8 December 2022, Kuala Lumpur- Labuan Financial Services Authority (Labuan FSA) received an accolade the BrandLaureate Brand of the Year Awards 2022 when it was awarded with “The BrandLaureate e-Branding BestBrands Award for Fintech Islamic Financial Services”. At a glittering Awards Gala held at the Majestic Hotel on Wednesday, 7 December 2022, the Director General of Labuan FSA, Mr Nik Mohamed Din Nik Musa was presented the award by the Guest-of-Honour Tan Sri Rainer Althoff and Dr. KK Johan, World President of The BrandLaureate Awards. The award is in recognition of Labuan FSA’s contribution towards the advancement of Islamic finance, particularly in relation to the initiative to promote Labuan as an Islamic Digital Asset Centre (IDAC) as embedded in the Labuan IBFC Strategic Roadmap 2022-2026.

The Labuan Islamic Digital Asset Centre or 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. 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 at the exchange. In pursuit of Labuan’s aspiration as Asia’s Islamic finance centre, Labuan FSA has issued the Guidance Note on Issuance of Green, Social and Sustainability Sukuk, and will in the near future rollout the relevant guidelines on digital assets and RAMZ (Arabic term for token), to further strengthen the governance of the centre. This is in line with the Strategic Roadmap that anticipates Labuan IBFC to play a more significant role as a fund raising and investment hub in the global digital space, with a niche in ESG and Shariah compliant activities.

Mr. Nik Mohamed Din said “Labuan FSA is honoured to receive the BrandLaureate e-Branding BestBrands Award for Fintech Islamic Financial Services”. This award recognises and reaffirms Labuan FSA’s efforts and commitment to promote IDAC. Earning the award is also a collective reflection of the achievement of Labuan IBFC industry to expand and innovate Shariah finance business.

Labuan’s role in Islamic finance is gaining in traction underpinned by the comprehensive infrastructure that supports and accords certainty as well as integrity for Shariah-based structures. Started with only two Islamic banks in year 2000, the number grew to 19 Islamic banks including windows with a total Islamic banking asset in excess of USD1.9 billion as at Q2, 2022. Similar trend is observed in the retakaful sector where the number of operators increased from 3 to 29 from year 2000 to June 2022, and the re-takaful contribution stood at USD59 million as of the first half of 2022.

Labuan FSA will continue to provide thought leadership and formulate strategic policy to enhance Labuan as an Islamic Digital Asset Centre or IDAC for Asia and beyond.