LABUAN FSA UPBEAT ON GROWTH

Financial centre remains attractive destination for investors, says authority

THE Labuan Financial Services Authority (FSA) is confident of recording another double-digit growth in new companies to be incorporated in the Labuan International Business and Financial Centre (IBFC) this year.

Labuan FSA director-general Danial Mah Abdullah said the centre continued to be an attractive destination among nonresident businesses.

“We are confident of recording another double-digit growth (in new company incorporation) this year.

“Labuan IBFC remains a preferred jurisdiction for investors seeking business expansion in the region, in tandem with the growing pace and potential of Asia’s economies,” he said at Labuan IBFC’s 2018 Industry Performance briefing, here, yesterday.

Last year, new companies incorporated in Labuan IBFC’s business sectors registered double-digit growth of 12.5 per cent, or 1,059 incorporations, with the majority from Japan, China and South Korea.

Danial said increased company incorporation boosted the growth of trust and corporate service providers, with a total of 57 trust companies, including the granting of six new licences.

This was an increase of 11.5 per cent year-on-year.

“This positive uptrend of company growth reflects Labuan IBFC’s position as a centre with numerous value propositions to investors,” he said.

According to the Labuan IBFC report, the insurance sector remained strong with total gross written premiums posting a significant increase to US$1.7 billion (RM6.9 billion), up 19.1 per cent from the previous year. Foreign insurance accounted for 64.7 per cent of the total premiums underwritten.

The captive insurance business registered an 11 per cent growth in total gross premiums to US$400.5 million, with 67.4 per cent of premiums from foreign businesses.

The banking sector’s total assets increased by 8.4 per cent to US$55 billion, while total loans rose by 19.1 per cent to US$33.2 billion. Loans granted to non-residents accounted for 59.7 per cent of total loans, with most from Asia Pacific.

Islamic banking business also continued to grow. Total assets grew 2.4 per cent to US$3.2 billion, and total financing went up 8.4 per cent from US$2.7 billion.