LABUAN INTERNATIONAL BUSINESS AND

FINANCIAL CENTRE

M A R K E T R E P O R T

2020
www.labuanibfc.com
 CONTENTS

MA RKET REPO RT 2 0 2 0
EXCLUSIVE
02 INNOVATION,
INTERMEDIATION AND
INCLUSION
Intermediating Asia in the new norms

HIGHLIGHTS OF THE YEAR

HIGHLY
COMMENDED
04 COMPANIES 14 INSURANCE
Moderate Improved performance
incorporation trend results, driven by
in the face of a captive business.
challenging year. Number of
Protective Cell
150 % Companies

26 LEASING 30 DIGITAL MARKET 35 FINANCIAL

Continued market Increasing digital EXCHANGES
rationalisation business set-up with Transitioning
to cater for new innovative solutions. towards listing and
requirements. trading of digital
30
Licences
Newly
Approved for assets.
DFS

06 BANKING 22 TRUST COMPANIES 24 INTERNATIONAL

28 WEALTH 34 CAPITAL MARKET COMMODITY
MANAGEMENT TRADING

INSIGHTS
12 Well-Integrated and Connected 20 Navigating the Market through the
Labuan IBFC Challenges of COVID-19 Pandemic

32 Pragmatic and Evolving Digital 36 Strategic Direction of Labuan IBFC

Regulation 2021-2023

LABUAN ISLAND
38 Supporting Labuan Community in Times of Need 40 The History of Labuan and the Trade Matrix
43 Labuan Island Key Statistics

01
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

INNOVATION,
INTERMEDIATION AND
INCLUSION
Labuan FSA is pleased to present Market Report 2020 for the Labuan International
Business and Financial Centre (Labuan IBFC). This third annual edition is aimed
at providing our stakeholders with an update of the Centre’s developments and
accomplishments over the past year while looking ahead to the various initiatives to
usher in new opportunities for 2021.

T
he COVID-19 pandemic posed an prospects ranging from conventional banking
unprecedented challenge to the and insurance licensees to those from key
global market in 2020. The economic growth verticals such as digital financial
repercussions of the outbreak were profound services and captives.
as it had extended far beyond a public health
With this continued support and confidence
crisis to having far-reaching impact on
in the jurisdiction, Labuan IBFC continued
international economic activities, disrupting
to be an attractive market for financial
global business and supply chains. The
intermediation in the region with more than
pandemic had in fact exacerbated an already
800 licensed financial institutions operating
fragile international market, due to persistent
currently. For 2020, the market saw inflow of
geopolitical tension and the volatile oil market
new entrants amidst the current challenging
of recent years.
times. Indeed this holds testament to the
For Labuan IBFC, the year 2020 marked Centre’s growing prominence in Asia.
the Centre’s 30 th anniversary. It was also
Adaptability has never been more important
a tumultuous year navigating through
than in 2020 and beyond, in particular in
the challenging pandemic and economic
addressing new challenges. Both the industry
uncertainties. Despite the ongoing anxiety
and the Authority had acclimatised to the new
about the future, there are solid reasons for
norms which included adopting remote working
cautious optimism on the standing and growth
arrangements via digital solutions. With this,
of Labuan IBFC going forward. Faced with the
the Centre continued to operate with minimal
spillover implications from prevailing global
disruptions and served clients seamlessly across
conditions, Labuan IBFC remained resilient
markets despite travel restrictions.
in 2020 underpinned by its strong ecosystem
and relatively stable financial market. This Agility was another factor that was also key
is a culmination of the various initiatives for the Authority in 2020. With increasing
that the Centre has pursued in the past to adversity in business due to the pandemic,
I NT RO D U CT IO N

achieve greater sustainability, innovation, the Authority took pre-emptive measures by

and the trust of international investors, issuing temporary regulatory reliefs. To a
despite external adversities. In fact, it was certain extent, this alleviated some of the
encouraging to observe that Labuan IBFC regulatory burdens and operational difficulties
continued to draw interest from international while the industry weathered through the

02
 MA RKET REPO RT 2 0 2 0
business strains caused by the pandemic. In solid reputation in international assessments
turn, the said reliefs provided avenues for as well as amongst peer international financial
the Labuan financial institutions to offer centres. These are the features that make the
flexibilities to their own business in order to Centre an attractive, business facilitative hub,
better facilitate clients. With such prompt and and a well-regulated financial centre amongst
market sensitive measures, the market and global investors.
prospective investors were assured of Labuan
As part of the next phase of market maturity,
IBFC’s standing as a stable and business-
it has been encouraging to observe cross-
conducive Centre.
pollination of businesses between Labuan
Alignment to global developments is important entities. Indeed, it is only natural for the
to ensure Labuan IBFC industry continues to Centre to grow further with the increasing
thrive. For 2020 and beyond, we see a new intra-Labuan business activities as more
competitive landscape lined with new business synergies between market players were
potential and accelerating innovation ride realised. This augurs well for the Centre as it
on these dynamics and welcomed digital not only fosters closer collaboration between
propositions from prospects that were offered different sectors but also enhances the
via the Centre. There has been a strong influx business vibrancy of the market.
of new fintech-related business, and this
For 2021, Labuan IBFC will continue to open its
positive momentum is expected to continue.
doors to international businesses and investors
It is encouraging to note that these digital
looking to operate in a sound and stable
prospects range from global corporations, small
business environment. With the challenges
and medium sized enterprises and technology
and opportunities looming ahead, appropriate
providers – all looking to expand their digital
strategies with the theme “Enhancing the
business reach in Asia via Labuan IBFC.
Sustainability and Relevancy of Labuan IBFC”
Since the Centre’s inception, the Labuan have been formulated to propel the Centre
financial industry has evolved and progressed to the next level. The growth prospects in the
into a stable and secure international financial near term have remained cautiously optimistic.
centre with growing prominence. Labuan With the international market already on its
IBFC takes pride in its pragmatic market path of recovery with the initiation of mass
approach which emphasises on proportionality COVID-19 vaccinations, the global economy
in regulating and supervising the market will shift towards a positive outlook - giving
based on risk materiality. This has worked the market renewed confidences and growing
well for the Authority’s balancing act for the positivity. Labuan IBFC will continue to be
past three decades between maintaining proactive and ever ready to seize opportunities
I NT RO D U CT IO N

market stability and orderliness, versus as the international business climate improves in
facilitating business growth and innovations. 2021. With the firm support of the Government
All these were undertaken with due regard and the industry, Labuan IBFC will continue to
to conformity to international standards and intermediate business and investment flows
best practices, thereby securing Labuan IBFC’s within Asia.

03
 COMPANIES
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

2020 was a challenging year for many international financial centres including
Labuan IBFC; confronted with the ongoing changes in the international tax
requirements, and roiled by the unprecedented COVID-19 pandemic crisis.
For Labuan IBFC, the global economic slowdown and the adoption of the revised
tax framework, covering economic substance requirements, had led to a decline in
Labuan company incorporations. This decline coupled with higher deregistration had
moderated the number of active Labuan companies.

H
owever, as institutions and investors a cost-efficient market, comprehensive legal
conform to international fiscal norms, the and regulatory framework, and stable business
new tax policy will reinforce Labuan IBFC’s environment are equally if not more important.
reputation in the longer term vis-à-vis its peer With the preference of such attributes in the
jurisdictions. Prospects reliant are not solely Centre, Labuan IBFC will continue to enhance
on tax incentives when selecting their business its ecosystem and offerings in order to remain
base because other influencing factors such as attractive to international investors.

NEW INCORPORATIONS NEW INCORPORATIONS

BY TYPES
1,059
969 994
941
MA3* 901
930 981

790
856
24.4%
NON-TRADING
664

70.0%
TRADING

5.6%
BOTH
2016 2017 2018 2019 2020
* 3-Year Moving Average

• Labuan companies comprise trading and non-trading entities. In 2020, new incorporations declined
by 32.3% to 664, recording fewer new trading companies.

• More than half of the new incorporations were from Malaysia, China and Japan; with 40.4%, 7.8%
and 5.4% share of total incorporations, respectively.

• During the year, the number of deregistration increased sharply to 1,020 which was attributable
C OM PA NI ES

to business rationalisations in response to the Labuan tax changes. As a result, operating Labuan
companies declined by 5.8% to 5,802 entities.

04
OPERATING COMPANIES

MA RKET REPO RT 2 0 2 0
Total
16,905 Registered
16,241 Companies
15,260
14,201
13,260
12,470
11,634
10,354 6,031 6,158
9,487 5,796 5,844 5,789 5,802
8,708 5,761
484 Both
5,124 1,807 Non-Trading
4,675
4,289
3,511 Trading

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

672

386 449
247 242
127 Implied net increase
48 28 of operating companies

- 83 Implied net decrease

of operating companies
-356

By Country By Region

Countries Market Share

Malaysia 43.0% FAR EAST EUROPE

Singapore 6.2%
Japan 5.1% ASIA AND
14.6% 12.0%
Virgin Islands, British 4.7% THE PACIFIC

59.7%
China 4.2%
United Kingdom 3.5%
Hong Kong 2.4% MIDDLE EAST
AMERICA

10.4% 3.3%
Australia 2.2% AND AFRICA
India 2.1%
Taiwan, Province of China 1.7%
Others 24.9%

• Labuan trading companies constituted 68.8% or • Asia and the Pacific region remained as the
3,995 entities. The remaining 1,807 entities were major market segment; mainly from Malaysia,
set up for the purpose of investment holding. Singapore, Australia, India and Indonesia.
C OM PA NI ES

05
 BANKING
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

The global market uncertainty in 2020 had adversely affected international banking
business. Labuan financing and investments were also impacted as reflected by the
significant provisioning for possible loan defaults and investment impairments. The
market also saw a dip in resident loans due to the non-deductibility tax requirement
imposed on resident borrowers as part of the revised Labuan tax framework. These
factors had reduced the overall banking profitability for the year.

D
espite the challenging environment, the institutions in the Labuan market which included
Labuan banks demonstrated high business four which are focused on digital business.
agility and resilience by adapting to the
new challenging norms, as well as by ensuring Faced with the uncertainties in the international
that their operations remained sustainable. This banking business and regional economic outlook
included ventures into new offerings, especially in beyond 2020, Labuan banks would need to
the digital banking space. The emergence of the strategize and enhance their intermediation
Labuan digital banking framework had enriched role for the markets within Asia. Going forward,
the industry by enabling participations from Labuan IBFC players will certainly not be
non-bank institutions to offer innovative banking complacent but instead, intensify efforts to
services. In 2020, there were eight new banking capture business opportunities in the region.

TOTAL LOANS (In USD Billion)

13.4
14.3 12.9 12.0
8.9
11.1
10.3 8.5
8.9 8.1

19.4 19.8 19.8

17.7 18.9
16.7 17.2 16.8
15.7 15.9
BA N KI N G

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Resident Non-Resident

06
 MA RKET REPO RT 2 0 2 0
TOTAL ASSETS

49.4
USD BILLION

2.4 %

SOURCES USES

Amount due to financial 50.5% Loans and advances

69.3% institution/interbank 31.0% Balances due from head
borrowing offices and branches
17.4% Deposits 10.4% Cash and short-term
funds
2.3% Shareholders fund
6.0% Investments
11.0% Others 2.1% Others

• Total assets reduced by 2.4% to USD49.4 billion, • The COVID-19 situation has caused the Labuan
due to lower interbank placement. banks to exercise higher prudency. With greater
holding of more liquid assets (e.g. cash and
• Borrowings from head offices and financial short-term funds), the banks have improved
institutions remained as key sources of funding the medium to long term sustainability of their
for Labuan banks. This amounted to 69.3% investments.
or USD34.2 billion of the total funding with a
slight 4.7% decrease (2019: USD35.9 billion). • The sector’s growth prospect is expected to be
Cash and short-term funds increased by 52.2% positive, supported by continued interest in the
to USD5.1 billion (2019: USD3.4 billion). establishment of Labuan banking business.

61 • The banking industry further expanded with

the granting of eight new banking licences.
BA N KI N G

These comprised two commercial banks and

NUMBER OF BANKS six investment banks.

07
 LOAN PORTFOLIOS
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

ORIGIN OF BORROWER
BY REGION
(In %)

ASIA AND
THE PACIFIC

66.0 %
EUROPE

19.4 %
AMERICA

9.7%
FAR EAST

3.8 %
MIDDLE EAST
AND AFRICA

1.1 %

BY SECTOR
• The total loan portfolios contracted by
Market Share Sector 2.7% to USD25 billion with non-resident
22.0% Manufacturing borrowings contributing 67.5% or USD16.8
17.3% Property billion of the total portfolios.
12.1% Miscellaneous • Financing to all major sectors declined,
10.0% Transport and with the exception of property sector that
Communication grew by 25.7%, mainly for commercial and
9.9% Financial Services residential projects.
9.9% Utilities
7.8% Mining
BA N KI N G

4.8% Agriculture
3.9% Trading
2.3% Other Services

08
 MA RKET REPO RT 2 0 2 0
LOAN EXPOSURES
BY REGION
(In %)

ASIA AND
THE PACIFIC

75.2 %
Main Sectors
Manufacturing
Utilities FAR EAST
Transport and
Communication 3.6 %
Main Sectors
EUROPE Other Services

15.2 %
Property
Financial Services
Main Sectors
Property MIDDLE EAST
Financial Services AND AFRICA

1.6 %
Transport and
Communication

AMERICA Main Sectors

4.4 %
Mining
Utilities
Transport and
Main Sectors Communication
Trading
Transport and
Communication
Agriculture

DEPOSITS (In USD Million)

• The total customer
6,044.9 deposits increased by 7.8%
to USD8.6 billion due to
5,525.6
4,943.7 additional resident deposits
4,790.8
3,610.0 amounting to USD4.8
billion. This constituted
5,187.3
55.8% of the industry’s
4,003.7 4,350.9
3,369.3 3,788.4 total deposits.
BA N KI N G

2016 2017 2018 2019 2020

Resident Non-Resident

09
 NET INTEREST AND NON-INTEREST INTEREST EXPENSES TO INTEREST
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

INCOME/ (EXPENSES) (In USD Million) INCOME RATIO (In %)

576.2 520.7 537.3 511.3 485.3 69.1%
67.0%
56.2%
51.7%
46.7%
148.4

-22.7 -6 6.1 -37.0

-365.2
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Net Interest Income/ (Expenses)
Net Non-Interest Income/ (Expenses)

NON-INTEREST INCOME (In USD Million)

Market Share Description Amount Growth
100.0% Non-interest Income 548.2 -11.2%
43.3% Gains on Financial Instruments 237.2 -13.9%
24.8% Other Comprehensive Income before Taxation 136.0 446.1%
17.1% Fee and Commission Income 93.7 -25.5%
10.1% Impairment Reversals 55.2 -57.8%
4.7% Others 26.1 -57.0%

NON-INTEREST EXPENSES (In USD Million)

Market Share Description Amount Growth
100.0% Non-interest Expenses 913.4 94.60%
44.7% Losses on Financial Instruments 408.5 91.5%
36.5% Impairment Losses 332.8 160.7%
7.7% Administration Costs 70.3 8.9%
5.7% External Service Arrangement Costs 52.3 305.2%
5.4% Others 49.6 -2.5%

PROFITABILITY (In USD Million)

553.5 454.6 500.3 659.7 120.1

1.3%
1.1%
0.9% 0.9%
• The banking sector’s profitability declined
to USD120.1 million due to higher
0.2% provisioning for investment impairments
BA N KI N G

as well as loss on sale of securities and

derivatives.
2016 2017 2018 2019 2020
PBT ROA (%)
10
ISLAMIC BANKING

MA RKET REPO RT 2 0 2 0
NUMBER OF OPERATORS

FULL- FULL-
TOTAL FLEDGED FLEDGED

20
COMMERCIAL INVESTMENT WINDOWS
BANK BANK OPERATORS

3 1 16
TOTAL ISLAMIC ASSETS (In USD Billion)
3.1 3.2

2.3
1.9 1.9

2016 2017 2018 2019 2020

• Islamic banking assets declined to USD1.9 billion due to business rationalisation of certain banks.

Financing Deposits
TOTAL TOTAL

1,547.6 183.1
USD MIL USD MIL
22.6% ^8.5%

NON- NON-
RESIDENT RESIDENT RESIDENT RESIDENT
37.1% 62.9% 2.8 % 97.2%
574.8 972.8 5.2 177.9
USD MIL USD MIL USD MIL USD MIL

• The total financing of the Labuan Islamic banks decreased by 22.6% to USD1.5 billion (2019:
USD1.9 billion); non-resident borrowings accounted for 62.9%.
• The total Islamic deposits increased by 8.5% to USD183.1 million (2019: USD174.2 million)
with non-resident deposits contributing 97.2% of the total.

EMPLOYEE MALAYSIAN FOREIGNER • The banking

90.5 % 9.5 %
sector employed
COMPOSITION 507 employees,

507
BA N KI N G

comprising
mainly
459 EMPLOYEES 48 EMPLOYEES Malaysians.

11
 Well-Integrated and
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

Connected
Labuan IBFC
T
he renewed international focus on fighting tax the adaptation to international norms, legislative
evasion and avoidance has witnessed Labuan developments, and other uncertainties.
IBFC’s migration into the new tax framework
with enhanced requirements for economic substance. As Labuan IBFC marked its 30 years of establishment
Despite facing implementation challenges, Labuan in 2020, the Centre has been home to over 16,000
IBFC prevailed and remained vigilant about any companies with more than 800 licensed institutions.
factors that may have affected the well-being of A well-integrated financial ecosystem in Labuan
the Centre. Combined with the unprecedented IBFC provides for a conducive business environment
situation of COVID-19, Labuan IBFC has been agile for operations with the highest standards of
in addressing the economic challenges arising from integrity and ease of doing business.

• Establishment • Development • New legislations • Building up business

of Labuan FSA of regulatory • New niche momentum post
• Enhancement and supervisory structures COVID-19 and tax
of legislation frameworks • Influx of digital substance
• Establishment businesses • Reinforcing market
• Growth and • MOUs with key
diversification of marketing stability
arm IFCs
of business • Wider Asian • Enhancing digital-
• International • International business capture conducive ecosystem
memberships assessments • Greater • Attracting targeted
and cooperation • MOUs with peer international brands and facilitating
regulators cooperation and intra-Labuan business
• International info exchange • Strengthening roles
recognition • Enhanced and capabilities of key
international intermediaries
visibility and
acceptance
• Regulatory
upscaling
with greater
W EL L- IN T EG R AT ED A N D C O NNE CT E D L A BUA N IB FC

supervisory
intensity
• New tax
framework

2021 AND BEYOND

Enhancing Sustainability
and Relevancy

2010 - 2020
Business Expansion and
Strategic Repositioning
2000 - 2009
Effecting Regulatory and
Business Fundamentals

PRIOR TO 2000
Building the Foundation

12
As the world struggles with the pandemic and revolutionising offerings in Labuan IBFC.
the resulting economic fallout, Labuan IBFC also The Authority has always encouraged digital

MA RKET REPO RT 2 0 2 0
experienced a market exodus caused by recent changes innovation for business solutions that are tailored
to the tax framework. It will be critical for Labuan IBFC to current market needs, while at the same
to withstand these ripple effects, and focus to ensure time ensuring a conducive and safe operating
the sustainability and relevancy of the Centre in the environment for businesses.
coming years.
The launching of the new Labuan Digital Banking
Labuan IBFC is planning the following business Framework in 2020 would attract new players
strategies in the next three years: into the digital banking space well ahead of other
(a) Become the Asian Hub for Digital Revolution key international financial centres. This is in line
In order to remain relevant, organisations have with Labuan IBFC’s progressive and facilitative
had to digitally revolutionise their financial approach to financial innovations and creating
offerings to meet customer needs. This global a digitally-conducive environment. The Centre
development continues to attract new business continues to attract digital financial business
innovations and opportunities as evidenced by setups from Asia, and has broadened its reach to
the influx of digital financial service providers, attract new players from the region.

DIGITAL TRANSFORMATION IN LABUAN IBFC

30 digital financial services approved in 2020

Legal Innovations Policy Amendments

Complement
Labuan IBFC took progressive Labuan FSA is continuously
Labuan IBFC remains as approach by recognising the nature reviewing various business
the complementary market of all Labuan legacy licenses that guidelines holistically, to be in
for Malaysia with regard could be structured to be a digital line with developments that are
to regional digital financial variant, provided that all entry transforming international and
service setups. criteria, regulatory and supervisory regional marketplaces.
requirements could be met.

(b) Centre of Choice for (Re)Insurance and Self- (c) Bridging Economic Connectivity of Malaysia with
Insurance Business Asian Partners
Labuan IBFC is an ideal location for captive One of the key areas that drives Asia’s economic
formation and is currently being labelled as growth is the region’s dedication to enhancing
one of the fastest-growing reinsurance hubs in infrastructure investment and regional
Asia for self-insurance, registering more than connectivity to encourage international trade

W EL L- IN T EG R AT ED A N D C O NNE CT E D L A BUA N IB FC
200 insurance and risk management licensees. and foreign direct investment. Additionally, in
In addition, Labuan IBFC is among the few Free Trade Agreements (FTAs) made between
jurisdictions in the world to offer a variant of two or more countries, participant countries are
the protected cell company (PCC) for captives, given preferential market access to facilitate
and the only jurisdiction in Asia to offer both stronger trade and commercial ties. The recent
conventional and Shariah-compliant PCCs. FTA signed by Malaysia, namely the Regional
Comprehensive Economic Partnership (RCEP),
Snapshot of Captive Performance for Year 2020 is an agreement that broadens ASEAN’s
engagement with Australia, China, Japan, Korea
and New Zealand, and is aimed at establishing
Increase of 6% Premium a modern, comprehensive, high-quality, and
in captive set-ups growth of 9% mutually beneficial economic partnership that
(55 captive licences) to USD497.5 million will facilitate the expansion of regional trade
and investment as well as contribute to global
economic growth and development. With various
Labuan IBFC won the
‘Highly Commended’ FTAs signed by Malaysia, the Centre could
Growing interest from
award at the European become a conduit to facilitate cross-border
Far East region insurers to
Captive Awards 2020 under trades, investments, intermediation support
underwrite overseas risk the category “International services, financing or (re)insurance to companies
Domicile of the Year” under the FTAs.

13
 INSURANCE
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

The Labuan insurance industry remained resilient despite the economic effects from
the COVID-19 pandemic crisis. The Labuan insurance industry started 2020 on a
more positive note, exploring new business opportunities in the Asian market.

O
verall, the Labuan insurance industry transfers. Now, captives have become increasingly
demonstrated better business performance popular as an alternative risk mitigation tool. This
with higher profitability in 2020, supported by is due to the variety of ways it can be structured in
improved underwriting results driven by lower claims accordance with the risk appetite and the financial
experience. Total premiums underwritten recorded a affordability of business owners.
moderate growth, largely driven by captive business
followed by the Labuan reinsurance. Taking cognisance of the business disruptive
effects of the pandemic, Labuan FSA provided
In fact, the Labuan captive business in the form of flexibility to the insurance industry in the form
Protected Cell Companies (PCCs) has been gaining of temporary regulatory reliefs for the technical
traction as an efficient means of operating captives. computation of valuation of insurance/takaful
This could be attributed to a heightened understanding liabilities, as well as investment impairments. With
of self-insurance as part of a dynamic risk this, some of the regulatory compliance costs
management approach, and the realisation of its cost would then be alleviated for the Labuan insurers,
advantages on the back of the hardening (re)insurance thereby enabling them to have additional financial
market. With organisations’ growing exposures buffers. This would enable them to continue to
against emergent risks precipitated by the COVID-19 provide their services uninterrupted, and where
pandemic, among others, traditional insurance needed, offer their clients business facilitation
coverages have ceased to be the only means of risk during these trying times.

TOTAL GROSS PREMIUMS (In USD Million)

937.2
853.2 1,081.1
767.3 968.8
893.6
730.7
853.8
795.1
672.4

807.7 801.3 766.9 735.4

656.1 629.5 623.2
577.5 548.8 589.5

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Malaysian Others
I NS U RA NC E

• Total gross premiums recorded a marginal • Foreign business forms the larger share of
growth of 4.5% to USD1.6 billion, mainly from 60.9% or USD968.8 million of the underwritten
(re)insurance business. premiums.

14
TOTAL GROSS PREMIUMS

MA RKET REPO RT 2 0 2 0
(In USD Billion)

60.8% 31.2% 6.3% 1.7%

Reinsurers Captives Direct Lloyd’s
Insurers Underwriting
Managers
2020 1.6

2019 1.5

2018 1.7

2017 1.4

2016 1.4

By Region

FAR EAST MIDDLE EAST AND

16.8%
AFRICA

ASIA AND
THE PACIFIC USD 267.8 MIL
3.6%
USD 57.0 MIL

71.5% EUROPE AMERICA

7.2% 0.9%
USD 1,138.0 MIL

USD 114.8 MIL USD 14.4 MIL

By Sector
• The Fire sector remains
ENGINEERING MARINE the largest business with

11.1% 8.1%
34.1% market share
or USD543.1 million
FIRE of the total premiums

34.1%
USD 176.5 MIL USD 129.1 MIL underwritten.

• Under the Other Classes

USD 543.1 MIL MOTOR OTHER CLASSES sector, general liability

9.2% 37.5%
continued to show a
growth of 9.2%, with
USD197.1 million of
USD 146.1 MIL USD 597.3 MIL premiums recorded (2019:
USD180.4 million).

NUMBER OF INSURANCE AND • In 2020, fifteen new entities were approved, comprising
eight captives, four brokers, two general (re)insurers
INSURANCE-RELATED ENTITIES
I NS U RA NC E

221
and one underwriting manager.
• Thirteen entities surrendered or revoked their licences
due to business strategic decisions.

15
 NET RETENTION RATIO UNDERWRITING MARGIN
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

(In %) (In USD Million)

77.4 77.8 2020

Earned Premium Income 1,021.1
Net Claims Incurred 516.9
Commission 189.8
64.9 65.0 Management Expenses 60.7
63.1
60.9 Underwriting Margin 253.7

2019
53.5 Earned Premium Income 1,003.3
Net Claims Incurred 628.2
47.2
Commission 201.6
Management Expenses 52.3
40.2
Underwriting Margin 121.1

PROFITABILITY

2018 2019 2020

2018 2019 2020 • The industry’s overall profitability improved by 87.1% to

USD364.1 million in 2020 (2019: USD194.6 million) buoyed
Total by favourable underwriting performance.
Malaysian
Others
TOTAL ASSETS
ASSETS
• The industry’s net retention 2020 2019
ratio remained stable at
63.1%, with lower retention
24.0% Fixed Deposits/Money Market 24.3%
in Motor and Other Classes
sectors. 20.3% Investments 21.4%
15.2% Due from Ceding/Related Companies 15.8%
• Premium income of
USD1,021.1 million was 14.2% Cash and Bank Balances 13.8%
recorded in 2020, mainly 1.3% Fixed Assets 1.2%
due to better claims
experience. This resulted in 25.0% Others 23.5%
doubling of underwriting
profits amounting to • Total insurance assets grew by 9.9% to USD5.1 billion which
I NS U RA NC E

USD253.7 million. was mainly attributable to higher investments in fixed

deposits and money market instruments.

• Fixed deposits and money market instruments remained

the largest asset share of 24% or USD1.2 billion.

16
CAPTIVE BUSINESS

MA RKET REPO RT 2 0 2 0
2020 was a boon year for Labuan captive business. The Labuan captive sector continued to expand
with increasing demand for the varying structures that the Centre offers, ranging from pure single
captives, including mutual and association captives, to rental captives. Aside from the conventional
normal company structures, there have been more and more new Labuan captive setups in the form of
PCCs and Shariah-compliant takaful captives.
There is huge untapped potential in the Asian captive space. Based on a published survey1, many
captive managers have plans for expansion into Asia over the next five years. This reflects the
abundance of opportunities that exist for Labuan captive structures in the region. In addition, the
hardening reinsurance market combined with the existing COVID-19 pandemic, and the ensuing
regional economic slowdown, have driven many organisations to consider captives as means of
improving their risk management practices. Captives are expected to grow in popularity as commercial
insurance for certain specialised risks become increasingly less affordable or limited in scope, due to
more-selective underwriting by insurers.
As an ideal location for captive growth, Labuan IBFC is home to 55 captives. Labuan IBFC is the only
Asian jurisdiction with a comprehensive legal framework to cater for PCC structures. Labuan IBFC is
now licensing a quarter of all captives in the Asia-Pacific and Mena.2

NUMBER OF CAPTIVES TOTAL GROSS PREMIUMS (In USD Million)

55 325.3
52 295.0
48
269.8
230.9
41 187.2
38 39

161.4 162.5 172.2

130.0 130.7

2016 2017 2018 2019 2020

10
6 7 6 Malaysian Others
4 4
• Increasing trend in captive premiums
2018 2019 2020 underwritten continued in 2020, with total
premiums increased by 8.7% to USD497.5
Single Parent PCCs million (2019: USD457.5 million).
Others Total
• Premiums from the captive business are
• Progressively showing upward trend in new dominated by the international markets with a
captive formation over the past three years. share of 65.4%.

DISTRIBUTION OF GROSS PREMIUMS

• The Other Classes sector
ENGINEERING MARINE

26.0% 3.9%
accounted for more
than half of the total
OTHER CLASSES captive gross premiums,

61.4% USD 129.4 MIL

FIRE
USD 19.5 MIL

MOTOR
of which general liability
continued to be the main
business class. The gross
USD 305.4 MIL
8.5% 0.2% written premiums for
the business stood at
I NS U RA NC E

USD159.1 milllion (2019:

USD 42.3 MIL USD 0.9 MIL
USD148.6 million).
1
Captive Managers Survey 2019, Captive Review December 2020
2
Captive Review, World Domicile Update 2020

17
 LIFE INSURANCE BUSINESS
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

NUMBER OF INVESTMENT-LINKED NEW INVESTMENT-LINKED

POLICIES POLICIES (In USD Million)

331,684 6,369.4
290,107
252,359 10.7
9.9 9.9

150,243
2,891.5
104,312
1,659.6
51,990

2018 2019 2020 2018 2019 2020

New Policies Premiums
Policies In Force Sum Insured

• The total number of policies-in-force increased • A total of 51,990 new investment-linked

by 15% to 290,107. policies were issued with premiums
amounting to USD9.9 million.

BROKING BUSINESS
PREMIUMS PLACEMENT BROKERAGE FEES
(In USD Million) (In USD Million)
1,069.9 56.7
50.0
881.7 857.3 923.1 47.9 43.5
769.7 37.8 37.8
715.7

12.2 13.2
10.1
141.6 146.8
112.0

2018 2019 2020 2018 2019 2020

General Business Total General Business Total
Life Business Life Business

• The total premium placements by Labuan • Brokerage fees earned by the

I NS U RA NC E

brokers increased by 24.8% to USD1.1 Labuan insurance brokers increased

billion. The general insurance business by 13.4% to USD56.7 million.
contributed 86.3% of the premiums
placed, which were mainly from the
international business.
18
(RE)TAKAFUL BUSINESS

MA RKET REPO RT 2 0 2 0
TOTAL GROSS CONTRIBUTIONS
(In USD Million)

26.0

24.6 23.0
20.0
88.5

77.4 77.6
71.8

12.0 EMPLOYEE
COMPOSITION
42.7

2020

1,068
2016 2017 2018 2019 2020

Malaysian Others

MALAYSIAN
DISTRIBUTION OF GROSS CONTRIBUTIONS
84.5%
902 EMPLOYEES
FIRE ENGINEERING

27.5% 5.3% FOREIGNER

MOTOR
USD 31.5 MIL USD 6.0 MIL
15.5%
58.2%
USD 66.7 MIL OTHER CLASSES MARINE
166 EMPLOYEES

7.5% 1.5%
Employment grew
marginally to 1,068
employees (2019: 1,057).
The sector’s workforce
USD 8.6 MIL USD 1.7 MIL
is mainly represented by
Malaysians.
• The general (re)takaful industry showed encouraging business
I NS U RA NC E

growth of 13.8% to USD114.5 million in 2020 (2019: USD100.6

million), led primarily by the motor sector at 58.2% or USD66.7
million (2019: USD55.3 million).

19
 Navigating the Market

Challenges
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

through the
of COVID-19 Pandemic

T
he year 2020 marked the 30th year (i) facilitate Labuan businesses and
for Labuan IBFC as a midshore cushion the pandemic’s impact on the
financial centre. After three decades market; and
of resilience, agility and adaptability, the
Centre had grown in size and maturity (ii) support the local community by
to serve, not just the surrounding ASEAN providing assistance to relieve
markets, but also the greater Asia- hardships via the pooling of resources.
Pacific region. As the Centre transitioned
into the new decade, it was confronted Facilitating and Guiding the Market
with a systemic market-wide disruption
of global proportions – the COVID-19 A set of measures were undertaken to
outbreak in early 2020. The pandemic had facilitate the market which were deemed
resulted in a negative impact to Labuan’s appropriate and timely, to ensure
economic activities, and businesses in Labuan financial institutions (LFIs)
the Centre due to the movement and were able to operate their businesses
travel restrictions imposed because of the during the adverse pandemic situation.
pandemic. Recognising the heavy strain The response measures rendered were
on Labuan IBFC and the Island’s local underpinned by specific objectives and
economy, the Authority had undertaken accomplished through various initiatives
proactive roles to: outlined in Diagram 1.

Policy Objectives Response Measures

Communicating regulatory expectations

N AV IGATI N G TH E MA RK ET T H RO U G H TH E C H ALLENGES

• Market reminder to undertake precautionary

Ensuring Uninterrupted measures and stay vigilant
Business Operations • Adoption of effective internal controls on cyber
security and AML/CFT

Providing relaxations for certain regulatory

requirements
Promoting Continued
• Temporary reprieves from non-critical requirements
Client Servicing
• Regulatory relaxations for specific
administrative and prudential requirements
O F C OV ID - 19 PA N DE MI C

Assessing market adversity for pre-emptive

policy initiatives
Managing Regulatory
• Market simulations on critical sectors
Burden
• Business climate assessment through
industry’s survey

Diagram 1: Policy Objectives and Initiatives for Market Facilitation and Navigation
20
 MA RKET REPO RT 2 0 2 0
The response measures incorporated financial requirements for a
these three strategies: limited period. The relaxations
(i) Communicating regulatory were initially made applicable
expectations on LFIs during the for the 2020 but was extended
pandemic: for another year in view of the
continued market adversities.
• LFIs are required to be prudent
in their operations during the (iii) Assessing market adversity in order
pandemic by being continuously for pre-emptive policy planning and
vigilant. measures comprising:

• Appropriate precautionary • Stress testing analysis and

measures and safeguards are market simulations were
to be undertaken to ensure undertaken for key sectors as
business operations of LFIs proxy impact for the overall
remain safe and stable for market.
employees. • Financial trends and emerging
• Reminders for LFIs to ensure that risks arising from the pandemic
their key internal controls remain were identified and simulated to
effective especially with regard assess the extent of of financial
to cyber security and AML/CFT. impact to the market.
• Assessment of the business

N AV IGATI N G TH E MA RK ET T H RO U G H TH E C H ALLENGES
(ii) Providing relaxations for certain
regulatory requirements: climate by surveying the
industry’s experience facing key
• Temporary reprieves from non- challenges during the pandemic.
critical requirements were given • Identification of possible pre-
to ensure that Labuan businesses emptive action plans based
are operationally and financially on feedback from the market.
viable to continue servicing their This includes closer monitoring
clients. of impacted sectors and LFIs;
• In turn, there were also going forward, providing
expectations for the Labuan required additional regulatory
O F C OV ID - 19 PA N DE MI C

businesses to support their guidance to the market as well as

clients with their business strengthening control measures to
arrangements during the improve LFIs’ governance setup.
challenging period.
• The regulatory relaxations
provided were in relation to
specific administrative or

21
 TRUST
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

COMPANIES
The Labuan Trust Companies (LTCs) continued to play a vital role in the development of
the jurisdiction by facilitating the incorporation and management of Labuan entities via
the services they provided. To keep pace with the changing regulations and higher client
expectations, the industry is expected to further develop and upskill, review business
strategies, and embrace the use of digitalisation in order to better serve the marketplace.

A
s with other sectors, the LTCs’ business adversely affected. Notwithstanding, the LTCs
operations in 2020 continued to be continue to look for opportunities to expand
impacted by operational challenges their business in Asia. Growing demands for
arising from the revised Labuan tax framework. In Labuan structures to undertake digital financial
tandem with the lower company incorporations, services will also bode well for the future of
the industry’s profitability for the year was LTCs in Labuan.

NUMBER OF TRUST COMPANIES THE ORIGIN OF TRUST

66 COMPANIES (In %)
61
58
52 8 ASIA AND
47 THE PACIFIC
7

83.3%
6 6
5

AMERICA

1
0 6.1%
2 2
FAR EAST

6.1%
3
2016 2017 2018 2019 2020
New Trust Companies Ceased
T RU ST C OM PAN I ES

Total
• The total number of LTCs increased by 8.2% to 66. Eight EUROPE

4.5%
new LTCs were approved comprising four full-fledged trust
companies, three managed trust companies and one private
trust company.
• Majority of the LTCs were from the Asia and the Pacific region.

22
SOURCE OF INCOME (In USD Million)

MA RKET REPO RT 2 0 2 0
14.3 EMPLOYEE
Secretarial
14.6 COMPOSITION
3.1
Administrative
3.1
2.2
Advisory
1.3
1.4
Accounting 2020
1.6

Trustee
1.1
1.6 472
4.5
Others MALAYSIAN
13.8
2020
2019
97%
458 EMPLOYEES

FOREIGNER
PROFITABILITY (In USD Million)

36.0
3%
14 EMPLOYEES

The LTCs’ manpower

24.6 26.2 26.6 recorded a decline of 7.5% to
23.4 472 employees. This is mainly
due to business restructuring
by one major trust company.
17.8 18.8 18.1
16.6 17.2
14.3

9.1 8.5
8.0 8.4

TRUST
OFFICERS
2016 2017 2018 2019 2020

Total Income Total Expenses

T RU ST C OM PAN I ES

Profit Before Tax

• Total income declined by 26.2% to USD26.6 million with

2020

88
profitability of USD8.5 million.

23
 INTERNATIONAL
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

COMMODITY
TRADING
The Global Incentives for Trading (GIFT) Programme continues to provide a set
of incentives for Labuan International Commodity Trading Companies (LITCs) to
establish their operational base in Labuan IBFC. During the year, changes were
made to the Guidelines on the Establishment of LITCs under the GIFT Programme.
These relate to the rescoping of the Programme to include commodities other than
petroleum and petroleum-related products; as well as the enhancements to the
operational requirements.

I
n 2020, the industry’s business performance was impacted following the global oil and gas price
volatility, and economic crisis due to the pandemic. However, with the ongoing oil and gas market
recovery, it is expected that the LITCs’ business prospects will be bullish.

TOTAL LITCs THE ORIGIN OF LITCs

57
50
48 MIDDLE EAST
44 FAR EAST AND AFRICA

7.1% 4.8%
42

ASIA AND
THE PACIFIC

80.9%
I NT E RN ATI O NA L CO MM O DI TY T RA D ING

AMERICA EUROPE

4.8% 2.4%
2016 2017 2018 2019 2020

• During the year, five LITCs were approved and • Majority of the LITCs were from Asia and the
seven surrendered or revoked, bringing the Pacific, mainly from Malaysia and Singapore.
total number to 42. The remaining 19.1% were spread throughout,
with the most from the Far East region.

24
 MA RKET REPO RT 2 0 2 0
PROFITABILITY (In USD Million)

1,208.4 430.5
355.4 361.8
1,482.3 718.3
1,368.6 • In 2020, the industry recorded a loss of USD1.6
billion which was attributable to the following:
> Total margin of income declined due to
deteriorating oil prices.
> Total expenses increased significantly
to USD1.4 billion mainly due to higher
provisioning for asset impairments.
2018

2019

2020

-206.0

(1,640.3)
Margin of Income
Total Expenses
Profit/ (Loss) Before Taxation

COMMODITIES TRADED BY TYPES

• There was a 25.9% decline in total commodities
traded, down to USD22.7 billion.
AGRICULTURE
PRODUCTS • Petroleum and petroleum-related products

7.2%
constituted 87.7% of the total commodities
traded. The agriculture products and refined
PETROLEUM raw materials contributed 7.2% and 5.1% share
AND of the total, respectively.
PETROLEUM-
RELATED
PRODUCTS

87.66%
I NT E RN ATI O NA L CO MM O DI TY T RA D ING
REFINED
RAW BASE
MATERIALS MATERIALS

5.1% 0.04%

25
 LEASING
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

The economic slowdown in 2020 had prompted global leasing companies to

undertake contractionary and cost-cutting measures, which in turn had knock-on
effects to the growth of the Labuan leasing sector. In particular, aviation leasing
was drastically affected from the travel restrictions and business disruptions to the
sector, particularly in relation to tourism.

W
ith the ongoing economic recovery, and growing travel confidence with availability of
COVID-19 vaccinations, Labuan leasing is expected to rebound. As part of diversification
efforts, Labuan leasing companies are encouraged to diversify into new areas of leasing
finance other than aviation and oil and gas equipment. It would be beneficial for the leasing
industry to spur other economic activities such as logistic services, as well as Maintenance, Repair
and Overhaul (MRO) activities on Labuan Island.

NUMBER OF NEW APPROVALS

143 165

107
68

52

36 35
18 13
9

2016 2017 2018 2019 2020

New Leasing Companies New Subsequent Transactions

2020 Aviation 17.7%

• 13 new leasing companies
1,837.4 Oil and Gas 80.7% and 52 new subsequent
transactions were approved,
NEW USD MIL
Others 1.6% of which majority were for
ASSETS the oil and gas sector.
LEASED Aviation 85.1%
2019 • New assets leased to the oil
L EA SI NG

3,753.4 Oil and Gas 13.3% and gas sector grew 196.5%
to USD1.5 billion.
USD MIL
Others 1.6%
26
 MA RKET REPO RT 2 0 2 0
TOTAL ASSETS LEASED
(In USD Billion)

53.8
50.6
48.8
45.1
383 380
371 40.7

294
• Total industry leased assets declined by 9.9%
266 to USD40.7 billion. Oil and gas, and aviation
leasing contributed market share of 56.7%
and 42.3%, respectively.
2016 2017 2018 2019 2020
Number of Leasing Companies
Total Assets Leased

PROFITABILITY
(In USD Million)

2,201.6 1,065.7 • The business performance of leasing

companies was affected by numerous
business and operational challenges.

• Since the early stages of the COVID-19

1,289.1 432.6 pandemic, entities have taken counter-
measures that include renegotiating lease
912.5 633.1 rentals rates and payment schedules,
postponement of projects, cost containment
measures, short-term financing, and cash
flow management.

• The gross profits reduced from USD912.5

million to USD633.1 million in 2020.
2019 2020
L EA SI NG

Lease Revenue
Lease Expenses
Gross Profits from Leasing Activities

27
 WEALTH
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

MANAGEMENT
With its comprehensive ecosystem which include clear legislations and
facilitative regulations, Labuan IBFC has remained attractive for wealth
management and dynastic planning for the affluent.

T
he Centre offers both common or civil law-based solutions in the form of Labuan trusts or Labuan
foundations. Backed by a dual-financial system, prospects can undertake their wealth planning via
conventional or Shariah-compliant structures based on individual preference. Labuan IBFC is the
only jurisdiction in Asia that offers private foundations as a wealth management solution.

FOUNDATIONS
TOTAL FOUNDATIONS NEW REGISTRATIONS

194
192

52

38

28
162

2018 2019 2020 2018 2019 2020

W EA LTH M AN AG E ME N T

• For 2020, there were 194 foundations in • Registration of new foundations decreased by
operation. 46.2% to 28.
• Of the total foundations, 166 were non-
charitable.
• 7 were Shariah-compliant foundations, of
which 1 was non-charitable.
28
 MA RKET REPO RT 2 0 2 0
FOUNDATIONS
TOTAL ENDOWMENT

EQUITY PORTFOLIO PROPERTY &

SHARES CASH INVESTMENT REAL ESTATE

53.4% 28.7% 14.9% 3.0%

251.7 135.0 70.1 14.3
USD MIL USD MIL USD MIL USD MIL

• Total assets endowed amounted to USD471 • Of the total non-cash assets, 74.9% or
million, and the majority were in non-cash USD251.7 million was in the form of equities,
assets. while the remainder in properties and other
investments.

TRUSTS
ASSETS UNDER MANAGEMENT

PROPERTY

75.9
130.1
% • The number of registered trusts
remained unchanged at 14, comprising
USD MIL six purpose trusts, three charitable
trusts, two protective trusts, and three
private beneficiary trusts.
REGISTRED
TRUST • Total assets under management were

CASH 171.4 SHARES

mainly in property and real estate.

18.3 5.8
USD MIL
W EA LTH M AN AG E ME N T

% %
31.3 9.9
USD MIL USD MIL

29
 DIGITAL MARKET
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

The Centre’s Digital Financial Services (DFS) encapsulate a broad range of financial
activities ranging from simple digital trading platforms for fiat or digital currencies,
to more complex digital banking and digital assets.

2
020 was a revealing year for DFS whereby that fundamental market conduct remains
fintech was no longer merely an option sound even via a virtual platform.
for financial institutions to diversify, but
had become the enabling channel to effectively The number of Labuan DFS establishments
reach clients during COVID-19’s movement continued to double in 2020 reflecting
control restrictions. This revelation explains an exponential trend despite its recent
the accelerating growth in DFS set-ups in the introduction in 2018. There was increasing
Centre. Labuan IBFC will continue with its interest in proposals to undertake digital
efforts to enhance its regulatory ecosystem to banking, digital currency trading as well as
ensure orderly development of the DFS, and other digital-based intermediations.

NUMBER OF DFS DIGITAL FINANCIAL SERVICE PROVIDERS

PROVIDERS
62
Insurance 1

Digital Bond Issuance 1

Securities Licensee 2

Exchange 2
35
30 Fund Management 3
29
Banking and 6
Investment Banking

Payment System 10

Credit Token Business 12

8
8
3 Money Broking 25
2
0
D IG ITAL MA RK ET

• 30 licences were approved for DFS business, bringing the

2018 2019 2020 total number to 62 providers.

Newly Approved • Out of the total DFS providers, majority were licensed
Ceased to provide digital currency trading platform, credit token
Total business, and e-payment system.

30
 MA RKET REPO RT 2 0 2 0
CREDIT TOKEN PAYMENT SYSTEM
14

11

8
6

3
2

2018 2019 2020 2018 2019 2020

• More than two-fold increase was observed in • Four new payment systems were approved to
2020 which included nine new licences approved facilitate fund clearing and settlements.
for tokenisation of asset-backed securities.

MONEY BROKER
BY REGION (In %)
78

FAR EAST EUROPE

25.6% 15.4%
59

ASIA AND
35 THE PACIFIC

48.7% MIDDLE EAST

AND AFRICA AMERICA

6.4% 3.9%
2018 2019 2020
D IG ITAL MA RK ET

• During the year, 24 new money brokers were • 74.3% of Labuan money brokers were from
approved and five surrendered or revoked, Asia (Asia-Pacific and the Far East), mainly
bringing the total number to 78. Of the total, from Malaysia, Singapore and India.
25 were engaged in DFS business.

31
 Pragmatic and
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

Evolving Digital Regulation

A
torrent of technology-driven innovation divergent regulatory frameworks in a complex,
in financial markets and services has fast-moving landscape can add complexity,
reshaped how markets are structured; create uncertainty and dampen innovation.
how companies access and deploy capital; how Against this backdrop, the Authority developed
investors respond and react to information and the appropriate prudential policy measures to
how customers receive and use financial services safeguard the Labuan financial institutions
in their new innovative form. Faster response to (LFIs) from the cyber vulnerabilities and prepare
rapid technological advancement and shifting the market to embrace digital transformation in
market dynamics require fresh thinking as to the new norm operating landscape. The measures
how regulation can best foster the responsible were aimed at:
development of this digital industry. Similarly,
as an international financial marketplace, (i) enhancing business contingency planning to
Labuan IBFC is no exception to a more agile and minimise material consequences arising from
iterative rulemaking process. The Authority has any major operational disruptions; and
been promoting digital innovation for business
solutions that are tailored to current market (ii) strengthening cyber resilience for digital
needs, whilst ensuring businesses are conducted operations to ensure operational agility and
in a conducive and safe operating environment. efficiency.

Regulatory enhancement for digital businesses Enhancing market practices for business
contingency and cyber resilience
Current digital transformation megatrends are
fast changing the way financial institutions As part of initiatives to ensure that LFIs maintain
operate. These require rapid regulatory operational resilience and effectively manage
responses that are appropriate to the nature and the emerging cyber risks and other related
complexity of the financial institutions’ digital vulnerabilities arising from digital transformation,
and virtual operations. The Authority recognises the Authority had embarked on regulatory policy
that no single regulatory model fits all, and enhancements as depicted in Diagram 1.

BCM Guiding Principles Digital Governance Framework

P R AG MATI C AN D EVO LV IN G D IG I TA L RE G U LATI ON

Board and senior management oversight on: Corporate oversight on:

Governance
• Business continuity management • Business continuity arrangement
Oversight
• Digital and cyber resilience policies • Cyber risk internal controls

Risk Assessment and monitoring of potential disruption risks Cyber risk management
Management Business impact analysis Digital security controls

Alternative recovery arrangements Backup plan for critical data

Recovery
Disaster recovery planning
Strategy
Stakeholders’ communication plan for business contingency activation and cyber incidents

Periodic training and awareness on:

Awareness and
• Business continuity preparedness
Training
• Cybersecurity management and emerging threats

Diagram 1: Measures to Enhance Business Continuity and Cyber Resilience

32
 MA RKET REPO RT 2 0 2 0
The following are the key policy enhancements that • undertake periodic review and
are being undertaken by the Authority under the maintenance of approaches and strategies
proposed exposure drafts issued during the year: for business continuity to assess the LFI’s
operating environment and business
(i) Guiding Principles on Business Continuity circumstances.
Management which provided principle-based
requirements for LFIs to: (ii) Digital Governance Framework that is
• maintain a sound and effective business intended to inculcate effective management
continuity management (BCM) with board of cyber risks by requiring the LFIs to:
and senior management oversight; • ensure that its digital governance and
• assess and mitigate risks from major cyber risk management is overseen
disruptions, concentration of critical and approved by the board and senior
business functions and outsourcing management;
arrangements as part of its BCM; • maintain enterprise-wide strategies to
• adopt recovery strategies that reflect the preserve data confidentiality, system
magnitude of the potential disruption risks security and resilience in a systematic and
to the LFI’s critical business operation; consistent manner;
• develop the IT disaster recovery plan for • implement robust security controls that
critical business functions and related are matched with the risk and complexity
technology infrastructure to provide of its digital services on continuous basis;
assurance to relevant internal and external • effect obligations of the external service
stakeholders of LFI’s preparedness in the provider for the outsourced IT systems
event of a major disruption; and digital services in the service legal
• conduct a continuous organisation-wide agreement; and
awareness and testing for business • conduct awareness programme and
continuity and resumption plans; participate in trainings for emerging cyber
• develop an effective communication plan risks and digital-related issues to mitigate
to address the reputational risks; and cyber threats and vulnerabilities.

P RAG M AT IC A N D E VOLVI N G DI G ITAL RE GU L AT IO N

Labuan IBFC has been progressive in embracing the rapid evolving fintech development in line with
international standards of compliance, transparency and prudential requirements, and will continue to
benefit Labuan IBFC moving forward.

BTC

33
 CAPITAL MARKET
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

Labuan IBFC’s legal and regulatory framework provides a well-regulated and agile
business environment, which has spurred increasing interest from international
capital market service providers such as fund managers, private equity funds,
securities dealers and fund administrators.

O ver the last two years, there has been increasing interest in using the Centre for investments and fund-
raising activities across Asia and beyond, especially towards the intermediation of digital securities.

NUMBER OF INTERMEDIARIES
31

24

19
14

12
14
10 11
10
6

2016 2017 2018 2019 2020

Securities Licensees Fund Managers

FUND MANAGER SECURITIES LICENSEE

BY REGION (In %) BY REGION (In %)
ASIA AND ASIA AND
THE PACIFIC THE PACIFIC

61.3% 57.2%
EUROPE FAR EAST AMERICA EUROPE FAR EAST AMERICA

16.1% 12.9% 9.7% 21.4% 14.3% 7.1%

CA P I TAL MA RK E T

• Ten new fund managers were approved • Five new securities licensees were approved
bringing the total number to 31. bringing the total number to 14.

• 61.3% of the fund managers were from the • 57.2% of the securities licensees were from
Asia and the Pacific region, mainly from the Asia and the Pacific region, mainly from
Malaysia and Singapore. Malaysia and Singapore.

34
FINANCIAL

MA RKET REPO RT 2 0 2 0
EXCHANGES
Financial exchanges in Labuan IBFC operate in conventional and digital form,
providing a platform for listing and trading of financial instruments. These
instruments comprise equities, investment funds, debt instruments and other
types of financial instruments which can be listed as conventional or Shariah-
compliant to suit investor preferences.

I
n 2020, Labuan FSA granted approval for two digital exchanges NEW
which offer blockchain-based solutions for the issuance and trading LISTINGS

6
of financial instruments. Both exchanges offer primary listing of
digital securities such as equities, bonds, derivatives, funds, and USD
alternative asset classes for real estate with an innovative approach
that promotes lower operational cost and greater efficiency. The
BIL
exchanges also allow secondary market trading of security tokens,
crypto, and fiat currencies. ^361.5%

NUMBER OF LISTINGS AND MARKET CAPITALISATION

(In USD Billion)

Total Islamic

25.6
8.1 8.1
32 7.7
24.5 24.3 7.5
23.7
31
30 12 11
12
20.8 11
5.5
28
9
27

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
FI N AN CI A L E XCH AN G ES

Total Capitalisation Total Capitalisation

Number of Listings Number of Listings

• In 2020, three new listings worth USD6 • The total market capitalisation increased by
billion were raised through the Labuan 14.1% to USD23.7 billion. Of the total, 23.1%
International Financial Exchange, with a or USD5.5 billion were Sukuk issuance.
range of 10-40 years maturity, by a domestic
oil and gas operator.

35
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

Strategic Direction
of Labuan IBFC 2021-2023
Enhancing the Sustainability and
Relevancy of Labuan IBFC

Labuan IBFC has grown from strength to strength in terms of

market size as well as traction in the regional business. It has
evolved significantly over the years and has persevered during
the most challenging of times, in particular during the past year’s
COVID-19 pandemic crisis. We maintain cautious optimism that
the years ahead will bring business recovery, and even a rebound,
with many business opportunities that can be captured via
the Centre. With the presence of diverse financial institutions,
professional service providers and intermediaries as well as
availability of up-to-date products and services offerings, we
believe that Labuan IBFC will continue to be one of the preferred
markets in the region for the intermediation of Asian trades and
investments.

M
oving ahead, Labuan IBFC remains IBFC”, the strategic plan comprises four
S TR AT EG I C D I REC TI O N O F L A BUA N I B FC 2 02 1 -2 0 23

cognisant of the evolving business key priorities:

environment; and will continuously
leverage on emerging developments to • Expand and strengthen Labuan IBFC’s
pursue potentials which include financial financial ecosystem;
digitalisation. The future business
• Regulatory and supervisory
landscape will continue to be challenging,
modernisation;
and as such, appropriate strategies have
been formulated and embedded within • Visibility enhancement and branding
the Labuan IBFC’s strategic roadmap for strategy; and
2021-2023.
• Enhance organisational reputation and
In line with the theme of “Enhancing the delivery efficiencies.
Sustainability and Relevancy of Labuan

36
 MA RKET REPO RT 2 0 2 0
Expand and Strengthen Regulatory and Visibility Enhancement and
Financial Ecosystem Supervisory Modernisation Branding Strategy

BUSINESS RESPONSIVE PROFILING AND

INTENSIFICATION REGULATIONS AND VISIBILITY OF LABUAN
SUPERVISION IBFC

To enhance business To modernise regulatory To foster closer

facilitation and invigorate and supervisory approach collaboration with key
identified key business with forward-looking stakeholders to enhance
sectors. requirements; and prominence of Labuan IBFC.
strengthen market
• Review and align • Active participation
monitoring and
business regulations and involvement in
enforcement capability to
• Enhance digital- international bodies and
ensure continued market
conducive ecosystem forum
stability.
• Tap into full potential • Reinforce strategic
• Upscale proportionate ties and create greater
of Labuan insurance
regulations to suit new synergies with key
market
business developments stakeholders through
• Revitalize Labuan
• Refine supervisory MOUs
banking business
approach to cater for • Strategic communication
• Attract targeted brands emerging risks to enhance timely
and facilitate intra-
• Inculcate greater information exchanges
Labuan business
international regulatory and responses to public
• Strengthen and and supervisory • Joint collaboration with
expand functions of key cooperation the industry to provide
intermediaries
cohesive support to the
Labuan community

S TR AT EG I C D I REC TI O N O F L A BUA N I B FC 2 02 1 -2 0 23
ENHANCING ORGANISATIONAL REPUTATION AND
DELIVERY EFFICIENCIES

To continue enhancing organisational reputation, capabilities and to

drive operational efficiencies.
• Improve key facilities via digital solutions to support
organisational needs
• Strengthen reliability of key digital service platforms
• Continue upskilling of internal competencies and new skill sets in line
with market development
• Prudent financial management of Labuan FSA

37
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

Supporting
Labuan Community
in Times Need of

I
n 2020, Labuan IBFC welcomed its 30 th the community during these difficult times. In
anniversary as an international business tandem with the Government’s effort to combat
and financial centre. Typically, such an the pandemic, Labuan FSA and the Labuan IBFC
anniversary would have been celebrated industry had come together to provide support
as an important milestone, if not for the to those in the community whom were severely
great challenges that ensued in that year. impacted by the pandemic.
Malaysia was not spared as the COVID-19
pandemic took everyone by surprise with its One key initiative arising from the collaboration
unprecedented reach as well as widespread was the establishment of the ‘COVID-19 Relief
impact across the globe. At the time this Fund’. Through the pool of funds, various
article is being written, the effects of the relief efforts were conducted to support the
pandemic have continued to be felt across community, among others:
the country including Labuan Island. With • purchasing COVID-19 test machine for the
business slowdown and movement restrictions local hospital;
confining the people of Labuan to their homes,
the disruption to the Island’s local community • procuring beds, mattresses and pillows for
has been deeply profound. the Labuan quarantine centres and the
temporary hospital; and
As a key economic contributor to the Island, • acquiring household necessities, foodstuff
Labuan IBFC industry was determined to play and healthcare items for distribution to the
a greater role by extending a helping hand to underprivileged as well as the frontliners.
S UP P ORT I N G LA BUA N CO MM U NI T Y IN T I MES O F N EED

38
 MA RKET REPO RT 2 0 2 0
LABUAN IBFC’S CONTRIBUTIONS
TO THE LABUAN ISLAND AND COMMUNITY

COVID-19 testing Supply of essential

machine and test items for schools and
kits quarantine centres

Purchase of critical CARE group lending

equipment for better hands to assist the
healthcare services CSR community

Supporting small Pool of funds through

businesses to get contributions from
through the pandemic cross-industry players
crisis in Labuan IBFC

Food kits for the

badly affected

SU P P O RT IN G L ABUA N C OM M UN IT Y I N T IME S OF NE ED
groups

Recognising the importance of healthcare The COVID-19 pandemic in 2020 has taught
services for the Island, especially during period all of us to remain resilient, adaptive and agile.
of crisis, Labuan FSA has worked closely Notwithstanding the economic difficulties
with Labuan hospital to upgrade its medical caused by the health crisis, Labuan IBFC will
facilities and equipment. This has enabled the remain ably in navigating through challenges
Labuan Hospital to better meet the healthcare and grow stronger. The Centre will continue
needs of the local community, especially with with its corporate social activities for the
the surge of medical requirements during the betterment of the Labuan Island and its
COVID-19 pandemic. community.

39
 The History
Labuan and theof

Trade Matrix
By Kam Raslan

On a map Labuan is a tiny island. Labuan is tiny compared to the massive

island of Borneo. Labuan is tiny compared to the rest of Malaysia and the
now dead empires that governed it, and it is tiny compared to the surrounding
sea. But tiny Labuan has been a witness and participant in Southeast Asia’s
remarkable maritime trading history that stretches back for thousands of
years. War, occupation, invasion, migrations, trading, industrial revolutions,
so many people and so many ships, and now a key point in the empires of
sophisticated global banking, Labuan has seen it all and it continues to play its
role, bigger than its tiny size.

B
runei, Sabah and Sarawak, as well as in the deep water harbour that gave the island
Britain and even Spain have all either its name: labuhan is Malay for harbour. You
owned or contested Labuan. It’s now a can see Victoria town and Ramsay Point where
Malaysian Federal Territory, along with the British sailors first raised their flag in 1846,
capital city of Kuala Lumpur, two hours flying and you might see a tall brick chimney in the
time away to the west. From the air you cannot north, all that remains of the abandoned coal
see any land borders on the island of Borneo mines that were once worked by convicts from
or any borders that might be dotted in the sea. Singapore and Hong Kong. From above we
But you can easily see the island of Labuan, cannot see any sharp details, and we cannot
shaped like an arrowhead pointing north to see the people of Labuan. But you can see the
China. Below you is a flotilla of ships sheltering sea, which is an island’s true home.
T H E H IS TORY O F L ABUAN A N D T H E T RA D E M AT RIX

40
 MA RKET REPO RT 2 0 2 0
So let’s go down to sea-level. In this swirling world we reach You are therefore now standing
To understand Labuan, its and take shelter in the lee- on British ground. People of all
people and its purpose we side of the island of Labuan nations will now be protected by
must see it not from a plane that has played its part like a the English nation. The English
or on a map but we must use moored ship, a stopping point, Admiral will order his steamers
our imagination to see it from a bargaining chip, a military and ships to destroy all pirates
the sea, from a canoe, a Malay base, an offshore banking hub by land or by sea, killing them
prahu, a Javanese djong, a and especially as a harbour. We and burning their villages. The
Chinese junk, a Portuguese must see Labuan from the sea Sultan of Borneo and the Queen
caravel, a fast tea-laden East and we will begin by seeing it of England are now friends.
Indiaman ship with masts so tall from two British naval ships. Pirates making war against him
it gave us the word “skyscraper”, will be destroyed by the great
or from a struggling steamship 8am, December 24th 1846. English nation.”
with a boiler that could explode HMS Iris and Wolf were in
at any minute. The seas of Labuan’s harbour. The ships The promise and threat of
Southeast Asia have always were dressed with flags across the bloodcurdling words were
been a trading matrix. It’s a the top gallants because this reinforced by a thunderous
legacy that continues, albeit in a was an important occasion. On salute of 40 ships’ cannons that
different style. shore, British sailors stood to had just recently been pointed
attention as the Union Flag was directly into the Sultan of
Before and even during the raised and a commemorative Brunei’s wooden palace during
arrival of the European empires, stone was laid: “This Island was the negotiations for the Treaty
the peoples of the land, the taken possession of December of Labuan when the Sultan
rivers and the sea would trade 24 1846 in the name of Her ceded the island to the British,
the produce of the jungles at Majesty Victoria”. At 1.30pm beginning Labuan’s 120-year
important entrepots like Brunei, the captains of the two ships, association with the British
sheltering and taking fresh Captains Mundy and Gordon, Empire. The states that make
water at Labuan. Then catching arrived with the Sultan of up present-day Malaysia were

T H E H I STORY OF LA BUAN A ND T H E T RA D E M ATR IX

the seasonal winds the Malay, Brunei’s representative, governed by five different forms
Chinese, Tamil, Arab or Persian Pangeran Mormeen and seven of British Empire, and only
traders would carry cargoes of fellow Pangeran (princes). They Labuan would experience three
sea cucumbers or fragrant agar stood on a platform under of them.
wood that would be traded two huge umbrellas. Captain
through several hands for cloth Mundy gave a speech that Pangeran Mormeen must
from India or horses from Persia was translated into Malay by have shuddered and also been
before arriving in the ports of Lieutenant Heath: pleased by the shock waves of
Canton or Basra via Malacca or the guns. It was an unequal
Bugis, Javanese and Cham ports. “Let it be known to all here treaty but the Sultan had made
present that on this day I the best possible deal from a
From the Straits of Hormuz take possession of the island selection of bad choices. Over
to the Sulu Sea, the land and of Labuan, and the islands a century later Brunei would
sea must be seen as a single adjacent, in the name of her become immensely wealthy
maritime world with peoples Majesty Queen Victoria, by because of oil but back then oil
and empires ebbing and flowing. order of Sir Thomas Cochrane. had no value. In 1846 coal

41
 THE HISTORY OF LABUAN AND
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

THE TRADE MATRIX

was king and Labuan had As British sailors raised their playing its role in maritime
coal. After the ceremony the flag over Labuan and gave three Southeast Asia.
British and the Pangerans cheers they began Labuan’s
shared a celebratory drink but history. Or so we might be Also witnessing the raising of
suddenly one of the Pangeran deceived into thinking. When the British flag over Labuan
was accused of stealing a there had been very little before were people gathering beeswax
bottle and Pangeran Mormeen their arrival, British domination in the dense jungle, fishermen
immediately offered to brought a sudden and and passing traders. Until then
decapitate his fellow prince. overwhelming abundance of they paid rent to the Sultan of
Given the display of wealth written documents: ships’ logs, Brunei. We’ll never know who
and power the unfortunate governor’s reports to London, they were or what they thought
man must have believed the letters, civil servants’ memoirs, of the situation. British texts
bottle was a complimentary and the books of wandering describe them as “Malays” but
door-gift, and now he was novelists, ethnologists and they were probably Malays from
about to lose his head. He botanists. And they brought the near and far, Orang Bajau (a
was allowed to keep his head wholly new economic concept people of the sea) and perhaps
and even if the offer was of capitalism with investors Chinese; just some of the
an empty gesture it shows brochures and annual reports peoples who had for centuries
that Pangeran Mormeen that shape our modern world. been essential players in
understood the value of the Southeast Asia’s trade matrix.
Treaty of Labuan to Brunei. The Europeans had banks and Their seasons and seascapes
capital and they imposed new would be forever changed by
Brunei had once been rich industries, plantations, mines, the hard borders being created
but in 1846 it was poor and new trade connections that before their very eyes. Queen
was ruled by the British and killed old ones and new things Victoria must have seemed a
most especially by Rajah made of brick and metal that very distant and very strange
Brooke of Sarawak who was have lasted through time new landlord, and she didn’t
a British man but his kingdom when wood has dissolved. accept payment in dried fish.
of Sarawak was not officially Everything was exploited for
part of the British Empire. In what had economic value in The history of Labuan took a
fact, he was theoretically a the European market and significant turn on Christmas
vassal of the Sultan of Brunei suddenly Asian wants were an Eve 1846, but it did not begin
but Brooke had wealthy afterthought. It was a shock on that day. To understand
T H E H I STORY OF LA BUAN A ND T H E T RA D E M ATR IX

London backers. James Brooke but Asia, Malaysia and Labuan Labuan’s and Southeast Asia’s
was not present when Britain have adapted because the long and exciting history of
took Labuan but he would networks that came before had trade and cultural exchange
be the island’s first governor. worked successfully for 2000 we must follow the river and
Taking Labuan had been his years and have had a lasting sea journeys of these silent
plan, to extend British power impact for the Southeast Asian Asian witnesses. Then we
eastwards from Singapore mindscape. Old documents will discover that the history
and give himself Royal Navy about Labuan, or even of once of this tiny island of Labuan
protection. Not for the last mighty Brunei might be scarce has always been a tale of
time would Labuan be used as but we should remember that movement, change and
a bargaining chip. Labuan has always been there, constant adaptation.

42
 Labuan Island

MA RKET REPO RT 2 0 2 0
Key Statistics
SIZE OF TOTAL GDP MAIN TOTAL
LAND AREA POPULATION GROWTH ECONOMY EMPLOYMENT

92 99,300 5.2 40,300

SERVICES AND
km 2
% MANUFACTURING

POPULATION EMPLOYMENT

People (‘000) Male Female

By Sector
MALAYSIA 32,523.0 16,764.9 15,578.1
Agriculture 1,100
LABUAN 99.3 50.0 49.3
Manufacturing 3,100
By Residency By Ethnicity
Mining & Quarrying 3,600
89.9% Resident 5.2% Bumiputra
8
10.1% Non-resident 10.7% Chinese Construction 3,800
0.9% Indian
3.2% Others Services 28,700

GROSS DOMESTIC PRODUCT OF LABUAN

(RM Million, at Constant 2015 Prices) GDP Per Capita by State, at Current Prices

RM Million Growth Kuala Lumpur

Labuan F.T. 77,798
2019 7,619
LA BUAN IS LA N D KE Y STAT I ST IC S

Pulau Pinang
Selangor
2018 7,238 Sarawak
Melaka
2017 6,793
Negeri Sembilan
Johor
Market Share Growth Pahang
Services 77.4% 7.50% Perak
Manufacturing 18.2% 1.40% Terengganu
Perlis
Construction 2.3% 13.50% Sabah
Agriculture 1.7% 6.10% Kedah
Import Duties 0.4% -73.30% Kelantan

Source: Laporan Sosioekonomi 2019, Department of Statistics Malaysia

43
 A Preferred
LABUAN INT ER NATIONAL BU SI N ESS A N D FI N A N CI A L CEN T RE

International Business and

Financial Centre
in Asia
Labuan International Business and Financial Centre (Labuan IBFC), Malaysia,
through our internationally recognised yet business-friendly legal framework, is a
preferred international business and financial centre in Asia. Established in 1990,
Labuan IBFC is regulated by the Labuan Financial Services Authority (Labuan
FSA), a statutory regulator under the purview of the Ministry of Finance.

A
s an international financial centre, Labuan IBFC offers global investors and businesses
the benefits of being in a well-regulated and supervised jurisdiction, which adheres to
international standards of compliance in tax transparency. Labuan IBFC, located in the
centre of Asia, boasts a cost-efficient environment making it an ideal jurisdiction for both global
businesses looking at penetrating Asia and Asian entities aiming to go global.

Why Labuan IBFC as Your Asian Base?

REGIONAL OPPORTUNITIES EFFICIENT AND

Southeast Asia is estimated to be 4th largest FLEXIBLE TAX SYSTEM
economy by 2050, investors and businesses can Simple and straightforward tax system to carry
gain access to a larger marketplace into the region out a Labuan business activity as defined by the
via Labuan IBFC. Labuan Business Activity Tax Act 1990.

EASE OF WELL-REGULATED SUBSTANCE

DOING BUSINESS JURISDICTION CREATION AND
Ease of doing business with A robust regulatory framework TRANSPARENCY
cost-effective solutions and to ensure entities remain in Complying with the latest global
structures. compliance with international regulatory standards including
best standards. requirements for transparency
A P RE FE RRE D I N T ERN AT IO N AL BU SI NE SS A N D

and substance creation.

WIDE ARRAY OF SOLUTIONS AND STRUCTURES INCLUDING SHARIAH-COMPLIANT OPTIONS

Banking | Risk Management | Leasing | Wealth Management | Commodity Trading
Protected Cell Companies | International Business Companies
FI N AN CI A L C EN T RE I N AS I A

GLOBALLY RECOGNISED INDUSTRY MEMBERSHIPS AND RECOGNITIONS

Group of International Group of International Asia/Pacific Financial Islamic International

International Organisation International Association Group on Action Financial Islamic
Finance of Securities Insurance of Insurance Money Task Force Services Financial
Centre Commissions Centre Supervisors Laundering (FATF) Board Market
Supervisors (IOSCO) Supervisors (IAIS) (APG) (IFSB) (IIFM)
(GIFCS) (GIICS)

44
 I N D U S T R Y
A S S O C I AT I O N S

ASSOCIATION OF LABUAN BANKS LABUAN INTERNATIONAL INSURANCE ASSOCIATION

Level 8(D), Main Office Tower Level 16(A), Main Office Tower
Financial Park Complex Financial Park Complex
Jalan Merdeka Jalan Merdeka
87000 FT Labuan, Malaysia 87000 FT Labuan, Malaysia
Chairman: Mr. Khairudin Abdul Rahman Chairman: Mr. Gerard Roy Suresh Sharma
Secretary: Ms. Nelly Peter Sedomon Gunsanad Secretary: Mr. Ahmed Farouk Aripen
Tel : +6087 452 778 Tel : +6087 584 797
Fax : +6087 452 779 Fax : +6087 584 788
E-mail : [email protected] E-mail : [email protected]

ASSOCIATION OF LABUAN TRUST COMPANIES LABUAN INVESTMENT BANKS GROUP

c/o Noblehouse International Trust Ltd c/o IBH Investment Bank Limited
Level 1, Lot 7, Block F Unit A-6-5, Block A, Megan Avenue 1
Saguking Commercial Building No. 189, Jalan Tun Razak
Jalan Patau-Patau 50400 Kuala Lumpur, Malaysia
87000 FT Labuan, Malaysia
Chairman: Dato’ Howard Choo Kah Hoe
Chairman: Datuk Chin Chee Kee
Secretary: Mrs. Leong Dee Peng
Secretary: Mrs. Rita Mohd Sharif
Tel : +6087 410 745 Tel : +603 2161 1005 / 1002
Fax : +6087 419 799 Fax : +603 2181 3550
E-mail : [email protected] E-mail : [email protected]
 LABUAN FINANCIAL SERVICES AUTHORITY
Level 17, Main Office Tower, Financial Park Complex, Jalan Merdeka, 87000 Federal Territory of Labuan, Malaysia
Tel: (+6087) 591 200 Fax: (+6087) 453 442 Email: [email protected]

www.labuanfsa.gov.my