What’s happening in Labuan?

This is a video which can be found on the website of EC Trustco in Labuan.

Three per cent tax rate in Labuan? And our graduate professionals earn the same as a “tea lady” in the developed countries?

Tell me again – why do we need a tax haven in Labuan? So that corporations need pay only minimal tax?

Interestingly enough the Labuan Financial Services Authority announced that the powers of the Board of Directors of EC Trust (Labuan) Bhd had been suspended since 11 June 2013 with the appointment of an Appointee to assume control of the affairs of EC Trust (Labuan) Bhd. “Mr Peter Kent Searle, who has been disqualified as Director and Trust Officer of EC Trust (Labuan) Bhd, no longer represents and does not act on behalf of EC Trust (Labuan) Bhd.”

This followed an earlier Labuan FSA announcement on 11 June 2013 about the recovation of the licence of EC Trust (Labuan) and the disqualification of Searle.

Meanwhile, the small-time Australian and New Zealand residents who invested their retirement savings in Labuan have still not yet recovered their investments for which they were issued debentures. Despite numerous letters over many years to the authorities in Labuan and KL and a court battle (which the investors were not part of), the helpless investors have not been able to recover their funds, which appear to have disappeared into a ‘black hole’.

In 2010, MP Charles Santiago brought the issue up in Parliament. Charles said it was important for the Malaysian authorities to look into the plight of these investors and argued that the Ministry had to keep the investors abreast on the status of their investments if it wants to improve confidence in Labuan as an offshore financial centre.

Then Deputy Finance Minister Awang Adek responded that he was certain Lofsa was playing an appropriate role in keeping the investors informed. “I ask Lofsa to do this and I will oversee this to ensure that it is done.”

Unfortunately, the investors are still struggling to recover their lost savings while Awang Adek himself is no longer the deputy finance minister.

-anilnetto