Federal Territories Must Not Be Viewed As Homogenous Entity - Dr Zaliha

LABUAN, July 17 (Bernama) -- The Federal Territories of Kuala Lumpur, Putrajaya and Labuan must not be viewed as a homogenous entity, as each faces distinct economic and social challenges that demand tailored solutions, said Minister in the Prime Minister’s Department (Federal Territories) Datuk Seri Dr Zaliha Mustafa.

“For too long, the Federal Territories have been treated as one homogenous unit. However, when we consider the realities of economic well-being and public welfare, it is clear that Kuala Lumpur, Putrajaya and Labuan each face very different sets of challenges,” she said in a Facebook post today.

Speaking after a post-Cabinet engagement session following the 13th Malaysia Plan (13MP) discussions with Ministry of Economy officials, Dr Zaliha said the meeting allowed her and the leadership of the Department of Federal Territories (JWP) to convey the true aspirations of the people in all three territories.

In Kuala Lumpur, she highlighted a growing income gap among urban residents, noting that this widening disparity necessitates a recalibration of the city’s growth ecosystem to ensure inclusivity and that no group is left behind.

For Putrajaya, the minister emphasised its continuing role as the country’s administrative centre, adding that it should lead policy innovation and uphold transparency in public governance.

Dr Zaliha stressed that Labuan requires a more strategic approach, noting that the island accounts for Malaysia’s second-highest GDP per capita but that the returns to its people do not reflect this contribution.

“Labuan’s tax collection stands at around RM47 million, while expenditure reaches RM95 million. 

“This fiscal imbalance must be addressed. Additionally, the local economy’s dependence on the oil and gas sector has waned compared to a decade ago,” she said.

She urged a shift toward alternative growth drivers, such as tourism and the blue economy, to reinvigorate Labuan’s development.

“The 13MP’s approach to the Federal Territories must not be one-size-fits-all. 

“We must acknowledge the uniqueness of each territory’s challenges and strengths, and craft solutions that are locally tailored and focused on delivering real impact for the people,” she added.

-- BERNAMA