LABUAN: The establishment of Sabah’s Banggi Island as a digital free trade zone (DFTZ) could help to boost the State’s economy, as it is strategically located in the pathways of international shipping lines.
University Malaysia Sabah (UMS) associate professor Dr Geoffrey Harvey Tanakinjal said the island could also be the “Golden Gateway” to Indonesia and the Philippines’ markets.
He noted that Banggi Island is a natural port, and its proposed establishment as a DTFZ would help the island in getting the most efficient technology and expertise to cater to future needs, creating new industries and jobs while driving commercial activities in the northern Sabah region.
He said this while presenting his paper on “Eradicating Poverty via Southeast Asia’s Golden Gateway: Jumpstarting Employment Opportunities in Northern Sabah” at the National Human Capital Conference and Exhibition 2023 (Borneo Region) in Kota Kinabalu, on Tuesday.
SPONSORED CONTENT Shell’s Access to Energy helps power lives of isolated communities in Sabah Kota Kinabalu: In 2017, Sabah Shell Petroleum Co Ltd (SSPC) launched Access to Energy (A2E), a Shell Social Investment programme aimed at providing affordable and continuous supply of electricity from renewable sources for communities who live without connection to the electricity grid. Read more Geoffrey said the proposal to turn Banggi Island into Malaysia’s first digital free trade island had been made multiple times.
“The latest proposal was by Halun Global Sdn Bhd and there are two partners that are ready to help the Sabah State Government to make this project a reality,” he said.
The two potential partners are the China Construction Bank (CCB) Labuan Branch and Neurogine Group Sdn Bhd (Neurogine).
He said the CCB would be able to provide green bonds, particularly via matching funds, as well as matching grant facilities to attract foreign direct investments.
“They also have clients ready to partner with government-linked companies (GLCs) to make this a reality,” said Geoffrey.
Meanwhile, Neurogine is one of the most successful companies in the financial technology area in the Asia Pacific region.
“A feasibility study and/or a baseline study can be conducted by UMS.. this idea could jump start Sabah’s economy as a whole, specifically the northern Sabah region.
“Sabah has never had a project as big as this, and it will have a trickle-down effect for many parties,” he said.
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