Labuan Corporation Advisory Council Supports Oil Refinery Proposal

By Jailani Hasan

LABUAN, April 29 (Bernama) — The Labuan Corporation Advisory Council has unanimously agreed to support a proposal to establish an oil refinery on the island, describing it as a strategic move to spur economic growth and create employment opportunities.

Chairman Datuk Bashir Alias said the proposal, originally mooted by former Sabah chief minister Tan Sri Harris Salleh, received full backing from council members representing various economic sectors and non-governmental organisations (NGOs).

“All members are in agreement that the development of an oil refinery in Labuan could serve as a catalyst for economic expansion, while opening up job opportunities for the local community,” he told Bernama after chairing the council’s second meeting here today.

An oil refinery project complements Labuan’s role in the oil and gas sector, particularly in supporting upstream activities in nearby regions such as Sabah and Brunei, while enhancing value-added processing capabilities, he said.

Labuan’s strategic location within key regional shipping routes, coupled with its existing oil and gas support services, makes it a suitable candidate for downstream petroleum activities such as refining, he said.

The council also viewed the proposal as timely, in line with efforts to revitalise Labuan’s economic landscape and strengthen its position as an international business and financial hub.

Bashir said the council will suggest to Labuan Corporation to identify suitable land for the proposed development, taking into account infrastructure readiness and zoning requirements.

The council also emphasised the importance of conducting comprehensive feasibility studies, including environmental impact assessments and infrastructure readiness, to ensure the project’s long-term sustainability and alignment with regulatory requirements.

He added that any development must balance economic benefits with environmental considerations, given Labuan’s limited land area and its aspiration to maintain a sustainable and liveable environment.

Those appointed to the council are Datuk Seri Patrick Tiong, who represents the maritime and logistics sector; Labuan Islamic Chamber of Commerce president Datuk Dr Ramli Tahir and Datuk Wong Kii Yii from the Labuan Chinese Chamber of Commerce.

It also included NGO representatives Datuk Niswati Tarji, Seah Kiat Leong and Haziq Ruslain.

-- BERNAMA