Labuan International Business And Financial Centre Perseveres Amidst Global Challenges And Broadened Its Footprint In The Asia Pacific Region
LABUAN IBFC: "25-YEAR JOURNEY AND CONTINUED GROWTH"
Labuan, 18 July 2016 – The Labuan Financial Services Authority (Labuan FSA) announced the release of its Annual Report for 2015 (AR2015) which highlighted Labuan International Business and Financial Centre's (Labuan IBFC) continued growth trajectory in 2015 and its strengthened position as a viable IBFC in expanding its foot print in the Asia and the Pacific region. The AR2015 also reported on Labuan FSA's financial position for the year ending 31 December 2015.
Amidst a modest global economic recovery, Labuan IBFC achieved another year of growth momentum, albeit at a lower growth rate, fuelled by robust business policies and continued intermediation enabling investors to tap into the business opportunities in the ASEAN market, strategically positioning Labuan as the investment gateway to the region. While Labuan IBFC operates in a conducive business environment, Labuan FSA ensures that the laws and regulations governing the IBFC are in conformity with internationally recognised standards on transparency and sound regulatory requirements, maintaining a well regulated environment for legitimate and genuine businesses to operate in.
In the course of 2015, the centre achieved several notable achievements highlighted below:
Deepening and broadening its footprint in Asia and the Pacific region
A total of 836 new companies were incorporated for the year under review. More than 70% of the companies originated from Asia reflecting that Labuan IBFC remains a favorable destination for multinational companies looking to expand into the Asia-Pacific markets; Two new banking licences were granted in 2015. The banks' total deposit rose 17.9% to USD10.8 billion, signifying investors' greater confidence in placing funds in Labuan IBFC while Islamic financing increased significantly by 55% to USD1.8 billion compared to USD993.3 million a year before. Non-residents dominated 77.3% of total Islamic financing. The banking sector boosted its profit before tax to USD620.6 million, an increase of 34.6% from 2014; A total of 16 new insurance and insurance-related licences were approved, including entrance of insurance entities from the Middle Eastern countries of Qatar and United Arab Emirates, as well as Switzerland. Overall, the Labuan insurance sector has a strong margin of solvency of 5.7 times above the minimum regulatory requirement and the industry capitalisation also increased to USD832.3 million...
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