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LABUAN: The eventual return of 40 per cent nett revenue collected from Sabah by Federal will put the State in strong fiscal health and to seek the return of Labuan. 

Activist George Elias recalled that lack of funds was one of the reasons the island was handed over without proper consultation or compensation but in the unwritten hope that that the federalisation would transform Labuan and push it into prosperity. 

“Unfortunately, it did not turn out to be the case. The island was given the financial centre. The centre had no significant impact on the local economy which was plagued by the downturn and unemployment.

George said the 40 per cent is expected to be substantial considering that Sabah had been a significant contributor for years in oil & gas, timber, palm oil.

Spelling out the benefits of being back to Sabah, George outlined that:

• Labuan would be able to enjoy all the MA63 rights when they are gradually recognised.
• Labuan would have a State Legislative Assembly representative.
• No travel hassle between Labuan and Sabah via ferry and boats. There will be only one immigration check at the airport.
• Trade deals between Labuan-Sabah will be without red tape
• Economic gains from Sabah booming tourism industry spillover and nearby Sabah Oil and Gas Industrial Park (Sogip) which is almost full with investors led by the RM31 billion (Esteel) project.
• Though a Federal Territory for 41 years Labuan still remains close to Sabah than Peninsula in economic, soocial, cultural and ancestral ties as evidenced by the thousands who flee from Labuan regularly on holiday breaks.

When the island was federalised, a Sabahan who protested was arrested under ISA to silence others. Sabah-based Usno which criticised the move was expelled from BN led by Tun Dr Mahathir Mohammad.

Berjaya, led by Tan Sri Harris Salleh, was toppled as a punishment and never recovered.

Not only Sabah political leaders but also folks here are seeking the return believing that under Sabah “Little Labuan” could become “Great Labuan” again.