Labuan captive numbers grow with energy production
The Labuan International Business and Finance Center reported the highest number of license approvals in the last five years in 2012, according to an annual report issued by the Labuan Financial Services Authority. According to the FSA: “the increase is in tandem with the favourable economic growth in Asia, with more than 50 percent of Labuan companies originating from this region.”
Out of 29 licenses issued, six were captive insurers. The total number of captive insurers leapt from 34 to 41; total assets of Labuan insurance entities increased 16 percent to $4.2 billion.
“The positive prospect of oil and gas production in Asia is favourable to the growth of Labuan IBFC to become the financing hub for the oil and gas business,” said regulators. Tan Sri Dr Zeti Akhtar Aziz, chairman of the FSA, added: “there has been a fundamental shift in economic growth from advanced to emerging economies after the global financial crisis. This trend has presented significant opportunities emerging from the Asia Pacific region.”