KUALA LUMPUR, April 30 (Bernama) -- The Labuan International Business and Financial Centre (Labuan IBFC) recorded robust growth across key sectors in 2024, with developments driven by regulatory adaptability and market innovation.
Unveiling the Labuan IBFC Market Report 2024, Labuan Financial Services Authority (Labuan FSA) director-general Nik Mohamed Din Nik Musa said the centre continues to strengthen its position as a regional hub for cross-border financial services under the Labuan IBFC Strategic Roadmap 2022-2026.
The centre’s performance was supported by rising digital adoption, a surge in Islamic finance activity, and strong leasing performance, particularly in oil and gas (O&G) and aviation.
Nik Mohamed Din highlighted that the total number of licensed entities increased to 838 last year, spurred by new entrants across business sectors.
“Noteworthy achievements in 2024 included a nine per cent rise in company incorporations (627 new registrations), with over 60 per cent originating from Asia and the Pacific,” he said during the unveiling of the report in Sasana Kijang here, today.
He said captive insurance hit a five-year high with US$677.4 million (US$1=RM4.31) in premiums underwritten, driven by emerging lines such as workmen’s compensation and professional indemnity.
Meanwhile, in the leasing sector, the number of new O&G lease assets had more than doubled at US$815.9 million, while aviation leasing remained dominant.
“Labuan’s leasing sector continued its upward momentum in 2024, with aviation leasing remaining the primary growth driver, contributing over 60 per cent of total lease assets, amounting to US$36.8 billion,” he said.
He added that subsequent leasing transactions fuelled a remarkable 69.3 per cent increase in total lease revenue and a 152 per cent surge in net profit, reaching US$654.6 million.
Nik Mohamed Din said Islamic finance emerged as a standout performer, with the value of Shariah-compliant securities tokens (RAMZ) surging 21-fold to US$1.05 billion, aided by blockchain innovations and the rollout of the Labuan Islamic Digital Asset Centre (IDAC).
“The centre also secured international recognition as the Best International Jurisdiction for Islamic Banking and Finance 2024 by the Global Islamic Finance Awards,” he added.
In the capital markets, revenues from securities licensees nearly tripled at US$9.6 million, while fund management saw a threefold rise in profitability.
He said wealth management recorded a 24 per cent growth in foundations, with rising interest from high-net-worth individuals.
“Last year was a defining year for Labuan IBFC, depicting its resilience and relevance in the international arena.
“The centre’s sustained growth strengthens its position as a trusted and forward-looking jurisdiction in Asia,” he said.
Nik Mohamed Din said that as Labuan IBFC celebrates its 35th anniversary, the centre is intensifying efforts to advance digital innovation, enhance its international profile, and ensure regulatory excellence in anticipation of the upcoming 2024/2025 Financial Action Task Force (FATF) mutual evaluation.
--BERNAMA
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