Thursday, April 29, 2010

ABUSE OF IBFC WORK PERMITS

THE International Business and Financial Centre (IBFC) formally the LOFSA means a jurisdiction that offers liberal operating environment and low rates of tax as well as ensures confidentiality of investors’ information. Currently, there are more than 70 IBFCs around the world and most of them are located in Europe and the Caribbean.

But is this true that the IBFC is also a bench mark for immigrants to come to the country and set up bogus offshore company while getting the approvals from the immigration departments to stay in the country legally and obtaining work permits to operate onshore business locally here?



It has been known that some foreigners are actually abusing their permits by doing this and the relevant departments are very much aware of it. It’s all under the umbrella of Labuan IBFC! There are a total of 130 expatriates given such Work Permits applied under the Labuan Trust Companies that entitles them to stay here and trade. Meaning once the permit is issued the holder can have his whole family here with him.

In general, Labuan companies are restricted from dealing with Malaysian residents in ringgit, except for defraying administrative and statutory expenses.

Quoted by the Labuan IBFC Chairman Tan Sri Dr Zeti Akhtar Aziz, the offshore regulator has continued to exercise vigilance in anti-money laundering and also said that ‘concrete efforts have been taken, including regular monitoring to ensure that businesses are genuine. In its annual report released in Kuala Lumpur recently it was stated an increase to US$ 249.7 million from US$214.1 in 2008 before tax with its 54 active lenders

Labuan FSA is the role authority responsible for supervising Labuan business activities in Labuan and independent from domestic authorities, except for exchange control and tax matters which is administer by Central Bank of Malaysia and Inland Revenue Board, respectively.

Labuan FSA has implemented policies that facilitate the creation of a competitive and attractive business environment in Labuan. Labuan’s legislative framework is not only business-friendly but also prudent to safeguard Labuan’s international image as a clean and reputable international business and financial centre.

All these are extracts from the Labuan IBFC web sites that explain to us what it’s all about on the outside. Does anyone even bother to find out that what is being preached by them are actually even implemented?

One just has to dig a bit further and you will see more dirt under the carpet. What’s next we will be looking at a few drug cartels coming to invest here in Labuan or more money laundering companies operating as clearly they will be given a three year visa to stay here in Malaysia while also operation in business legally without having to worry from immigration department as its them that issues the final permit upon instructions from the Labuan IBFC and Labuan Trust Companies.

A trend that is already being practiced here and obviously being abused. Such acts would only tarnish the department more. How much the expatriates granted work permits in Labuan have invested here as we know some operates Hotels and Pubs.

It should be made clear that Labuan IBFC should make sure that it keep its name clean and not get involved with all the hanky panky that’s going around here in LABUAN.

By: GREAT LABUAN WARRIOR (GLW)

7 comments:
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  1. Saya pernah terdengar Labuan adalah syurga pub? Dan ada juga rakan-rakan bagitau yang kalau nak mandi beer, stout, calsberg, brandi dsb...datanglah ke Labuan. Pihak berwajib kenalah buka mata pasang telinga terhadap benda-benda yang mencemar nama baik Labuan ni.....atau takut nanti #@$%

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  2. Relevant enforcement agency should curb this thing once and for all...we have lost a lot of money because of money laundering, how many more we have to lost before some one decided to take action?

    Take action now or never...

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  3. If their is an abuse on IBFC working permits, then launch an investigation. Take action now before the problem escalates further.

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  4. I AGREE. HOW FAR WHAT IS BEING PREACHED ACTUALLY BEING IMPLEMENTED??
    MANY PEOPLE KNOWS THIS, BUT VERY FEW MAYBE NONE TAKE ACTION ABOUT THIS PROBLEM (IMMIGRATION)

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  5. There is no point hiding this matter. The people can smelled if something is amiss for those who are using work permits to work in Labuan. The local authorities and responsible party must not sweep this matter under the carpet..Check, launch surveillance and investigate if there is something fishy going.

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  6. Anti-money laundering is really working but too bad some doesn't heed Bank Negara's warnings. Money laundering allegation is a heavy and serious matter..

    If there is abuse on IBFC work permits, then take appropriate action to those who have break the laws. Don't sweep it under the carpet and don't ever think the people are stupid.

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  7. Kerajaan perlu mengambil langkah drastik untuk mengatasi setiap masalah yang wujud bagi mengelakkan orang asing mengambil kesempatan terhadap kemudahan yang diberikan oleh kerajaan Malaysia kepada rakyat tempatan. Kemudahan yang seharusnya dinikmati oleh rakyat tempatan disalahgunakan oleh rakyat asing. Keadaan ini amat membimbangkan dan boleh mengancam kedudukan rakyat tempatan dan seterusnya mengancam keamanan negara. Kerajaan juga perlu lebih peka terhadap isu-isu yang timbul dalam negara bagi mengelakkan penyakit masyarakat yang sekecil kuman menjadi kudis dalam masyarakat kita.

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