Labuan-Sabah bridge will spur island’s economy, says ex-MP

 

Proponents of the Labuan-Sabah bridge say it would also help to boost tourism. (Bernama pic)

PETALING JAYA: A bridge connecting Labuan and Sabah is needed to boost the island’s economic development, says a former lawmaker.

Former Labuan MP Rozman Isli said it had been 39 years since Labuan was federalised but the development of the island was still “unsatisfactory” and “mediocre”.

“By having the bridge, Labuan will have all of south-western Sabah, including the south interior of Sabah, as its hinterland.

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“They will look at Labuan as their urban centre for port and airport and as such, it will be a distribution point for imported products and an export hub for local products.

“The development will also mean that Labuan will have a major government specialist hospital to serve the whole region, complementing the congested Queen Elizabeth Hospital in Kota Kinabalu,” Rozman told FMT.

Rozman said a bridge would also allow for more movement between Labuan and Sabah, much like the Penang bridge which connects the island to the mainland and the Second Link which connects Johor to Singapore.

This, he said, would spur economic activities, increase job opportunities as well as boost tourism.

Prime Minister Anwar Ibrahim, however, has said that the proposed Labuan-Sabah bridge is not an immediate priority.

Better economic policies

Chin Chee Kee, chairman of the Association of Labuan Trust Companies, however, believed that the bridge was not necessary to spur Labuan’s economy.

Instead, he said, better economic policies were needed.

“The priority now for Labuan should be to revitalise the economy. When the economy is revitalised then the need for the bridge will come naturally in order to connect Sabah and link up with the Pan Borneo highway and subsequently, to the new capital of Indonesia, Nusantara,” he said.

Chin said for now, Labuan needed to have better air links to connect the island to Kota Kinabalu and Kuala Lumpur, as well as upgraded jetties to facilitate the movement of people and goods.

One of the major overhauls that should be looked into is the revamping of the Labuan International Business and Financial Centre (IBCF) to make it more competitive and attractive, he said.

“After 33 years, we really have to take a serious look at Labuan IBFC in order to modernise its laws and incentives in order to attract a new wave of foreign investors to come to Labuan.”

Chin said Labuan’s full duty free status should also be restored to promote tourism. At present, items such as tobacco and cigarettes are taxed.

Industrial area

Rozman, meanwhile, said the government should consider setting up an industrial area in Labuan, similar to Prai in Penang.

“A large industrial park can be developed by implementing a government policy to limit methanol export from Labuan Petronas to 50% and making the other 50% available for methanol-based products manufactured in Labuan,” he said.

He said Labuan should also be made into a hub for shipbuilding, starting with the maintenance of naval vessels at the Labuan Shipyard instead of sending them to the Boustead Naval Shipyard in Lumut, Perak. - FMT