New Labuan Corporation chairman appointment in final stages

KUALA LUMPUR: The appointment of the new Labuan Corporation chairman is in its final stages and will be announced once a decision has been finalised, said Minister in the Prime Minister’s Department (Federal Territories), Datuk Seri Dr Zaliha Mustafa.

She said that the appointment was not deliberately delayed but was being carried out with careful consideration to ensure that the selected individual truly understands Labuan’s needs and is capable of driving its economic growth.

“I don’t think we need to rush the decision. More importantly, we are considering the merits of the candidate and how the chairman can contribute meaningfully to Labuan’s development.

“The origin of the chairman should not be an issue. Whether the individual is from Labuan, Sabah, or elsewhere, what truly matters is our shared commitment to serving Labuan,” she said during the Ministers’ Question Time in the Dewan Rakyat today.

Dr Zaliha was responding to a supplementary question from Datuk Siti Aminah Aching (BN-Beaufort), who asked about the delay in appointing the Labuan Corporation chairman and whether a candidate from Sabah would have an advantage in securing the position.

Meanwhile, in another development, Dr Zaliha said the Federal Territories Department (JWP) was exploring several new sectors, including agriculture and the blue economy, as part of efforts to diversify Labuan’s economy.

The initiative aims to reduce Labuan’s reliance on the oil and gas industry and offshore financial services by formulating a clear, focused, and structured policy for development.

“If you look at the agro-island concept, it represents a progressive policy that could position Labuan as an island with a high level of food security. The only challenge we currently face under the structural plan is that only 0.22 per cent, or 154.45 hectares, of land in Labuan is zoned for agricultural use.

“However, we can explore ways to expand monitoring and meet current needs by applying modern technology to this limited agricultural zone. This includes attracting investments in smart agriculture or focusing on high-potential crops, such as vegetables,” she said.

Dr Zaliha was responding to a supplementary question from Datuk Dr Suhaili Abdul Rahman (PN-Labuan), who asked about the government’s plans to strengthen the local economy and reduce its dependence on the financial services and oil and gas sectors.

She said that under the blue economy initiative, modern aquaculture methods would be explored, alongside the establishment of several marine research zones aimed at attracting both local and international research teams to Labuan. Their long-term presence, she added, would contribute to boosting the island’s economy.

In response to Suhaili’s original question regarding the Borneo Flora Festival 2025 (BFF2025), scheduled to take place from July 26 to 30 at the Labuan International Sea Sports Complex (KSLA), Dr Zaliha said the festival marks the first step towards positioning Labuan as a regional hub for exhibitions and flower shows.

“In addition, the festival is expected to stimulate the local landscaping and horticulture industry, generate community-based economic activity through increased tourist arrivals, and encourage a shift in mindset among tourists from Sabah, Sarawak, Brunei, and Kalimantan, Indonesia to consider Labuan as a preferred weekend and holiday destination.

On the return on investment (ROI) of BFF2025, Dr Zaliha said that its impact should not be measured solely by on-site transactions but also through the broader indirect benefits to the local community.

“For example, the programme is expected to attract around 50,000 visitors, with an estimated direct expenditure of RM20 million, based on a projected RM400 per visitor, covering accommodation, food, transport, and souvenirs.

“In addition, the economic multiplier effect is projected to generate RM35 million in gross value added (GVA) and create approximately 400 temporary job opportunities. The advertising value equivalency (AVE) from media exposure is also expected to reach RM8 million,” she added. – Bernama

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