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Why Malaysia Is The International Business Destination Choice in Asia

The last decade has seen a dramatic shift of economic power to the Asian market, spearheaded by strong demand from its large and rapidly growing consumer base. Multinational corporations and business entities are already starting to migrate in a bid to stay afloat amid the global economic slowdown. In light of this, Malaysia is now seen by many as a hub for International Business because of its strategic location, business-friendly environment, investor-friendly jurisdiction, deliver efficient tax planning and wealth management which are highly sought for those who looking to expand globally.

  • Politically stable country for peaceful living
  • Large market of 600 million people of the ASEAN economy within close reach
  • Labuan Jurisdiction offers complete business, wealth and finance solutions
  • Labuan offers low corporate tax and flexible tax regimes!
  • Malaysia’s Labuan is the best mid-shore entity in Asia!
  • No minimum real estate purchase price overseas
  • A low minimum real estate purchase price of only RM1 million in Malaysia
  • Flexible banking system – both onshore and offshore – to cater to your needs
  • Good infrastructure with excellent connectivity
  • Various residency programs are available for you and your family members
  • World-class education system for your children
  • The excellent and affordable healthcare system
  • Friendly and hospitable citizens

Malaysia offers a great home ground for many business entrepreneurs. Labuan jurisdiction is one of the best platforms for foreigners to have a presence in Malaysia with 100% ownership and enjoy low start-up costs. 

Politically stable country for peaceful living

Since its independence in 1957, Malaysia has been lauded as an exciting multi-ethnic and multi-cultural country which consists of three major races – Malay, Chinese and Indian – living together harmoniously with a total population of 30 million. Its politically stable environment is led by a democratically-elected coalition Government committed to the socio-economic development of the nation. Malaysia is also well positioned and safe from major natural disasters such as earthquakes, tsunamis, and typhoons. Besides the low costs of operation, stability and peace of a country are very important factors for businessmen to access and evaluate their risks. It is of little wonder why, in recent years, many international entrepreneurs are eyeing Malaysia as their next business set-up destination!

A large market of 630 million people of the ASEAN economy is within your reach!

Malaysia is strategically located in the Asia Pacific Rim, at the center with many ASEAN countries surrounding it – offering businesses easy access to a massive 630 million population. The combined GDP of the ASEAN Countries is US$2.95 trillion in 2018. OECD has forecasted significant economic growth driven by an increase in domestic demand by a populous market, private consumptions and investment in the ASEAN economy; effectively insulating it from slowing growth in India and China. Labuan companies fit the bill to cater to these regional businesses and leverage these opportunities to maximize profits, with a flexible tax regime.

Super low corporate tax when setting up a Labuan International Company for International Trades

With Labuan International Company, you will enjoy a low tax rate of 3%. This offers great flexibility for Labuan International company owners to tap the best tax structure to maximize profit at all times! Better yet, a Labuan investment holding company will enjoy zero taxes. You can get even more savings with the Double Tax Agreement (DTA) signed with Malaysia with more than 70 participating countries! To-date, Labuan Financial Services Centre has attracted close to 300 financial institutions from more than 90 countries and the number is growing fast!

Malaysia’s Labuan International Financial Services Centre (IBFC) is the best mid-shore entity in Asia!

Labuan Island has been designated by the Malaysian Federal Government as a tax-saving haven for international businesses which aims to be the world-renowned mid-shore international financial center. All Labuan companies can enjoy the benefits of a “mid-shore’ by setting up their marketing office in the capital city of Malaysia, Kuala Lumpur and Iskandar Malaysia which is located in the south of Malaysia near the Singapore border. This is advantageous for corporations who wish to tap into Malaysia’s talent pool as well as for other marketing purposes by being located in these two strategic locations.

The low real estate entry point of only RM1 million

Among the superb advantages of a Labuan International Company is a knock-down entry point of only RM1 million to enter Malaysia’s coveted property market for visiting foreigners. By registering your Labuan company as an investment holding company you are also entitled to zero taxes. The low monetary entry point of property ownership via a Labuan company is an incentive that was initiated by Malaysia’s economy planning unit on 1st January 2014. This translates into an opportune time for you to tap into Malaysia’s property market.

Flexible banking system for all your needs

Modern and flexible banking infrastructure that is in place makes it easy for you to have multiple foreign currency accounts along with the convenience of managing them online during the real-time for your Labuan International company. There are two types of banks, onshore and offshore in Malaysia. Personal banking on various currencies is also conveniently available for Labuan entrepreneurs with a valid residency visa.

Good infrastructure with excellent connectivity

Malaysia has an excellent network of highways which boosts connectivity and accessibility across the country with efficient cross-border highway links from neighboring Singapore right up to Thailand. The country is also home to international award-winning budget airlines such as Air Asia, Firefly and MAS, offering cheap flights for great savings and convenience for you to move in and around the country and beyond. In terms of internet connectivity, Malaysia is resourceful and efficiency-driven economies, thanks to ongoing upgrading networks for its wide broadband penetration throughout the country. This will no doubt boost the efficiency of your Labuan company’s operation in this digital age.

Easy and fast 2-year Work Permit for you and your family members

To protect your investment in your Labuan company, the Labuan jurisdiction permits you and your family to stay in Malaysia with a renewable two (2) year work permit. This residency permit offers great flexibility which makes multiple entries possible for you and your family between West Malaysia (where Kuala Lumpur city is located) and Labuan. The Labuan work permit application is fast, with approvals typically obtained within 30-45 working days!

World-class education system for your children

The availability of a wide choice selection – from private schools to homeschooling – ensures that your children will get the education that is best suited to his or her needs. There are also many international schools that offer a wide range of curriculum in French, Japanese, British, American, Australian, German, and Arabic. World renown universities such as Monash, Nottingham, Marlborough, Korean Maritime, etc.., have their campuses conveniently located in Malaysia with a fraction of the cost of having to go aboard! Malaysia’s education system has helped many Labuan business entrepreneurs to place their children easily and conveniently in the education of their choice from pre-school right up to a postgraduate degree.

Friendly and hospitable citizens

Malaysians are well-known for their hospitality and friendliness to each other as well to foreigners visiting the country. Values of honor and respect are well ingrained in the culture of the different races and people who are free to practice their respective religions. Their friendly nature and positive attitude will make you feel very much at home and offer great opportunities for further collaboration!

Tricor’s ‘One Labuan Platform’ for your convenience to subscribe to all services in one stop to simplify your investment in Labuan from day one!

Drop us an inquiry form for the advice of the right Labuan entity for you to meet your objectives. Alternatively, call us at +603-2783 9191 (Labuan Division) for a face to face meeting at our Kuala Lumpur office.  




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