Welcoming Remarks by Mr Affendi Rashdi, Director-General of Labuan FSA at The Labuan International Finance Lecture Series 2025
THE LABUAN INTERNATIONAL FINANCE LECTURE SERIES 2025
Welcoming Address
Affendi Rashdi
Director-General, Labuan FSA
28 November 2025
Members of Authority, Labuan FSA
Chairmen of Associations,
Distinguished guests,
Members of the Media,
Ladies and Gentlemen
Assalamualaikum warahmatullahi wabarakatuh,
Salam Sejahtera and a very good morning,
1. It is great pleasure that I welcome you to the Labuan International Finance Lecture Series 2025. Over the years, Lecture Series has become firmly established as a landmark event in the calendar of Labuan IBFC - signifies the importance of this long-standing platform in bringing together of minds to share new areas and innovative ideas that serve as catalysts in driving the Labuan IBFC into the next phase of development.
2. I am honoured to be given the opportunity to address this distinguished gathering of industry practitioners and experts. Your presence makes this event and our hosting of the Labuan International Finance Lecture Series more meaningful in our effort as we continue building Labuan IBFC as a centre for innovative solutions that support long-term value creation, inclusivity and positive impact.
3. Today’s lecture theme “Synergising ESG, Islamic Finance and Digital Pathways for Labuan IBFC” reflects the dynamics of the global financial landscape, which is at a pivotal moment where sustainability imperatives, technological innovation, and ethical, forward-looking finance are increasingly converging.
4. This convergence is fundamentally reshaping how capital is allocated, risks are assessed, and long-term value is defined – creating opportunities for financial centres like Labuan IBFC to take a proactive role. Labuan IBFC is not merely adapting; it is positioning itself as a regional hub for ESG-aligned, Shariah-compliant, and digitally enabled financial ecosystem that drive sustainable growth and innovation. This aligns closely with Malaysia’s advancing ESG journey, where our nation is progressively implementing sustainability and climate-related reporting standards, supported by regulators and initiatives such as Bursa Malaysia’s enhanced disclosures and the JC3 Climate Finance Innovation Lab.
Ladies & gentleman,
Chairmen of Associations,
Distinguished guests,
Members of the Media,
Ladies and Gentlemen
Assalamualaikum warahmatullahi wabarakatuh,
Salam Sejahtera and a very good morning,
1. It is great pleasure that I welcome you to the Labuan International Finance Lecture Series 2025. Over the years, Lecture Series has become firmly established as a landmark event in the calendar of Labuan IBFC - signifies the importance of this long-standing platform in bringing together of minds to share new areas and innovative ideas that serve as catalysts in driving the Labuan IBFC into the next phase of development.
2. I am honoured to be given the opportunity to address this distinguished gathering of industry practitioners and experts. Your presence makes this event and our hosting of the Labuan International Finance Lecture Series more meaningful in our effort as we continue building Labuan IBFC as a centre for innovative solutions that support long-term value creation, inclusivity and positive impact.
3. Today’s lecture theme “Synergising ESG, Islamic Finance and Digital Pathways for Labuan IBFC” reflects the dynamics of the global financial landscape, which is at a pivotal moment where sustainability imperatives, technological innovation, and ethical, forward-looking finance are increasingly converging.
4. This convergence is fundamentally reshaping how capital is allocated, risks are assessed, and long-term value is defined – creating opportunities for financial centres like Labuan IBFC to take a proactive role. Labuan IBFC is not merely adapting; it is positioning itself as a regional hub for ESG-aligned, Shariah-compliant, and digitally enabled financial ecosystem that drive sustainable growth and innovation. This aligns closely with Malaysia’s advancing ESG journey, where our nation is progressively implementing sustainability and climate-related reporting standards, supported by regulators and initiatives such as Bursa Malaysia’s enhanced disclosures and the JC3 Climate Finance Innovation Lab.
Ladies & gentleman,
5. Labuan IBFC is fully aligned with this national vision. The Labuan IBFC Sustainability Taxonomy (LiST) issued in July 2024 provides a structured classification of sustainable economic activities, modelled after ASEAN and EU taxonomies. It ensures that Labuan financial institutions can align their operations with internationally recognised ESG standards. Beyond reporting compliance, LiST also aims to build credibility, attract responsible capital, and enhance Labuan’s global competitiveness.
6. Building on this objective, in January 2025, Labuan FSA introduced the Labuan IBFC for ESG (LiFE) initiative - a regulator-industry collaborative platform designed to coordinate and accelerate ESG adoption across the Centre by focusing on three focus areas: Innovative Sustainable Products; Strengthened Governance and Risk Oversight, as well as Capacity Building for industry participants.
7. A natural extension of these efforts is the application of Islamic finance principles to deliver tangible, sustainability-focused outcomes. Labuan IBFC is leading in this tangible innovation. A landmark milestone was achieved with the world’s first RMB 200 million Climate Sukuk, integrating Shariah principles with carbon credit-linked assets and digital tokenisation mechanisms, generating verified carbon credits from energy-efficiency projects and funding ESG-certified initiatives.
8. Building on this momentum, the 2026 National Budget positions Labuan IBFC as a Digital Islamic Finance Hub, introducing a Global Tokenised Sukuk initiative to enhance transparency and accessibility, cementing Labuan’s leadership in digital Islamic finance and innovation.
9. As Labuan IBFC celebrates its 35th anniversary this year, we are reminded of how far we have come. From an offshore centre to a globally recognised international business and financial centre, Labuan has continuously evolved with the global changing business landscape to meet investors’ expectations, embrace technology advancement and disruptions that have been foremost in driving the changes in the financial world. Undeniably, these evolving trends are also forcing the industry to re-assess and re-strategize their business and operating models. As a result of greater expectations from the regulatory changes, it is imperative for service providers to be able to respond swiftly and effectively adopting to the new rules of the game.
10. Looking ahead, the future of finance is not just about innovation, it is about purpose: aligning capital with conscience, growth with sustainability, and technology with trust. Today’s discussions offer a timely platform to explore how ESG, Islamic finance, and digitalisation can be synergised to unlock new opportunities for sustainable growth.
Ladies and Gentlemen,
11. With that I end my remarks. I am sure our distinguished speakers can shed a better understanding on the current global trends, challenges and opportunities for us to be aware of and be more prepared in moving forward. On behalf of Labuan FSA, I would like to thank all of you for your presence here today.
Thank you.
Wabillahi taufiq walhidayah, wassalamualaikum warahmatullahi wabarakatuh.
6. Building on this objective, in January 2025, Labuan FSA introduced the Labuan IBFC for ESG (LiFE) initiative - a regulator-industry collaborative platform designed to coordinate and accelerate ESG adoption across the Centre by focusing on three focus areas: Innovative Sustainable Products; Strengthened Governance and Risk Oversight, as well as Capacity Building for industry participants.
7. A natural extension of these efforts is the application of Islamic finance principles to deliver tangible, sustainability-focused outcomes. Labuan IBFC is leading in this tangible innovation. A landmark milestone was achieved with the world’s first RMB 200 million Climate Sukuk, integrating Shariah principles with carbon credit-linked assets and digital tokenisation mechanisms, generating verified carbon credits from energy-efficiency projects and funding ESG-certified initiatives.
8. Building on this momentum, the 2026 National Budget positions Labuan IBFC as a Digital Islamic Finance Hub, introducing a Global Tokenised Sukuk initiative to enhance transparency and accessibility, cementing Labuan’s leadership in digital Islamic finance and innovation.
9. As Labuan IBFC celebrates its 35th anniversary this year, we are reminded of how far we have come. From an offshore centre to a globally recognised international business and financial centre, Labuan has continuously evolved with the global changing business landscape to meet investors’ expectations, embrace technology advancement and disruptions that have been foremost in driving the changes in the financial world. Undeniably, these evolving trends are also forcing the industry to re-assess and re-strategize their business and operating models. As a result of greater expectations from the regulatory changes, it is imperative for service providers to be able to respond swiftly and effectively adopting to the new rules of the game.
10. Looking ahead, the future of finance is not just about innovation, it is about purpose: aligning capital with conscience, growth with sustainability, and technology with trust. Today’s discussions offer a timely platform to explore how ESG, Islamic finance, and digitalisation can be synergised to unlock new opportunities for sustainable growth.
Ladies and Gentlemen,
11. With that I end my remarks. I am sure our distinguished speakers can shed a better understanding on the current global trends, challenges and opportunities for us to be aware of and be more prepared in moving forward. On behalf of Labuan FSA, I would like to thank all of you for your presence here today.
Thank you.
Wabillahi taufiq walhidayah, wassalamualaikum warahmatullahi wabarakatuh.
Mr Affendi Rashdi
Director-General, Labuan FSA
