LABUAN: The Labuan Financial Services Authority (Labuan FSA) remains optimistic that the Labuan International Business Financial Centre (Labuan IBFC) will continue to grow in strength and expand its regional prominence.

This is made possible by industry players’ business agility, coupled with robust capabilities and capacities, that allow them to realise their strategies while at the same time adapt to new business norms.

The Labuan FSA will continue to monitor the situation to ensure that the IBFC’s business operations and delivery of services remain uninterrupted, according to the Labuan IBFC Market Report 2019.

Considering the uncertainties looming in the international business scene, the Labuan FSA has been closely monitoring the situation and taking pre-emptive measures to maintain stability and sustainability of the industry.

The report said a set of regulatory reliefs, which provided administrative flexibilities and financial reliefs, was given to Labuan entities to cushion the impact and minimise disruption to business operations arising from the COVID-19 pandemic.

Further reliefs will be considered as the condition evolves and based on engagements with the industry players.

During these challenging times, the Labuan entities, including the financial institutions, which operate in multiple markets within the Asian region continue to be able to provide services and business facilitation to their clients.

Meanwhile, the Labuan IBFC enters its third decade of operation since 1990, as the Labuan IBFC Market Report 2019 was unveiled.

The 30th anniversary signifies the success of the IBFC’s long standing journey, and a pivotal time to embark on a new direction for the next phase of development and growth.

In 2019, one of the watershed events was the rollout of the new Labuan IBFC tax framework, which had in many ways changed the Labuan IBFC’s business landscape.

The salient features of the new framework included removal of the RM20,000 tax option, ring-fencing elements and the introduction of substance requirements.

The substance requirements will further enhance the Labuan IBFC’s market players’ contributions towards the island’s economic growth by increasing their business presence.