The leasing industry in Labuan IBFC has recorded tremendous growth in recent years. In tandem with the region’s economic growth, demand for capital equipment, especially in the shipping, aviation, and oil and gas industries, have shown no signs of abating. Its innovative leasing structures and close proximity to emerging economies such as China and India attract both local and foreign corporations, opening up a variety of investment opportunities in the region.
Leasing companies in Labuan IBFC enjoy an ideal balance of fiscal neutrality and certainty. The ease through which leasing transactions can be structured in the jurisdiction, along with an efficient tax framework, have also allowed for effective management of their operational cost.
A normal leasing transaction includes earning rental income for the lessor, and the lessee benefiting from the leased asset, for example in providing short-term capital and facilitating business operations.