The Benefits of Employing Backoffice People in Labuan for International Groups

Labuan, a little gem in Malaysia, is quickly becoming a hot spot for international companies looking to set up their backoffice operations. Nestled in Southeast Asia, it’s in a prime position to service neighbouring countries, making it an ideal hub for expanding businesses.

· One of the biggest perks of setting up a business in Labuan is the competitive salaries. You can hire experienced backoffice staff for around USD 1,200 a month, which is considered pretty decent locally. This means you get great talent without breaking the bank.

· Another huge advantage is the language skills of the local workforce. Most people in Labuan speak multiple languages, including Malaysian, English, and Chinese. English is widely used for business and corporate documents, so communication flows smoothly.

· Renting office space in Labuan is quite affordable, which helps keep overhead costs low. Plus, posting jobs on local job boards won’t cost you a fortune, making it easier to attract the right talent without hefty recruitment fees.

· Labuan also offers excellent banking options, with major local banks like MayBank and SBM Bank providing top-notch services. This makes managing finances straightforward and convenient.

· For companies wanting a presence in Malaysia’s capital, opening branch offices in Kuala Lumpur is a solid option. This flexibility allows businesses to tap into the benefits of both Labuan and KL.

· When it comes to taxes, Labuan isvery appealing:‍

·  If your activities are non-trading, like holding investments, you won’t pay any tax.

·  For trading activities—think banking,insurance, and management services—a flat 3% tax on net profits is applied.

·  Even if you’re mixing trading and non-trading activities, the tax rate remains a simple 3%.

Several big-name companies have already set up their backoffice operations in Labuan and are thriving:

1.          Deriv (FX) Ltd: This CFD/Stock broker company has a global footprint, with a significant presence in Labuan. Their team in Labuan handles customer service, compliance, accounting, finance,marketing analysis, and UX architecture, supporting the wider Deriv group.

2.          TMF Group: Through TMF Trust Labuan Limited, TMF Group provides corporate secretarial, trust management,accounting, and treasury services. Their Labuan team supports clients both locally and in Hong Kong.

3.          Nexus Group: Nexus Structured Solutions Limited, a re-insurance broker, employs staff in Labuan to support their other group companies.

4.          Challenge Group: has a re-insurance broker arm in Labuan, where staff support group operations.

5.          Tricor Group: Tricor Trustco (Labuan) Ltd offers administration and support services from Labuan, aiding their clients and ensuring smooth operations.

6.          KJ Group: KJ Glovice FX Limited, based in Tokyo, employs staff in Labuan to support their broader company operations.

All in all, Labuan is a fantastic choice for international companies looking to set up their back office operations. With cost-effective salaries, a multilingual workforce, low office rents, great banking access, and friendly tax rates, it’s easy to see why so many businesses are choosing Labuan as their backoffice hub.

If you are interested in exploring opportunities to set-up your business in Labuan and hire local staff, contact our team at HRFinEase for further information and we will provide you with the necessary information.

info@hrfinease.com

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