Labuan IBFC signs MoU with China Construction Bank
Labuan International Business and Financial Centre Incorporated (Labuan IBFC), the market development agency for Labuan International Business and Financial Centre (Labuan IBFC), has signed a Memorandum of Understanding (MoU) with China Construction BankLabuan (CCBL) to allow CCBL to promote the benefits of Labuan IBFC to Chinese and Chinese related companies.
“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,” says Farah Jaafar-Crossby, CEO of Labuan IBFC Inc.
“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,” says Ji Zhihong, Executive Vice President of China Construction Bank.
CCBL is one of the 55 banks in Labuan IBFC and also recently became the first bank authorised by the Labuan Financial Services Authority (Labuan FSA) to conduct digital banking activities in Malaysia.
“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. In fact, more than 25 digital and fintech related licensing approvals were given in 2019 including a new digital asset exchange,” says Jaafar-Crossby. “With CCBL as our partner, we look forward to making more inroads into China on the fintech/digital front as well.”
As Malaysia’s foreign wholesale financial intermediation centre, Labuan IBFC is a known jurisdiction to Chinese entities that have grown to appreciate as a special zone that facilitates 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.