LABUAN: The Labuan Financial Services Authority (Labuan FSA) is confident of recording another double digit growth in new companies to be incorporated in Labuan International Business and Financial Centre (Labuan IBFC) in 2019.
Labuan FSA director general Danial Mah Abdullah said the centre continued to be an attractive destination among non-resident businesses fuelled by its robust business policies and the expansion and deepening of Labuan IBFC’s intermediation role.
“Yes, we are confident of recording another double digit growth (in new company incorporation) this year, if not at a normal rate at eight to 10 per cent growth recorded in the past 10 years.
“Labuan IBFC remains a preferred jurisdiction for investors seeking business expansion in the region, in tandem with the growing pace and potential of Asia’s economies,” he told reporters at Labuan IBFC’s 2018 Industry Performance briefing here today.
In 2018, new company incorporated in Labuan IBFC’s business sectors registered double digit growth of 12.5 per cent or 1,059 incorporations, with the majority of it from Japan, China and South Korea.
Danial said increased company incorporation had boosted the growth of trust and corporate service providers, with a total of 57 trust companies, including the granting of six new licenses. This was an increase of 11.5 per cent year-on-year, providing value-added services to Labuan corporate entitites and expanding the reach of Labuan IBFC across Asia.
“This positive uptrend of company growth reflects Labuan IBFC’s position as a centre with numerous value propositions to investors,” he said.
According to the report, Labuan insurance sector remained strong with total gross written premiums posting a significant increase to US$1.7 billion, rising 19.1 per cent from the previous year, with foreign insurance business accounted for 64.7 per cent of the total premiums underwritten.
The captive insurance business registered a 11 per cent growth in total gross premium to US$400.5 million, with 67.4 per cent of premiums from foreign businesses. In 2018, six new captives were set up, all of which were Asian based.
Labuan banking sector’s total assets increased by 8.4 per cent to US$55 billion, while total loans rose by 19.1 per cent to US$33.2 billion.The report said loans granted to non-residents accounted for 59.7 per cent, with most from the Asia Pacific region.
Islamic banking business also continued to grow in financing and customer deposits, with total assets grew be 2.4 per cent to US$3.2 billion, and total financing up by 8.4 per cent from US$2.7 billion.