According to LOFSA, a strategic milestone was achieved in 2007, with the repositioning and rebranding of Labuan IOFC as Labuan International Business and Financial Centre (IBFC).

It observed that: "The new brand name of Labuan IBFC marks its greater focus and its continuous progress towards a vibrant and progressive international business and financial centre."

"Labuan IBFC has shown its agility to build new strengths, leveraging on its comparative advantages, to meet the emerging and more sophisticated demand in the region."

The report revealed that the Labuan IBFC continued to record double-digit growth in the number of new offshore companies, which totalled 6,297 in 2007.

The availability of expertise and quality service providers and the wide spectrum of products and services has made the Labuan IBFC an increasing attractive domicile for investors, LOFSA suggested.

The offshore banking industry reported an expansion in the loan assets, complemented by an improvement in the asset quality.

The total assets of offshore banks increased by 27.8% from USD21.1bn in 2006, to USD 27bn in 2007. The gross non- performing loans indicator also improved further, from 2.8% in 2006 to 2.0% in 2007.

The offshore leasing business continued as one of the main offshore financial activities, to become one of the highest growing financial industry in Labuan IBFC in 2007.

Total new lease financing increased by 18.7%, resulting in a cumulative financing of USD14.1bn. This has been boosted by strong activities in the oil and gas sectors, as well as increased shipping activities in the region.

The report went on to reveal that the offshore insurance industry continued to expand, particularly in the reinsurance business sector, which grew by 40.3% to USD919.2mn in 2007, of which 62.0% were non- Malaysian premiums, signalling its growing role as a reinsurance centre.

This is also reflected by the increasing amount of re-takaful contributions, amounting to USD108.4mn, an increase of 42.8% from 2006.

For the year 2007, Islamic-based assets in the Labuan IBFC continued to grow, to USD1.2bn, representing an increase of 36.9% as compared to 2006. There was strong interest from investors from the Middle-East seeking to invest in the Asian region.

The position of Malaysia as an International Islamic Financial Centre (MIFC) has further enhanced Labuan’s effort to promote Shariah compliant trusts and foundations, as these products complement the Islamic financial products and services that are already available onshore.

The Labuan International Financial Exchange (LFX) also recorded four new listings, bringing the total number to 31, with total market capitalisation of USD15.1bn.

One of the major listings was the Sukuk issuance of USD1bn by Saudi Arabia based Dar Al-Arkan International Sukuk Company.

Going forward, LOFSA has identified several key strategic programmes to advance Labuan as an International Business and Financial Centre.

One such initiatives is to elevate Labuan IBFC‘s status to being the “gold standard for holding company jurisdiction”.

Malaysia’s extensive tax treaty network with more than 60 countries and the introduction of a more flexible tax framework supports this initiative.

LOFSA is in the process of streamlining all aspects of the existing legal framework covering both conventional and Islamic businesses to create a more "facilitative, flexible and frictionless business environment", according to LOFSA.

The revised legislation and regulations involve rationalising and improving the provisions to further enhance the development of business and financial activities in Labuan.

The long-term development of Labuan IBFC aims at building a strong and sound financial centre that is effectively regulated, vibrant and active, the Authority concluded.