far East region, with a majority from Japan, China and South Korea.
As with any progressive IBFC in order to take advantage of its premier offerings, I do foresee Labuan FSA requisite of substance rules and greater transparency in all cross-border transactions.”
*Source: Atozmarkets Portal
