Guide to Apply Labuan GIFT Program for Commodity Trading

With the sole idea of attracting global companies to use Malaysia as an international
trading base, Labuan FSA launched the Labuan International Commodity Trading Company (LITC) which comes with a designed pack of incentives under the Global Incentives for Trading (GIFT) program. The oil, gas and energy industry is central to Malaysia’s economic growth, contributing one-fifth of the national GDP over the past decade. With new opportunities for investment in these sectors, many global traders are beginning to ride on GIFT incentives and to use Malaysia as their regional base to reach out to growing markets in the Asia region and beyond.

The LITC business under the GIFT program is permitted to trade petroleum and petroleum-related products in any foreign currencies and Ringgit Malaysia.

5 special attractions of the Labuan GIFT program: 

  • Unlimited dealings with Malaysians for petroleum, petroleum-related products 
  • Corporate tax is only 3% on audited chargeable profits
  • No withholding tax on internet royalties, technical services, and management fee
  • Tax exemption on dividends payout
  • No sales tax and service tax

 

Operational requirement for GIFT company will be as follows:

  • minimum annual turnover of USD 50 million
  • minimum RM 3 million annual spending 
  • minimum employment of 3 professional traders with a resident status which subject to tax under the Inland Tax Act 1967 (ITA)
  • an operational office in Labuan with minimum employment of 3 staffs (include the professional traders) in Labuan

Labuan GIFT specified trading of physical products: 

  • Petroleum and petroleum-related products including liquefied natural gas;
  • Minerals
  • Agriculture products
  • Refined raw materials
  • Chemicals
  • Base minerals
  • Coal

Why Labuan GIFT is better than Singapore’s Global Traders program (GTP)?

Recently, there has been an interesting trend of commodity traders moving from Singapore GTP to the Labuan GIFT program. This movement due to high operation cost, wages and rental in Singapore. Traders can choose their preferred locations anywhere in Malaysia including Iskandar Johor, which is just a link away to Singapore! The company should consider its own position within its industry and jurisdiction and its ability to meet the various requirements in the short and medium-term.

One of the best features in the program allows you to establish your LITC ‘s operational office(s) anywhere in Malaysia, which may include but not limited to the following functions:-

  • Strategic management 
  • Banking, Finance, and Treasury Management
  • Risk management
  • Market research and product portfolio development
  • Logistics management
  • Global procurement
  • Marketing and Sales planning

We provide a one-stop application solution for Labuan GIFT COMMODITY License includes:

  • Consultation of your eligibility and procedures based on your profile
  • Profiling, due diligence and guidance on documents preparation
  • Preparation of Business Plan and Financial Forecast, AMLA and KYC Framework
  • Submission and supervise the application process 
  • Act as your liaison and contact point with Labuan FSA for all correspondence and arrange an interview (if any) 
  • Track the license approval and attend all queries from Labuan FSA

Approval timeline for Labuan GIFT License: Approximately 30 to 45 days

WHY our Trust Company for Your LABUAN SET UP?

We are a full-fledged licensed Labuan Trust Company (LT 0034) with a highly experienced team of dedicated professionals handle license applications. We provide complete “one-stop” solutions in pre-assess, meet, planning, structuring, establishment and corporate service for your Labuan Commodity Business, ensuring you get a bespoke service that meets your commodity business needs as well as onwards operation.

We require sufficient information from you to better advise on your eligibility for Labuan GIFT license. Feel free to send us your inquiry to better guide you on how to get started your commodity trading business in Labuan! Our One Labuan Platform easy to elevate your Labuan operation efficiently!

Name

Email

Nationality

Type of Commodities Intend to Trade:

No of years of experience in Commodity Trading Business

Do you have a Business Plan?

YesNo

How many professional traders in your team?

Do you require Labuan 2 years’ Work Visa?

YesNo

Other information to send us:

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