Labuan International Business and Financial Centre (Labuan IBFC) has announced a 50% increase in licensing application approvals for the first half of 2020, bringing the total number of licensed entities to 800.
Datuk Danial Mah Abdullah, Director-General of Labuan FSA welcomed the news, noting that, notwithstanding the challenges and movement restrictions due to the COVID-19 outbreak, “we are glad to continue to have growth and an increase in licenses approved during the first half of 2020.”
“Having said that, we remain cautious on the outcome in the second half of the year but am optimistic that we will pull through this COVID-19 rollercoaster year on a positive note,” he went on to say.
“We in Labuan FSA are cognisant of the COVID-19 situation. Other than the safety precautionary measures, we have provided Regulatory Reliefs aimed at alleviating the operational difficulties of the market.
“We will continue to support the market players during this difficult and challenging time as we navigate the ‘new normal’ together. We are always engaging with our players on this.”
Mah added that Labuan IBFC, as a midshore jurisdiction, takes the approach of proportionality in regulation and market engagement, noting this philosophy is appropriate during these times of change and uncertainty, and will serve the jurisdiction well moving forward.
Labuan IBFC is a “whitelisted” jurisdiction by the European Union and deemed largely compliant by the Organisation for Economic Co-operation and Development.
Mah explained how this, coupled with Labuan FSA’s commitment to adhere to the highest regulatory and supervisory standards, suggests reasons to feel confident that the global financial services industry will continue to regard Labuan IBFC positively even during these unprecedented times.
Meanwhile, Labuan IBFC Inc. CEO, Farah Jaafar-Crossby said, “The growth in licensed entities definitely evidences Labuan IBFC’s relevance as intermediaries continue to look for safe harbour jurisdictions, that are well regulated to international standards set by global multilateral organisations.”
Specifically in reinsurance, Labuan IBFC continued to see growth in the insurance industry with 11 new licensed being approved of which seven were captive insurance entities, reinforcing its jurisdictional reign in the Asia captive market.
“Captive insurance is certainly growing in size as it now attributes 31.4% of total gross premiums underwritten in Labuan IBFC, amounting to USD267.9mil with 72.8% of the total captive premiums from international markets” Mah said.
