KOTA KINABALU: Labuan's already struggling economy will continue to suffer with a recent Customs regulation which restricts the amount of duty-free beer tourists can take out from the island, says Datuk Seri Dr Jeffrey Kitingan.
The Sabah Deputy Chief Minister said the Federal Territory's duty-free status was a vital catalyst for tourism and local commerce.
"Abrupt regulatory changes like limiting tourists to just four cans of beer (to carry off the island) could potentially jeopardise the island's economy," he said, in a statement on Wednesday (July 5).
"While the Federal Government's role is to safeguard and advance Labuan's economy, as public servants, we are obliged to voice our concerns over potential errors or opportunities for improvement.
"I have discussed these issues in Parliament, championing equitable and inclusive economic decision-making processes that consider the unique circumstances of each region," he added.
It was reported on July 3 that Labuan Chamber of Commerce (LCC) chairman Daniel Doughty had received complaints that guests were only allowed to bring out a total of one litre of alcoholic drinks while beer was restricted to only four cans without being taxed, compared to a 24-can crate of beer previously.
Doughty said he was informed by Customs officers the ruling had been enforced since last month, adding that an announcement should have been made before it was implemented.
According to a Bernama report, an officer at the Labuan Customs office confirmed that the ruling was enforced last month, and that four cans of beer were equivalent to a litre of liquor.
"It is not a new ruling. It has been in the Customs duty order all along.
"Taking a crate of beer out of this island was a relaxation given to travellers," the officer had said.
Kitingan urged Putrajaya to foster open and transparent dialogue with Labuan residents and to reassess the recent measures.
On another note, he called on the Federal Government to share updates on the proposed bridge project that will connect mainland Sabah and Labuan.
"Even if this issue falls outside the Sabah government's jurisdiction, it is a topic of substantial public interest, frequently spotlighted during elections.
"A bridge could be an instrumental infrastructure project that bolsters Labuan's connectivity and economic dynamism," said the Keningau MP.
During his trip to Sabah on Feb 28, Prime Minister Datuk Seri Anwar Ibrahim said the proposed Sabah-Labuan bridge was not a priority.
He said he had chosen to avoid big projects such as the MRT and the new Kulim airport and was attacked for doing so.
