Press Release on Labuan IBFC: Driving Forward With Resilience & Sustained Growth
Labuan IBFC: Driving Forward With Resilience & Sustained Growth
- New Labuan company incorporations maintained upward trajectory with 9% growth.
- Labuan captive insurance expanded 6.4% in new formations, 8.5% in total premium growth.
- Shariah-Compliant Securities Tokens (RAMZ) recorded volume expansion by 21-fold to reach USD1.05 billion.
- Labuan leasing sector reflected strong performance with more than doubling of new oil & gas lease assets, and profitability hike of over 150%.
- Labuan fund management and trust company segments showed exceptional profitability boost of 354.8% and 86%, respectively.
In 2024, Labuan IBFC continued to show resilience, amid external headwinds affecting international business landscape. Guided by the Labuan IBFC Strategic Roadmap 2022–2026, Labuan FSA continued to adapt and accommodate to the region’s changing business needs through specific key initiatives. As the Centre reaches the mid-point of its Strategic Roadmap, its growth trajectory continued to be positively strong, evidenced by significant business expansion across key sectors such as captive insurance, capital markets, leasing, wealth management, and intermediary services. Concurrently, momentum has been accelerating in the niche segments of Islamic finance, digital financial services, and ESG-related financial activities. Generally, growth was also driven by new entrants across sectors, attesting Labuan IBFC as the market of choice for regional investors, with a total number of licensed entities reaching 838 as at end-2024. These achievements were driven by the strong collaborative efforts between Labuan FSA’s strategic initiatives and the industry’s promotional efforts.
Labuan FSA also continued to strengthen and modernise the Centre’s regulatory and legal ecosystem. This is to ensure market stability continued to be preserved and requirements pre-emptively address emerging risks whilst remaining accommodative to new business innovations. This commitment continues to reinforce investor confidence in Labuan IBFC in 2024.
In his address during the launch, the Director General of Labuan FSA, Nik Mohamed Din Nik Musa highlighted, “2024 signifies a defining year for Labuan IBFC, depicting its resilience and relevance in the international arena. The Centre’s sustained growth strengthens its standing as a trusted and forward-looking jurisdiction in Asia. Beyond financial achievements, Labuan IBFC has been contributing and would continue to spur economic benefits to Labuan Island. The Centre will continue to reinforce this synergy and support the island’s broader development agenda.”
Nik Mohamed Din also highlighted that with Labuan IBFC’s 35th anniversary being commemorated this year, Labuan FSA would be formulating its forward-looking charting with five key priorities focused on enhancing inclusivity and fostering greater synergy:
Labuan Financial Services Authority
30 April 2025
LABUAN IBFC SECTORAL BUSINESS PERFORMANCE
- Company incorporations building on upward momentum - Company incorporations grew by 9%, with 627 new registrations compared to 575 in the previous year. More than 60% of the total Labuan companies were of Asia and Pacific origins, affirming the Centre’s growing prominence in the region.
- Highest premiums underwritten for captive insurance since 2019 - Labuan captives expanded with a 16% growth in new entities licensed; and 24% increase in new cells established. The growth was driven by new emerging business lines comprising workmen’s compensation and professional indemnity covers. The sector posted an 8.5% topline growth, reflecting a five-year high premium volume to reach USD677.4 million. Non-Malaysian insurance business accounted for 58% of the sector’s portfolio, predominantly from the Asia-Pacific and Far East regions. These positive developments are testaments to Labuan IBFC’s thriving captive market as the second largest in Asia.
- Islamic finance recorded stellar growth, with the market value of Shariah-compliant securities tokens (RAMZ) rising 21-fold to USD1.05 billion - This reflected the emerging technologies such as AI and blockchain; and a shift toward digital tokenisation for cross-border investments and fundraising. The development was also facilitated by the introduction of Labuan Islamic Digital Asset Centre (IDAC) initiative as part of the Centre’s flagship for digital Islamic finance. Labuan IBFC’s innovation were recognised as the ‘Best International Jurisdiction for Islamic Banking & Finance 2024’ which was awarded by Global Islamic Finance Awards (GIFA). Greater traction is expected with the granting of new tax exemptions in October 2024 for Labuan digital takaful operators.
- More than doubling of new oil and gas lease assets to reach USD815.9 million - Labuan leasing sector continued its upward trajectory in 2024 with aviation leasing continuing as the key driver, contributing more than 60% of the total lease assets or USD36.8 billion. Subsequent leasing transactions drove an impressive 69.3% growth in total lease revenue and 152% bottom-line increase to reach USD654.6 million.
- Labuan capital market expanded in response to growing demand on fund management and digital financial solutioning - Labuan fund management segment recorded more than threefold profitability, mainly driven by higher incomes from professional fees. Riding on the capital market vibrancy, the securities licensee segment nearly tripled its revenue to reach USD9.6 million.
- Wealth Management recorded double-digit growth in new Labuan foundations-Growing interest from high-net-worth individuals continued to drive higher demands for Labuan wealth management structures particularly for estate planning and asset preservation. Labuan foundations grew by 24% bringing the total to 237.
- Triple-Digit Growth in New Labuan Trust Companies – in tandem with the positive company incorporation trends, the trust and corporate services had expanded during the year with six new entrants. Fuelled by strong topline growth, the sector’s income increased by nearly a third to USD40.8 million with a profitability hike of 86%.
In his address during the launch, the Director General of Labuan FSA, Nik Mohamed Din Nik Musa highlighted, “2024 signifies a defining year for Labuan IBFC, depicting its resilience and relevance in the international arena. The Centre’s sustained growth strengthens its standing as a trusted and forward-looking jurisdiction in Asia. Beyond financial achievements, Labuan IBFC has been contributing and would continue to spur economic benefits to Labuan Island. The Centre will continue to reinforce this synergy and support the island’s broader development agenda.”
Nik Mohamed Din also highlighted that with Labuan IBFC’s 35th anniversary being commemorated this year, Labuan FSA would be formulating its forward-looking charting with five key priorities focused on enhancing inclusivity and fostering greater synergy:
- Driving market innovation and harnessing digital advancement to strengthen key business sectors;
- Achieving a positive Financial Action Task Force (FATF) rating in the 2024/2025 Mutual Evaluation;
- Strengthening regulatory and supervisory frameworks, including deployment of Sup-Tech approach;
- Enhancing Labuan IBFC’s international visibility and market standing; and
- Advancing organisational automation to further improve delivery efficiency.
Labuan FSA remains committed to safeguarding the Centre’s integrity, ensuring high standards of transparency and market confidence. It will continue to collaborate with the Government, the industry and stakeholders to unlock new business opportunities and further propel Labuan IBFC’s growth momentum to the next level.
30 April 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
