Labuan International Business for captive insurance companies were increasingly recognized
Its Chief Executive Officer named David Kinloch had told that Financial Centre (IBFC) and the attractions of the Labuan International Business for captive insurance companies had been recognized, and the sector was hoped for expanding significantly next year. It had been said that there were 34 captive companies had established within the IBFC, of which 14 captive companies were Malaysian companies. The total assets of this sector were over of US33bn in 2010, with total gross premiums of US1.2bn.
In addition, Kinloch had said that now, Labuan attracted European and Asian multinational companies away from other captive insurance destinations in the region like Singapore because of there was a large untapped market in Malaysian companies which had significant insurance needs. When the IBFC had operated captive insurance for some five years, Kinloch expected that the recent emphasis had been put into this sector by Labuan because there would be a substantial influx of captive insurance business in 2012.
In operating structures such as protected cell companies and limited liability partnerships, and there were also significant tax advantages, including a stamp duty exemption on all documentation, it didn’t have tax on non-trading activities (such as the holding of investments), but it had to pay a 3% tax on net profits per audited accounts, or MYR20,000 (USD6,420) upon election. Kinloch also said that its growing Islamic finance market and the availability of Malaysia’s double taxation agreements extremely had much benefit and be useful.