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LABUAN: For almost a decade, businesses in the Labuan International Business and Financial Centre (IBFC) have been hampered by poor Internet connectivity.

Association of Labuan Trust Companies (ALTC) Chairman Datuk Chin Chee Kee said an Internet connection failure could be catastrophic for businesses, exposing them to the risk of losing revenue, reduced productivity and customer complaints.

“Despite the potential consequences to many businesses, the issue remains unresolved and seemingly no concrete efforts to tackle the problem head-on.

“Labuan is a federal territory like Putrajaya and Kuala Lumpur. It is an international financial centre and a prominent regional oil and gas hub. Unfortunately, its Internet connectivity is poor,” he said.

Chin, who is also the Labuan Media Practitioner Association’s patron, said trust companies, especially those with international firms as clients, have to endure slow Internet connectivity daily.

“There is no doubt about it, we all have slow Internet. Living in a technology-driven world and dealing with slow Internet speed is very annoying. Not only can slow Internet connectivity make you impatient, but it can also hurt your business. “Having a fast Internet connection is a top priority for businesses in this era because it is an important factor that contributes to the growth of the business.

“Businesses with slow Internet connections face many problems, especially when dealing with customers outside of your territory (for payment processing and video conferencing), and as a result, their reputation is affected,” he said.

Chin said a simple request that would take a few seconds on a fast Internet connection would take minutes due to slow connectivity, decreasing the productivity of every individual in the workplace.

He said more than 5,000 active local and international firms operating within the Labuan IBFC are facing this issue.

“Most of the industry players have clients from around the world, and they are connecting with their international clients through video conferencing, which is common nowadays.

“Although video conferencing is not a substitute for a face-to-face meeting, it is a great alternative, and it allows you to hear and see the other person in real time. Chin said slow Internet speed would result in video-conference lag, audio stutters and video freezes, which will give a negative impression to your clients.

“No plans have been announced to extend 5G network coverage to Labuan from the authorities so far,” he added.

In March this year, the Malaysian Communications and Multimedia Commission (MCMC) said telecommunications service providers in Labuan were not providing quality services.

MCMC Chairman Datuk Dr Fadhlullah Suhaimi Abdul Malek said the poor services had resulted in several areas with poor Internet coverage.