Labuan Financial Services Authority's 2011 income at RM26.9m

KUALA LUMPUR: Labuan Financial Services Authority's (LFSA) operating income for fiscal year ended Dec 31, 2011, rose to RM26.9mil from RM23mil in the same period 2010.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/6/7/business/20120607141756&sec=business
Published: Jun 07, 2012

LFSA is the regulatory body to spearhead and coordinate efforts to promote and develop Labuan International Business and Financial Centre (LIBFC).

Chairman Tan Sri Zeti Akhtar Aziz said supported by its strategic location and financial infrastructure, the business activity and financial service sectors in the LIBFC continued to record positive growth in the banking, insurance and reinsurance, captives and leasing sectors.

"The growth momentum was sustained in 2011 despite the challenging global environment," she told a media briefing on its annual report here on Thursday.

Zeti said the banking sector saw an increase of 24.1 per cent in total loans to US$24.7 billion (US$1 = RM3.16) from US$19.9 billion in 2010 while total assets rose to US$38.3 billion from US$33.9 billion previously.

The insurance sector's total premiums rose by 33 per cent to US$1.6 billion from US$1.2 billion in 2010 and total assets grew by 16.1 per cent to US$3.6 billion from US$3.1 billion.

Leased assets rose by 10.4 per cent to US$27.6 billion from US$25 billion in 2010, she said.

She said total Islamic banking assets went up to US$1.5 billion from US$1.3 billion in 2010.

Total financing by the Islamic banking jumped by 56.8 per cent to US$294.6 million, takaful and retakaful contribution surged by 54.6 per cent to US$459.5 million and listed Islamic instruments rose by 17.8 per cent to US$8.6 billion, she said.

Zeti said two banks, one each from Australia and Ghana, obtained licences to operate in LIBFC while 22 new insurance licences and five trading licences were issued last year.

The business and financial sector also registered 59 new leasing companies, seven trust companies and 35 foundations last year, she said.

"In total, 651 new companies were incorporated in LIBFC last year, representing an increase of 8.1 per cent from 2010, making the total number of companies operating in the business and financial centre to 8,655 companies," she said.

Moving forward, she said, the authority planned to realise the strategic potential of LIBFC to serve the needs of domestic and regional businesses, as outlined in the financial sector blueprint.

Leveraging on Labuan as the oil and gas hub, she said, the LIBFC was expected to also grow in tandem with the industry. "There are tremendous potentials for LIBFC to serve the business and financial requirements of this industry," she said. - Bernama