LABUAN IBFC MARKET REPORT 2023 REVEALS ROBUST RECOVERY, REMARKABLE GROWTH

KUALA LUMPUR, April 26 (Bernama) -- The Labuan International Business and Financial Centre (Labuan IBFC) Market Report 2023 has revealed the federal territory’s remarkable growth, which contributed RM1.2 billion to Malaysia’s fiscal revenue and surpassed the RM1 billion threshold for the first time.

The report, unveiled today by the Labuan Financial Services Authority (Labuan FSA), showed a palpable resurgence in market activity across key sectors, signalling a robust rebound from the economic challenges inflicted by the COVID-19 pandemic in preceding years.

It illuminated a landscape of buoyant optimism driven by the strategic blueprint outlined in the five-year Labuan IBFC Strategic Roadmap 2022-2026.

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Labuan FSA director-general Nik Mohamed Din Nik Musa said noteworthy expansions in business volume and a surge in new entrants have been observed, particularly within banking, insurance, captive, trust companies, capital markets, digital financial services, and wealth management.

“Of particular significance is the burgeoning influx of new company incorporations, a tangible testament to the enduring positive trajectory of the market. 

“This surge in profitability, reaching approximately US$4 billion across major sectors such as banking, insurance, and trust companies, unequivocally reaffirms Labuan IBFC’s renewed growth trajectory,” he said at the presentation of the Labuan IBFC Market Report 2023 at a leading hotel here today. (US$1=RM4.77)

Nik Mohamed Din said the financial sector as a whole boasts an impressive roster of 880 approved and licensed institutions, managing a substantial asset volume totalling US$83.3 billion. 

“Additionally, Labuan’s Islamic finance sector has embraced digital innovation as a cornerstone of its business strategy, exemplified by the landmark issuance of the world’s first Islamic digital assets, known as RAMZ, valued at US$50 million and listed on select Labuan digital exchanges,” he said.

In terms of economic development, Nik Mohamed Din said Labuan IBFC continues to serve as a linchpin, catalysing growth and prosperity for the Labuan island community. 

“The creation of new job opportunities and increased local spending by Labuan entities, estimated at RM219 million, underscore the centre’s vital role in fostering socio-economic vitality. 

“Notably, Labuan IBFC’s unprecedented contribution of RM1.2 billion to the nation’s fiscal revenue marks a historic milestone, surpassing the RM1 billion threshold for the first time and underscoring its pivotal position in Malaysia’s economic landscape,” he added.

The presentation of the Labuan IBFC Market Report 2023 was attended by Labuan FSA chairman Datuk Wan Mohd Fadzmi Che Wan Othman Fadzilah, Labuan industry players and members of the media.

-- BERNAMA