Archive for December, 2014

1MDB defends Cayman funds

Thursday, December 25th, 2014

The decision to invest billions of ringgit in funds abroad is a financially astute move. This was explained by 1Malaysia Development Berhad (1MDB). It was added that it has helped the company make substantial gains at a time when ringgit is softening against the US dollar.

Also, such move has also helped mitigate its foreign exchange risks.

“Essentially, investing some of our cash reserves, specifically those in US dollars, in international fund jurisdictions such as the Cayman Islands has helped mitigate our foreign exchange risks and allowed the funds invested there to benefit from the comparative strength of the US dollar,” it said.

1MDB was responding to PKR lawmaker Wong Chen’s demand for the firm to repatriate its money as it had made huge gains due to the slide of the ringgit against the US dollar.

The ringgit had declined by 6.5% in the past 9 months to RM3.48 against the greenback.

The Kelana Jaya MP had said the funds, which were likely in US dollars, were moved to the Cayman Islands, known as one of the world’s largest registered fund jurisdiction, in September 2012 when the exchange rate between the greenback and the ringgit was at USD 1 to RM3.07.

Additionally, since a portion of 1MDB’s debt is in US dollars, the funds parked in the Caymans acts as a natural currency hedge.

Chairman of the firm’s board of directors Tan Sri Lodin Wok Kamaruddin said that there was nothing unusual about companies of 1MDB’s size investing their funds in the Caymans, with the Cayman Islands Monetary Authority recognised as one of the leading fund regulators in the world.

He added that thousands of international blue-chip companies have funds regulated by the Cayman Islands Monetary Authority, including more than 200 Malaysian companies.

CEC Contributes CI$ 20 Million to Cayman Islands Economy During Last 12 Months

Tuesday, December 23rd, 2014

Cayman Enterprise City (CEC) has contributed approximately CI$20.1 million to Cayman’s economy during the 12 month period ending September 2014.

During this period, the number of companies operating from within the special economic zone has increased from 60 to 110. It is estimated that CI$14.28 million has been spent in the local economy. This direct impact is inclusive of estimated set-up and maintenance costs for each existing special economic zone company, including attorney fees, annual registered office fees, incorporation and annual registration fees paid to the CI Government, etc.

CEC also estimates an indirect impact of about CI$5.83 million which includes money to have been spent by the special economic zone company employees and is based on the number of persons employed by SEZ companies as at 30th September 2014, their estimated average salary, based on industry specific salary benchmarks for the US and Canada and an assumption that such Zone Employment Certificate holders spend an average of 50% of their salary within the local economy.

Cayman Enterprise City CEO Charlie Kirkconnell commented: “We have seen significant growth and a significant economic impact – exponentially growing from last year – and we expect that to continue into the future”.

2014 Cayman Captive Forum hosts record audience

Thursday, December 18th, 2014

The 22nd annual Cayman Captive Forum welcomed a record 1,499 registrants. This proved once again its leadsing place as the world’s largest captive insurance conference.

Captive Insurance industry leaders gathered in the Cayman Islands over 3 days of intensive discussions about current issues, including those pertaining to healthcare captives, where Cayman is the world leader.

Highlights of the conference included an update from Cayman Islands Monetary Authority (CIMA) (http://cayman-islands-financial-services.offshore-journals.com/cima/16) Managing Director Cindy Scotland, who noted Cayman’s solid position against stiffening competition in the market for captive domiciles.

Of the 765 international insurers regulated by CIMA as at September 2014, there were 724 Class Bs, 39 Class Cs (special purpose vehicles) and 2 Class Ds. At the end of the 3d quarter of 2014, the total premiums of international insurers were USВ 12.4 billion. The total assets were USВ 55.1 billion and the net income represented USВ 1.7 billion. Over the past 5 years, the Cayman Islands has seen total premiums increase by 66%, and total assets by 23%.

Keynote speaker Dr. Michio Kaku made a presentation on the incredible advancement of technology and particularly its relevance to the healthcare industry, illustrating how the fanciful world of science fiction has already materialised and is rapidly transforming our way of life.

Michael Bazzell, an FBI agent with the Cyber Crimes Task Force, made a real-time demonstration of how easy it is to ‘hack’ a network and easily capture a company’s or a person’s most private information and what people can do to protect themselves from this risk.

Ms. Scotland expressed her positive views of the future for the Cayman captive industry. She said that CIMA remains committed to helping ensure that the Cayman Islands maintains its position as a leading financial services and insurance jurisdiction.