Labuan, 31 March 2026 – The Labuan International Business and Financial Centre (IBFC) has strengthened its global standing, advancing to 55th place in the Global Financial Centres Index (GFCI 39), up from 60th previously. Ranked among 120 financial centres worldwide, Labuan IBFC’s stronger performance reflects its expanding international profile, strengthened competitiveness, and driven by its forward-looking development trajectory.
The GFCI is a globally recognised benchmark for assessing the competitiveness of financial centres and is widely regarded as one of the most authoritative assessments of the world’s leading financial hubs.
In GFCI 39, Labuan IBFC recorded several notable outcomes, including those that are widely recognised as key indicators of its growing strength and competitiveness:
- Labuan IBFC is among the top six Asia Pacific financial centres demonstrating upward movement in the Index, a commendable achievement that positions Labuan’s rising prominently in the region.
- Additionally, the Centre has progressed from the International Specialist category to International Contender category, reflecting its growing influence, broader market capabilities, and increasing appeal as a globally competitive financial hub. This move also marks its expansion beyond a specialised focus and strengthens its presence across a wider range of financial services.
- Beyond the main GFCI ranking, Labuan IBFC is also recognised for its FinTech Offering, securing 37th place globally, placing it ahead of several major financial centres in the region, underscoring its growing innovation capabilities and leadership in financial technology.
- Labuan IBFC is further recognised as one of the top 15 financial centres with a Reputational Advantage, reflecting the awareness of the Centre’s strengths and the confidence it inspires among global investors.
Beyond its comprehensive range of offerings, Labuan IBFC is increasingly recognised as a safe, credible, and strategically located gateway for cross-border fund flows, particularly within Asia and emerging markets. This standing was further bolstered by Malaysia’s strong 2025 FATF Mutual Evaluation outcome, which highlighted the country’s significantly enhanced defenses against illicit finance, while also recognising Labuan IBFC as part of the broader strength of Malaysia’s AML/CFT/CPF framework.
Anchored by a business-facilitative regulatory framework, tax efficiency, and seamless cross-border structuring capabilities, Labuan IBFC is well-positioned to facilitate capital mobilisation, fund domiciliation, and wealth management activities for global investors. Its strong connectivity to Malaysia’s overall financial system further amplifies its value proposition, offering investors a distinctive dual financial ecosystem that blends international flexibility with domestic depth, stability and market access.
As an emerging hub for sustainable and climate-focused finance, Labuan IBFC is advancing innovative, future-ready solutions aligned with global ESG and Islamic finance trends. With offerings that include climate sukuk and a growing ecosystem of Islamic digital exchanges, Islamic digital banks, and dedicated sukuk platforms, the Centre is steadily strengthening its position at the forefront of ethical, value-based and impact-driven finance.
Affendi Rashdi, Director General of Labuan FSA, said, “Labuan IBFC is well-positioned to complement Malaysia’s broader financial ecosystem, reinforcing the nation’s global appeal as a destination of choice for international funds seeking stability, resilience, and strategic growth – all in one package.”
Labuan Financial Services Authority
31 March 2026
