The Federal Territory of Labuan is strategically located in the Asia Pacific region and lies adjacent to the Malaysian state of Sabah and the Northern edge of Brunei Bay facing the South China Sea. Comprising of the main island and six smaller islands the Federal Territory of Labuan is administered by the Malaysian Federal Government.

Labuan enjoys a grandeur of history. In 1846 the Sultan of Brunei ceded it to the British who in 1849 officially declared Labuan a colony of the British Empire renaming her to “ Victoria”. She remained under British rule until 1942 when the Japanese took formal occupation hence renaming her to “Pulau Maida”. The Japanese Control was brief and on the 10 th June 1945, “Pulau Maida” came under the British Military Administration. Finally in 1963, she became apart of Malaysia and was declared a Federal Territory of Malaysia.

With the Malaysian Government’s firm commitment to developing Labuan to its fullest potential and its vision for Labuan to complement the onshore financial arena, in 1990 she was declared an International Offshore Financial Center (IOFC). Today, it is progressing well in its development as an International Business and Financial Centre (IBFC). Since inception, Labuan has achieved significant growth and international recognition. In 1996, Labuan Financial Services Authority (Labuan FSA) (formerly known as Labuan Offshore Financial Service Authority (LOFSA)) was established to act as a one-stop regulatory body thus allowing simplified and convenient business dealings with the government.

During 2014, over 11,630 companies had registered in Labuan with 57 banking institutions including the top 30 banks in the world having offices on location. The financial community offers assured confidentiality as well as a safe investment in a stable political environment. Labuan FSA has spearheaded its efforts into making Labuan a competitive and attractive business environment. This has been further enhanced by its legislative framework which is not only business friendly but prudent in safeguarding Labuan’s reputation as a clean and reputable business and financial centre.

Firms from the insurance, legal and accounting industries have also established offices in Labuan, with the United States, the United Kingdom, Netherlands, Germany, Anstralia, Singapore, Japan, Hong Kong, Middle East, Indonesia, France and Switzerland commanding a presence.

Labuan is a free port in which no tax, surtax, excise or import/export duties are levied. It is free from exchange control regulations when dealing with non-residents, and has Double Tax Agreement with over 60 countries. It is readily accessible to all international destinations through flights from Kuala Lumpur, Kota Kinabalu and Brunei and has become a major tourist destination.