Digital Districts is pleased to introduce our first Catalytic Project - Malaysia Dual Financial Centres (MDFC), which aims to advance Malaysia as a regional financial hub. MDFC leverages (1) a unique model of two financial jurisdictions (onshore and midshore) in one country, and (2) six key offerings for regional funds, companies, and investors.
𝟭. 𝗗𝘂𝗮𝗹-𝗦𝗵𝗼𝗿𝗲 𝗦𝘆𝘀𝘁𝗲𝗺
MDFC utilises the comparative advantages of Kuala Lumpur's developed physical infrastructure and Labuan's mid-shore financial system to offer a unique ecosystem for managing regional operations and assets.
Companies and investors can base their operations in KL to benefit from the multicultural talent pool, advanced infrastructure, and robust business ecosystem, while parking their capital in Labuan to enjoy a competitive tax rate (3%) with no capital controls.
𝟮. 𝗞𝗲𝘆 𝗢𝗳𝗳𝗲𝗿𝗶𝗻𝗴𝘀
2.1 𝙁𝙖𝙢𝙞𝙡𝙮 𝙊𝙛𝙛𝙞𝙘𝙚
In an increasingly multi-polar world, Family Offices often find themselves expanding across multiple locations. Labuan IBFC offers a range of wealth management vehicles, including private trust companies, foundations, and Protected Cell Companies.
2.2 𝙍𝙚𝙜𝙞𝙤𝙣𝙖𝙡 𝙊𝙥𝙚𝙧𝙖𝙩𝙞𝙤𝙣𝙨 𝙃𝙪𝙗
With a gross development value of RM40 bil (USD9 bil), the Tun Razak Exchange is Kuala Lumpur's international financial district, offering advanced physical infrastructure for the development of the regional financial and fintech ecosystem.
2.3 𝙄𝙣𝙩𝙚𝙧𝙣𝙖𝙩𝙞𝙤𝙣𝙖𝙡 𝘼𝙧𝙗𝙞𝙩𝙧𝙖𝙩𝙞𝙤𝙣
An independent legal and arbitration system is a key component of a favourable business and investment environment. The Asian International Arbitration Centre provides alternative dispute resolution offerings for foreign investors, including arbitration, mediation, and adjudication.
2.4 𝘿𝙪𝙖𝙡 𝙇𝙞𝙨𝙩𝙞𝙣𝙜𝙨
With a target of 42 IPOs in 2024, Bursa Malaysia has achieved 39 IPOs so far this year, raising a total of RM20.8 billion (US$4.8 billion) and making the country the best performing IPO market in Southeast Asia. A dual listing in Kuala Lumpur is an option for listed companies that desire better valuation, higher trading liquidity and more interest from foreign funds.
2.5 𝘿𝙞𝙜𝙞𝙩𝙖𝙡 𝙁𝙞𝙣𝙖𝙣𝙘𝙞𝙖𝙡 𝙎𝙚𝙧𝙫𝙞𝙘𝙚𝙨
Labuan IBFC facilitates digital financial-related business, including Robo-advisors, digital asset exchanges, crypto trading platforms, blockchain tokens and e-payment systems. Labuan currently has 67 licensed Digital Financial Service Providers.
2.6 𝘿𝙞𝙜𝙞𝙩𝙖𝙡 𝙄𝙣𝙛𝙧𝙖𝙨𝙩𝙧𝙪𝙘𝙩𝙪𝙧𝙚 𝙁𝙞𝙣𝙖𝙣𝙘𝙞𝙣𝙜
Malaysia's data centre market size is estimated to reach 1.36 thousand MW by 2029, with a CAGR of 13.73%. This presents exciting opportunities for a variety of funding/financing options for data centres, renewable energy, and related sectors, be it via debt or equity funding structures.
Find out more at malaysiadfc.com
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