Offshore allure. (Labuan, Malaysia's economy)(includes related article)

The Banker | June 1, 1995| | Copyright

The tiny island off the coast of Borneo aims to become "the pearl of the South China Sea".

Labuan, a 92-sq km island off the coast of Borneo in East Malaysia, was once famous for its smuggling, its pirates and its Sunday cockfights. Now, if the ideas of Malaysia's planning gurus are carried through, the buzz and whirl of finance will reverberate as Labuan emerges as one of the latest, most exotic, international offshore financial centres (IOFC).

The island became an IOFC in 1990. Progress appears slow: there is little sign of dynamic financial activity. No Wall ...

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