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Saturday, 7 July 2012

Takaful Malaysia plans special purpose vehicle in Labuan IOFC

PETALING JAYA: Syarikat Takaful Malaysia Bhd (Takaful Malaysia) will set up a wholly-owned subsidiary as a special purpose vehicle (SPV) in Labuan International Offshore Financial Centre (IOFC) to invest and hold its overseas property investment.
Earlier, Takaful Malaysia said it would venture into the overseas property investment market for the benefit of its stakeholders. It is now close to concluding a deal, in the UK property market. To realise this, it is considering the Labuan IOFC as a platform to hold all its overseas property investments.
“Most companies or organisation will consider Jersey or Guernsey offshore centre to set up the SPV company, but Takaful Malaysia believes that Labuan IOFC is seen to offer better advantages over the others,” Takaful Malaysia group managing director Datuk Mohamed Hasan Md Kamil said.
“Besides supporting the government's effort in promoting a local IOFC, Labuan IOFC also provides a business friendly regulatory structure and a preferential tax regime. These major factors will facilitate the overseas investments of companies incorporated in Labuan,” he said in a statement.
In Oct 1990, Labuan was declared an IOFC to complement activities of the domestic financial market in Kuala Lumpur, and strengthen the contribution of financial services to the country's gross national product. The centre has succeeded in attracting substantial international businesses due to its flexible and favourable tax treatment and the low cost of setting up and operating in the financial hub.
The Labuan IOFC also offers a range of double-tax treaties between Malaysia and more than 50 countries, which makes it a popular domicile for Islamic finance transactions. It also has a dual financial services system, where Islamic banking, capital market, insurance and fund management operate side-by-side with conventional businesses.
Hasan said: “The depreciation of the British pound and a devalued market are a few of the factors that make investment in London attractive and it was one of the key factors and reasons of Takaful Malaysia's property investment in the United Kingdom.”
When the UK deal materialised, it would be Takaful Malaysia's first overseas property deal, he added.
(The Star Online / 16 June 2012)
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Alfalah Consulting - KL: www.alfalahconsulting.com 
Islamic finance consultant: www.ahmad-sanusi-husain.com 
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