Tourism, bridge Labuan's only hope now
Published on: Friday, December 08, 2017
Kota Kinabalu: Labuan's only economic future lies in tourism as all the sectors that once drove the island's economy have come to an end while other Federal Government projects to resuscitate them never took off.Former Sabah Chief Minister Tan Sri Harris Salleh (pic) said, in fact, Labuan can be developed into a world class tourist destination provided the authorities are bold and progressive enough to approve proposals for any tourism development.Quoting late Primary Industries Minister Tan Sri Lim Keng Yaik who told Sabahans to decide whether they wanted "monkey or gold", Harris said the choice is for the Labuan authorities to make.
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"Sabahans chose gold." "This is a very important remark for those in authority to consider either to develop Labuan into an economically viable island or leave it as it is (and take its) future and prospects to nowhere," he said, in a statement.He proposed that in order to establish sustainable economy for Labuan as a tourist island, the authorities, including Labuan Corporation and islanders in general must consider, among others, the Labuan-Sabah Bridge."The Labuan-Sabah Bridge had been committed by Prime Minister after Prime Minister over the last 30 years.
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Nothing has happened as it is uneconomic to spend RM3 billion for the bridge. The proposed study to be carried out sounds good and serious but in reality the study cannot support priority spending of RM3 billion by the Federal Government," he argued. According to him, the proposed bridge could only be built by way of land swaps."(Let's) say 5,000 acres on each side, totaling 10,000 acres," he said, adding that land reclamation should not a be problem as it had been approved some 10 years ago for 20,000 acres in the area.
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The 10,000 acre land would also support the economy of the bridge and Labuan, and be developed into commercial and housing for Retired Overseas People Housing Complex. He estimated that some 20,000-30,000 homes can be built in the area.He said if the Federal Government could extend the policy of granting Permanent Residence for Retired Overseas People as for Johor and Langkawi, it has no reason for not extending it to Labuan which according to him can attract 30,000-50,000 Retired Overseas People. Besides, he said Labuan has many advantages over Johor or Langkawi and the move will also provide employment to locals. Along the same line, he proposed that the Royal Malaysia Air Force Base be moved from Labuan to Tawau as Tawau airport needs little extension and is also almost empty. "The RMAF is needed more in the East Coast and Tawau than Labuan," he opined.He said another matter that needs consideration is on privatising Labuan airport to an airline company as a commercial and tourist hub. "It needs an extension of another 1,000 meters and a new terminal building capable of having duty-free. A mini Dubai," envisioned Harris. In addition to these, he also proposed a decentralisation and delegation of powers to approve tourists or economic projects to Labuan Corporation and appointment of Labuan leaders to head committees including the Labuan Corporation.On top of it all, he said, Labuan needs seed funding of RM250 million."This is the policy of the Federal Government by giving seed funds to Sabah and Sarawak for projects that required initial funding. These seed funds are approved and announced by the Prime Minister whenever he visited Sabah or Sarawak."It was reported that there will be tens of millions of Chinese, Taiwanese, Korean and Japanese tourists coming to this part of the region. These tourists are looking for clear sea water, clear sun and safe place. Labuan has all. Therefore, Labuan has to start now. Labuan needs more hotels and resorts," he said.According to Harris, other than tourism, there is nothing much anyone can hope for to stimulate the island's economic growth.He said after the collapsed of oil, Labuan economy has come down to zero once again with the number of industries established some 30 years ago such as the Asian Supply Base, the flour mill, the sponge iron, the methanol and the shipyard are just waiting to close down. Even Petronas, he said, has moved its office to Sarawak. "There is nothing left in Labuan to support any number of population. The most widely publicised Labuan Financial Centre has not fulfilled its intended purpose. It has failed to attract foreign investment and, thus, did not spur Labuan economically. Presently it seems that the decisions and operations are made from Kuala Lumpur. "Therefore, Labuan has to look for economic activities that will create large employment. Based on the Federal Government standing and the economic winds blowing in the region, the only industry that can be developed for Labuan is tourism and Housing for Retired Overseas People. Other than these two there is nothing else that can be done for Labuan," he said.He stressed that Labuan cannot hope for another boom in the oil industry, which is now already a sunset industry. Besides the doomed scenario, he said Labuan will also face strong competition from Brunei Supply Base Complex at Muara and Sipitang Supply Base, both are only about 25km away from the island. Stay up-to-date by following Daily Express’s Telegram channel.
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