Commodity Trading - Sectors & Offerings

The Global Incentives for Trading (GIFT) programme is aimed at positioning Malaysia as a regional trading and storage hub for oil and gas.

Under the programme, a set of incentives are offered through the establishment of the Labuan international commodity trading company (LITC), including incentives for traders and trading houses to use Malaysia as their international trading base.

The LITC’s business is the trading of physical and related derivative instruments of petroleum and petroleum-related products including liquefied natural gas (LNG).

key highlights

42 number of Labuan International Commodity Trading Companies (LITCs) in 2020

Majority of the LITCs were from Asia and the Pacific, mainly from Malaysia and Singapore. The remaining 19.1% were spread throughout, with the most from the Far East region
Petroleum and petroleum-related products constituted 87.7% of the total commodities traded. The agriculture products and refined raw materials contributed 7.2% and 5.1% share of the total, respectively in 2020

View list of Labuan International Commodity Trading Companies

View list of Banking Institutions Providing Commodity Trading Financing

POST-LICENSING REQUIREMENTS
OPERATIONAL REQUIREMENTS

POST-LICENSING REQUIREMENTS
Achieve annual minimum turnover of USD50 million;
Incur minimum annual business spending of RM3 million payable to Malaysian residents in Malaysian Ringgit; and
Employ at least three professional traders that fulfill the following requirements:
The Principal officer or any person performing a senior management function who would be principally accountable for:
making decisions that affect the whole, or a substantial part of the LITC business;
implementing and enforcing policies and strategies approved by the LITC’s Board of Directors including Head of Department or any equivalent designated person; or
internal controls and processes of the LITC.
These professional traders shall be involved in any one of the following areas:
Trading;
Risk Management;
Procurement; or
Sales & Marketing.

These professional traders shall be residents of Malaysia in a calendar year for the year of assessment under the Income Tax Act 1967 (ITA)
OPERATIONAL REQUIREMENTS
The LITC must have sufficient capital or working funds that commensurate with its operations and activities.
The LITC must indicate clearly on its letterhead, stationery and other documents including signage containing its name that it is licensed as a “Labuan International Commodity Trading Company licensed by Labuan FSA”, together with its licence number.
The LITC is required to establish its operational office, which can be anywhere in Malaysia. The following details must be identified and provided to Labuan FSA prior to the commencement of business:
Principal Officer
Name, designation and contact details such as telephone number and e-mail address of the officer that is in charge of the LITC.
Address of Operational Office
To provide address and staffing plan at its operational office.
The LITC must ensure that its business is conducted with both corporate governance and risk management frameworks in place.
Ensure that the Principal Officer, Director(s) and Officer(s) responsible for the management of the company are fit and proper persons pursuant to Section 4 of LFSSA and the Guidelines on Fit and Proper Person Requirements issued by Labuan FSA.
The LITC is required to submit to Labuan FSA the following:
The completed Annual Update Submission Form latest by 15 January of each year (as per Appendix I); and
A copy of its audited financial statements within six (6) months after the close of each financial year.
Obtain prior approval from Labuan FSA on any new changes being effected on the following:
Business plan;
Principal Officer;
Directorship; and
Shareholding.
The LITC is expected to comply with all the requirements of this Guidelines as well as the relevant requirements under LCA, LFSSA, other Labuan legislations and the laws of the jurisdictions in which the LITC operates from, whichever applicable.

Post-Licensing Requirements
Achieve annual minimum turnover of USD50 million;
Incur minimum annual business spending of RM3 million payable to Malaysian residents in Malaysian Ringgit; and
Employ at least three professional traders that fulfill the following requirements:

The Principal officer or any person performing a senior management function who would be principally accountable for:

making decisions that affect the whole, or a substantial part of the LITC business;
implementing and enforcing policies and strategies approved by the LITC’s Board of Directors including Head of Department or any equivalent designated person; or
internal controls and processes of the LITC.

These professional traders shall be involved in any one of the following areas:

Trading;
Risk Management;
Procurement; or
Sales & Marketing.

These professional traders shall be residents of Malaysia in a calendar year for the year of assessment under the Income Tax Act 1967 (ITA)
Operational Requirements
The LITC must have sufficient capital or working funds that commensurate with its operations and activities.
The LITC must indicate clearly on its letterhead, stationery and other documents including signage containing its name that it is licensed as a “Labuan International Commodity Trading Company licensed by Labuan FSA”, together with its licence number.
The LITC is required to establish its operational office, which can be anywhere in Malaysia. The following details must be identified and provided to Labuan FSA prior to the commencement of business:

Principal Officer
Name, designation and contact details such as telephone number and e-mail address of the officer that is in charge of the LITC.

Address of Operational Office
To provide address and staffing plan at its operational office.

The LITC must ensure that its business is conducted with both corporate governance and risk management frameworks in place.
Ensure that the Principal Officer, Director(s) and Officer(s) responsible for the management of the company are fit and proper persons pursuant to Section 4 of LFSSA and the Guidelines on Fit and Proper Person Requirements issued by Labuan FSA.
The LITC is required to submit to Labuan FSA the following:

The completed Annual Update Submission Form latest by 15 January of each year (as per Appendix I); and
A copy of its audited financial statements within six (6) months after the close of each financial year.

Obtain prior approval from Labuan FSA on any new changes being effected on the following:

Business plan;
Principal Officer;
Directorship; and
Shareholding.

The LITC is expected to comply with all the requirements of this Guidelines as well as the relevant requirements under LCA, LFSSA, other Labuan legislations and the laws of the jurisdictions in which the LITC operates from, whichever applicable.

Governing Legislation, Related Guidelines and Circulars

For the latest governing legislation, related guidelines and circulars, please go to labuanfsa.gov.my

List of Labuan International Commodity Trading Companies

For the latest list of Labuan International Commodity Trading Companies, click here.
This list was updated on 24 Jan 2025 and does not reflect real-time data.

A - F
G - M
N - S
T - Z

List of Banking Institutions Providing Commodity Trading Financing

For the latest list of Banking Institutions Providing Commodity Trading Financing, click here.
This list was updated on 25 June 2020 and does not reflect real-time data.

Go to FAQs

List of Labuan International Commodity Trading Companies

A - F
G - M
N - S
T - Z

A - F
AGO Energy 47 Inc.
APSA INTERNATIONAL MALAYSIA PTE LTD.
ASIAN TRADES & INVESTMENTS CORPORATION LTD.
Awin Resource (Malaysia) Ltd
B.B. ENERGY MALAYSIA LTD.
CCK Petroleum (Labuan) Limited
Cergas Energy Limited
CONTINENTAL PLATFORM (LABUAN) LTD
Dialog Systems (Labuan) Ltd.
Ensa Energia A.G.
Farlin International Corporation Ltd.
Farlin Trading Ltd.
G - M
GK Pacific Limited
GLOBAL LNG (LABUAN) LTD
HORIZON PETROLEUM LIMITED
Intra Asia (Malaysia) Pte. Ltd.
Irfaz International Limited
JD Resources Limited
JOSOVINA COMMODITIES TRADING LTD.
MALAYSIA HENGYUAN INTERNATIONAL LIMITED
Malaysia Refined Gas & Oil Limited
Marin Selatan Limited
N - S
PETCO Trading Labuan Company Ltd
PETRONAS Chemicals Marketing (Labuan) Ltd
PETRONAS FLOATING LNG 1 (L) Ltd
PETRONAS FLOATING LNG 2 (L) Ltd
PETRONAS LNG Ltd.
PP METALLIX LTD
QL International Pte. Ltd.
Sea Oil Offshore Ltd.
Sime Darby Global Trading (Labuan) Limited
SPRING METAL LIMITED
Synergy Energy (Labuan) Ltd.
T - Z
TAK Group Resources Ltd
Talos Commodities Ltd.
Toprich Sources International Trading Limited
Triumph Metals and Minerals (Labuan) Limited
UIL Malaysia Ltd.
Ultimate Supply Ltd.
VICTORIA INTERNATIONAL PETROLEUM CORP.
VITOL TRADING MALAYSIA LABUAN LTD
Welltrade Limited
WESTSUN INVESTMENT COMPANY LTD.
Wilson International Trading (L) Bhd.
YTL Power Trading (Labuan) Ltd

A - F
G - M
N - S
T - Z

List of Banking Institutions Providing Commodity Trading Financing

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For company search, please click on the link provided : https://www.lfsacoral.gov.my/reefs/

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FAQs

1. What is Labuan banking?
Labuan banking means the business of receiving deposits on current accounts, deposit accounts, savings accounts, and includes the investment banking business, Labuan financial business, Islamic banking business and such other transactions and terms and conditions as specified by Labuan FSA in any currency including Malaysian Ringgit where permitted by Bank Negara Malaysia.
2. What is investment banking?
Investment banking means the business of providing credit facilities and consultancy and advisory services relating to corporate and investment matters, including making investments on behalf of any person. Other activities include undertaking foreign exchange transactions, interest rate swaps, dealings in derivative instruments or derivative financial instruments or any other similar risk management activities.
3. What is Islamic banking?
Islamic banking is defined as a banking business that is in accordance with Shariah principles.
4. Who may apply for Labuan banking licence?
Organisations that meet the following minimum criteria may apply for a Labuan banking licence:
Must be a bank or financial institution
Possesses a sound track record
Accorded a good credit rating by acceptable rating agencies
Supervised by a competent regulatory authority; and
Conforms to generally accepted standards of international banking practices or the Bank for International Settlements (BIS).
5. What is the minimum working minimum fund for an investment bank?
RM10 million or its equivalent in any other currency.