LABUAN: The duty-free island of Labuan is still economically relevant to the Federal Government and should have an annual allocation to ensure its economic viability and become an attractive investment destination, said the Labuan Chamber of Commerce (LCC).
Its Chairman Daniel Doughty said the Labuan International Business and Financial Centre (IBFC) has grown to be the largest contributor to the island’s Gross Domestic Product (GDP), with economic contributions of about RM5 billion from 2020-2021.
He said Friday that the Federal Government should provide the federal territory with an annual allocation for developing and upgrading infrastructure to make it a viable economic destination.
“Labuan’s economy must be activated with various economic activities with trickle-down effect to the locals.
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Doughty said the LCC was eager to know the strategic plans of the Department of Federal Territories to address the fundamental economic issue of increasing critical business mass in Labuan.
He said all these must be taken seriously by the Federal Government to turn Labuan into a vibrant economic destination.
Doughty said that as Labuan has contributed revenue to the Federal Government through its tax collection from the oil and gas and financial sectors, it deserves an annual budget allocation.
He said various pressing issues affecting Labuan had been highlighted during a town hall session with Minister of Economy Rafizi Ramli on June 20 in Putrajaya.
“Among them (the issues) include the need to shift the existing ferry terminal to a more strategic location in Tanjung Aru that provides a shorter distance than from the existing site and repurposing the abandoned RM85 million Labuan Halal Hub into a free commercial zone that potentially supports the growth of Labuan as a transhipment island, thus expanding its economic potential,” he added.
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