News - Non-resident business boosts Labuan’s growth

Non-resident business boosts Labuan’s growth

Published on: Apr 16, 2019

The Labuan IBFC’s inaugural Market Report 2018 was released last month and gave a snapshot of Labuan’s performance in 2018.

The Labuan IBFC’s inaugural Market Report 2018 was released last month and gave a snapshot of Labuan’s performance in 2018.

Key successes include a 12.5% growth (that is 1,059 incorporations) in company incorporations, the majority of which came from the Asian region including China, South Korea and Japan. This increase in incorporations in turn fuelled growth in trust and corporate service providers. There is now a total of 6,031 companies in Labuan.

Financial activity rose in 2018 with bank loans increasing by 19.1% (loans granted to non-residents accounted for 59.7% of this number) and there was a 14.6% increase in total deposits. Total assets increased by 8.4% to US$55 billion.

There are 58 trust companies in total with six new licenses granted last year (an 11.5% increase). These firms provide significant value-added services from corporate secretarial and compliance to wealth preservation and outsourcing, and expand Labuan IBFC’s reach across the region.

There was an uptick in the number of insurance and insurance related entities being approved with the total number rising to 216 (from 203 in 2017). The insurance industry in Asia has been a growth driver in the region thanks to expanding working populations fuelling domestic demand, rising wealth and increasing investments.

For more information on doing business in Labuan, contact Alpadis Group here