25 Years On: Labuan IBFC's Evolution As Asia's Leading Midshore Jurisdiction

Author:Labuan IBFC Inc.
Profession:Labuan IBFC Inc
 
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Sixteen years into the new millennium of 2000, Asia has cemented its place as the world's premier go-to destination for growth and opening of markets, and the land of untold development opportunities.

Attracted by robust domestic consumption, a growing middle class, massive urbanisation, youthful and still-growing populations and rising incomes, inbound wealth flows have been vast.

In mere foreign direct investment terms (FDI), more global capital has homed in on Asia for its tremendous economic potential, than any other region. In 2014 alone, the region received FDI worth US$465 billion surpassing that to Europe (US$289 billion) and North America (US$146 billion).

As a result of its influence on the global economic stage, there has been a wealth boom, both for corporates and individuals.

According to the RBC Wealth Management and Capgemini's World Wealth Report 2015, North America maintained its position as the world wealthiest region in 2014 with US$16.2 trillion, but Asia Pacific registered the fastest growth of 11.4% to reach US$15.8 trillion, as compared to 9.1% and 4.6% in North America and Europe, respectively.

The rapid growth of high-net-worth individuals (HNWIs) in the Asia Pacific region has overtaken North America to become the region with the largest HNWI population with 4.69 million individuals (as compared to 4.68 million) With these massive capital and investment flows, significant shifts have occurred, not only in terms of how these assets are managed, but also how they are accounted for, preserved and expanded.

As a result, there has been an explosion in demand from the owners of this capital due to market volatility, and variable tax and legal regimes in their countries of domicile.

The traditional solution has been the accepted concept of the offshore financial centre, where a range of financial and economic activities are offered in a bu44siness-friendly tax and regulatory environment.

But while such centres have been attractive from a simplistic and distant macro standpoint, there have been precious few options available, when viewed in a specific Asian-centric prism.

Enter the Labuan International Business and Financial Centre (Labuan IBFC) as today's leading midshore jurisdiction in Asia.

Labuan IBFC

Labuan International Business and Financial Centre (Labuan IBFC) has over the last 25 years grown in tandem with Asia to become the region's leading midshore jurisdiction. Labuan IBFC's comprehensive solutions strike a...

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