Bank Negara Malaysia is the Central Bank for Malaysia. It was established on the 26th January 1959, under the Central Bank of Malaya Ordinance, 1958, with the following objectives:
- To issue currency and keep reserves safeguarding the value of the currency;
- To act as a banker and financial adviser to the Government;
- To promote monetary stability and a sound financial structure; and
- To influence the credit situation to the advantage of the country.
Bank Negara Malaysia, as the Central Bank, is committed to excellence in promoting monetary and financial system stability and fostering a sound and progressive financial sector, to achieve sustained economic growth for the benefit of the nation.
The Securities Commission (SC) was established on the 1st March 1993 under the Securities Commission Act 1993. It is a self-funding statutory body with investigative and enforcement powers. It reports to the Minister of Finance and its accounts are tabled in Parliament annually. The SC's many regulatory functions include:
- supervising exchanges, clearing houses and central depositories;
- registering authority for prospectuses of corporations other than unlisted recreational clubs;
- approving authority for corporate bond issues;
- regulating all matters relating to securities and futures contracts;
- regulating the take-over and mergers of companies;
- regulating all matters relating to unit trust schemes;
- licensing and supervising all licensed persons;
- encouraging self-regulation; and
- ensuring proper conduct of market institutions and licensed persons.
Underpinning all these functions is the SC's ultimate responsibility of protecting the investor. Apart from discharging its regulatory functions, the SC is also obliged by statute to encourage and promote the development of the securities and futures markets in Malaysia.
LOFSA, a one-stop agency, was established in 1996 to:
- Focus on business development and promotion
- Process applications and supervise offshore activities
- Develop national objectives, policies and set priorities
- Administer and enforce legislation
- Incorporate/register offshore companies
Labuan is an island strategically located in the Asia-Pacific region, off the coast of East Malaysia. It is administered by the Federal Government of Malaysia, easily accessible, has a developed infrastructure, satellite telecommunication, political stability, low cost of operation and shares the same time zone with other major Asian cities. Labuan also attributes its success to the Malaysian government's commitment to develop Labuan to its fullest potential.
Labuan is an integrated IOFC, offering a wide range of offshore financial products and services to customers worldwide, including banking and investment banking, insurance, captives, trust business, fund management, investment holding, company management and Islamic financing.
LOFSA 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 offshore financial centre.