LABUAN: The Kadazandusun Cultural Association (KDCA) has urged the government to restore the full-fledged duty-free island status for Labuan to boost its economic development.
KDCA supreme council member Peter Pikul said Labuan’s economy was vibrant in the past, coupled with the duty-free status, which was among the main attractions of the island.
“Not only was the economy vibrant, but there were also a lot of job opportunities available, and it was easier to do business then.
“When taxes were imposed on certain goods, Labuan seemed to have lost its charm,” he said in a statement Wednesday.
Peter who is also KDCA Labuan’s immediate past chairman said returning the full-fledged duty-free status would reignite the economy and create more job opportunities on the island.
As a background, the government has listed cigarette and tobacco products as taxable goods on all duty-free islands including Labuan since Jan 1, 2021.
On another development, sharing the sentiments of his fellow Labuanites, Peter believed that constructing a bridge to connect Labuan and mainland Sabah would bring about multiple benefits to the island and the surrounding region.
“The bridge will definitely provide a more convenient and fast mode of transportation for people and goods, as currently, Labuan is only accessible by air and sea.
“To date, most businesses in Labuan depend on roll-on/roll-off (Ro-Ro) ferry services as their means of transportation because it is relatively cheaper, but costs them huge gaps in delivery time, (in addition to being) not cost-effective,” he said.
Peter said that having the bridge would be more economical for businesses to operate and expand, and ultimately, end-users or the ordinary rakyat would benefit.
“This is an important responsibility of the government and good governance,” he said. Peter said the bridge would also increase the number of tourists to Labuan as it would make the island more accessible to visitors with more options and convenience.
“Of late, there have been ongoing arguments regarding the need for a Labuan-Sabah bridge.
“I hope the authorities listen to the voice of the people who aspire for the bridge, both as part of the government’s social obligation towards the people and a positive impetus to enhance the economy of not only Labuan but also its peripheral areas,” he added.
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