Rental hike worries Labuan UTC traders
Published on: Thursday, January 17, 2019
By: Sohan Das
LABUAN: Scores of small stall holders at the first and third floors of Labuan Transformation Centre (UTC) here are in a worried state following a move by Labuan Corporation (LC) to increase the monthly rental to RM400 from RM220.
A petty traders association representing them has pleaded to Federal Territories Minister Khalid Abdul Samad to reconsider the planned hike as some may not be able to continue their trade with the increased rental.
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A trader, speaking on condition of anonymity, said:
“The UTC is a socio-economic project meant to help the people with cheap rental to enable sales of goods at affordable prices to the consumers. This factor should be taken into account before a review of the rental rates.”
He explained that it was “bad times” for most traders as the local population had shrunk to 85,000 from 100,000 and many were without proper jobs, which generally affected the business of many, including the small traders.
“Though the new proposed rate of RM400 works out to be less than RM14 per day, cheaper than anywhere else in Labuan, for some it is still a burden because on certain days even to hit sales of more than RM30 was difficult,” he said.
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He also pointed out the case of 13 stalls at the second floor food court which kept changing, a clear sign that business was not as good as expected.
The UTC integrated with the Central Market was built at a cost of RM33 million about four years ago and its rental rates have not been increased since.
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