Labuan International Business and Financial Centre Incorporated (Labuan IBFC Inc) has signed a Memorandum of Understanding (MoU) with a branch of China Construction Bank Corporation.
The agreement with China Construction Bank Corporation Labuan Branch (CCBL) aims to promote the benefits of Labuan IBFC to Chinese companies, in addition to supporting the advancement of fintech development in the jurisdiction.
“We are extremely pleased to be partnering with CCBL, part of the second largest bank in the world, providing a key enabler towards further strengthening our footprint in China and in countries which form the Belt and Road Initiative,” said Farah Jaafar-Crossby, CEO of Labuan IBFC.
“Over its 29 years as a midshore jurisdiction, Labuan International Business and Financial Center (LIBFC) has become well recognised by investors for its business-friendly environment that is conducive for business growth,” added Ji Zhihong, Executive Vice President of China Construction Bank.
The MoU will also build on an earlier agreement between Labuan Financial Services Authority (Labuan FSA) and China Banking and Insurance Regulatory Commission (CBIRC) that aimed to foster more cooperation between regulators and intermediaries.
As Malaysia’s foreign wholesale financial intermediation centre, Chinese entities use Labuan IBFC to facilitate international cross-border trades, investments, risk management and financing as well as asset and wealth management.
Currently, Labuan IBFC is home to close to 300 companies (out of which 35 are licensed entities) directly originating from China.
“Labuan IBFC’s readily available structures and solutions and progressive regulatory stance makes the midshore jurisdiction an Asian domicile of choice for digital and fintech players,” Jaafar-Crossby continued.
“In fact, more than 25 digital and fintech related licensing approvals were given in 2019 including a new digital asset exchange. With CCBL as our partner, we look forward to making more inroads into China on the fintech/digital front as well.”