Could you provide a brief journey of how you arrived where you are today?
Having spent most of my career in financial services with stints in more than 100 countries, I decided to make Malaysia my home upon retirement. Two years ago, I found myself lured by Labuan International Business and Financial Centre’s potential as Asia’s insurance and reinsurance centre. I subsequently joined Labuan IBFC as its insurance specialist. My current capacity as CEO has since expanded my focus to all of the products and services Labuan IBFC has to offer.
What does your role involve?
Labuan IBFC is the official Malaysian government agency authorized to promote Labuan as the premier international business and financial centre in Asia Pacific. Our main role is to market the jurisdiction and to also act as an intermediary between the marketplace and its regulator, the Labuan Financial Services Authority. I have a terrific team of 19 dedicated professionals to assist me in the task and we work closely and harmoniously together.
What is your greatest achievement to date?
My greatest achievement to date would be that I have enjoyed every position I have ever held taking into account the length of my career and the variety of places I have lived.
Which of your products/services deliver the best results?
We believe that every aspect of the jurisdiction is equally important towards its success. We have identified five main areas of focus for Labuan IBFC — increasing the number of companies formed; increasing the number of captives based here; increasing the number of funds, be it private or public, domiciled here; increasing the number of wealth management structures set up; increasing the amount of activity in Islamic finance undertaken in Labuan IBFC.
What are the strengths of your business?
Our key strengths are Labuan IBFC’s simple tax framework and access to 62 of Malaysia’s double taxation agreements. This combination ensures business dealings and corporate deals structured in Labuan IBFC are tax efficient, thus highly competitive. In addition, the recent legislative revamp allowed the introduction of a new range of products and services which will be a key success driver for us. In certain markets, for example trusts and foundations, Labuan IBFC currently offers the most comprehensive range of products in Asia. This has also allowed Malaysians, corporate or individual, to start using Labuan IBFC more extensively, so the domestic market will also be key driver for us.
Our niche in Islamic finance is also a huge advantage. We are known as home of the Sukuk and have certain products in the pipeline, like Islamic captives, which we expect will further entrench our market leadership.
What are the factors contributing to the success of your company?
The key factor for our success is our people who work tirelessly to promote the Labuan jurisdiction. We also receive very significant support from the Labuan players, our board of directors and our international advisory panel.
What are the obstacles faced in running your business today?
The main obstacle in promoting Labuan IBFC has been a lack of awareness. Not many realize that Labuan IBFC was launched nearly 20 years ago and has withstood many challenges along the way. However our survival and continuous growth is evidence of our strength.
Another challenge is ensuring our new products for example private trust companies, foundations, the international shipping registry, limited liability partnerships and protected cell companies gain market acceptance.
In order to be closer to the market, we have initiated the setting up of representative offices in key financial capitals. In fact, our first representative office in Hong Kong is now operational, with offices in both China and Europe in the pipeline.
Where do you see the Islamic finance industry in, say, the next five years or so?
Islamic finance is having a long day in the sun, thanks to the recent financial crisis which highlighted certain shortfalls in the conventional financial system. Malaysia is generally recognized as the world leader in Islamic finance and continues to lead the way in all areas of the industry. The industry’s scope of growth is tremendous and we are excited about its potential. The challenge is ensuring that this growth is sustainable, providing Islamic finance a permanent role to play in the global financial landscape.
Name one thing you would like to see change in the world of Islamic finance.
“Demystifying” the world of Islamic finance is the most important change I would like to see. In Islamic finance, terms that are used may create artificial barriers to understanding and the eventual adoption of Islamic finance by non-Muslims. So for example, how many people will immediately identify a Diminishing Musharakah as a way to describe a product as simple as an Islamic home loan? In markets like Canada, all of their laws and marketing literature refer to “alternative finance” instead of Islamic finance, thereby making the whole concept “friendlier” to novices.