Tuesday, July 1, 2025

Tuaran MP: Federal Government should return Labuan to Sabah

Datuk Seri Wilfred Madius Tangau says many now regret the 1984 decision, island is underdeveloped and unemployment high other than the oil and gas sector

KUALA LUMPUR — The Federal Government should return Labuan to Sabah, Tuaran MP Datuk Seri Wilfred Madius Tangau has proposed.

He said this suggestion stems from claims from Labuan 

“Compared to Putrajaya, an area spanning 8,000 acres or 32 sq km, the federal government has provided substantial compensation to Selangor, but Sabah has not received a single cent.

“When Sabahans and Labuan residents openly protested against this move, they were arrested and detained under the Internal Security Act (ISA).

“Regardless of Sabah’s intention in handing Labuan over to the federal government on April 16, 1984, many believe that this decision was regrettable,” Madius said on Facebook.

The Upko honorary president, whose part is with Pakatan Harapan, said Putrajaya’s efforts to establish Labuan as an international offshore financial centre have also failed.

“There is nothing the government has done in Labuan that they can be proud of. It has caused more problems than development.

“During my time as Chairman of the Board of Directors of Asian Supply Base Sdn Bhd (ASB), I realised that without ASB, there is nothing in Labuan. With ASB and its business activities, over 5,000 people have gained employment.

“For your information, ASB is a subsidiary of Sabah Energy Corporation Sdn Bhd (SEC), a fully-owned government-linked company of the Sabah government. In other words, the development of Labuan is attributed to the state government,” he said.

Madius had previously aised his call for Labuan’s return to Sabah during the Dewan Rakyat session in March.

He said that Labuan’s unemployment rate remains high, despite being handed over to the federal government for a long time, with various tax acts introduced and passed.

He added that Labuan’s per capita gross domestic product (GDP) which is the second highest in Malaysia, after Kuala Lumpur, at RM85,560, believed to be due to activities in the local oil and gas sector.

Last year, former Chief Minister and President of the Sabah Progressive Party (SAPP), Datuk Yong Teck Lee, suggested that Sabah initiate negotiations with the central government to reclaim Labuan, restoring the original state boundaries at the formation of Malaysia in 1963. – scoop.my

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