Labuan IBFC Can Still Maintain Growth Despite Regional Slowdown

Labuan International Offshore Financial Centre.
Labuan International Offshore Financial Centre.

LABUAN – Labuan International Business and Financial Centre (Labuan IBFC) can still maintain a positive growth in the number of new company registrations and income this year despite the economic slowdown across the region.

Labuan Financial Services Authority director-general, Datuk Ahmad Hizzad Baharuddin, said as of last year, a total of 12,470 companies were incorporated in Labuan IBFC.

Ahmad Hizzad Baharuddin
Ahmad Hizzad Baharuddin

“Up to August this year, the total number of companies incorporated in Labuan IBFC stands at over 13,000 companies, with over 600 newly incorporated companies this year,” he told a group of selected media here recently after the Labuan International Financial Lecture Series 2016.

He said over the years, Labuan IBFC had achieved 7.2% year-on-year growth in new company registrations.

“Growth could be lower than the seven per cent target in the number of new company registrations. However, we hope to see better things in the next one-and-a-half years,” he said.

In a statement, Labuan IBFC said the growth last year was fuelled by robust business policies and continued intermediation, enabling investors to tap into the business opportunities in the Asean market.

Abdul Wahid Omar
Abdul Wahid Omar

Labuan IBFC offers solutions and services in wealth management, commodities trading, banking, insurance and syariah-compliant businesses.

Meanwhile, Permodalan Nasional Bhd group chairman, Tan Sri Abdul Wahid Omar, said better connectivity would boost the economy in Labuan and its profile as a financial centre.

“Connectivity is not just about bridge and telecommunications but also airline connectivity with other cities such as Singapore,” Abdul Wahid told reporters.

He said air connectivity would also boost the tourism industry.

Abdul Wahid said while the Government was constrained by limited financial resources, the private sector could engage in public-private partnerships to undertake developments.