7 Sept 2016
MALAYSIA: Per Square Metre Licensing Fee Levied on Labuan-based Businesses
Toys and electronics manufacturers operating in Labuan, a federal territory of Malaysia, will now be obliged to pay a RM2.5 (US$0.61) per square metre (sqm) annual licensing fee. The fees form part of overall levy on all companies with premises in the territory operating in the manufacturing, retail or services sectors.
Overall, the fee ranges from RM1.5 to RM25 per sqm, with the actual fee determined on a sliding scale taking into account both the space occupied and the sector the business operates in. Industries not specifically listed under the fee schedule will be subject to the RM1.5 rate.
The territory is currently home to the Labuan International Business and Financial Centre, Malaysia’s only offshore financial hub. The government has already gone on record with its intention to establish the territory as one of the leading business and financial centres in the Asia-Pacific region.