Call to set up Labuan-Sabah Economic Council

LocalBusiness & Finance
2 Aug 2026 • 10:05 AM MYT
Daily Express
Daily Express

Daily Express Online (Malaysia) is Sabah's top-ranked & most viewed English news site. It is also Sabah's leading & most circulated daily English newspaper.

Call to set up Labuan-Sabah Economic Council

DANIEL said supporting a Sabah-based political party would not automatically solve Labuan’s problems.

The stronger argument is that closer political and economic alignment with Sabah could give Labuan greater regional relevance, stronger negotiating leverage and access to a wider development platform,” he said.

Labuan’s economic future was inseparable from Sabah, particularly in areas such as oil and gas, maritime services, logistics, aviation, tourism, education and financial services, he pointed out.

It should not position itself as a competitor to Kota Kinabalu, Sipitang, Kimanis or other emerging industrial centres in Sabah.

Instead, the island should complement Sabah by serving as an international financial, maritime, digital and professional services centre for the wider Borneo region, he said.

“Labuan can support Sabah through international business and financial services, offshore energy support, bunkering, ship repair, maritime logistics, aviation, higher education, tourism, warehousing, transshipment and BIMP-EAGA trade.”He said a single Labuan Member of Parliament would inevitably face limitations when negotiating with the Federal Government.

A Labuan representative supported by a strong bloc of Sabah Members of Parliament and backed by the Sabah State Government would have greater bargaining power in Putrajaya, he added.

However, he said any political alignment must be based on a clear development agreement rather than election slogans.

He proposed the establishment of a permanent Sabah Labuan Economic Council involving the Federal Government, Sabah State Government, Labuan Corporation, industry representatives and civil society.

He also called for a ten year development plan, stronger local representation in federal agencies and deeper integration between Labuan and Sabah in transport, trade, energy, tourism and investment.

“The debate must move beyond who becomes the next Senator or chairman.

Labuan does not merely need another leader. It needs stronger political leverage, a permanent economic direction and a regional alliance capable of making Putrajaya listen.” 

Newswav Malaysia Best News App

Newswav is an online content aggregator and obtains its content from different online sources. The content in the app do not belong to Newswav nor do they reflect the opinions of Newswav and its staff. Your use of this app indicates your understanding and acceptance of this information.

Newswav Sdn. Bhd. (201701008480 (1222645-M)) 2026 All Rights Reserved