KUALA LUMPUR: Malaysian individuals and families can now park their assets in Labuan with the recent change of the legal framework in Labuan International Business and Financial Centre (Labuan IFC).

Malaysian assets of foreign nationals are also allowed in a Labuan trust, said its CEO David Kinloch.

"Malaysians can now view Labuan as an alternative to park their foreign assets. The opening of Labuan is also made more attractive for Malaysians with the new trust and estate management products," he said at a media briefing here today.

The new legal framework, which saw four laws amended and the introduction of four new Acts, now allows companies in Labuan to have a wholly owned domestic subsidiary.

The restructured Labuan Trust Act also allows residents to establish trust for non-Malaysian assets, and foreigners to become the beneficiaries of Malaysian assets.

"With our new products, Malaysian companies can now use Labuan for their leasing purposes which not only include chartering of ships and aircraft, but also plant, machinery and other equipment," said Kinloch.

Other laws that were amended were the Labuan Financial Services Authority Act, Labuan Companies Act and Labuan Business Activities Tax Act.

The four new Acts introduced were Labuan Financial Services and Securities Act, Labuan Foundation Act, Labuan Limited Partnership & Limited Liability Act and Labuan Islamic Financial Services and Securities Act. The Acts came into force on Feb 11, 2010.

"With the new legal framework, we hope to upgrade Labuan's role as a management centre and attract a new category of clients," said Labuan Financial Services Authority (Labuan FSA) director-general Datuk Azizan Abdul Rahman. Labuan FSA was formerly Labuan Offshore Financial Services Authority (Lofsa).

Azizan said the new Acts would provide a more robust, transparent and accountable framework for Labuan FSA to regulate and supervise the financial institutions and licensed entities operating from the jurisdiction.

He said despite last year's economic environment, Labuan was able to hit its target in terms of companies, licences issued and the volume of businesses.

"With the new legal framework, a 20% increase this year would be a good target," added Azizan.