LABUAN: A study on the proposed construction of the Labuan Integrated Port project next year should include a Free Commercial and Industrial Zone (FCIZ) that comes with a 10-year tax-free pioneer status incentive, said the Labuan Chamber of Commerce (LCC).
Its Chairman Daniel Doughty said this would encourage investors to invest in the duty-free island and, among others, open up factories.
“We strongly hope the study will include the FCIZ which will greatly help increase container handling, which, in turn, would boost economic activities.
“It will help increase population, job opportunities and spending power in Labuan and, most importantly, the port will record higher total equivalent units (TEUs) volume in and out of this island and make the proposed integrated port an economically viable idea,” Doughty said Wednesday.
He said LCC also suggested looking into the Freight Equalisation Scheme between Port Klang and Labuan, similarly to that of the Tasmania Freight Equalisation Scheme, which is able to address the high cost of living and high freight cost to Labuan and vice versa.
“Such a scheme will also encourage entrepreneurship in Labuan, which could help move the island away from having the second highest unemployment rate in Malaysia.
“With FES and FCIZ in place, it gives Labuan the opportunity to have a more significant position and role to play within east Malaysia,” he said.
Transport Minister Datuk Seri Wee Ka Siong said that a one-year study on the proposed construction of the Labuan Integrated Port project, which had received the approval of the Labuan Port Authority, will be conducted next year.
Wee said this in Parliament during the question-and-answer session on Monday (Aug 8)
He said Labuan is a maritime trading island, with industry players and business community heavily dependent on maritime connectivity, hence, reliable vessel connectivity is the key to ensuring that Labuan thrives.
Doughty said strengthening Labuan’s industrial economy by positioning it as an industry logistic hub to serve east Malaysia is the practical vision needed for a comprehensive sustainable economy and drive the island forward.
“This involves shaping policies and greater focus towards Labuan as a special industrial zone in the Federal Territory.
“LCC is ready to work closely with the Ministry of Transport on the future study for the proposed integrated port and for the betterment of Labuan’s future and its economy,” he said.
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