Yang Berhormat Senator Datuk Seri Amir Hamzah Azizan,
Minister of Finance II, Malaysia

Yang Berhormat Dato' Indera Dr. Suhaili bin Abdul Rahman,
Member of Parliament for Labuan, Federal Territory

Yang Berbahagia Datuk Dr. Shahrazat binti Haji Ahmad,
Deputy Secretary General of Treasury (Investment), Ministry of Finance

Distinguished guests
Members of the Media
Ladies and Gentlemen

Assalamualaikum warahmatullahi wabarakatuh,
Good afternoon and ‘Salam Malaysia MADANI’

1. It is a true pleasure for me to welcome you today to Labuan as we celebrate a remarkable milestone - the 35th anniversary of the Labuan International Business and Financial Centre (Labuan IBFC). Your presence here today, especially in such strong numbers, speaks volumes of the mark that Labuan IBFC has made to the country as well as to the international community of Asia and beyond. To our guests from overseas and those discovering Labuan for the first time – welcome to our island gem. We hope your time here is not only professionally enriching but also leisurely unforgettable.

2. It’s a distinct honour to extend our heartfelt appreciation to our Guest of Honour, Yang Berhormat Senator Datuk Seri Amir Hamzah Azizan, Minister of Finance II. Thank you for joining us today and lending your presence to this milestone celebration. Your support is a powerful testament to the Government’s unwavering commitment to the growth of Labuan IBFC and the continued development of the island.

3. Today marks a defining chapter in the Labuan IBFC story. Since its inception in 1990, the Centre has grown, evolved, and stood firm through 35 years of change. The journey hasn’t always been smooth - global and regional financial upheavals of the past have tested our resilience time and again. But through it all, Labuan IBFC has endured, adapted and emerged stronger than ever. This anniversary isn’t just a celebration of longevity- in fact, it’s a tribute to the tenacity, vision, and collective strength that have brought us all here to witness.

4. In that spirit, I’d like to express my deepest appreciation to everyone who’s played a role in this journey - our industry leaders, ministries, government agencies, peer regulators, and market partners both at home here and abroad. Your strong support and commitment have been nothing short of key cornerstones of Labuan IBFC’s progress we see today. Indeed, this milestone is as much yours as it is ours.



Ladies and Gentlemen,

5. The 35th anniversary carries added significance – it coincides with Malaysia’s chairmanship of ASEAN. The timing is more than symbolic as it reinforces Labuan IBFC’s role as a dynamic, strategic financial hub that intermediates the Country with Asia as well as the international business at large. As Malaysia leads the shaping of ASEAN’s future, Labuan IBFC is poised to strengthen the nation’s economic linkages across the region and deepen its footprints in ASEAN markets.

6. Labuan IBFC’s regional relevance was further affirmed in 2012 with the establishment of the ASEAN Infrastructure Fund (AIF) right here in Labuan. This milestone cemented our role in advancing ASEAN’s development priorities. By mobilising capital for projects that enhances connectivity and integration, Labuan IBFC has proven itself as a vital financial intermediation hub. And now, with Malaysia’s ASEAN Chairmanship, we are well-positioned to advance the region’s shared vision of deeper economic integration and sustainable prosperity.

7. Building on this momentum, Labuan IBFC’s strategic role extends across the BIMP-EAGA subregion – covering Brunei Darussalam, Indonesia, Malaysia, and the Philippines. Strategically positioned at its heart, Labuan IBFC is a natural gateway for trade, investments, and financial intermediation. By enabling businesses to tap into wider markets, mobilise capital, and foster cross-border partnerships, Labuan IBFC continues to play a pivotal role in catalysing regional business growth and integration.

8. Labuan IBFC is also charting a new blue ocean for ASEAN with the BIMP-EAGA subregion through the “BIMP EAGA Digital Wallet Initiative’’. This is a bold step toward promoting financial literacy and nurturing a culture of savings. As part of this effort, the Labuan Digital Exchange will issue digital tokens to residents across BIMP EAGA enabling them to hold, invest, or transact digitally. This innovative move not only fosters long-term digital savings but also advances financial inclusion and empowers ASEAN communities to participate in the region’s expanding digital economy.

Ladies and Gentlemen,
9. Over the past six decades, offshore jurisdictions have undergone a profound transformation. Once narrowly perceived as tax havens, many have evolved into sophisticated, innovative and effective business conductive market, making them well-managed and credible international financial hubs. Labuan IBFC’s own journey roughly mirrors the global evolution well. When it was first established, the financial landscape was simpler - defined by limited technology and clear market boundaries. Today, finance is borderless, shaped by digital innovation, governed by rising regulations, and coloured by geopolitical dynamics. Labuan IBFC has grown in both scope and stature - from a modest Offshore Unit under helm of Bank Negara Malaysia, to a full-fledged, reputable IBFC we have now.

10. Labuan IBFC’s journey has been shaped by a series of transformative milestones - from expanding its financial offerings, modernising its legal framework, and strengthening regulatory standards; to aligning with international requirements and embracing digital innovation. These advances have firmly positioned Labuan IBFC as a well-regulated, forward-looking Centre with international credibility which stands shoulder-to-shoulder with globally renowned international centres.

11. Today, Labuan IBFC is home to nearly 5,000 companies which included over 800 licensed entities from 124 countries – a factual testament of its market footprint. Its digital financial services (DFS) continue to expand with more than 100 providers across digital banking, insurtech, crypto asset trading, and digital exchanges. Labuan IBFC now supports not only conventional digital businesses, but also for Islamic digital products and intermediation, in the likes of asset tokenisation and digital custody. With such innovation-capacity ready, Labuan IBFC has and will continue to advance Malaysia’s vision for a digitally resilient ASEAN through its role as a catalyst for Asia’s digital economy.

12. Labuan IBFC has long been a somewhat trailblazer for international Islamic finance - from pioneering sukuk issuances in its early years to driving financial innovation in the current digital era. A notable milestone is the launch of the Islamic Digital Asset Centre (IDAC), which positions Labuan IBFC as a gateway for digital-based fundraising and investments, which are both ESG-aligned and Shariah-compliant. IDAC has led breakthroughs in asset tokenisation, including successful listing of Shariah-compliant securities tokens (RAMZ), now with a collective value of USD1.5 billion. In fact, IDAC had also been pivotal in introducing landmark initiatives such as the world’s first Shariah-compliant blockchain hub masterplan and the issuance of world’s first Climate Sukuk. Happy to share that the said blockchain hub masterplan was in fact launched by YB Minister of Finance II last year. Together, these efforts are seamlessly aligned with the 13th Malaysia Plan and the National Blockchain Roadmap 2021–2025. In short, Labuan IBFC’s leadership in Islamic finance innovations are blending well with our national digital aspirations.

13. You will all agree that this business diversification indeed demonstrates Labuan IBFC’s international visibility. But staying relevant in an increasingly competitive international business landscape calls for sharper specialisation and unique value propositions. As global investors seek niche solutions under stable, facilitative regulation; agile market developmental strategies will be key to unlocking new growth potential.

14. This anniversary is marked by another proud milestone as Labuan IBFC makes a debut in the Global Financial Centre Index (GFCI) – a leading global benchmark for assessing and ranking the competitiveness of international financial centres. With its first-ever inclusion in the GFCI, Labuan IBFC is ranked in the middle-tier placement at 60th among 120 international financial centres worldwide, – it is a strong starting point that reflects our growing global prominence and setting the stage for continued improvement in the years ahead. I am pleased to share several key highlights on Labuan IBFC’s recognition in report:

• Listed among the Top 16 Global Financial Centres projected to grow in significance over the next 2-3 years;
• Placed among Top 15 Centres with High Reputational Advantage; and
• Labuan IBFC has been recognised as a “Relatively Deep” centre within the category of International Specialists — a distinction that reflects the maturity, diversity, and growing sophistication of our niche offerings in cross-border financial services.

Congratulations to the industry and all stakeholders for reaching this remarkable height together.

15. Beyond elevating the island’s international profile, Labuan IBFC has also contributed to Labuan Island’s own social-economic development. By attracting international business setups, it has created local employments, supporting the growth of professional intermediaries and retail businesses. This symbiotic effect has generated and would continue to boost economic spillovers to the island.

Ladies and Gentlemen,

16. As Labuan IBFC marks 35 years of growth, our objective remains clear: To sustain its position as a premier international financial centre. The Labuan IBFC Strategic Roadmap 2022-2026 now in its fourth year, has reached 80% completion. With its conclusion on the horizon, Labuan FSA is already shaping the next 5-year blueprint to chart the Centre’s future. Our focus would be deepening the niche sectors and exploring new growth potentials aimed at strengthening intra-ASEAN linkages and intermediating the region with the broader Asia economy.

17. Labuan IBFC is committed to developing a vibrant capital market platform - one that fuels innovation, facilitates cross-border financial flows, and unlocks opportunities for regional and global players. To this end, we will continue to engage the Labuan IBFC industry and relevant stakeholders to shape its future. In aligning to the Government’s national initiatives such as special financial zones, fintech incentives and new investment schemes, Labuan FSA will continue to collaborate with peer regulatory authorities, including Bank Negara Malaysia, Securities Commission. The idea is for Labuan IBFC to complement the Government’s efforts in advancing Malaysia’s global standing and driving long-term economic growth of the nation.

18. On a lighter note, I would like to share the Malaysia Happiness Index 2024 - recently released by the Department of Statistics of Malaysia (DOSM). The report cited an encouraging national score of 7.60, placing Malaysians in the “Happy” category. Interestingly, Labuan scored a 7 compared to Kuala Lumpur (7.2) and Putrajaya (7.55), while Terengganu led the ranking with 8.64. Compared to the 2021 Happiness Index, Labuan was the “happiest” state with a score of 9.29, well above the national average of 6–7. These figures remind us that well-being must go hand in hand with economic progress. In that spirit, Labuan FSA will continue working closely with local agencies, including Labuan Corporation to strengthen community engagement, enhance social initiatives, and reaffirm Labuan’s standing as a vibrant and fulfilling place to live and work. In fact, in January this year we had established the “Labuan IBFC for ESG” (better known as “LiFE”). As a collaborative platform between Labuan FSA and the four Labuan industry associations to champion sustainability which includes promoting socio-economic pursuits, I believe the LiFE joint-committee can also do their part in building a more “happy” Labuan.

Ladies and Gentlemen,

The future is digital, inclusive, and without borders. As we look ahead, let us remain bold in our aspirations and unwavering in our commitments. Inspired by our journey, anchored by our values, and united in purpose, let us all together shape the next chapter of Labuan IBFC - one that is Sustainable, Inclusive, and Future-ready.

19. With that, I thank you for being part of this celebration and Labuan IBFC’s progressive journey for the next 35 years and beyond!

Wabillahi taufiq walhidayah, wassalamualaikum warahmatullahi wabarakatuh.