Kuala Lumpur: Labuan is increasingly becoming attractive not only for financial services but also oil and gas as well as shipping and aviation activities, Bank Negara Malaysia's governor Tan Sri Dr Zeti Akhtar Aziz said Friday."Labuan itself has new activities in oil and gas (fabrication) and in the leasing business arising from the expansion in shipping-related as well as aviation industry in the region," she said.
These activities, she said, would add value to Labuan as the international offshore financial services provider.
"I must emphasis that Labuan already provides the comprehensive spectrum of financial services which are important in supporting all other new businesses that are emerging," she said at a press conference after launching the Labuan Offshore Financial Services Authority (Lofsa) 2007 Annual Report here Friday.
To date, she said, Labuan has 300 international financial institutions and 17 of the 20 top financial institutions were international bank.
As for the rebranding of the Labuan International Business and Financial Centre, she said, it was necessary in line with dramatic and fundamental changes arising from globalisation and liberalisation in Asia, traditional markets as well as Middle East.
Labuan, Zeti said, has the capability to reinvent and restructure and take advantage of the new global environment.
Since the rebranding that took place last year, there has been an increase interest in all areas such as holding company business, insurance, reinsurance, equity and trust.
Asked if the US sub-prime issue has an impact on banks in Labuan, she said: "There is negligible direct exposure. So, therefore the institutions (onshore and offshore) have overall no impact on their positions."
On money-laundering, she said, the Asia Pacific Group on Money Laundering (APG) gave Malaysia and Labuan a higher standard of compliance.
The positive result reflected the comprehensive and effectiveness of the anti-money laundering and counter-terrorism financing measures in Malaysia and Labuan, said the Lofsa report.
Zeti said the government has an allocation to improve amenities in Labuan such as to improve air links and marine shipyards.
She said the future would be for the competitive, the cost-efficient and the innovative that were able to offer strong value propositions to customers.
"The industry, the market professionals and participants will therefore have an important role in achieving this," she said.
Zeti said with the combined and concerted efforts of Lofsa and the industry, as well as the continued support from the government, "we can look forward with confidence to a stronger performance from the Labuan International Business and Financial Centre and a higher contribution to a greater shared prosperity." - Bernama
