‘Collaborative efforts needed to realise Labuan’s full potential’

Securities Commission Malaysia (SC) chairman Datuk Seri Dr Awang Adek Hussin said collaborative efforts across various sectors are needed to realise Labuan’s full potential.

Speaking at the Labuan Rejuvenation High Level Roundtable yesterday, he said the maintenance of Labuan’s port infrastructure and oil and gas sector is crucial to its actual economy.

“Unlocking further economic potential requires promoting increased cooperation between Labuan, Sabah, and Sarawak in the port and oil and gas industries,” he remarked.

Over the years, he said, Labuan has faced its fair share of challenges, particularly with basic infrastructure, such as recurring water supply disruptions due to ageing infrastructure and poor maintenance, and an unreliable electricity grid.

“To tackle water supply challenges, the Madani government has allocated RM300 million for pipe replacement works. This investment is aimed at enhancing the reliability and quality of water services. Additionally, a collaborative effort with Petronas, Sabah Energy Commission, and Sabah Electricity is under way to establish a new power plant. This initiative is aimed at ensuring a stable power supply to meet both Labuan’s demands while potentially benefiting Sabah as well,” he added.

He also stressed the pressing need for improved internet connectivity for better productivity.

This issue needs to be addressed urgently as it affects both the supplyside and demand-side of the economy, said Awang Adek, adding that resolving these basic infrastructure issues will help Labuan attract new businesses, potentially, through innovative strategies such as a tailored digital nomad strategy.

In 2023, Awang Adek said, Labuan contributed RM1.2 billion to the federal government, which is six times the RM189 million allocated for Labuan in the 12th Malaysia Plan MidTerm Review and suggested that Labuan retain half of its income (RM600 million) to be reinvested into its infrastructure.