Labuan International Trading Commodity

The Global Incentives for Trading (GIFT) programme was launched in collaboration with the Malaysia Petroleum Resources Corporation, aims at positioning Malaysia as a regional trading and storage hub for oil and gas. Under the programme, a set of incentives were offered through the establishment of the Labuan International Trading Commodity Company (LITC) including incentives for traders and trading houses to use Malaysia as their international trading base. The LITC was structured by taking cognizance from the views and demands of the market.

The Labuan international commodity trading business is the trading of Petroleum and petroleum-related products, Minerals, Carbon credits and any other commodities as may be approved by Labuan FSA in any currency other than Ringgit under the GIFT programme. Trading under the GIFT programme is defined as the buying, selling and/or brokering of the specified commodities.

Entry Requirements

Any qualified person intending to undertake Labuan international commodity trading business under the GIFT programme may apply to Labuan FSA for a licence to carry out such business activities under the GIFT. The qualifying criteria are:

• Generate a minimum annual total revenue of USD100 million;
• Spent minimum of RM3 million in annual local expenditure billed to Malaysia entity; and
• Employ a minimum of three professional traders.

Application Requirements

The applicant must:

• Establish a Labuan company incorporated and registered under Labuan Companies Act 1990.

Operational Requirements

The applicant:

• Must have sufficient capital / working funds to commensurate or in accordance with its operations and activities;
• Must clearly indicate on its letterhead, stationery and other documents including signage containing its name that it is licensed as a "Labuan International Commodity Trading Company" under Labuan Financial Services and Securities Act 2010, together with its licence number;
• Must maintain its registered office in Labuan, which is the office of the Labuan trust company but is allowed to establish its operational office(s) and operate anywhere in Malaysia;
• Must ensure that the business is conducted with proper corporate governance and risk management framework is in place; and
• Comply with other requirements of the Labuan laws and regulation.

Application Checklist and Form

Form LITC/1 - Application to Carry On Labuan International Commodity Trading Business
Form LITC/2 - Information of Director(s) / Proposed Director(s)

Governing Legislation

Labuan Companies Act 1990
Labuan Financial Services and Securities Act 2010

Related Guidelines / Circulars

Guidelines on the Establishment of Labuan International Commodity Trading Company under the Global Incentives for Trading Programme