Kota Kinabalu: Labuan Corporation has clarified that a RM2.88 million grant allocated for a feasibility study on the proposed Labuan-Menumbok Bridge has been fully returned to the Ministry of Finance following the cancellation of the original project due to a shift in federal government policy and priorities.
The clarification was posted on Labuan Corporation’s official Facebook page on Tuesday, in response to viral social media posts referencing the Auditor-General’s Report 1/2026, which noted that the grant was returned and the study was not carried out.
Labuan Corporation explained that the project was cancelled after changes in Federal Government policy and priorities in 2018 rendered the earlier study unviable.
The allocation was subsequently returned in full to the Ministry of Finance on Oct 3, 2024, in accordance with current regulations.
Despite the setback, efforts to assess the feasibility of a fixed crossing between Labuan and Sabah are ongoing.
The Ministry of Works has launched a new Labuan-Sabah Bridge Construction Feasibility Study, which began in May 2025 and is expected to be completed by Nov 2026.
The long-proposed bridge linking Labuan to Menumbok has attracted public interest for years, with residents hoping the crossing would reduce the territory’s reliance on ferry services and improve economic connectivity with the mainland.
However, concerns remain that the bridge could lead to congestion on the island from outside vehicles and that the high construction costs may not be justified, particularly after the removal of the duty-free liquor status under a previous PAS Federal Minister.
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