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.
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.