Labuan Corporation receives offers on long-abandoned assets
Published on: Friday, April 22, 2022
By: Bernama
LABUAN: The local authority of Labuan Corporation (LC) has received several development and investment proposals from interested bidders for 10 of its long-abandoned assets, including those under its management which were on its leasing offer.Its acting chief executive officer Rithuan Ismail (pic) said the bidders whose companies are in the project development and investment field are local companies from across the country.
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“We have received a number of proposals from several companies interested to invest for a long-term development.
“These companies will undergo screening process in every aspect before we can do the selection,” he told Bernama Thursday.
Rithuan said most of the submitted proposals are in line with the LC’s development plans as stipulated in the leasing offer.
He said all the proposals would be discussed thoroughly in the LC’s working committee before presenting to the LC’s investment committee for a final decision.
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LC opened leasing offer for the development of long-abandoned assets, including the Halal Hub and the 10-storey Hotel Labuan, under its management.
Eight other assets and those under the management of the local authority in the list for leasing are the old market site, idle land next to Hotel Labuan and Urban Transformation Centre (UTC) Pasar Sentral building, idle land at Jalan OKK Awang Besar, near Saguking Jalan Patau-Patau, at Jalan Rancha-Rancha and the popular tourist attraction of Pulau Papan.
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The leasing offer commenced from Jan 19 until March 3 and was extended until April 4, and the leasing of the 10 assets period between 13 and 30 years are for commercial purposes.
Rithuan said the 8.127-hectare Pulau Papan, equipped with several wooden chalets, was previously managed by a tourist operator and popular among tourists for sea sports and recreational activities, snorkelling, island hopping and camping.
“We are hoping for genuine developers and investors to develop these areas as we are aware of the trickle-down effects on Labuan’s economy,” he said.
Rithuan said several pieces of idle land with three located in the town centre are economically viable and rewarding and could be developed into a new economic cluster to jump-start the sustainable industry.
“Hotel Labuan, which is in the heart of town, has the potential to be refurbished into a new architecture and design hotel, or for other commercial development purposes,” Rithuan said.
Once the pride of Labuan, Hotel Labuan has become an eyesore after it was abandoned in 1997.
The 7.391-hectare Labuan Halal Hub, which is equipped with an administration building, a mini-conference hall, and several warehouses, has the potential to be another development site for a new industry due to its strategic location opposite the shoreline.
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