Labuan, located off the coast of Borneo, is a federal territory of Malaysia that is gaining recognition as a thriving hub for international business and finance. With its strategic location, well-developed financial services sector and favorable tax policies, Labuan has established itself as a hub for offshore banking, wealth management, and the trading of commodities, such as oil and gas. This has driven the growth of the island's economy and solidified its position as a leading financial center in the region.

All financial institutions are required to possess a license issued by the financial authority to legally operate in Labuan. Companies that want to operate investment banking activities must obtain the Investment Banking License. Under this license, a company is allowed to conduct activities including:

• Corporate finance services (advising clients on mergers and acquisitions, raising capital, and providing strategic financial advice);
• Providing credit facilities; 
• Underwriting services (underwriting of securities issuances, including equity and debt offerings);
• Securities trading (buying and selling of securities on behalf of clients);
• Asset and wealth management services (managing and advising on investment portfolios); 
• Consultancy and advisory services relating to corporate and investment matters; 
• Undertaking foreign exchange transactions; 
• Structuring and arranging complex financial transactions; 
• Islamic finance services. 

It should be emphasised that Labuan investment banks are not allowed to accept deposits. Additionally, Labuan Investment Banks are generally not allowed to transact with individuals who are residents of the local region. Moreover, a Labuan Investment Banking License only allows a company to conduct transactions in foreign currencies. It is not permitted for companies to deal with Malaysian ringgit, except for the purpose of settling administrative and statutory expenses.