Labuan To Transform Into Integrated Economic Hub For Sabah, Sarawak And Asean

LABUAN (Malaysia), April 28 (Bernama) -- A joint-study has been carried out to transform Labuan into an integrated economic hub for Sabah and Sarawak as well as the ASEAN region, said Malaysia’s Central Bank Governor (BNM), Muhammad Ibrahim. He said the “Labuan Repositioning Study” by BNM, the Labuan Financial Services Authority (Labuan FSA), Labuan Corportion (LC) and Finance Ministry is to develop measures to better integrate the Labuan International Business Financial Centre (IBFC) with the national economic strategy. “The critical study is to unleash the potential of Labuan IBFC and the island as a whole,” he added. He said this at the presentation and briefing on the Labuan Financial Services Authority Annual Report 2016 here Friday. He said the study’s findings pushed for the implementation of four key areas. It calls for continuity in complementing the domestic economy by providing financial capacity for key industries, attracting and partaking of regional businesses and the nation’s outward-investment window to regional economics. “The second area is fiscal reinforcement with a focus on higher business substance for greater tangibility and economic spillover, while strengthening tax compliance, enforcement and contribution,” Muhammad said. Another key area is forward-looking the business focus to reinforce initiatives to develop out-out business and promote growth of niche sectors, as well as business potential to fulfill future market demands. The fourth is to support the island’s economic development through the promotion of economic activities and leverage on local resources. Muhammad also said BNM is fully supportive of the call for Labuan’s connectivity to other parts of the region to be improved, to accelerate the economy. “In responding to global forces of change and stay ahead of the competition, a strategic review is currently being undertaken to ensure the sustainable development of Labuan’s economy. “This review aims to build and deepen value propositions for investors and expand Labuan’s contribution to the Malaysian economy,’ he added. He said the global economy grew at a moderate pace throughout last year with slower growth in most advanced and emerging economies. “The uncertainties surrounding geopolitical events, the economic and monetary policies of the United States, as well as continued volatility of crude oil and commodity prices, sets the backdrop for a challenging operating environment,” Muhammad added. -- BERNAMA