Task Force Submits Suggestions To Address Labuan’s Industrial Challenges

LABUAN, April 8 (Bernama) -- Several recommendations to address economic hurdles affecting industry players in Labuan have been submitted to Minister in the Prime Minister’s Department (Federal Territories) Hannah Yeoh.

Deputy Minister in the Prime Minister’s Department (Federal Territories) Lo Su Fui said the newly established Labuan Industry Task Force had gathered data and feedback from industry players to formulate the proposed solutions.

Formed in February 2026 and co-chaired by Lo and Labuan Corporation chairman Mohd Husni Mohamad Salleh, the task force was initially given three months to submit solutions addressing key industrial challenges, including water and electricity supply.

However, Lo said the task force moved swiftly, submitting its recommendations within two weeks following engagement sessions with industry stakeholders.

“We did not wait until three months to submit solutions. Only two weeks after the engagement session with Labuan industry players, we submitted the recommended solutions,” he said during a press conference here today.

He added that Yeoh would table the recommendations at the Cabinet level for further action.

Among the key proposals are strengthening Labuan’s duty-free status to support its economic positioning, developing a modern logistics hub, promoting financial innovation, enhancing connectivity including 24-hour boat services between Labuan and Menumbok, and reviewing taxation-related matters.

Lo said the task force, established at Yeoh’s directive, also aims to improve coordination among government agencies to facilitate investment and economic growth, and it is working closely with Deputy Finance Minister Liew Chin Tong on policy alignment.

Meanwhile, Mohd Husni said the task force, comprising heads of various government agencies, had thoroughly examined industry concerns before submitting its recommendations.

“We have had meetings prior to the submission of the recommended solutions and thoroughly studied the issues before the submission,” he said.

-- BERNAMA