Labuan, Malaysia is a renowned free port and international offshore financial centre in Asia, and was officially incorporated into Malaysia as a Federal Territory on April 16, 1984. At present, Labuan hosts more than 200 insurance-related institutions and is committed to building itself into Asia's captive hub.

        The Labuan special economic zone in Malaysia started in 1990. By the end of 2016, 39 captive insurers had been established in Labuan, mainly consisting of local Malaysian companies, but in recent years it has attracted a growing number of Japanese companies to register.

        The vast majority of Japanese enterprises that chose to register captive insurers in Labuan still chose to pay taxes back in their home country, so as to avoid violating the Japanese authorities' foreign company rules and the penalties for registering in tax havens. This shows that more and more companies establishing captive insurers do not take tax avoidance as their main purpose.