The Labuan Offshore Financial Services Authority (LOFSA) has announced on 31 July 2008 the automatic approval of the following activities undertaken by Labuan Offshore Companies (LOC):
| - | carrying on business with Malaysian resident pursuant to Sec. 7(3)(a) of the Offshore Companies Act 1990 (OCA); |
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| - | investing in a domestic company pursuant to Sec. 147(1) of the OCA; and |
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| - | wholly owning a domestic company to carry on offshore business |
With the automatic approval, LOCs are no longer required to submit an application for approval for the above transactions. However, the LOCs are subject to the following conditions:
| - | submit a notification in the prescribed form no later than 10 working days from the date the transaction is carried out; and |
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| - | obtain the necessary approvals (where applicable) from the relevant domestic regulatory authorities including the Central Bank of Malaysia, Securities Commission and Foreign Investment Committee. |
If the above conditions are not complied with, the automatic approval is deemed null and void