Ben Quah, Chief Executive Officer of Labuan IBFC Incorporated, took to the stage during the “In the Hubbis Hot Seat” session at the Hubbis Wealth Planning and Structuring Forum in Singapore to make the case for Labuan International Business and Financial Centre (Labuan IBFC) as a credible, flexible and cost-effective jurisdiction for wealth structuring. Speaking to private bankers, family office professionals and independent advisers, he highlighted Labuan IBFC’s unique wealth structuring capabilities.

A 35-Year Platform Built Around Stability and Flexibility

Quah opened by asking how many attendees were familiar with Labuan IBFC. The response was encouraging, but the question also reflected a practical reality: after more than three decades in operations, Labuan IBFC’s profile in the regional wealth management community continues to have significant potential for growth.

“Labuan IBFC has been operating for more than 35 years,” he said. “When families look for structures for wealth management, they’re looking for stability, flexibility, and efficiency. That’s what we offer.”

Established in 1990 as Malaysia’s international business and financial centre, Labuan IBFC operates under a distinct regulatory and tax framework separate from mainland Malaysia. Over time, it has developed a range of vehicles for international clients while remaining anchored within Malaysia’s broader legal, regulatory and financial systems.

Quah framed this proposition around choice. As wealthy families increasingly require multi-jurisdictional planning, he argued that Labuan IBFC gives advisers another credible option without adding unnecessary complexity.

One Regulator and a Practical Tax Framework

One of Labuan IBFC’s practical advantages, Quah said, is its streamlined regulatory structure. Labuan IBFC operates under the purview of the Labuan Financial Services Authority (Labuan FSA), which serves as the single regulator for incorporation, licensing and structuring activities.

“With just a single regulator, you have a faster and simpler way to deal with many processes, rather than managing multiple different government agencies,” he said.

For advisers managing cross-border wealth plans, this simplicity can be valuable. Structures often involve multiple parties, jurisdictions and compliance requirements, and a single regulatory point of contact can reduce administrative friction.

Quah also addressed Labuan IBFC’s tax framework. Trading activities are taxed at three percent of audited net profits, while non-trading income is tax exempt. Labuan IBFC also offers no withholding tax on dividends, interest or royalties, and entities established there can access Malaysia’s wider network of double taxation agreements with over 70 countries.

The message was measured: tax efficiency matters, but only as part of a broader wealth planning proposition built around regulatory clarity, flexibility and appropriate structuring.

 

 

A Toolkit for Wealth, Succession and Philanthropy

Quah then outlined the range of structures available through Labuan IBFC for high-net-worth and ultra-high-net-worth families. These include Labuan trusts, foundations, limited partnerships, Protected Cell Companies (PCCs) and Waqf foundations, supporting objectives such as succession planning, asset protection, philanthropy and intergenerational wealth transfer.

He placed particular emphasis on Labuan IBFC’s ability to bring together wealth management, Islamic finance and digital assets within a single jurisdiction.

“Labuan sits at the intersection of wealth management, Islamic finance, and digital assets,” he said. “You can access all three segments in a single location.”

The Islamic finance dimension is especially relevant for advisers serving families across Southeast Asia and the Gulf. Labuan Waqf foundations, which are endowment structures rooted in Islamic jurisprudence, can provide a Shariah-compliant mechanism for philanthropy, succession and long-term family wealth planning.

Quah argued that this capability is becoming more important as families look for ethical, values-aligned and Shariah-compliant planning options.

“As we understand today, people are looking for ethical financing, or indirectly Islamic finance as well,” he said. “This can be a very good option for your clients.”

Digital Assets and Emerging Structuring Needs

Quah also pointed to Labuan IBFC’s digital investment products and solutions as a further area of differentiation where he signalled that the jurisdiction is positioning itself for a wealth management landscape in which digital assets increasingly form part of client portfolios.

“We actually have a range of digital investment products and solutions,” he said. “This is actually quite a significant game changer as it enables us to offer highly diverse and customisable options tailored to individual client needs.”

For advisers, this matters because digital asset structuring remains uneven across the region. Families may hold cryptocurrencies, tokenised assets or other digital instruments, but still need regulated structures that can address ownership, succession, reporting and governance. Quah’s point was that Labuan IBFC is already developing capabilities in this area rather than waiting for demand.

Growing International Momentum

To demonstrate Labuan IBFC’s increasing relevance, Quah cited growth in foundation registrations, which rose by 29 percent in 2025.

This data point underlined the international nature of Labuan IBFC’s appeal. It suggests that the jurisdiction is not only serving domestic or narrow regional needs but is being used by international families and advisers as part of cross-border planning strategies. Quah also referred to growing international recognition and improved rankings, reinforcing the message that Labuan IBFC is gaining visibility in the global structuring landscape.

An Additional Option for Advisers

Quah’s overall message was deliberately practical. He encouraged advisers to consider Labuan IBFC as an additional wealth structuring solution, alongside other apex financial centres across Asia.

“In today’s wealth management landscape, your clients are not just looking at one option,” he said. “This is where Labuan IBFC comes in as another alternative.”

For advisers working with Southeast Asian families, this proposition has clear relevance. Client needs increasingly span succession, asset protection, Islamic finance, philanthropy, digital assets and cost-effective international structuring. Labuan IBFC may not yet command the same immediate recognition as some larger centres, but Quah made the case that its 35-year history, single-regulator model, fiscal efficiency and specialist capabilities warrant closer attention.