2 main business niches under Labuan IBFC Strategic Roadmap 2022-2026 focus on Islamic finance, insurance captives

By Jailani Hasan

LABUAN, Oct 7 (Bernama) -- Two main business niches under the Labuan International Business and Financial Centre’s (Labuan IBFC) Strategic Roadmap 2022-2026 is focusing on Islamic finance and insurance captives.

Labuan Financial Services Authority (Labuan FSA) Director-General Nik Mohamed Din Nik Musa said the strategic goal of the roadmap is to attract more digital asset and financial technology (fintech) players to Labuan and carve out a niche in the digital Islamic finance space in the Labuan IBFC. 

“In pursuing this agenda, Labuan had launched its first Islamic/environmental, social and governance (ESG) Digital asset exchange recently, potentially making it one of the world’s first Islamic digital asset exchanges,” he told Bernama in an interview today.

He said Labuan FSA also aspires for Labuan as Asia’s Islamic Digital Asset Centre or IDAC.

On insurance captives, he said Labuan FSA aimed to enhance the attractiveness of Labuan captive solutions including reviewing the captive business framework.  

“This is to provide more clarity to investors whilst optimising the captive sector’s capacity in meeting the insurance needs of Labuan entities as well as major business establishments within Labuan Island. 

“Labuan FSA is also keen to expand Labuan IBFC’s complementary role to Malaysia’s insurance market through targeted promotion of captives as innovative risk management solutions, particularly for the unserved and underserved segments,” he said.

Nik Mohamed Din said in the pursuit to build on the strong foundation for Labuan IBFC to play broader and more significant roles in both the domestic and regional economy, Labuan FSA envisioned sustainable development and inclusive growth as an increasingly significant agenda in the future trajectory of Labuan IBFC.  

“Recognising the importance of ESG agenda globally, it is also an aspiration of Labuan FSA for the Labuan IBFC to play an influential role in promoting sustainability to combat climate change by introducing green and sustainable initiatives based on inclusiveness, responsible financing and digitalisation to support the Labuan financial industry to transition to a more sustainable future,” he said. 

Meanwhile, he said Labuan FSA remained committed to upholding the highest standards of corporate governance and integrity with zero tolerance to corruption and bribery. 

“In line with this, we will continue to build on the ongoing efforts to enhance internal controls and promote the adoption of sound risk management culture in line with Labuan FSA’s Code of Business Conduct And Ethics towards building resilience and sustainable organisation,” he said.

He said Labuan FSA has adopted the new norms of hybrid or virtual meetings to reduce air travel and embarked on working from home flexibility to reduce energy utilisation and waste disposal in the long term.  

“We will also promote workforce diversity, equity and inclusion and through investment to upskill knowledge and capabilities as well as wellbeing combined with a clear commitment to sustainability,” he added.

-- BERNAMA