Labuan FSA Announces 50% Jump in Licensing Approvals in H1

Labuan Financial Services Authority (Labuan FSA) reported a more than 50% increase in the approval of licensing applications for the first half of 2020.

Labuan International Business and Financial Centre (Labuan IBFC) currently has over 800 licensed entities operating under the jurisdiction, according to the official press release.

Datuk Danial Mah Abdullah, Director-General of Labuan FSA in his welcome speech at the third Asian Captive Conference (ACC), stated: “Notwithstanding the challenges and movement restrictions due to the COVID-19 outbreak, we are glad to continue to have growth, an increase in licenses approved during the first half of 2020. Having said that, we remain cautious about the outcome in the second half of the year but I am optimistic that we will pull through this “COVID-19 rollercoaster year” on a positive note.”

“This is a natural progression of jurisdiction with more than 800 licensees, with the insurance market representing nearly 30% or 220. As we mature as a financial centre, cross-pollination of businesses is part of a natural development cycle that reinforces a vibrant intra-Labuan business ecosystem for all institutions to partake in,” he added.

Labuan IBFC is a “whitelisted” jurisdiction by the European Union and deemed largely compliant by the Organisation for Economic Co-operation and Development. With this, coupled with Labuan FSA’s continued commitment to adhere to the highest regulatory and supervisory standards, Mah is confident that the global financial services industry will continue to regard Labuan IBFC positively even during these unprecedented times.

Meanwhile, Labuan IBFC Inc. CEO, Farah Jaafar-Crossby, said, “The growth in licensed entities definitely evidences Labuan IBFC’s relevance as intermediaries continue to look for safe harbour jurisdictions, that are well regulated to international standards set by global multilateral organisations.”

Specifically in reinsurance, Labuan IBFC continued to see growth in the insurance industry with 11 new licensed being approved of which seven were captive insurance entities, reinforcing its jurisdictional reign in the Asia captive market.