The Labuan Financial Services Authority published its Market Report 2024 for the Labuan International Business and Financial Centre, reporting continued expansion across core sectors and rising activity in Islamic finance, digital financial services and ESG-related business. The report puts the number of licensed entities at 838 at end-2024. Company incorporations rose 9% to 627 new registrations. Captive insurance recorded 16% growth in new entities licensed and a 24% increase in new cells, while total premiums increased 8.5% to USD677.4 million, with non-Malaysian business representing 58% of the portfolio. In Islamic finance, Shariah-compliant securities tokens (RAMZ) expanded 21-fold to USD1.05 billion, with the report citing the Labuan Islamic Digital Asset Centre initiative and noting new tax exemptions granted in October 2024 for Labuan digital takaful operators. Leasing activity included more than doubling of new oil and gas lease assets to USD815.9 million, with aviation leasing contributing more than 60% of total lease assets of USD36.8 billion, alongside 69.3% growth in total lease revenue and a 152% increase in bottom-line profit to USD654.6 million. In capital markets, fund management profitability increased more than threefold, and securities licensee revenue nearly tripled to USD9.6 million. Wealth management structures also expanded, with Labuan foundations up 24% to 237, while trust and corporate services added six new trust companies and reported income of USD40.8 million with profitability up 86%; employment in Labuan-licensed financial firms rose 5% to 5,006. Looking ahead, the Director General indicated Labuan FSA will set a forward-looking agenda around five priorities, including driving innovation and digital advancement, achieving a positive Financial Action Task Force rating in the 2024/2025 mutual evaluation, strengthening regulatory and supervisory frameworks including Sup-Tech deployment, enhancing Labuan IBFC’s international visibility, and advancing organisational automation.
Labuan Financial Services Authority 2025-04-30
Labuan Financial Services Authority reports 2024 Labuan IBFC growth with incorporations up 9% and RAMZ volumes reaching USD1.05 billion
The Labuan Financial Services Authority's Market Report 2024 highlights growth in core sectors, Islamic finance, digital services, and ESG-related business, with licensed entities reaching 838 by year-end. Key developments include a 21-fold increase in Shariah-compliant securities tokens to USD1.05 billion and growth in leasing and capital markets. The Director General outlined priorities for innovation, regulatory enhancement, and international visibility for Labuan IBFC.