Editing Labuan (section)

==Economy==
[[File:Labuan port-Malaysia.JPG|thumb|left|Labuan Port]]

The economy of Labuan thrives on its vast oil and gas resources and international investment and banking services. Labuan is very much an import-export oriented economy. Virtually all of its commodities including [[Petroleum|crude oil]], [[methanol]], HBI,{{what|date=May 2025}} [[Natural Gas|gas]], flour, animal feed, sea products, and ceramic tiles are exported either to Peninsular Malaysia or overseas. Raw materials, parts, and equipments for industrial uses well as consumer products are imported. In 2004, the total value of Labuan's external trade reached MYR11.8&nbsp;billion from only MYR5.0&nbsp;billion in 1995 for a net trade surplus of MYR5.1&nbsp;billion. Among its major trade partners are India, Peninsular Malaysia, Sarawak, and South Korea. 65% of its exports are petroleum and gas-based products.<ref>{{cite web|url=http://www.llpm.com.my/index.php?option=com_content&view=article&id=118:labuan-economy&catid=53:labuan-economy-and-developments&Itemid=139|title= Labuan Economy|access-date=20 January 2014|publisher=Labuan Liberty Port Management}}</ref>

The Gross Domestic Product (GDP) of Labuan is estimated at MYR3.63&nbsp;billion in 2012 with a growth rate of 5.8 per cent. Labuan GDP per capita in 2012 is MYR39,682. The total employment for Labuan is around 39,800 in 2012. The main economic sectors in Labuan is service and manufacturing which contributed 94.6 per cent to the island GDP. The service sector consisted mainly of Finance and Insurance and Real Estate and Business Services.  Meanwhile, the manufacturing sector consists mainly of oil and gas industry and support.<ref>{{cite web|url=http://www.statistics.gov.my/portal/download_Akaun/files/gdp_state/2005-2012/Penerbitan_KDNK_Negeri_2005-2012.pdf |title=GDP by state, national accounts 2005–2012 |language=en, ms |access-date=20 January 2014 |publisher=Department of Statistic, Malaysia |url-status=dead |archive-url=https://web.archive.org/web/20131126180006/http://www.statistics.gov.my/portal/download_Akaun/files/gdp_state/2005-2012/Penerbitan_KDNK_Negeri_2005-2012.pdf |archive-date=26 November 2013 }}</ref>

[[File:Labuan Malaysia Financial-Park-Complex-01.jpg|thumb|Labuan Financial Park complex, also known as Ujana Kewangan (UK) by many Labuanese.]]

The Labuan International Business and Financial Centre [[Labuan IBFC]] was created as Malaysia's only offshore financial hub in October 1990 and was operating under the name of Labuan International Offshore Financial Centre (IOFC). At the time it was established to strengthen the contribution of financial services to the [[Gross National Product]] (GNP) of Malaysia as well as to develop the island and its surrounding vicinity. The jurisdiction, supervised by the Labuan Offshore Financial Services Authority or LOFSA, offers benefits such as 3% tax<ref>{{Cite web |date=2025-04-21 |title=How to Qualify for Labuan’s 3% Tax Rate — A Smart Guide for Singaporean Entrepreneurs |url=https://remoteforce.work/labuan-for-singaporean-businesses/ |access-date=2025-05-15 |language=en-US}}</ref> on net audited results or a flat rate of Malaysian Ringgit (MYR) 20,000 to trading companies; low operational costs; liberal exchange controls; and a host of other advantages including readily available, experienced and professional service providers. In 2010 the notion "offshore" was excluded from all the statutes of Labuan due to world pressure on the tax havens and offshores.

Since its inception, the jurisdiction has expanded to become a base for more than 4,800 [[offshore company|offshore companies]] and  68 licensed banks. The IBFC also has over 370 registered foundations, 100 partnerships, and over 63 licensed trusts.<ref>{{Cite web |date= |title=2022 Labuan IBFC Financial Landscape |url=https://exty.bio/incorporating-in-labuan-in-2024-how-you-can-benefit-from-forming-a-labuan-company/ |access-date=23 August 2022 |website=Exty |language=en-US}}</ref> Labuan IBFC is embarking on an aggressive growth strategy to become the premier international business and financial centre in the Asia Pacific region.

Labuan's business focus is on five core areas: offshore holding companies, captive insurance, Shariah-compliant Islamic Finance structures, public and private funds, and wealth management. Labuan IBFC's position is further enhanced by the launch of the Malaysian International Islamic Finance Centre initiative in August 2006.