27 Jul 2017, Abu Dhabi, UAE/ Malaysia : Abu Dhabi Global Market (ADGM), the International Financial Centre of Abu Dhabi, Labuan International Business and Financial Centre (Labuan IBFC) and Labuan Financial Services Authority (Labuan FSA) have entered new partnerships to foster greater collaboration on joint financial activities and regulatory practice that support the growth and development in both financial ecosystems in Labuan, Malaysia and Abu Dhabi.
Two agreements were signed between the Labuan IBFC Inc Sdn Bhd and ADGM, and the Labuan FSA and the Financial Services Regulatory Authority (FSRA) of ADGM. Labuan IBFC Inc Sdn Bhd is the organisation entrusted with market development for Labuan IBFC, the jurisdiction and is a wholly-owned subsidiary of Labuan FSA, the statutory regulator entrusted to manage the international business and financial centre.
The MOUs established a strategic platform for Labuan FSA and the FSRA to better understand and share pertinent information on banking, financial services, securities legislation and regulations in each market.
As part of their agreement, ADGM and Labuan IBFC will explore mutually beneficial projects to facilitate long term opportunities in infrastructure financing, new innovations in areas of Fintech and green finance. The FSRA and Labuan FSA will focus on regulatory cooperation for the supervision of financial institutions, as well as, the joint collaboration and exchange of information as well as support cross border activities in the Abu Dhabi and Malaysian financial sectors. The Authorities are also prepared to develop relevant activities and events that foster financial innovation and closer regulatory cooperation in both jurisdictions.
Datuk Ahmad Hizzad Baharuddin, Director-General of Labuan FSA said:“The MoU signifies an important milestone in international cooperation between the two regulatory authorities. It will pave the way for mutual assistance and sharing of supervisory information between Labuan FSA and ADGM-FSRA to strengthen the supervision of cross-border operations of financial institutions under their purview. I believe the bilateral relationship will play a key role in fostering regional financial stability and sustainable growth”.
Mr Richard Teng, Chief Executive Officer,Financial Services Regulatory Authority of ADGM, said:“We are pleased to continue nurturing this strategic relationship with our Asian partners of the Labuan IBFC and Labuan FSA. As an International Financial Centre, ADGM aims to further bolster financial services activities, facilitate investment flows and encourage business innovation. This agreement paves the way for more joint efforts and initiatives and we look forward to working closely with the team to enhance Fintech developments, innovation and explore possible cross-border investment activities to better serve our markets and beyond. Together, we can work closely in advocating a well-regulated environment and promoting high regulatory standards and practice among our business communities in the UAE and Asia.”
ADGM will continue to cultivate meaningful cooperation and partnerships with authorities and stakeholders both locally and globally as part of its role as a global citizen in the world’s economy.
In addition,Danial Mah Abdullah, Chief Executive Officer of Labuan IBFC Inc Sdn Bhd, said:“We are indeed looking forward to this exciting phase in partnership. This MoU evidences our intention of working even more closely with ADGM towards achieving our common goals, whilst ensuring closer cooperation in creating synergistic opportunities and greater market development between the two international business and financial centres.
“Labuan IBFC is a business-friendly and yet well-regulated centre, offering substance-enabling solutions to Asia, an economically growing region. We strongly believe that there are immense opportunities for corporation and businesses from the Gulf and Asia to be intermediated in the two centres. Hence, this MOU comes at an opportune time and augurs well with our commitment to enhance global and regional interlinkages.”