Labuan should be made ‘special region’

LABUAN: It is not impossible to have Labuan returned to Sabah even though the island has been a free port for more than 25 years.

This could be gradually done by first having the island declared as a "Special Administrative Region (SAR).”

The "future state government" will have to prepare and submit a "package" regarding this to the Federal Government for the higher than State status for Labuan If approval was not forthcoming, then a referendum can be carried out to find out the wighes of local residents.

SAPP President Datuk Yong Teck Lee, who said this, however, did not specify what he meant by the "future state government".

However, it is understood that what he meant was when the opposition ruled the State.

Yong’s comment came in the wake of public discussion on the Federal Territory (FT) status of Labuan following the call by Upko Vice President Datuk Wences Anggang to have Labuan returned to Sabah.

When making the call, Wences questioned the Federal Government's ability to administer the island and expressed disappointment over hints that the free port status of Labuan may be scrapped due to rampant smuggling.

Yong said: "By becoming a Special Administrative Region, there would be flexibility in he application of Federal laws in Labuan. Certain laws could be applied based on local conditions and this would help speed up growth and enable the island to tap the full potential of its free port status."

He added that with Labuan holding a special status, it could also be entitled to royalty payments by Petronas.

Although Labuan is a duty free island, he said the island was not a financial loss.

Record shows the Customs collected about RM500 million in duties annually from the export of petroleum-related products. Among the companies that paid such duties were Petronas Carigali Sdn Bhd, Sabah Shell Sdn Bhd, Murphay Oil and others.

Yong said the island also has other potentials to increase its revenue.

On politics, he said by being a SAR the island could have three assemblymen and a Member of Parliament. Presently, it has only a Member of Parliament and a Senator.

As for the proposed Labuan-Menumbok Bridge, Yong said the SAPP would have the connection established within seven years Labuan became a Federal Territory in 1984 when Datuk Harris Salleh was the State Chief Minister and the Prime Minister was Tun Dr Mahathir Mohammad.

The change of status was to speed up the island's development as Federal Government had the funds, resources and was well placed to do so. Labuan was expected to become a "little Singapore". It was the first Federal Territory outside the peninsula. The other is Kuala Lumpur.

Over the past 25 years, positive chauges were noticeable. But since the decision to change the island's status was not known to be widely consulted, continued frustiations surfaced.

In the first parliamentary election, the Labuan FT issue was the main agenda and the BN candidate lost to an Independent, Datuk Mulok Awang Damit.

 However, the subsequent general elections were all won by BN candidates with handsome majorities.

Many believe that a referendum now held woul'd not reflect a similar thinking like before as those born 25 years ago have lived with it and would not want to lose it for something unknown. The other was that many of the locals have left for jobs and the local population had been diluted over the years.