“When investors of this sector come into Labuan, the economy will be spurred, creating high-value jobs and producing economic spinoffs,” Anifah Aman said in a statement.

He said the incentive was in line with the development of Labuan as a fully shariah-compliant Islamic financial hub.

Anifah also welcomed the RM1.1 billion to solve water supply problems in Labuan, Sabah and Kelantan.

The residents of Labuan can look forward to the resolution of their water problems following the announcement of allocations announced in the 2024 budget, he said.

Last month, Anifah, who was appointed the Labuan Corporation chairman in June, complained that the people in Labuan were putting up with the lack of essential basic amenities, like water and power supply, which made it difficult to attract investors.

Parti Bersatu Sabah in Labuan said the tax exemption will further spur Labuan’s standing in the global offshore financing sector.

The allocation to resolve its water woes was a much-awaited relief, PBS Labuan division chief Peter Mak said.