THE Malaysian Government has lifted restrictions on the number of expatriates who may be employed in a Labuan offshore company to boost the island's offshore tax haven and financial centre status.
It also has simplified application procedures to expedite work permits.
Malaysian Deputy Prime Minister Anwar Ibrahim said: 'Together with the private sector, we have put in place the legal framework and administrative arrangements and upgraded and extended the physical infrastructure facilities to create a conducive environment for the Labuan IOFC [international offshore financial centre].' Mr Anwar, who was speaking at a seminar on Malaysian capital markets and Labuan as Asia's premier international off-shore financial centre, said offshore banks were expected to relocate from their temporary abode in Kuala Lumpur to the 92 square kilometre Labuan Island towards the end of the year.
The economies of scale from the relocation of the offshore banks and their management offices to the Labuan Financial Park, being developed at a cost of US$360 million, would create new opportunities for business, he said.
So far, 42 offshore banking licences had been issued, plus six insurance and insurance-related licences, including two from Hong Kong.
'In the area of offshore business, significant progress has been made,' Mr Anwar said.