Anifah where are you?

Published on: Sunday, May 05, 2024

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Labuan: Flawed Federal policies like restricting duty-free by a previous PAS Minister have impacted the island’s economy greatly.

HIGHEST congratulations on your appointment as Chairman cum Chief Executive Officer of Labuan Corporation. With your esteemed reputation and status you possess the capability to transform Labuan into an International Island City in the region.

It is crucial to acknowledge Labuan’s historical significance and the reasons behind its handover by the Berjaya Government.

Labuan as the centre of Sabah and Sarawak symbolises Malaysia’s presence in the region;

The Federal Government holds both the authority and resouces necessary to elevate Labuan into an International Island City;

Labuan with area of 20,000 acres and a population of approximately 60,000 can survive on Free Port Status. Labuan has no available land for agriculture.

However, despite its potential, Labuan has been underutilised, serving primarily as a dumping ground for excess civil servants rather than as a hub of economic development. This is evidenced by:

Disproportionate increase in civil servants from 100 (during Berjaya in 1984) to 10,000 as of 2022. Almost 100pc are Malays from Malaya.
Number of government department increased from 8 to 66 – all are known as Directors.
The curtailing of Labuan’s Free Port Status – Customs and Excise Department are imposed excessive controls on any movement of goods out of Labuan. This is contrary to Labuan’s Free Port Status as created by the British in 1880s.

Labuan remains as “Padang Terkukur”, despite visits and commitments made by Prime Minister after Prime Minister and Minister for Federal Territories. Labuans economy has remained the same.

Yang Berhormat Tan Sri, as a leader entrusted with this position, you have the opportunity to implement transformative economic projects:

Abolish Custom and Excise at Labuan: Shift the responsibility of goods inspective to the receiving end, enabling smoother trade flows to Sabah and Sarawak.
Revitalise Labuan as a Free Port: Restore Labuan’s Free Port status to its former glory, akin to economic vibrancy of Singapore or Hong Kong.
Relocate Military Establishments: Recognise that Labuan faces no threat of invasion from Brunei and thus, relocate any unnecessary military presence to free up space for civilian development.
Privatise the Airport: Facilitate direct commercial flights from key markets such as China, Taiwan, Korea and Japan, enhancing Labuan’s appeal as a transit hub.
Construct the Labuan-Sabah bridge: implement the construction of the Labuan-Sabah bridge under the Build Operate and Transfer model, leveraging commercial and housing development on both ends to offset the cost of RM6 billion. Alienate 5,000 acres on both ends of the bridge for Commercial and Housing. Take advantage of Government Policy for Retired Overseas People to purchase these properties.
Approve in Principle to interested company which has submitted its interests to undertake a feasibility study. As usual, the company submission has no response at all from Labuan and Federal Authorities.
The claim by Federal Ministers that Labuan GPD is higher than Kuala Lumpur is just “rubbish”. This is because the 10,000 civil servants earn an average of RM8,000 monthly, amounting to RM80,000,000 in cash flow to Labuan every month. None is from any economic activities – factories or plantations.
Reclaim 500 acres at Rancha Rancha: Reclaim land for development purposes, offering opportunities for partnerships with companies such as Chinese vehicle manufacturers to establish assembly plants for export markets.

The proposal for these projects aligns with the aspirations of Labuan’s 60,000 residents for genuine economic progress. Its imperative to heed their hopes and capitalise on Labuan’s potential as envisioned by the British of the 1880s.

Enclosed is a layout plan prepared by Sim Sie Hong of Innotech Design Architects Sdn. Bhd. for your reference and consideration. With your leadership and commitment, Labuan can indeed realise its destiny as a thriving International Island City.

All these in accordance with the policies and laws of the Federal Government. Therefore, they can be implemented rightway.

Harris Mohd Salleh

- The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express.

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