LABUAN: The Labuan International Business Centre (Labuan IBFC) says it will retain its strategy of bridging Asian economies by leveraging on Labuan’s optimal geo-position.
Bernama reported quoting Labuan Financial Services Authority (Labuan FSA) director-general Danial Mah Abdullah as saying this is also in tandem with one of Budget 2020’s initiatives to promote investment inflows from China.
“This is consistent with Labuan IBFC’s own China Strategy as the centre’s structures can be used to attract Chinese investors, especially prominent financial institutions and firms.
“While intensifying its business focus, Labuan FSA will continue to uphold its supervisory and regulatory role to ensure that the soundness and stability of the market are always preserved,” he said at the annual Industrial Dinner on Saturday.
He said higher supervisory oversights and more on-site examinations would be conducted on sectors which have been identified as high-risk under the Labuan Sectorial Risk Assessment framework.
“This is all necessary to evidence our seriousness in addressing anti-money laundering and combating the financing of terrorism (AML/CFT) matters especially when Malaysia including Labuan will be assessed again by the Financial Action Taskforce (FATF) early next year.
“We need to ensure that Labuan IBFC is ready and demonstrate that measures are in place to preserve our positive ratings of the assessment and maintain Labuan IBFC’s credibility as a reputable centre,” he said.
He said as the Labuan’s financial sector enters its 30th year next year, it needs to be agile and adaptive to international regulatory changes, global competition and technological advancements.
“We are fortunate to be in the fastest-growing region in the world – Asia Pacific — allowing us to grow in tandem with the region, so we should continue to promote our niche sectors that have gained market confidence and international recognition,” he added.
He noted that Labuan IBFC was named the Best Asian Captive Domicile in the Asian Captive Review Awards for 2018 and 2019.
“Against this backdrop, to stay relevant and vibrant, we need the support of all stakeholders. We will continue to collaborate with our stakeholders including the relevant ministries, government agencies, industry players, intermediaries and other service providers to develop the centre further,” he said.
He said the visit by Finance Minister Lim Guan Eng in July 2019 has provided the assurance of governmental support for the development of Labuan IBFC.
“We will certainly do more, and the recent positive media coverage on Labuan is a testament that the centre is still very visible and relevant to the nation,” he said.