Labuan Corporation And Petronas Agree To Explore Potential Collaboration - Zaliha

KUALA LUMPUR, Nov 5 (Bernama) -- The Department of Federal Territories, through Labuan Corporation, has agreed to explore potential collaboration with Petronas in the areas of education, community development, and environmental well-being.

Minister in the Prime Minister's Department (Federal Territories) Dr. Zaliha Mustafa stated that this agreement was reached during her meeting with the management of Petronas Labuan today as part of her working visit to the island.

She noted that as one of the largest stakeholders in Labuan, particularly in the oil exploration industry, Petronas has welcomed government solutions to the issues and challenges it faces, including those concerning electricity supply.

"There are several issues and challenges presented to me, specifically impacting Petronas' subsidiary, Petronas Chemicals Methanol Sdn Bhd (PC Methanol), which is the largest methanol gas exporter in Southeast Asia.

"I acknowledge and clarify that most of these issues and challenges have already been resolved this year, such as those concerning electricity, water supply, and facilities at Labuan Hospital. Alhamdulillah, they welcomed these solutions," she said in a Facebook post today.

Zaliha said another point of discussion was the potential for exploring attractive investment opportunities in the manufacturing industry on Labuan Island, leveraging the methanol production from Petronas. 

She was also informed that Petronas's new 120-megawatt power plant in Rancha-Rancha is expected to commence operations in the first quarter of 2028, which will benefit the people of Labuan.

"Several proposals were raised that I believe can be considered, including the suggestion to optimise Labuan as a duty-free island. We can explore this further and elevate it to higher levels," she said.

-- BERNAMA