Mohd Faizal Malik
KOTA KINABALU: The authorities in Labuan have been urged to seek collaboration opportunities with the private sector in order to revitalise businesses and development in the Federal Territory.
Mohd Faizal Malik, a senior Labuan aviation consultant, issued the call on Sunday (March 12) following a lukewarm response from the government over pumping of funds for development on the island.
He said the authorities will have to be creative if they want to revive development and restart the stagnant Labuan economy.
“So, we urge the Federal Government to act as merely facilitators by formulating investment-friendly policies to attract both domestic and foreign investors to develop the island into an international theme park cum entertainment hub, which would complement its current status as an international offshore financial centre and duty-free island.
“If that materialises, Labuan can be the Macau of South-East Asia or even Singapore’s Sentosa Island," he said.
Mohd Faizal said that through such efforts, the island would be less dependent on federal grants as its development will be fuelled by private domestic and foreign investors who will no doubt develop Labuan to its fullest potential.
Furthermore, he said, the strategic location of Labuan will make it easy to attract tourists from China, South Korea and the surrounding neighbouring countries.
In his visit to Sabah last month, Prime Minister Datuk Seri Anwar Ibrahim said Putrajaya will work with the state government to develop Labuan although the proposed bridge linking the mainland to the island was not an immediate priority.
Calls for the Labuan bridge to be built as well as for Labuan, which was made a federal territory in 1983, to be returned to Sabah have resurfaced of late.
The Prime Minister had said that returning Labuan to Sabah was not an issue as the international offshore financial centre must be developed.
Anwar added that the main issue was the sluggish development in Labuan and it was for the federal government to work with Sabah in reviving it.
Towards this end, Mohd Faizal said by having such a blueprint of working with the private sector for Labuan development, even the building of the elusive Labuan bridge can be a private-driven initiative, once the government provided the right policy to facilitate the proposal.
"This was how the road to the hilltop Genting Resort was built by its founder Lim Goh Tong in the 1960s.
“The multiplier effect on the economy by having such development will revive Labuan's current stagnant economy and provide thousands of employment opportunities to the locals and support the current declining local businesses,” he said.
Anwar had also responded to questions on the possibility of private financing initiative (PFI) to build the Labuan bridge during his Sabah trip, saying that the government had to bail out such projects in the past.
“It comes back to the government because government guarantee is required. Many so-called private initiatives had to be bailed out,” the premier said.
