Chinese textile makers are eyeing the tax-free island of Labuan as a major trading exchange.

According to Labuan Offshore Financial Services Authority (Lofsa) director-general Noorazman A Aziz: "There are easily about 20,000 textile manufacturers in Shanghai. What we plan to do is to have an exchange with Labuan."

He told The Star newspaper that suppliers, vendors and buyers would conduct their transactions with manufacturers through a dedicated Labuan-based website while the clearing would be done by banks in Labuan.

"We are talking very seriously on how to undertake this project. That means you will have a major trading exchange in Labuan and this will be the first in the world," Noorazman added.