Labuan, December 1, 2023: More than twenty industrial stakeholders from Labuan Island gathered at Universiti Malaysia Sabah, Labuan International Campus (UMSKAL) for a significant semi-formal meeting. Under the direction of Associate Professor Dr. Geoffrey Harvey Tanakinjal, Dean of the Labuan Faculty of International Finance (FKAL), the purpose of the meeting was to discuss urgent matters affecting the Labuan Federal Territory. The session, which was presided over by Ts Daniel Doughty, the President of the Labuan Chamber of Commerce (LCC), offered an opportunity for attendees to exchange ideas and tackle obstacles. One of the goals of the recently signed Letter of Intent (LOI) between FKAL UMS and LCC is to assist Labuan F.T. and the adjacent community.
Associate Professor Dr. Geoffrey underscored the primary aim of the meeting—resolving concerns from the standpoint of the industry—during his introductory remarks. In the allotment of seven minutes per participant, they delivered introductions, identified statements of the problems, proposed alternative solutions, and issued recommendations. The necessity to reassess the governance policies of Labuan F.T. was a recurring concern that was emphasised. The participants provided instances to support their position on the return of authority to the Immigration and Customs Department for Sabah, thereby granting autonomy to local authorities in governing Labuan F.T.
As policy modifications were deliberated, recommendations were put forth to designate Labuan Island as a "completed" offshore hub, comparable in nature to prominent international locations such as Dubai and the Cayman Islands. The attendees demanded that the government establish a policy trajectory for offshore enterprises that is unambiguous and autonomous, devoid of any domestic regulations that may adversely affect them. It was suggested that Labuan serve as an example for offshore activities, thereby stimulating economic expansion and luring international investors.
A lack of cohesion among the responsible departments was also cited by participants as an obstacle to the growth of tourism in Labuan. Labuan was devoid of a unified tourism strategy due to the inability to develop integrated promotional materials in the absence of a distinct direction. The limitations on chartered flights were called into doubt due to concerns regarding connectivity, specifically at Labuan Airport. The participants emphasised the critical nature of addressing these concerns in order to augment Labuan's appeal to both investors and tourists.
The proposition to reestablish the "Bagang" operation under the supervision of UMSKAL in an effort to stimulate economic activity and generate employment constituted an economic strategy focal point. The implementation of Taman Pertanian Kekal (TPK), an initiative that is nationwide with the exception of Labuan F.T., was another pivotal recommendation. Its purpose was to guarantee a sustainable provision of vegetables for the indigenous populace.
Further, the matter of fuel subsidies was deliberated during the meeting, with the objective of mitigating the continuously escalating expenses associated with operating the service between Labuan F.T and Kota Kinabalu Sabah. The significance of resolving the connectivity issue to Labuan F.T. via "open sky" policies was underscored by the participants, who acknowledged its substantial nature and the urgent need for action.
Following the review and revitalization of policies that were put into effect prior to 2017, the meeting concluded with a demonstration of a concerted effort to restore Labuan F.T.'s relevance. Concerns were raised by participants regarding policies and regulations that would force them to relocate to Sabah or Sarawak, as the transshipment industry faces obstacles. Furthermore, the team assessed the strategic decision to relocate the ro-ro terminal to Tanjung Aru, foreseeing potential advantages in terms of improved ferry travel efficacy and the mitigation of traffic congestion. A proactive stance towards addressing Labuan's challenges and promoting sustainable development was demonstrated by the participants' unanimous agreement to apprise the Prime Minister of Malaysia, YAB Dato' Seri Anwar Ibrahim, of these critical discussions during his forthcoming official visit.
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