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Malaysia Dual Financial Centres

A unique combination of onshore and midshore jurisdictions for foreign funds

Malaysia's Dual-Shore System utilizes the comparative advantages of both the KL Golden Triangle and the Labuan International Business & Financial Centre (Labuan IBFC).

KL is fully integrated into Malaysian economy and offers world-class infrastructure as an operational hub for foreign funds and companies. Meanwhile, Labuan IBFC boasts a free market economy, and a regulatory system that is firmly grounded in international practice. 

The complementary nature of both centres offers a unique value proposition to foreign funds and support the further development of the country’s financial infrastructure.

KL Golden Triangle (Onshore)

  • Strategically positioned as a regional hub for business operations

  • World-class infrastructure and amenities for companies and foreign talents

  • Standard corporate tax rate (24%)

  • Possible capital controls by BNM

  • Network of Double Tax Agreements

Labuan IBFC (Midshore)

  • Well positioned as the regional hub for foreign capital and digital assets

  • 3% corporate tax rate

  • No capital/exchange controls on non-RM transactions by LFSA

  • 100% foreign ownership

  • No withholding tax on payments to non-residents

  • May not have access to Malaysia’s tax treaties

  • Ideal for private wealth management (no estate, inheritance tax, structures)

Meet Our Digital Ecosystem Team
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