Labuan Corp responds on income level
Published on: Sunday, November 17, 2019
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The Labuan Corporation’s top management is aware of the high per capita income in the Federal Territory of Labuan, which is due to the economy driven by the competitive services sector such as oil and gas, chemical, financial and insurance industries contributing to the estimated per capita income of RM10,000 per family as stated.
This matter was raised to the Ministry of Economic Affairs Malaysia (MEA) for consideration during the 12th Malaysia Plan preparation meeting held at the Ministry of Federal Territories (MFT). The MEA informed that these statistics were used by the Department of Statistics Malaysia and were applicable to all states in Malaysia.
However these figures do not reflect the real state of income of the people in Labuan. Basically, Labuan’s per-capita income in 2015 amounted to RM58,577 with an average growth rate of 8.6 per cent during 2010-2015.
Thus, over the past several years, various programmes and initiatives were implemented by the MFT to increase the income of most Labuan people through the provision of funds made available by the Bumiputera Empowerment Programme (PEB), the People’s Well-Being Initiative to Address the Cost of Living and Federal Cares Programme. The fact that the Federal Government has not implemented socio-economic development in Labuan is completely untrue.
Since Labuan became a Federal Territory in 1984, the Federal Government has given a multi-billion-ringgit allocation for Labuan’s development that was implemented such as the construction of the Labuan Financial Centre Complex as well as infrastructure development across the island such as the construction of the Labuan Airport, road upgrading projects, construction of mosques and other projects by the Federal Government.
The concern of the Minister was also reflected in the special budget under the allocation of the Federal Territories Minister’s Office, in which the priority for Labuan was above that for Kuala Lumpur and Putrajaya.
In this context, the Labuan Corporation management would like to inform that development projects are subject to assessment that can benefit the people as well as reasonable costs and consideration for the environment.
There are projects that do not go beyond the environmental assessment aspect which leaves the projects unapproved and also projects that have been approved but have not been fully implemented by developers and investors.
Among the projects that have been approved and in the process of implementation are the Premium Shopping Outlet project and resort construction.
Labuan, like other states of Malaysia, is also affected by the global economic downturn and this has had an impact on the development of the local economy.
This is especially evident with the fall in oil prices beginning in 2014 which has had a direct impact on the local economy, which is almost 80 per cent dependent on the oil and gas industry.
As a result, the impact on the island is far greater than the other places not related to the oil and gas industry. In this regard, the allegations made against the Federal Government are unfair and may have specific motives for the government.
In line with the desire of the Minister to see Labuan grow like the other federal territories, the MFT and Labuan Corporation are always open to any proposal to enhance and further develop the island in line with developments in other states, especially in the Federal Territory.
The Labuan Corporation management expects all parties to join forces in assisting the government in realising the island’s development for the benefit of its citizens.
Department of Corporate Affairs
Labuan Corporation
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