The Labuan International Business and Financial Centre (IBFC) has signed a memorandum of understanding (MoU) with RAM Rating Services Berhad, Malaysia’s premier rating agency, to collaborate on RAM Ratings’ Labuan Entity Corporate Assessment (LECA) service.
RAM Ratings will work with Labuan IBFC to develop, promote and facilitate the adoption of LECA.
The new rating service for companies based in Labuan IBFC will evaluate the performance and financial standing of Labuan entities.
It has been formulated in response to Labuan entities looking to encapsulate the global wholesale nature of their business dealings in Labuan IBFC.
LECA also applies RAM Ratings’ established frameworks for credit and performance evaluation.
Commenting on the collaboration, Chris Lee Wai Kit, CEO of RAM Ratings, says: “LECA ratings facilitate clarity, transparency and insights for confident decision-making between Labuan companies and their counterparts. Through this MoU, RAM hopes to contribute to the long-term resilience and growth of Labuan IBFC.”
Farah Jaafar-Crossby, Labuan IBFC CEO, notes: “As the jurisdiction is fast gaining global recognition, this is a coming-of-age for Labuan IBFC and our players. The benefits of transparency which LECA provides will assist us in enhancing our reputation as a transparent, well-governed midshore wholesale financial intermediation centre.”
“As we are now home to almost 1,000 global licensed entities, we are keen to encourage intra-Labuan cross business links. For example, LECA will provide an independent first point of assessment between our reinsurance and banking license holders,” she adds.
Labuan celebrated its 30th anniversary in 2020, Jaafar-Crossby revealed to Captive Insurance Times’ that there are further developments in the pipeline for its captive insurance market.
