LABUAN, Jan 13 — Pakatan Harapan (PH) Labuan has submitted a memorandum highlighting crucial issues related to the people’s well-being and economic development of the duty-free island.
The memorandum, signed by PH Secretariat chairman Simsudin Sidek and deputy Datuk Ramli Tahir, was handed to the Minister in the Prime Minister’s Department (Federal Territories), Dr Zaliha Mustafa today.
Key concerns highlighted in the memorandum include the urgent need to reinstate Labuan’s full-duty-free status, especially those pertaining to the sale of cigarettes, particularly in the context of the taxation applied to the tobacco product.
PH Labuan asserted that the alteration contributed to a decline in tourist arrivals, impacting the island’s economic vitality.
The memorandum also underscored the necessity for a new port facility, as the existing port is deemed inadequate for efficient logistics operations, particularly for large goods associated with the oil and gas industry.
It said the current logistics practices involve the use of an alternative jetty at the Asian Supply Base, leading to the transportation of lengthy items through urban areas and posing potential security challenges.
As such, PH Labuan has proposed the establishment of an integrated port in a new location to replace the existing facility.
It said this long-term plan aims to position Labuan as a major player in the industry, leveraging its strategic geographical location.
“With Indonesia’s capital poised to move to Borneo, Labuan could serve as a crucial intermediate port connecting Borneo to the global market,” it said.
Additionally, PH Labuan also advocated for increased air connectivity to stimulate tourism, calling for more flights to and from the island, recognising the potential for economic growth within the tourism sector.
Finally, PH Labuan has appealed to the government to incentivise direct shipping to Labuan Port, discouraging the current practice of utilising the Sepanggar Port which incurs double transportation charges and contributes to an increase in prices of goods.
It added that these measures will not only enhance Labuan’s economic prospects but also fortify its role in regional trade and connectivity. — Bernama
