Labuan IBFC Inc signs MoU with RAM Ratings to enhance corporate transparency via bespoke rating service for licensed entities

Published on 21 Jan 2021.

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Labuan Entity Corporate Assessment (LECA™) will enhance intra and inter-Labuan cross business as the Labuan IBFC jurisdiction grows from strength to strength.

 

Kuala Lumpur, 21 January 2021 - RAM Rating Services Berhad (RAM Ratings), Malaysia’s premier rating agency, and Labuan IBFC Incorporated Sdn Bhd (Labuan IBFC Inc) today inked a Memorandum of Understanding (MoU) to collaborate on RAM Ratings’ Labuan Entity Corporate Assessment (LECA™) service. RAM Ratings will work with Labuan IBFC Inc – the market development agency of the midshore jurisdiction Labuan International Business and Financial Centre (Labuan IBFC) – to develop, promote and facilitate the adoption of LECA™.

LECA™, RAM’s new rating service for companies based in Labuan IBFC, evaluates the performance and financial standing of Labuan entities. A customised service, LECA™ has been formulated in response to Labuan entities looking to encapsulate the global wholesale nature of their business dealings in Labuan IBFC. To ensure reliability and consistency, LECA™ also applies RAM Ratings’ established frameworks for credit and performance evaluation. 

“RAM is thrilled to collaborate with Labuan IBFC Inc through this MoU. Having helped develop Malaysia’s onshore financial markets over the last three decades, we look forward to expanding our services to the midshore jurisdiction of Labuan IBFC via LECA,” said Tan Sri Amirsham A Aziz, Chairman of RAM Ratings.

Mr Chris Lee Wai Kit, Chief Executive Officer of RAM Ratings, elaborates: “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.”

“Labuan market participants can expect the RAM hallmarks of excellence and analytical rigour when they engage with RAM Ratings. Several Labuan entities have already enquired about obtaining a LECA rating from RAM,” he added.

“With Labuan IBFC having entered its 30th year milestone last year, this bespoke assessment for Labuan entities will certainly add to the maturity of our midshore wholesale financial ecosystem while continuing to enhance our resilience amidst current global challenges.  We also encourage similar initiative by other organisations towards increasing transparency in Labuan IBFC”, said Datuk Danial Mah Abdullah, Director-General of Labuan Financial Services Authority (Labuan FSA).

Meanwhile, Labuan IBFC Inc Chief Executive Officer, Ms Farah Jaafar-Crossby, said: “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 added.

As Asia’s leading wholesale financial intermediation centre, Labuan IBFC has welcomed more than 16,000 registered companies since its inception in 1990. It has grown beyond serving Malaysia-based entities to include international organisations in banking, leasing, capital markets, insurance, reinsurance, risk management and wealth management.

RAM Ratings’ LECA™ service for banks, (re)insurers and service providers is available from January 2021. It was developed in consultation with Labuan FSA, Association of Labuan Banks, Labuan Investment Banking Group, Labuan International Insurance Association and Association of Labuan Trust Companies.

Click here for Frequently Asked Questions on LECA™.

For more information, please contact:

RAM analytical contacts
Joanne Kek
(603) 3385 2520
joanne@ram.com.my

Firhan Yasser
(603) 3385 2526
firhan@ram.com.my

Media contacts
Padthma Subbiah
(603) 3385 2577
padthma@ram.com.my

Audrey Liew
(60) 12913 8979
audrey@libfc.com
 

 

About RAM Rating Services Berhad

Established in 1990 by Malaysia’s central bank, RAM Ratings is the leading and largest credit rating agency (CRA) in Malaysia and Southeast Asia. As a CRA registered by Securities Commission Malaysia, RAM Ratings has rated over USD400 billion of bonds issued by more than 500 entities based in Malaysia and other countries. Through credit ratings and assessments, we deliver independent insights to support the decision-making needs of investors and market participants in domestic and regional markets.

RAM Ratings, a provider of independent credit and sukuk ratings, is a subsidiary of RAM Holdings Berhad. Our rating expertise includes financial institutions, insurance companies, project finance, structured finance and Islamic finance transactions as well as corporates in various industry segments. We also provide country, macroeconomic and fixed-income research in addition to training, risk analytics and solutions for credit risk and other related areas. 

Our accolades include Best Rating Agency (Southeast Asia, by CPI Financial – 2017 & 2018), Rating Agency of the Year (The Asset Triple A Awards – 2015, 2016 & 2017) and Best Islamic Rating Agency (Islamic Finance News – 2011 & 2016).

RAM is also spearheading green finance and sustainability ratings in the region. In 2016, RAM Ratings joined the line-up of pioneer CRA signatories to the United Nations-supported Principles for Responsible Investment’s Statement on ESG in Credit Ratings. The RAM Group’s ESG initiatives are driven through wholly-owned subsidiary, RAM Sustainability Sdn Bhd – an approved verifier of climate bonds certification in Malaysia, 1st ASEAN observer of the Green Bond and Social Bond Principles, and member of GRI Community in Malaysia.

For more information on the RAM Group of Companies, visit www.ram.com.my.

 

About Labuan IBFC
Asia Pacific’s Midshore International Business and Financial Centre

Labuan International Business and Financial Centre (Labuan IBFC), Malaysia, through our internationally recognised yet business-friendly legal framework, is the preferred international business and financial centre in Asia. Established in 1990, Labuan IBFC is regulated by the Labuan Financial Services Authority (Labuan FSA), statutory Regulator under the purview of the Ministry of Finance, Malaysia.

As a midshore jurisdiction, we offer global investors and businesses the benefits of being in a well-regulated and supervised jurisdiction, which adheres to international standards of compliance in tax transparency. We also provide fiscal neutrality and certainty in a currency neutral operating environment. Labuan IBFC, located in the centre of Asia, boasts a cost-efficient enabling environment, making it an ideal location for substance creation for both global businesses looking at penetrating Asia or Asian entities aiming to go global.

We offer a wide range of business structures and investment solutions catered to cross-border transactions and international business dealings including fintech related solutions. We also provide services and solutions in niches such as risk management, commodity trading, reinsurance, wealth management, international business companies and Islamic financial services. Operating with clear and comprehensive legal provisions, guidelines and practice notes enforced by a single regulator, Labuan FSA, Labuan IBFC provides an ideal jurisdiction for both corporates and high-net-worth individuals with international exposure.

To keep up with everything about Labuan IBFC, follow us on Twitter or @LabuanIBFC. Alternatively, visit www.labuanibfc.com.