RM60mil investment for Labuan Halal Hub

LABUAN: Some RM60 million will be spent to transform the Labuan Halal Hub Complex in Kiamsam, regarded as a white elephant, into an all-inclusive world-class dockyard, beginning January 2020.

The new investment will bring about an integrated marine engineering and constructing facility as well as a training centre, which is expected to be ready by the end of 2021.

Federal Territories Minister Khalid Abdul Samad said the new shipbuilding sector was expected to generate employment for more than 1,500 people and help produce skilled workers over the long run through a training centre to be built at the complex.

“It is an initiative from Labuan Corporation which tendered out the complex to potential bidders through a request for proposals (RFP) in June this year…and Nam Cheong had given us the better RFP,” he said.

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“Labuan Corporation is also finalising other investments and focusing on the secondary economy to ensure the Labuan Halal Hub will continue its operations,” he added.

He was speaking to reporters after witnessing the signing of a memorandum of understanding (MoU) between Labuan Corporation (LC) and Kuala Lumpur-headquartered Nam Cheong Dockyard for Nam Cheong to take over the 7.3-hectare complex.

A definitive agreement is expected to be inked by year-end.

The MoU was signed by Nam Cheong Dockyard Chief Executive Officer Leong Seng Kiat and LC CEO Dr Fary Akmal Osman. Also present was Labuan MP Datuk Rozman Isli.

Nam Cheong Dockyard, the principal operating subsidiary of Singapore-listed Nam Cheong Ltd, will move its existing fabrication and shipbuilding-related activities in Batam, Indonesia and China to Labuan beginning Jan 1, next year.

Khalid said the Labuan Halal Hub Complex, with its existing warehouse facilities as well as logistic support, is located by the seaside and is strategically positioned for a shipbuilding industry.

“Nam Cheong, being a Malaysian company with a global reputation in shipbuilding, should be given the chance to relocate its business activities to Labuan.

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“We hope it will help to improve the local economy and the people’s wellbeing, as this (shipbuilding) sector will come alongside Labuan’s heavily-depended-on oil and gas sector,” he said.

He added that the investment will also ease the financial burden of LC in funding the Halal Hub’s operation cost and ensure the use of the facility is maximised.

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