For its efforts, it received the BrandLaureate e-Branding BestBrands Award for Fintech Islamic Financial Services (IFS) at the recent BrandLaureate Brand of the Year Awards 2022.
The Labuan IDAC was unveiled in October 2022, making available virtual listing using blockchain technology to enable global investors who are looking for new asset classes, including Shariah-compliant digital investment products, to use Labuan IBFC.
Labuan FSA director-general Nik Mohamed Din Nik Musa said the award was in recognition of the regulator’s contribution towards the advancement of Islamic finance, particularly relating to its initiative to promote Labuan as an IDAC. This initiative is embedded in the Labuan International Business and Financial Centre (IBFC) Strategic Roadmap 2022-2026.
“The Shariah-compliant products are in the form of securities token offerings which are issued by corporates looking to raise funds and securitise their assets and traded on the exchange,” Nik Mohamed Din told Bernama today.
In pursuit of Labuan’s aspiration as Asia’s Islamic finance centre, he said the Labuan FSA had issued the Guidance Note on Issuance of Green, Social and Sustainability Sukuk, and will roll out the relevant guidelines on digital assets and RAMZ (Arabic term for token) in the near future, to further strengthen the governance of the centre.
This was in line with the roadmap that anticipates Labuan IBFC will play a more significant role as a fund-raising and investment hub in the global digital space, with a niche in environmental, social and governance and Shariah-compliant activities.
Nik Mohamed Din received the award from the World President of The BrandLaureate Awards, KK Johan at the awards gala event in Kuala Lumpur on Dec 7.
“This award recognises and reaffirms Labuan FSA’s efforts and commitment to promote IDAC, and is also a collective reflection of the achievements of the Labuan IBFC industry to expand and innovate Shariah finance business.
“Labuan’s role in Islamic finance is gaining traction, underpinned by the comprehensive infrastructure that supports and accords certainty as well as the integrity for Shariah-based structures,” he said.
From only two Islamic banks in 2000, the number of Islamic banks in Labuan FSA grew to 19, including windows, with a total Islamic banking asset in excess of US$1.9 billion (RM8.4 billion) as of the second quarter of 2022.
A similar trend was observed in the retakaful sector where the number of operators increased from three in 2000 to 29 in June 2022, while the retakaful contribution stood at US$59 million (RM260 million) as of the first half this year.