LABUAN: Labuan's vast untapped economic potential can be realised by focusing on efforts to attract investments and streamline processes to boost its economy, said Labuan Chamber of Commerce (LCC) secretary Raymund Pang.
He said a highly effective approach to realising this goal is to entice foreign investments, resulting in employment opportunities for the locals, which would not only stimulate economic growth but also create a more skilled workforce.
Pang said to turn this vision into a tangible reality, Labuan must undertake several pivotal actions, including transforming into a free trade or commercial zone.
"This move would facilitate trade, attract international investors and help the island replicate Penang's success in terms of attracting foreign direct investments, job creation and export growth.
"The zone could support distribution, trading, consolidation, storage and transhipment activities, and Labuan should also explore the repackaging and white-labelling of goods to create a unique Malaysian brand identity for export," he said.
At the same time, Pang highlighted the need to streamline approval processes, noting that Labuan has a large number of government departments, leading to bureaucratic challenges and delays.
He said setting up a one-stop centre for investors can reduce red tape and decision-making delays, making the island more business-friendly.
"Decision-making authority should also be localised in Labuan to avoid the delays caused by central decision-making in Putrajaya," he added.
He also stressed the urgent need to improve basic utilities, saying that the persistent disruptions in power and water supply have negatively impacted local businesses.
"Investments in replacing old water pipes and the construction of a solar farm could address these issues, benefiting small businesses like cafes and budget hotels," he said.
At the same time, he said turning Labuan into a Technical Vocational Education and Training hub can help create a skilled technical workforce to support new manufacturing plants and the oil and gas industry, resulting in opportunities for higher incomes and attracting workers from nearby areas.
Meanwhile, improving air and sea connectivity, including upgrading Labuan Airport and making Labuan Port more attractive to vessel owners can boost tourism and trade, said Pang.
On the same note, he said corporate tax breaks and tax exemptions for expatriates and executives can make Labuan more attractive for investments and encourage local spending, and Labuan should offer special visas and accommodate expats' diverse needs to create a welcoming atmosphere.
"Having well-equipped hospitals for critical emergencies is also essential for attracting high-net-worth individuals and making expats feel secure.
"Labuan needs to create a solid foundation for its development by focusing on connectivity, bureaucracy simplification, infrastructure improvement, and a welcoming environment," said Pang.
He added that by prioritising these key areas, Labuan can reach its full potential and bring prosperity to its people. --BERNAMA
