LABUAN’S IDAC ON TRACK TO ACHIEVE US$1 BLN IN SHARIAH-COMPLIANT DIGITAL ASSETS

By Jailani Hasan

LABUAN, Nov 8 (Bernama) -- Labuan’s Islamic Digital Asset Centre (IDAC), launched in 2022, has marked major milestones, with digital assets now collectively valued at US$820 million.

Labuan Financial Services Authority (Labuan FSA) director-general Nik Mohamed Din Nik Musa said the IDAC’s achievements include four Shariah-compliant securities tokens, known as RAMZ (named after the Arabic term for ‘token’), and nine listings on Labuan’s digital exchanges. 

He said the centre is projected to achieve US$1 billion in Shariah and environmental, social and corporate governance (ESG)-compliant digital assets by the end of the year.

“This achievement marks a significant milestone in expanding access to Shariah and ESG-compliant digital assets globally,” Nik Mohamed Din said at the Labuan International Finance Lecture Series 2024, themed ‘Synergising Digital Innovation and Islamic Finance’ at a leading hotel here today.

The event saw a gathering of around 200 industry leaders and experts to discuss digital transformation within the sphere of Islamic finance.

Nik Mohamed Din added that the Labuan International Business and Financial Centre (Labuan IBFC) is positioning itself as a hub for Islamic digital finance, driven by the new zero per cent tax incentives for Labuan entities in Islamic financial activities. 

He said these incentives are set to boost sectors such as the Labuan takaful and related businesses, enabling the IBFC to launch innovative digital products that cater to unserved and underserved markets globally. 

“The tax incentives are expected to enhance Labuan’s role as a leader in Islamic and sustainable financial solutions,” he said.

Nik Mohamed Din underscored the role of digital innovation in advancing Islamic finance, stating that the integration of financial technology and Islamic finance presents unique opportunities to improve transparency, fairness, security, and efficiency in our financial systems. 

He added that digital convergence is reshaping the finance industry and fostering greater inclusion in the digital era.

The lecture series opened with a keynote address by Mohammad Ridzuan Abdul Aziz, country director and head of ASEAN Business at World Remit and former president of the Fintech Association Malaysia. 

His speech, “Harnessing Digital Transformation through Artificial Intelligence (AI) Initiatives and Blockchain Innovation,” highlighted recent advances in AI and blockchain technology and their transformative role in finance.

--BERNAMA