Labuan, as an offshore jurisdiction, has come a long way since it was launched as an International Offshore Financial Centre exactly ten years ago. The original intention of using Labuan in complementing Kuala Lumpur in its quest to become a regional financial hub has now been significantly changed. Labuan has since widened its focus and scope of activities to the outside world and in particular, the Asian Pacific region, which is still a rapidly growing region despite being affected by the recent financial crisis.
Though it is just 10 years old, Labuan has been successfully competing with the more established offshore jurisdictions in recent years. The recent OECD report (on harmful tax competition) in which Labuan was not named, has drawn attention to the fact that Labuan is not only a competitive offshore financial services centre but also maintains a high level of international credibility.
