Labuan IBFC's Reputation As a Jurisdiction For Wealth Management Is Growing

Labuan IBFC is increasingly gaining reputation as a safe and tax-efficient wealth management jurisdiction to Southeast Asia's new wealthy. Labuan IBFC is now home to a rapidly-growing number of trusts and private trust companies, with more than 40 foundations being set up in 2011 alone. 

The 3rd Annual World Islamic Banking Conference held in Singapore recently saw an especially strong representation of delegates from ASEAN, an indication of the strength of wealth formation by the region's entrepreneurs. 

As a Southeast Asia's tax-efficient jurisdiction, Labuan IBFC is ideally positioned to capture the rise in demand for private wealth management solutions for the region, one of the world's few remaining economic bright spots.

“Labuan IBFC received a lot of interest (in Islamic wealth management) as it is the only tax-efficient financial centre globally that offers a complete range of Sharia compliant solutions,” said Aderi Adnan, Labuan IBFC’s Islamic Finance and Banking Advisor, who spoke at the conference. 

ASEAN is home to more than 231 million Muslims; with Muslim-majority Malaysia and Indonesia maintaining strong economic and cultural links to the oil-rich Middle East.

Mr Adnan added that the Labuan Islamic Financial Services and Securities Act 2010, the world’s first omnibus legislation encompassing all requirements for Sharia-compliant financial services, provides a ready and comprehensive range of Sharia compliant wealth management solutions. 

To complement the Islamic wealth management solutions, Labuan IBFC's legislation also provides for the formation of private trust companies and protected cell companies, ideal for the management of family offices and dynastic inheritance purposes.