KOTA KINABALU – Recent calls to “return” Labuan to Sabah is not the main issue, but developing the federal territory is a priority at present, said Prime Minister Datuk Seri Anwar Ibrahim.
He said development on the island is currently sluggish and that he noted during the tabling of the supply bill last Friday that the federal government has to work with Sabah on the matter.
“It is not an issue… Labuan must be developed. I have stated in my budget speech that we will work with Sabah and try to revive financial services there, which seem to be very sluggish now.
“I have also instructed treasury and finance (ministry) officials to monitor and resolve the issue now. The main issue now is we have seen some sluggish development and it is up to the federal government and state to revive the island,” said Anwar after his keynote address to the civil service here today.
Anwar was responding to a question whether Labuan should be returned to Sabah.
There had been calls from political circles in Sabah for the return of the island, following allegations that the federal government had failed to deliver its pledge to develop the island when it was handed over in 1984.
On calls for the construction of a bridge linking Sabah to Labuan, Anwar said megaprojects have been put on hold and that the government will only spend what it can for now.
“I am a realist when it comes to economics. We will spend what we are able now,” said Anwar, while dismissing any private financing initiatives for the bridge project.
According to him, there had been various instances where contractors had to turn to the government for a bailout when such projects failed. – The Vibes, February 28, 2023
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