LABUAN, Jan 26 (Bernama) -- Labuan must create and strengthen its own identity to be recognised as a unique and competitive economic destination, rather than mirroring the development models of other states or regions, said Deputy Minister in the Prime Minister’s Department (Federal Territories) Datuk Lo Su Fui.
He said the island has its own strengths and strategic advantages, particularly in international financial services, oil and gas, maritime and logistics sectors, which should be further refined to position it more distinctly on the regional and global economic map.
“Labuan should not try to be everything at once. What is important is to create a clear identity that highlights its uniqueness, strengths and niche areas so that investors, businesses and visitors clearly understand what Labuan stands for,” he said at a dinner hosted by the Labuan Chinese Chamber of Commerce here, tonight.
Lo said Labuan Corporation (Labuan Corp), as the island’s main development authority, would focus on accelerating digitalisation and the adoption of artificial intelligence (AI) in its service delivery system to improve efficiency, transparency and ease of doing business.
He said the move is in line with the federal government’s push towards a digital government ecosystem, aimed at reducing bureaucracy, enhancing service responsiveness and strengthening investor confidence.
“Digitalisation and AI are no longer optional. They are critical enablers for Labuan to remain competitive, efficient and investor-friendly. Labuan Corp must lead this transformation in its delivery system,” he said.
Lo also said improved connectivity remains a key factor in Labuan’s long-term development, reiterating that the long-standing proposal to build a bridge linking Labuan to the mainland should be considered as part of the Pan Borneo Highway project.
Such a connection would not only facilitate the movement of people and goods, but also reduce logistics costs, improve access to essential services and stimulate broader economic activities on the island.
“Connectivity is a game changer. Including the Labuan bridge proposal under the Pan Borneo Highway framework would significantly enhance Labuan’s integration with Sabah and the wider Borneo economic corridor,” he said.
Lo added that the federal government remains committed to addressing key development challenges faced by Labuan, including infrastructure gaps, the cost of living and economic diversification, while ensuring that growth initiatives are sustainable and inclusive.
He said close cooperation between federal agencies, Labuan Corp, state authorities and the private sector is crucial to realise Labuan’s aspiration of becoming a resilient and distinctive economic hub within Malaysia and the BIMP-EAGA region.
-- BERNAMA
