Upload
truongthuy
View
220
Download
2
Embed Size (px)
Citation preview
Malaysia:
Your Oil & Gas Trading Hub
by
Danial Mah Abdullah CEO, Labuan IBFC
Oil Prices – Low
Oil Production – Still Increasing…
3 Source: BP Statistical Review of World Energy 2015
Global oil production (1989-2014)
Global Refining Capacity is Growing
4
Distillation
Conversion
Refining Growth Even in APAC
5
Asia Pacific crude distillation unit additions (2014-2018)
6
Production and Prices
Low oil prices, but production continues to rise
Source: Macrotrends.net, OPEC
30
40
50
60
70
80
90
100
110
65000
66000
67000
68000
69000
70000
71000
72000
73000
74000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
World crude oil production Crude oil prices, WTI
(1,000 b/d) USD
7
Demand for Storage Space is Increasing
Rise in oil stock in storage
“In the second half, every tank and swimming pool in the world is going to fill (up)”
International Petroleum Week
8
Notwithstanding: Trading is Increasing!
30
40
50
60
70
80
90
100
110
25,000
30,000
35,000
40,000
45,000
50,000
55,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Futures (WTI) - trade volume Crude oil prices, WTI (RHS)
1,000 lots USD
Source: ICE, Macrotrends.net
9
Oil & Gas in Malaysia
National Key Economic Areas
Why Malaysia for Oil and Gas Trading?
GROW DIVERSIFY
SUSTAIN
1. Enhanced oil recovery
2. Develop small fields
3. Increase exploration activities
Make Malaysia #1 Asian hub for oil field services
9. Reduce energy bill through energy efficiency
10. Build up solar power capacity
11. Ensure best practice nuclear deployment
12. Drive industrial growth in Sarawak with big hydro
13. Increasing petrochemical output
Build alternative energy capabilities
4. Create a regional oil storage and trading hub
5. Unlock latent gas demand through LNG import
Grow in downstream Continue domestic oil and gas production
6. Encourage investment in oil and gas industry (DDI + FDI)
7. Local companies successful in going overseas
8. Attract MNCs to bring global operations to Malaysia
EPPs
There will be an increase in volume moving in and out of the countries of this region
This region will still drive global petroleum product growth
50
143
199
208
213
384
1,547
4,576
Philippines
Malaysia
Vietnam
Thailand
Indonesia
Singapore
India
China
Why Malaysia for Oil and Gas Trading?
There will be demand for petroleum product storage and trading in this region for the next decade.
Petroleum products growth 2010-2020 KBD
China, India, Southeast Asia petroleum import and export KBD
SOURCE: FACTS 2010
3,850 4,200 4,200
3,750
4,600 5,200
9,400
2020 2015
8,800
2010
7,600 +1,800
Export
Import
China, India, SEA
49
Rest of the world
51
Growing: Refining, Storage, and Transit Terminals
13
Malaysia's existing and planned refineries :
Refinery Operator Capacity (bbl/d)
Existing LNG terminals
Melaka 1 (PSR-1) Petronas 95,000
Melaka 2 (PSR-2) JV between Petronas and ConocoPhillips 125,000
Port Dickson Shell 145,000
Port Dickson San Miguel/Petron 85,000
Kertih Petronas 121,000
Kemaman Kemaman Bitumen Company 20,000
Planned projects
Johor (RAPID project)* Petronas 300,000
*The RAPID project is part of Johor’s Pengerang Integrated Petroleum Complex
Source: EIA, MPRC
Increasing Storage in Johor (South Malaysia)
▪ There is a demand to build storage capacity for the region
▪ Facility would complement Singapore, which currently is the only major independent terminal and storage facility in South East Asia
▪ Potential for an oil trading business, future development of downstream industry including refinery and oil based petrochemical complex, and LNG regas terminal
Opportunity
Singapore
Malaysia
Pengerang (5) Singapore
Independent Storage Capacity 10 Million m3
Limited land for new major storage investments
Tanjung Bin (3)
Tanjung Langsat (2)
(Million m3 capacity planned to 2020)
South Johor can complement Singapore to form an oil co-hub with 10 Million m3 if all the potential projects comes online
The Global Incentives for
Trading Programme
(GIFT)
Trading Through GIFT
The GIFT programme is established to encourage global petroleum trading companies to use Malaysia as a platform to enter the Asia Pacific region market.
• The GIFT Programme is managed and supervised by the Labuan Financial Services Authority (Labuan FSA), the regulatory authority for Labuan IBFC
• The Malaysia Petroleum Resources Corporation (MPRC) and Labuan IBFC Inc., promote the GIFT programme
• Companies that participate in the GIFT programme are licensed as Labuan International Commodity Trading Company (LITC)
• LITC-status companies can trade in petroleum, petroleum-related products, and selected commodities, including minerals and carbon credits and operate from anywhere in Malaysia
Overview
Global Incentives For Trading Programme (GIFT)
Qualifying Products
1. Petroleum and petroleum-related products including liquefied natural gas and coal*
2. Agriculture products 3. Refined raw materials 4. Chemicals 5. Base minerals
* Can deal with residents in any currency other than Ringgit Malaysia
Qualifying Criteria
1. Minimum annual turnover of USD100 million 2. Minimum annual business spending to Malaysian residents of
RM3 million 3. Min 3 professional traders employed throughout its operations with
minimum salary of approximately RM15,000 per month each Exempted to comply for the first 5 years from the date of license
• Initiative to transform Malaysia into a commodities hub • Attract global companies trading in selected commodities to locate their regional operations to Malaysia • The participants (LITC) may engage in any physical and derivatives trading of qualifying products, which
include over-the-counter (OTC) and exchange-governed transactions
Corporate Tax and Incentives of GIFT
• 3% flat tax rate on chargeable profits Corporate Tax
Key Incentives
• Flexibility to establish its operational office(s) everywhere in Malaysia • 100% exemption on director fee paid to non-Malaysian director • 50% exemption on gross employment income of non-Malaysian
professional, managerial staff including the traders • Exemption on dividends received • Exemption on royalties received • Exemption on interest received • Exemption on stamp duty on all instruments for Labuan business
activities, M&A of Labuan company and transfer of shares
Salient Operational Requirements
• Maintain sufficient capital/working funds • Maintenance of a registered office in Labuan • Indicate clearly it is a LITC licensed under Labuan Financial Services
and Securities Act 2010 in its relevant documents including signage • Ensure the business is conducted with proper corporate governance
and risk management framework • Comply with all the relevant laws/requirements in Labuan IBFC or
jurisdictions that the LITC operate in
Operational Requirements
Annual Submission
• Completed Annual Update Submission Form • Audited financial statements
Annual Fee
• License fee RM40,000 or USD13,000 • Company
i. Labuan company RM2,600 or USD800 ii. Foreign Labuan company RM5,300 or USD1,500
Licensing and Incorporation
• Can be made directly by applicant / Labuan trust company / other service provider to Labuan FSA • Application forms can be obtained from Labuan FSA’s website or Labuan trust company – Form
FLB
Licensing Application
• Appoint a Labuan trust company for the incorporation of LITC • Share capital must be in any currency, other than Ringgit (RM) • Registration fee for Labuan companies with paid-up capital:
i. Less than RM50,000 RM1,000 or USD300 ii. RM50,000 but less than RM1 million RM2,000 or USD600 iii. Exceed RM1 million RM5,000 or USD1,500
• Registration fee for foreign Labuan company RM6,000 or USD2,000
Incorporation of LITC
Comply with the operational requirements, annual submission and payment of annual fee imposed by Labuan FSA
Undertake trading activities
Application Process
Trade
Incorporation of LITC via a Labuan Trust Company
Obtain Approval from Labuan FSA
Application for Approval to Labuan FSA
Appoint a Labuan Trust Company as Adviser
Malaysia’s Cost Efficiency
Marina Bay Financial Centre
USD10 psf
Accountant 5 years exp
USD64k
GTP 5-10%
KL USD3 psf
Accountant 6 years exp
USD30k
GIFT 3%
CBD USD9 psf monthly
Accountant 5-7 years exp
USD130k
Corporate Tax 8%-22%
CBD USD4 psf monthly
Accountant 5-9 years exp
USD 236k
Corporate Tax 0%
SINGAPORE MALAYSIA GENEVA DUBAI
The cost of doing business in Malaysia is comparatively low compared to other major trading hubs.
GIFT Companies
Comparison of Schemes
GIFT (established 2011)
GTP* (established 2001)
Tax Rate 3% 5% 10% 10%
Period Not Limited 5 years
renewable 5 years
renewable 3 years
non-renewable
Annual Turnover USD100m USD1.5b USD150m USD50m
Annual Business Spend RM3m SGD50m SGD4m SGD1.5m
Hiring of Professional Traders
3 18 4 2
ASIA PACIFIC’S
MIDSHORE INTERNATIONAL BUSINESS
AND FINANCIAL CENTRE
Where is Labuan?
Off the coast of Sabah, East Malaysia Federal Territory About 100,000 population Common time zone with major cities Where business meets leisure
What is Labuan IBFC?
• International business and financial centre
• A tax-efficient jurisdiction to facilitate businesses, trading, investments etc., through financial services and legal structures
• Well-balanced legal and regulatory framework
Our Vision To be Asia Pacific’s leading midshore international business and financial centre
Striking an ideal balance between client confidentiality and international best standards
Connecting Asia’s Economies
70% of
Labuan Companies are Asian-based
(as at 2015)
Internationally Recognised
Group of International Finance Centre Supervisors (GIFCS) Member since 1999
International Organisation of Securities Commissions (IOSCO) Member since 2003
Group of International Insurance Centre Supervisors (GIICS) Member since 1999
International Association of Insurance Supervisors (IAIS) Member since 1998
Islamic Financial Services Board (IFSB) Member since 1998
Asia/Pacific Group on Money Laundering (APG) Member since 2000
Labuan IBFC Adheres to OECD’s International Standards and Best Practices
International Islamic Financial Market (IIFM) Member since 2002
Comprehensive Legislation
Labuan Financial Services and Securities Act 2010
Labuan Islamic Financial Services and Securities Act 2010
Labuan Foundations Act 2010
Labuan Limited Partnerships and Limited Liability Partnerships Act 2010
Labuan Business Activity Tax Act 1990
Labuan Financial Services Authority Act 1996
Labuan Trusts Act 1996
Labuan Companies Act 1990
Unique: One Country, Two Tax Systems
Labuan Business Activity
• Trading income taxed under Labuan Business Activity Tax Act 1990
• Non-trading income, not taxable
• Investment income, not taxable
• 3% per annum or maximum of RM20,000 per annum
• Tax efficiency via yearly election
• Tax certainty via statutory perpetuity
• Irrevocable election provided
Non-Labuan Business Activity
• Income taxed under Income Tax Act 1967
• Tax rate at 25%* on Malaysian source income
• Applicable for all domestic trade
(* YA 2015)
An Ecosystem of Solutions
Services
• Banking
• Insurance – risk management
• Corporate secretarial
• Legal
• Administrative activities
• Trusteeship
• Accounting
Structures
• Holding company
• Trading company
• Protected cell companies
• Company limited by shares and guarantee
• Limited partnership
• Limited liability partnership
• Trusts
• Foundations
Available in conventional and Shariah-compliant forms
Marketing offices may be located in Kuala Lumpur or Iskandar Malaysia (north of Singapore)
Business Activities
Banking (57)
•Wholesale banking
•Investment banking
•Loans/deposit
•Financial guarantees
•Trade finance
Leasing (359)
Companies (11,630)
• Investment holding
• Trading
•Life/general
•Broking
•Captives
•Re-insurance
Insurance (209)
•Company incorporation
•Company administration
•Corporate secretarial
•Trustee services
Trust Cos. (39)
•Aviation
•Shipping
•Heavy machinery
Wealth Management
(more than 300)
Commodity Trading
(39)
•Business succession
•Estate management
•Legacy planning
•Oil and gas
•Agriculture
•Minerals
SOURCE: STATISTICS FROM LABUAN FSA’S ANNUAL REPORT 2014
Why Labuan IBFC?
Business Purpose
• In the centre of Asia • Member of ASEAN • Established trade and investment
location • Developed legal infrastructure and
support services • Tax efficiency and flexibility • Over 70 double taxation agreements • Malaysia/Labuan: 18th in the world for
ease of doing business
Substance
• Cost efficient • Operational and commercial substance
(adheres to international standards in regulation and exchange of information)
• Local expertise • No minimum or maximum substance
requirements, thus flexible to fit business needs
• Provision for co-located office in onshore Malaysia
• English-speaking talent
25 Years and Growing…
• Reputation and Track Record
• Connecting Asia’s Economies
Thank You Thank You
Disclaimer
This presentation should not be regarded as offering a complete explanation of the matters referred to and is subject to changes in law. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Labuan IBFC cannot accept any responsibility for loss occasional to any person acting or refraining from action as a result of any material in this presentation. The republication, reproduction or commercial use of any part of this presentation in any manner whatsoever, including electronically, without the prior written permission from Labuan IBFC Inc. is strictly prohibited.
LABUAN IBFC INC SDN BHD IS THE OFFICIAL AGENCY ESTABLISHED BY GOVERNMENT OF MALAYSIA TO POSITION LABUAN IBFC AS THE PREFERRED INTERNATIONAL BUSINESS AND FINANCIAL CENTRE IN ASIA PACIFIC