THE Labuan-Kota Kinabalu-Labuan express ferry service has been temporarily suspended since last weekend due to rising fuel costs and high landing charges at the Jesselton Jetty Terminal, Kota Kinabalu.
LDA Holdings Sdn Bhd, the management company of the Labuan International Ferry Terminal, announced that the decision was made after operating costs became increasingly unsustainable for ferry operators.
Its Chief Executive Officer, Noor Halim Zaini, said the service, which resumed on May 28, 2025, after being suspended due to the COVID-19 pandemic, is a direct travel option to Labuan that makes it easier for passengers to travel without having to go through Menumbok.
"This ferry service provides great benefits to travellers by offering a direct connection between Labuan and Kota Kinabalu, in addition to contributing to increased tourist movement in both destinations," he said yesterday.
Noor Halim explained that the sharp increase in fuel prices and high landing charges at the Jesselton Jetty Terminal have put huge financial pressure on the operator.
He also noted that while Malaysian passengers currently enjoy a 50 per cent subsidy on ticket fares, no similar subsidy is provided for fuel, thus exacerbating the operational challenges.
"We hope the government can look into this issue as it will not only affect ferry operators, but will also have a wider impact on travellers and the tourism sector," he said.
The suspension of this service is expected to affect tourism flows between Labuan and Sabah, especially for travellers choosing the sea route. – April 2, 2026
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