‘RM110 million for Labuan military base unrealistic’
Published on: Thursday, June 13, 2024
Harris said it has become a tradition for federal ministers to visit Labuan, especially since Labuan was handed over to the Federal Government administration in 1984.
Kota Kinabalu: The announcement by a federal minister visiting Labuan that the Federal Government has approved RM110 million for establishing a military base in Labuan is unrealistic, said former Chief Minister Tan Sri Harris Mohd Salleh.
“Firstly, no countries are posing a threat to invade Labuan,” he said in a statement, Wednesday.
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“Secondly, all countries are united and under the Asean concept.
“It seems the approved funds of RM110 million are merely for the sake of ‘contracts’ and something important to announce.”
Harris said it has become a tradition for federal ministers to visit Labuan, especially since Labuan was handed over to the Federal Government administration in 1984.
“Labuan, at that point in time, already had several economic development projects.
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“Labuan was handed over to the Federal Government administration as it had the power and funds to transform Labuan into a thriving free port and hub like Singapore or Hong Kong.
“Regrettably, the Federal Government has done nothing, and Labuan remains a struggling district.
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“It generates no significant revenue now that oil and gas resources belong to Petronas,” he said.
He added that Sabah and Sarawak supported transferring these resources to the Federal Government under the Petroleum Development Act.
“Therefore, since all lands, including Labuan, are Malaysian, there is no reason not to transfer the administration of Labuan from the state to the Federal Government.
“This is akin to asking your father to look after your children. In this case, the ‘father’ Federal Government uses Labuan as their dumping ground for surplus civil servants.
“When Berjaya handed over the administration, there were only 100 federal civil servants in Labuan. Now, there are 10,000 civil servants.
“The number of departments has increased from 8 to 66, and all are heads of departments with the title of directors.
“The salaries and allowances, which amount to over RM100 million annually, contribute to Labuan having one of the highest GDP compared to Kuala Lumpur and other Malaysian cities.”
He said that besides making things worse, the Federal Government has treated Labuan on par with Kuala Lumpur by setting sea bed land premiums at RM1 million per acre.
“However, Labuan is merely a fishing village town with a population of 60,000, whereas Kuala Lumpur is a bustling megacity with 10 million people.
“While Kuala Lumpur is a thriving metropolis with people donning suits, ties and crocodile skin handbags, Labuan’s Victoria Town remains a modest fishing community with shabby fishermen roaming around the village.
Labuan is a unique Island and the only free port in Borneo.
To this end, he said Federal Ministers, political leaders of Labuan and business leaders must demand the Federal Government to:
- Take advantage of Labuan’s unique status and location.
- Reinstate Labuan as a completely Free Port, as declared by the British in the 1880s.
- Abolish Customs Department and Customs check-in Labuan and let the receiving end impose and collect taxes.
- Use the approved fund for the military base of RM110 million to:
Extend the airport runway by 1,000 meters towards the North.
Build a new terminal capable of handling 50,000 passengers at any one time.
- Privatise the Airport.
- Develop Labuan Airport into a hub for Borneo Island. Large aircraft can land at Labuan, with smaller aircraft connecting to cities around Borneo. Tourists can buy duty-free goods on their way in and out and may also spend a day in Labuan. This concept will encourage airlines to introduce larger aircraft, making Labuan a significant transit point.
- Request Federal Government funding to reclaim 500 acres at Rancha Rancha and invite Chinese vehicle companies to set up assembly factories there. If these areas are tax-free for imports and exports, there is no reason not to proceed with this economic project. The cost of reclamation can be recovered when alienating the land to investors.
Harris said implementing these proposals will make Labuan economically viable and create jobs.
“To implement these proposals, all political parties and chambers of commerce should pass resolutions calling upon the Federal Government to accede.
“Now is the time to make Labuan economically viable, with the present Prime Minister Datuk Seri Anwar Ibrahim keen on Labuan to move forward,” he said.
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