ARTICLE · 06 NOVEMBER 2026
Insight Plus - Q3 2026
In today’s evolving business environment, some Labuan Financial Institutions (LFIs) may utilise third party service providers or GSS to support the performance of certain functions (such as accounting, Information Technology support, compliance, internal audit and administrative services).
MalaysiaFinance and Banking
Lost in Outsourcing?
Planning to Outsource a Function in Labuan International Business and Financial Centre (Labuan IBFC)?
- Is prior approval from Labuan Financial Services Authority (Labuan FSA) required?
- Is notification to Labuan FSA sufficient?
- Is the service provider a third party or part of a Group Shared Services (GSS) arrangement?
- Is the outsourced function material or non-material?
The answers may not be as straightforward as you think.
Why Does Outsourcing Matter?
In today’s evolving business environment, some Labuan Financial Institutions (LFIs) may utilise third party service providers or GSS to support the performance of certain functions (such as accounting, Information Technology support, compliance, internal audit and administrative services). While such arrangements may enhance operational efficiency, outsourcing does not transfer the LFI’s responsibility for the outsourced activities. As outsourcing may create
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