Stop calls for Sabah control of Labuan, says island’s Umno chief

 

Labuan island, lying 8km off the coast of southwest Sabah, was ceded to the federal government in 1984 as a federal territory. (Bernama pic)

LABUAN: Labuan Umno has urged political leaders in Sabah to stop the ongoing debate regarding the return of Labuan to the jurisdiction of the Sabah government.

Labuan Umno chief Rafi Alli Hassan said residents of the duty-free island are enjoying a comfortable life, marked by substantial economic growth since Labuan became a federal territory in 1984.

He said Labuan’s thriving oil and gas and financial sectors, as well as the establishment of key economic drivers such as the Petronas Methanol plant and tertiary education institutions, have greatly contributed to the island’s prosperity over the past four decades.

“Labuan’s status, as a state or a federal territory, has undeniably fostered its development, with 86 government agencies having offices on the island. It’s crucial not to politicise Labuan’s status as its economic sectors are thriving more than many districts in Sabah,” he said today.

Rafi Alli Hassan.

Rafi said Labuan’s economic challenges, such as disruptions in water and power supply and an economic slowdown, should not be reason to return Labuan to Sabah. He said Sabah faced similar challenges.

“Labuan faced economic hardships from 2018 due to factors like falling crude oil prices, leading to downsizing by multinational companies and job losses. The Covid-19 pandemic worsened these challenges, along with new customs policies on cigarettes impacting the island’s economy,” he said.

A question about jurisdiction of the island was raised in Parliament recently when Tuaran MP Wilfred Madius Tangau inquired about the federal government’s intention on Labuan’s return to the Sabah government.

He said the question was prompted by concerns about Labuan’s essential needs, such as water and electricity supply, as well as its key economic entity, Asian Supply Base Sdn Bhd, being under the state government.

Sabah Progressive Party president Yong Teck Lee, a former chief minister, has also advocated for Labuan’s return to Sabah.

However, the minister for the federal territories, Dr Zaliha Mustafa, has affirmed Labuan’s role within the federal territories and dismissed proposals for its return to any other entity as irrelevant. - FMT