PUTRAJAYA should make it their responsibility to build the bridge linking Sabah and Labuan, said historian Avtar Singh Sandhu, considering the island’s consistent contribution of revenue into federal coffers.
He said Labuan remained the country’s crucial hub for offshore oil and gas services with portions of the profits paid as national taxes, and that the amount was on par with major states such as Johor, Kuala Lumpur, Selangor, and Penang.
“The revenue contributed by Labuan to the national economy is substantial and consistent. Given its financial contribution to the federal government, surpassing even that of Sabah, it is imperative that the government invest in infrastructure such as the bridge,” Sandhu explained.
Sandhu, known for his expertise on the Sulu sultanate demand, said Labuan’s economy was in a bad state due to the imposition of taxes on tobacco products, restrictions on the sale of alcoholic beverages in 2021, and the adverse impact of the Covid-19 pandemic.
“The implementation of these taxes have eroded Labuan’s status as a duty-free island, and this led to the decline in visitors.
“The pandemic further impacted business operations due to the lockdowns.
“While the oil and gas companies were not as badly affected, it is the retailers and small businesses that suffer the most,” he said.
Avtar said many small businesses have closed and moved out of the island since and the major oil and gas companies setting up operations on the island barely contributed to the economy.
Instead, he said much of the money from the sector had gone to the federal government and the likes of national oil company, Petronas.
Labuan contributed RM8 billion to the national tax coffers in 2022. Consistently, each year, the central government made approximately RM2 billion from the oil and gas sector.
The federal territory island’s economy relies on the financial centre, servicing oil and gas and its port but in spite of this, Labuan’s unemployment rate was the highest in the country, at 7.2%.
Sandhu said the bridge is essential to revitalise Labuan’s economy and attract investment to the island as he cited the Brunei government’s decision to build the bridge linking Muara to Temburong as an example of efforts to revitalise the neighbouring country’s own economy.
Sandhu also cited the positive benefits of having the bridge in medical emergencies and tourism as it cuts down travel time between the mainland and the island.
Presently, travelling by road will take over five hours between Kota Kinabalu to Labuan, which includes ferry transport connecting the mainland to the island.
He noted the negative implications of transporting patients between the Labuan Hospital and the main hospital, Queen Elizabeth Hospital, in Kota Kinabalu and the higher cost of visiting the island in reference to tourism.
The Federal Territories Department presently has formed a task force to look into construction of the Labuan-Menumbok bridge following incessant calls from politicians and locals from the island and Sabah. A technical study is believed to be underway at present.
The Labuan-Menumbok project, which was outlined in the 1997 Labuan Master Plan, has encountered prolonged delays. A feasibility study conducted in 2010 by Universiti Malaysia Sabah (UMS), Universiti Sains Malaysia (USM), and Universiti Malaysia Sarawak (Unimas) has underscored the importance of the Labuan-Menumbok Bridge link.
In 2018, the federal government approved a techno-economic feasibility study for the proposed Labuan-Menumbok bridge. The RM14.31 million study aimed to assess technical feasibility and address financial and economic considerations.
However, in September 2018, former federal territories minister Khalid Abdul Samad announced the cancellation of a subsequent feasibility study, which was previously approved at a cost of RM15 million.
Prime Minister Datuk Seri Anwar Ibrahim, on a visit to the island, noted that the focus of the federal government was on resolving basic infrastructure issues affecting the people, rather than prioritising major development projects that could be postponed.
He said the RM6 billion bridge was not currently a priority of the government. – The Vibes, May 5, 2024
