Malaysia asked to drop Labuan from tax treaty
"The Korean government is moving to exclude Labuan from a tax treaty with Malaysia as part of efforts to prevent any attempts to evade taxes through the island, which is well known as a tax haven for global investors. Seoul and Kuala Lumpur are currently having talks in Seoul to modify their bilateral tax treaty, which was established in 1983."
A good idea. The Korea Times continues:
"According to the Financial Supervisory Service (FSS), Malaysians invested a total of 964.8 billion won in the local stock market in 2009. They also spent 2 trillion won buying local bonds in the same period. The FSS said 95 percent of those investments were based on Labuan, and a significant portion of those investments came from paper companies, which aim to evade taxes."
A much better idea -- which would help ordinary Malaysians, Koreans and the citizens of a range of other countries - would be for Malaysia to abandon this entire, crooked, abusive set-up.