Labuan IBFC’s ESG Drive Goes ‘LiFE’
Labuan IBFC’s ESG Drive Goes ‘LiFE’
21 January 2025 - Labuan Financial Services Authority (Labuan FSA) has established a regulator-industry platform to spearhead Environmental, Social, and Governance (ESG) initiatives for the Labuan International Business and Financial Centre (Labuan IBFC). The ‘Labuan IBFC for ESG’ (LiFE) Joint Working Group or LiFE JWG, is a strategic alliance served as a platform for coordinating and forward charting the Centre’s transition towards becoming a sustainable and resilient international market.
On 16 January 2025, the LiFE JWG held its inaugural meeting to establish the foundations for cross-industry collaboration. The meeting, chaired by the Director General of Labuan FSA, Nik Mohamed Din Nik Musa, gathered 29 participants including the Chairmen of the Association of Labuan Banks, Labuan International Insurance Association, Association of Labuan Trust Companies and Labuan Investment Banks Association, together with sectoral representatives as well as senior officers of Labuan FSA.
During the meeting, the group deliberated and agreed on key ESG priorities for Labuan IBFC, aligning these with the on-going initiatives outlined in the Labuan IBFC Strategic Roadmap 2022-2026, championed by Labuan FSA. To drive these priorities, LiFE JWG has formed dedicated sub-working groups to pursue the following focus areas:
The LiFE JWG also agreed on the need to actualise and implement the Labuan IBFC’s ESG taxonomy, referred to as LiST (Labuan IBFC Sustainability Taxonomy), which was issued by Labuan FSA in July 2024. The LiFE JWG’s initiatives, guided by the sustainability goals outlined in LiST, will foster better alignment between Labuan financial institutions’ business activities and the Centre’s ESG pursuits.
The Director General of Labuan FSA, Nik Mohamed Din Nik Musa highlighted that a strong commitment to sustainability is essential for enhancing the reputation and positive perception of International Financial Centres (IFCs). By embracing ESG principles, IFCs, including Labuan IBFC, can strengthen its market visibility and maintain a competitive edge by aligning with international norms adopted by peer jurisdictions. The Chairmen of the industry associations unanimously emphasised the importance of collaboration in identifying key ESG priorities and formulating quick-win strategies to accelerate Labuan IBFC’s sustainability transformation.
On 16 January 2025, the LiFE JWG held its inaugural meeting to establish the foundations for cross-industry collaboration. The meeting, chaired by the Director General of Labuan FSA, Nik Mohamed Din Nik Musa, gathered 29 participants including the Chairmen of the Association of Labuan Banks, Labuan International Insurance Association, Association of Labuan Trust Companies and Labuan Investment Banks Association, together with sectoral representatives as well as senior officers of Labuan FSA.
During the meeting, the group deliberated and agreed on key ESG priorities for Labuan IBFC, aligning these with the on-going initiatives outlined in the Labuan IBFC Strategic Roadmap 2022-2026, championed by Labuan FSA. To drive these priorities, LiFE JWG has formed dedicated sub-working groups to pursue the following focus areas:
- Sustainability Product Innovation – driving innovation in creating ESG-aligned financial products and ecosystems within Labuan IBFC;Governance and Risk
- Oversight – strengthening regulatory frameworks for governance, climate risk management as well as sustainability-related disclosures; and
- Capacity Building and Outreach – building sustainability awareness and expertise through ESG-related trainings and stakeholder engagements.
The LiFE JWG also agreed on the need to actualise and implement the Labuan IBFC’s ESG taxonomy, referred to as LiST (Labuan IBFC Sustainability Taxonomy), which was issued by Labuan FSA in July 2024. The LiFE JWG’s initiatives, guided by the sustainability goals outlined in LiST, will foster better alignment between Labuan financial institutions’ business activities and the Centre’s ESG pursuits.
The Director General of Labuan FSA, Nik Mohamed Din Nik Musa highlighted that a strong commitment to sustainability is essential for enhancing the reputation and positive perception of International Financial Centres (IFCs). By embracing ESG principles, IFCs, including Labuan IBFC, can strengthen its market visibility and maintain a competitive edge by aligning with international norms adopted by peer jurisdictions. The Chairmen of the industry associations unanimously emphasised the importance of collaboration in identifying key ESG priorities and formulating quick-win strategies to accelerate Labuan IBFC’s sustainability transformation.
Moving forward, to drive greater traction and market inclusion, the LiFE JWG plans to expand its membership to encompass additional sectors, including leasing, international commodity trading, and digital financial institutions.
Labuan Financial Services Authority
21 January 2025
Labuan Financial Services Authority
21 January 2025
FOR FURTHER INFORMATION, PLEASE CONTACT:
Corporate Communication & External Relations Unit
Tel : +603-8873 2000 Fax : +603-8873 2209
E-mail: communication@labuanfsa.gov.my
Website:www.labuanfsa.gov.my
