Kota Kinabalu: Labuan residents have long been promised development and economic progress, but many of those promises have yet to materialise, leading to growing frustration, disillusionment and resentment among islanders.
Industry players said the frustration is rooted in the experiences of residents who have invested their savings, kept businesses afloat through difficult times, raised families and continued to place their hopes in Labuan’s economic recovery.
Labuan Chamber of Commerce (LCC) chairman Daniel Doughty said the erosion of public confidence should concern everyone entrusted with shaping the island’s future.
He said even the most capable leaders face limitations when key decisions are made outside Labuan and longstanding structural and policy issues remain unresolved.
“At this juncture, I believe Sabah’s government and opposition should agree on a common agenda for Labuan and jointly support a Sabah-based political party to contest and win the Labuan parliamentary seat.
They should recognise that Labuan’s economic future is closely linked to Sabah’s own interests, while the parliamentary seat would also strengthen Sabah’s representation at the federal level. All efforts should be guided by a clear agenda to develop Labuan,” he said.
Industry leaders said many Labuan residents have grown increasingly frustrated with the island’s economic performance and the lack of tangible progress despite numerous engagements and changes in leadership over the years.
While acknowledging the efforts of businesses, non-governmental organisations, educational institutions, public servants and community leaders in supporting the development, Doughty said confidence among residents and investors has yet to fully recover since the Covid-19 pandemic.
He argued that leadership alone would not be enough to address its challenges if key decisions continue to lie beyond local authority and responsibilities remain fragmented across multiple agencies.
“Replacing people without addressing those constraints risks another cycle of expectations followed by disappointment,” he stressed.
The proposal also raises concerns over political leverage, suggesting that despite having parliamentary representation, Labuan may lack sufficient bargaining power to secure timely decisions on issues affecting the island.
Doughty said residents and businesses have continued to voice concerns over travel procedures, the movement of goods and supplies, veterinary clearances, customs-related requirements and duty obligations, which they claim often result in unnecessary bureaucracy and delays.
Labuan’s economic future remains closely linked to Sabah and called on both the Sabah government and opposition parties to set aside political differences on matters relating to the island’s development.
“The objective is not merely to win a seat, but to strengthen Labuan’s negotiating position within a broader political bloc and facilitate structured discussions with the Federal Government.”Among the issues proposed for review are local decision-making powers, agency responsibilities, development funding arrangements, investment promotion, job creation and mechanisms to improve accountability.
The proposal also calls for a review of how revenue generated from Labuan is distributed to promote better governance and local development.
However, Doughty stressed that the proposal does not seek to alter Labuan’s status as a Federal Territory, noting that any change to its territorial status would require separate consideration and meaningful public participation.
He further emphasised that greater autonomy must be accompanied by stronger accountability and transparency.
The statement highlighted the potential benefits of closer economic cooperation between Labuan and Sabah, particularly in maritime services, oil and gas support industries, financial services and education.
It argued that Sabah could provide a larger market, an economic hinterland and opportunities for supply-chain integration, while Labuan could contribute to broader regional development through its strategic industries.
Calling for an open public debate on the island’s future, he said both the proposed reforms and the current governance arrangement should be subjected to equal scrutiny.
“We cannot allow disappointment to become normal. Nor can we ask another generation to sustain its hopes on promises alone,” he said.
He added that while young people should be free to pursue opportunities elsewhere, they should also have a viable option to remain in Labuan or return after gaining experience to work, invest and build their future on the island.
