Distinguished speakers and delegates, Ladies and Gentlemen,

Assalamua’laikum warahmatullahi wabarakatuh and good morning.

1. It is my pleasure to welcome you to the second day of the Asian Captive Conference 2018. We are very delighted to see such an encouraging turnout for the conference and we are proud to note that this event is gaining recognition as a platform for collaboration of ideas, sharing of knowledge and exchange of experience for the continuous development of the Labuan captive industry.

2. Today, I am also very pleased and honoured to share this wonderful piece of news; that last night Labuan IBFC was awarded the Asian Domicile for Captives award at the inaugural Asia Captive Review Awards 2018. It is another great milestone for Labuan IBFC and it means a lot to us. We are grateful to all of the owners of our Labuan captives that have used Labuan IBFC’s captive structures and offerings as your “port of call” for your captive insurance businesses. You are the ones that made the award possible.

3. I would like to take this opportunity to congratulate the other winners at the Awards night and my special mention to Cik Raziyah Yahya, former Principal Officer of Energas, the Petronas captive in Labuan. She is a great supporter of Labuan and have made immense contributions to the growth of captives in Labuan IBFC. It is also noteworthy that other Labuan personalities and insurance-related companies have been nominated for various categories of award – a true honour for Labuan IBFC reflecting its excellence in the captive landscape in the Asian region. The midshore centre will continue its innovative path in the captive space to better serve users and service providers.

4. The Labuan captive business has come a long way since its humble beginning in the 1990s under the then Labuan Offshore Insurance Act. The first Labuan captive company was established in 1998, which is still in operations today. Since then, the business has thrived from strength to strength and in more recent years, Labuan IBFC has become one of the fastest growing centres for the captive business in Asia. As a jurisdiction, Labuan IBFC remains a preferred choice of many reputable insurance institutions and it is worth noting that the captive companies established in the earlier years, are still operating in Labuan IBFC. In fact, captive is now a key business sector in Labuan, and is the second highest premium contributor to total premium flows in the Labuan insurance industry.

Ladies and Gentlemen,

5. The theme of this conference, “Challenges of Self-Insurance: Transparency and Digital Disruption” augurs well with current global developments. We all know Fintech is fast sweeping across the financial services industry and the breakthroughs in technology are spurring fundamental transformations in these industries including the insurance industry. We are already seeing the Internet of Things (IoT) having changed insurance operations in many ways through increasing deployment of advanced analytical tools, artificial intelligence, big data, blockchains etc. The proliferation of smart gadgets have set the digital platform to provide better information, transparency and customisation of client needs under new market demands and trends.

6. While the advancement in technology creates new possibilities and opportunities, it has also reshaped the global policy landscape with its increasing complexity. Many policy issues remained unanswered or difficult to implement. These include fiscal and prudential policies. However, both the market players and regulators would agree that for long-term legitimacy and sustainable business, regulations need to be in place.

7. In this context, Labuan FSA will ensure that it keeps a relevant and conducive regulatory and supervisory regime for Fintech business to operate in Labuan IBFC, one that is at par with international standards and practices. Labuan FSA recognizes the business potential of these innovative financial services (IFS) and welcome existing Labuan institutions and new companies to deploy them as part of their business model to tap on the revenue generating potentials and to better serve their clients. While we encourage the developments, it is important that these activities must be undertaken in orderly and transparent manner as well as to have adequate risk-mitigating measures to manage potential downsides such as those related to fraud and money laundering. Labuan FSA has issued some guidance notes to our industry players relating to provision of innovative financial services. Indeed, with heightened level of the use of IoT, there is an accompanying increase in cyberattack risks. It is therefore crucial for risk management service providers to always equip with the latest knowledge and skill set needed in the new environment. That in fact is one of the objectives of this conference, for knowledge enrichment.

Ladies and Gentlemen,

8. Yesterday, the conference sessions were certainly enlightening.

• We heard about the important role of captives in supporting their parent companies growth aspirations by identifying, managing and monetising risk to enable them to provide protection against risks while able to build new profit centres towards delivering revenue growth.

• We had a better understanding of and current status the Belt and Road initiative and the potential it brings for customised and ‘all-round’ risk protection schemes.

9. Today, interesting sessions have also been lined up. There is one session on key considerations when choosing a domicile and a panel where risk professionals will be sharing their insights on the skill sets needed for the future business landscape that encompasses more digitalisation and internet of things.

10. There is also a session on Protected Cell Companies (PCC), which resonates with Labuan IBFC as it is the only jurisdiction in Asia that offers PCC. However, its use is still very limited and low especially for the Asian market. I hope that the presentation will shed greater understanding and more use of the PCC.

Ladies and Gentlemen,

11. With that, I would like to conclude my remarks and thank you again for participating in this Conference. I truly hope you have benefited from the conference. I wish all of you a successful and productive Conference ahead.

Thank you.