Commodity Trading

As part of the strategy to encourage oil and gas trading companies to expand into Malaysia, Labuan IBFC introduced the Global Incentives for Trading (GIFT) programme in 2011. The GIFT programme is a framework of incentives designed to attract traders of specified commodities to use Malaysia as their international or regional trading base.

Under the GIFT programme, a Labuan International Commodity Trading Company (LITC) can be set up to facilitate the trading of physical and related derivative instruments in any currency other than the Malaysian Ringgit in the following commodities: petroleum and petroleum-related products (including liquefied natural gas (LNG)), agriculture products, refined raw materials, chemicals, base minerals, carbon credits and any other commodities as may be approved by Labuan FSA. The programme’s ultimate aim is to position Malaysia as a regional trading and storage hub for oil and gas.