LABUAN: Stakeholders in Malaysia’s international business and financial centre (IBFC) are calling for a comprehensive review of existing business policies to bolster economic growth and to attract foreign investments.
Labuan Chamber of Commerce (LCC) chairman Daniel Doughty said the Labuan Federal Territory has reached a juncture where policy revisions are essential to ensure its sustained prosperity and global competitiveness.
“As the global economic landscape evolves and new challenges emerge, the need to revisit existing policies becomes imperative,” Doughty said in an interview with Bernama today, adding that the business community and policymakers are advocating a review of Labuan’s business policies.
Economic diversification, the need to enhance Labuan’s competitiveness as well as its sustainable development, coupled with regulatory flexibility and the need to attract foreign direct investments are key factors underpinning this demand.
Despite its financial centre status, there is growing consensus that diversification into other sectors is essential to reduce over-reliance on financial services.
“Encouraging investments in technology, renewable energy, tourism, and manufacturing sectors could foster sustainable growth and create job opportunities for the local population,” Doughty said.
As for enhancing its competitiveness, he said neighbouring countries and international financial centres are continually evolving their policies to attract investors and to remain competitive.
Hence, a policy review could help identify areas for improvement, streamline bureaucratic processes, and improve the overall ease of doing business, he said.
Doughty said a thorough examination of existing regulatory frameworks can lead to the creation of a more agile and responsive business environment, particularly in today’s call for sustainable development.
“By striking the right balance between investor protection and business facilitation, Labuan can foster an ecosystem that promotes innovation and creativity,” he said.
The rising global awareness about the need to have sustainable business practices will enable Labuan to re-invent itself by incorporating green initiatives to promote environmentally friendly practices, he said.
Recognised as an international business and financial hub, the Labuan International Business and Financial Centre (Labuan IBFC) was established in 1990 to encourage offshore financial and non-financial businesses.
“Over the years, Labuan has been successful in attracting offshore banks, insurance companies, trust companies, and other financial institutions due to its attractive tax incentives and supportive regulatory framework.
“Its strategic location in the heart of Southeast Asia also enabled it to become a significant transhipment point for goods and services, fostering trade and investment in the region,” he said.
But the global market place is evolving quickly and revising policies to offer attractive incentives, tax breaks, and greater ease of entry for foreign companies can significantly enhance Labuan’s appeal, he said.
He suggested a task force comprising government officials, industry experts, and business leaders be formed to assess existing policies.
“The aim is to talk with the local business community, international investors, and regulatory bodies to identify areas for improvement in order to create a more robust and sustainable policy framework,” Doughty said.
He urged the government to have a public consultation process to gather feedback to ensure that a policy review is inclusive and representative of Labuan’s diverse interests. – BERNAMA
