Labuan: Labuan International Business and Financial Centre (IBFC), previously known as International Offshore Financial Centre (IOFC), after being in operation here since 1990, has now developed into a significant component of the local economy by creating employment opportunities. Based on Lofsa (Labuan Offshore Financial Services Authority) Annual Report 2007, some 1,300 to 1,500 people are directly employed by the sector. This figure is almost comparable to those working in other industries here including oil and gas.
Offshore insurance provided the most employment opportunities with 546, almost 100 more than the previous year's 440. The increase was in line with the total number of approved licences to undertake insurance and insurance-related businesses to 130 from 123 in 2006.
Sixty-six insurance licences originated from Malaysia, Japan, Singapore, Hong Kong, Australia, Indonesia and Korea while the remaining came from Europe, the United States, Caribbean and Middle East.
The other sector which provided significant employment is offshore banks.
Last year, it had 490 staff compared to 475 in 2006. There were 53 offshore banks including investment banks as of Dec last year. Of this total, 15 were Malaysian-owned consisting of 11 subsidiaries while 38 were foreign-owned comprising eight subsidiaries and 30 branches. Among those with top-notch performances were the 21 trust companies which saw an increase in number of staff to 270 compared to 229 in 2006. The operating income of the sector also increased by 51.8 per cent to US$14.2 million (2006: US$9.4 million). This is not surprising considering the total number of companies in IBFC grew by 11 per cent from 5,678 in 2006 to 6,297 in 2007.
The other "star" performer according to the annual report was offshore leasing, describing it as the highest growing financial service industry in Labuan IBFC in 2007. The number of leasing companies increased to 114 in 2007 compared to 83 in 2004.
However, staff figures were not available.
While all sectors of Labuan IBFC recorded encouraging results, there is more to come, said Bank Negara Governor and Chairman of Lofsa, Tan Sri Dr Zeti Akhtar Aziz.
At the launch of the annual report in Kuala Lumpur, Zeti said the holistic approach in reviewing its current venture legal frameworks under the rebranding exercise which took place early this year should be given credit, adding the rebranding could enhance the island's appeal to investors.
Labuan IBFC will stand out as being "Connected, Convenient, Cost-efficient" once the rebranding is completed.
Zeti noted among the initiatives was the elevation for Labuan IBFC to "gold standard" status for holding company jurisdiction.
