Not a single new Labuan project past 40 years!

Published on: Sunday, November 17, 2019

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I REFER to the letter by Anak Labuan on Oct 27, 2019.

The facts contained in the letter are about Labuan having the highest per capita income in Malaysia. This calculation must be to only please the political masters at Putrajaya.

Three major projects approved some 10 years ago and widely announced by Prime Minister after Prime Minister with total investments of RM31 billion. Not a single one of these projects even took off the ground because Labuan Corporation, Head of Departments never bothered to process the approvals announced by the Prime Minister.

It was provided by the Prime Minister upon his visit so that at least there was good news for the people of Labuan. That was all.

Similarly, the same will happen to the number of economic development projects submitted and announced just recently, including as mentioned the billion dollar commercial and housing project at Kiamsam, along with a few others. If this should happen Labuan has nothing to attract investors or tourists.

What is there at Labuan? Hotels are running at below 20 per cent occupancy. Another six to twelve months these hotels will slowly and surely close down. Remember also that all fish and vegetables are imported from mainland Sabah, with strict restrictions imposed by Custom and the Agriculture Department.

The future of Labuan’s economy these days is dependent on the Tourism Industry. There is nothing else. Labuan can forget Oil and Gas Industries. Three major oil and gas developments are currently taking place in Sipitang (Sabah), Lawas (Sarawak) and Muara (Brunei). These oil and gas complexes will start operation by early next year and all are in close vicinity surrounding Labuan.

Looking around, the only feasible economic industry for Labuan with 22,000 acres and about 60,000 people is tourism. Labuan being ZERO on Tourism presently, needed a jumpstart Tourist Complex and must be large enough to make an economic impact. Otherwise things will just not move or start.

Of course Labuan can develop as a Tourist Destination for Borneo island. It is only about four to five hours from any Chinese city. There are millions of Chinese tourists coming this way yearly. Labuan has everything for the Chinese tourists – Duty Free island, clear water, blue skies and can be cleaned up as Singapore.

Billions and billions of approved economic development was announced over these last years. Regrettably, none of the projects were implemented. It is reported that the reasons given were, these projects were only for announcement purposes. All these projects proposing reclamation of seabed, obviously because Labuan has no land for large scale development projects. A RM1 million per acre premium being imposed.

Labuan is being treated as Kuala Lumpur and Putrajaya. The RM1 million premium for reclamation making it RM2 million per acre is too expensive for investors to risk in unknown Labuan.

When Malaya started to promote industries to create employment, Pasir Gudang at Johor imposed a premium of RM1 for 10 acres. This was why Johor succeeded in attracting numerous investors. Labuan should accord this policy as it is begging for investors.

It is proven and acknowledged that over the last 40 years, having Labuan administered by the Federal Government with unlimited funds and power, High powered Labuan Corporation Executives and Members, along with 3,000 Malayan Civil Servants, the administrators are still incapable of implementing a single project to support the Labuan population of 100,000. This is just too bad.

These mighty Administrators failed to administer a small area of 22,000 acres only. This must be fated for Labuan, Bruneians and the Kedayan people. Once you are fated you cannot go against it – just surrender and accept it. It is urged that the lone Member of Parliament must avail himself on the disclosure of such facts and figures to the Daily Express on 27th October with this letter to the Editor.

In order for Labuan to sustain economically, it needs a population of at least 300,000 people. In addition to the Tourism Industry, Labuan should also consider itself a place for retired overseas people. There are millions of Asian and Europeans who want to retire in a place like Labuan. These overseas retirees will easily bring in monthly US2,000 each or US$100 million cash flow monthly and create employment for at least 100,000 local people.

Bapak Labuan