Labuan International Business and Financial Centre Inc Sdn Bhd (Labuan IBFC Inc.) and Tricor Group (Tricor) have inked a Memorandum of Understanding (MoU) that will enable both parties to mutually strengthen Labuan IBFC’s marketing outreach and market development initiatives in Greater China.
“We are excited to further our cooperation with Tricor to expand Labuan IBFC’s value proposition to the Greater China region. This partnership will further strengthen our market footprint by offering Chinese based entities a viable substance enabling Asian based jurisdiction for all their international business needs,” said Farah Jaafar-Crossby, CEO of Labuan IBFC Inc.
“We have worked closely with Tricor over the years, increasing awareness in Asia of the wide range of structures and solutions for international business expansion, wealth management and digital finance offerings. However, Tricor’s recent expansion into mainland China, with offices covering all regions, makes the timing of this cooperation even more significant,” she added.
Tricor is one of the leading Trust Company Service Providers (TCSP) in Labuan IBFC. Like other service providers in the jurisdiction, it plays a significant role in Labuan IBFC’s business ecosystem as it is obligatory to appoint a TCSP when setting up a Labuan-licensed entity.
Lennard Yong, Group CEO of Tricor, said: “Following our acquisition of CP TRUST in Labuan in late 2018 in addition to our recent acquisition of Richful Deyong in Greater China last month, we have deepened our expertise and footprint in these high-growth markets. We are pleased to partner with Labuan IBFC as we seek to deliver a comprehensive suite of best-in-class business expansion solutions. In partnership with Labuan IBFC, I am confident that our talented teams will continue to deliver innovative solutions to accelerate the growth of our clients across Asia.”
The MoU provides a platform for both parties to explore market development opportunities in Greater China through activities such as training and knowledge sharing sessions, exchanges on market information and other mutually beneficial initiatives. The arrangement, while non-exclusive, provides for a focused commitment by both parties to explore the expansive China market.
In line with Labuan IBFC’s efforts to gain a bigger foothold in China, earlier this year its Regulator, the Labuan Financial Services Authority, signed a Memorandum of Understanding with the China Banking and Insurance Regulatory Commission to foster greater cooperation aimed at enhancing regulatory and supervisory oversight of cross border branches and subsidiaries of China and Labuan-based banks and insurance entities.
“As Malaysia’s international business and financial center for close to 30 years, Labuan IBFC is known as a special zone within Malaysia focused on facilitating cross-border trades, investments, financing and wealth management,” said Farah.
“It is a unique jurisdiction that provides fiscal neutrality and certainty in a currency-neutral operating environment, with a wide variety of business and wealth management structures, which we hope to attract more China based users with. Of course, the advantage of our location in the center of Asia, in addition to the cultural affinity and shared language base cannot be underestimated” she added.
Currently Labuan IBFC is home to close to 200 companies (out of which 35 are licensed entities) directly originating from China. As of last year, Bank of China was appointed by Labuan FSA as a renminbi settlement bank there thus creating an efficient, seamless and cost-effective real-time settlement of renminbi-denominated transactions. To facilitate Chinese users, Labuan companies may be incorporated with a Chinese name and in Chinese articles of associations at no extra cost.
