Labuan Financial Services Authority will focus on market sustainability, relevance and certainty
The Labuan Financial Services Authority (Labuan FSA), which is celebrating its 25th anniversary this year, says its next chapter will be based on the sustainability, relevance and certainty of the market, made possible by digital technology and fueled by innovation.
Since its establishment in February 1996, Labuan FSA as regulator of Labuan International Business and Finance Center (IBFC) has played a strategic and important role in the growth and development of the area.
Taking advantage of Malaysia’s evolving dual financial system, Labuan IBFC aspires to offer a suite of Sharia-compliant products and structures in addition to conventional offerings to meet the demands and preferences of global investors. Labuan IBFC can support Malaysia’s efforts to advance digital Islamic finance as a viable alternative to conventional FinTech which has a strong foothold in the region.
Support from government and relevant stakeholders will be essential to realize this aspiration as the economy resumes its upward trajectory in 2022, Labuan FSA said in a statement.
Labuan has become a thriving financial and commercial center, with more than 5,200 global and renowned companies, from 125 countries, including 849 financial institutions engaged mainly in wholesale intermediation activities ranging from banking, insurance, management of funds, monetary brokerage, leasing, business management and trust business.
Over 70% of business at Labuan IBFC comes from Asia-Pacific and the Far East, indicating that Labuan is an outward-facing center that facilitates international trade and is well regarded around the world, Minister of Finance, Tengku Zafrul Abdul Aziz, said in a speech.
The minister also said, “Labuan IBFC has become the largest white-collar employer in Labuan, employing more than 6,000 people from the local community, neighboring states and the rest of Malaysia, as well as foreign nationals, representing 15 % of the total of Labuan. use”.
It is estimated that in 2019 and 2020, Labuan IBFC’s economic contribution to the nation and Labuan amounted to nearly MYR 5 billion ($ 1.18 billion), mainly in terms of tax collection, local spending. actors from Labuan and dividends repatriated ashore. Labuan IBFC also contributes over 60% to Labuan’s GDP and continues to serve as a key growth engine for the island.