Labuan Report 2022

Since its establishment over 30 years ago, Labuan has grown to become Asia’s innovative intermediation centre in a well-regulated environment with a wide array of products and solutions.

As part of this special report, Labuan IBFC highlights the current strengths of the jurisdiction's financial services industry and maps out its plans for 2023 and beyond.

We also talk to Nik Mohamed Din Nik Musa, Director-General of Labuan Financial Services Authority, who discusses the biggest regulatory achievements of the LFSA since its establishment 25 years ago; as well as its current strengths in subscribing, implementing and enforcing internationally accepted standards.

In addition, our comprehensive sector focus concentrates on Labuan IBFC's key industries. Labuan IBFC is Asia and MENA's fastest-growing risk and reinsurance wholesale intermediation market, boasting more than 220 licence holders, and makes for not only a wide but a deep marketplace for captives to thrive. Philip Teoh from Azmi & Associates considers the types of captive structures available, regulatory requirements and the common benefits and purposes of captive insurance.

With a complete suite of Islamic financial structures and solutions, we examine how Labuan aims to further promote Islamic finance in the region by focusing on sukuk, Islamic funds and waqf foundations, encouraging digital adoption within Islamic finance, as well as takaful captives and umbrella funds. Mohamad Nazran bin Basirun from Mohamed Ridza & Co discusses the growth of Islamic Finance in the region in more detail.

Labuan is the only jurisdiction in Asia that offers private foundations as a wealth management solution. Mari-Len Ngu from Pacific Trustees looks at the typical structure of a Labuan Foundation and explores its advantages in detail, including the Labuan Islamic Foundation.

Finally, Jonathan Lim from Zaid Ibrahim & Co (a member of ZICO Law) considers how Labuan IBFC is aiming to position itself as a renowned and modern international centre which would host digital financial innovations and become fit for digital businesses to serve Asia’s exponentially expanding FinTech needs.