LABUAN: Local transhipment trade operator, Nusa Aman Sdn Bhd, has received a licence to carry out the long-abandoned barter trade activity between Southern Philippines and the duty-free island.
Labuan Chamber of Commerce (LCC) Chairman Daniel Doughty said the licence was issued by the Royal Malaysian Customs Department (Customs) on July 18, 2022, following several follow-ups by the chamber.
“The issuance of the licence was following the Federal Territories Minister’s statement to revive this traditional barter trade activity to drive the duty-free island’s economy back on track…and our chamber’s role is to facilitate and follow-up with Customs,” he said.
Daniel said this after paying a courtesy call on newly-appointed Labuan Corporation Chairman Senator Datuk Bashir Alias at the latter’s office, here, Wednesday.
Datuk Seri Shahidan Kassim, in April this year, said his Ministry would be submitting an application to the relevant ministries on the need to revive Labuan’s transhipment trade.
“We are glad to see our success in facilitating the first licence in transhipment trade, which is a critical step towards revitalising Labuan’s economy.
“The approval was given to an LCC member after due process was carried out by Customs,” Daniel said.
The transhipment trade activity between Labuan and Southern Philippines is expected to help Labuan reactivate its sluggish economy.
“We would also like to thank Bashir for his assistance and support in LCC’s work to see through the licence approval in Labuan...his goodwill for close collaboration was the key to see such success achieved in a short period.
“We hope that this will be the beginning for the industry, and set the tone for other interested industry players to be given such licences, and LCC is ready to help and facilitate. This is because an active transhipment trade activity in Labuan will encourage a ‘push effect’ for more vessel connectivity to the island, thus helping to boost Labuan’s economic growth,” he said.
Although Labuan is able to reinstate its transhipment trade activity, Daniel said the impact would not be felt immediately as the island has to compete with Sandakan and Tawau, making the business landscape more competitive.
“Having said that, collaborations with all stakeholders in Labuan is crucial and LCC is prepared to be the facilitator to encourage dialogues and find a common ground.
“We would like to appeal to the Government to look into the approval for high-value cargoes such as cigarette and liquor to be included in this transhipment trade at Labuan in the near future to accelerate trade.”
He said LCC will be working closely with all government agencies and put across the right enabling policies to facilitate the players and community to thrive in this endemic phase while finding the balance between the people’s wellbeing and economic growth.
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