KUALA LUMPUR – Labuan International Business and Financial Centre Incorporated Sdn Bhd (Labuan IBFC) inked a memorandum of understanding (MoU) with the Shanghai Lin-Gang New Business District Administration Committee today to establish bilateral cooperation for market development activities between the two jurisdictions.
In a statement, Labuan IBFC said the partnership will leverage opportunities provided within the Regional Comprehensive Economic Partnership (RCEP) framework signed by more than 15 Asia-Pacific countries in November 2020.
Labuan IBFC executive chairman Datuk Iskandar Mohd Nuli and China (Shanghai) Pilot Free Trade Zone Lin-Gang Special Area Administration’s finance division and trade department director Zhang Xiaoyang were signatories to the MoU.
The statement said Labuan IBFC is seeking to make further inroads into the Chinese market and that the special economic zone is a known jurisdiction to Chinese entities and is currently home to close to 300 Chinese and Chinese-related companies.
“We are confident that Labuan IBFC’s products, services, and structures as well as its progressive regulatory framework and simplified tax structure are well-suited to meet the requirements of our target audience,” he said.
Meanwhile, Zhang said Asean is China’s largest trading partner, and the Lin-Gang New Area has formed a foundation for cooperation with Asean member countries.
He said the RCEP agreement allows the Lin-Gang New Area to “leverage key advantages of (an) open system” as encapsulated in the RCEP framework, accelerate cross-border finance services, international trade services, and digital trade.
The collaboration will also serve China’s national agenda with regards to the One Belt One Road initiative.
It is “an important window that will assist international enterprises entering the Chinese market, or local Chinese-based enterprises expanding into the global market,” Zhang said.
The RCEP aims to promote economic interactions between enterprises of the member countries and capitalise on regional economies of scale. – Bernama, June 24, 2022
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