TOURISM is being pushed as the key driver of economic growth in Labuan.
Federal Territories Department allocated RM1mil to Labuan Corporation (LC) for infrastructure upgrades and enhancing tourism products.
Minister in the Prime Minister’s Department (Federal Territories) Dr Zaliha Mustafa said the allocation announced last month was to reconstruct the jetty in Pulau Rusukan Besar, a popular tourist destination, and to enhance Labuan Bird Park located on the main island to boost its appeal.
She also said LC was tasked with maximising the potential of Labuan International Sea Challenge which attracted thousands of visitors, and to hold a new event, Borneo Flora Festival, in July next year.
Federal Territories Department through LC had also agreed to explore collaborations with Petronas Labuan in education, community development and environmental well-being.
Dr Zaliha said they would explore investment opportunities in Labuan’s manufacturing sector, leveraging Petronas methanol production.
She also said Petronas’s new 120-megawatt power plant was expected to benefit the island, while proposals such as optimising Labuan as a duty-free island was being considered.
In September, LC reaffirmed its commitment to creating a business-friendly environment for the island.
Responding to claims that restrictive policies were deterring investments and events, its then chief executive officer Rithuan Ismail said LC’s policies supported economic activities and local businesses.
One such event that garnered attention due to its cancellation was Labuan’s Oktoberfest 2024.
The event organiser also reportedly said the cancellation was due to difficulties in securing sponsorship and oompah (Bavarian folk music) band performances, and not due to government restrictions.
Separately, in July, LC chairman Tan Sri Anifah Aman faced criticism for his limited visibility in Labuan.
Labuan Chinese Chamber of Commerce chairman Datuk Wong Kii Yii cited difficulty in meeting Anifah on local matters, suggesting that his other commitments in Sabah – as senator and advisor to the chief minister, among others – might be affecting his availability.
In response, LC deputy chairman Simsudin Sidek said Anifah’s role as chairman involved seeking investors and fostering international collaborations, and as senator to advocate for the region at federal level. ― By VIJENTHI NAIR