Labuan Financial Services Authority (Labuan FSA) released a report today regarding the issuance of licenses in the jurisdiction for the first half of 2020. The authority reports a 50% increase in the approval of licensing applications in H1 2020.
According to the official press release, Labuan International Business and Financial Center (Labuan IBFC) now has more than 800 licensed entities operating under the jurisdiction. Despite the economic impact of the coronavirus pandemic, the authority remained cautiously optimistic for the second half of 2020.
Established in 1990, Labuan IBFC is a mid-shore jurisdiction and home to many financial service providers around the world. The financial center offers a wide range of services related to cross-border transactions including innovative fintech solutions for the registered entities.
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While addressing the virtual edition of the third Asian Captive Conference (ACC) today due to coronavirus pandemic, Datuk Danial Mah Abdullah, Director-General at Labuan FSA said: “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.
The authority said that the recent growth in applications shows the importance of Labuan IBFC as a jurisdiction. Labuan IBFC plans to meet the international standards in order to continue the recent boom. “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,” Farah Jaafar-Crossby, CEO at Labuan IBFC said.