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Sophie Benge

THE Malaysian Government is spending M$500 million on a financial park on Labuan in an all-out effort to make the island one of the premier international offshore banking centres in the region.

  The 11-acre development forms part of Malaysia's aggressive marketing strategy to promote Labuan as a tax haven.

   Such a haven will attract more offshore services, according to Victor Hoo Ah Teng, Malaysia's Trade Commissioner in Hong Kong.

  More than 900,000 square feet of office space is currently under construction with three exclusive hotels being planned.

  These hotels include the Mandarin Garden, Faber Merlin and Marina Resort Centre.

  There will also be retail space, car parking and a 1,000-seater conference hall.

  This month, Banque National de Paris (BNP) became the 11th offshore bank to venture into Labuan.

  BNP joins the three offshore insurance and re-insurance firms, 11 audit firms and 11 trust companies.

  A total of and 118 other offshore companies have invested in the island up to the end of May , the Malaysian Trade Commission claims.

  This is only three years after its international offshore financial centre status (IOFC) was conferred.

  For companies operating out of Labuan, the Malaysian Government taxes profits at three per cent or M$20,000, whichever is greater, according to Mr Hoo.

    This tax incentive is one of the best to be found anywhere in the region.



Labuan in $1.5bn windfall