Labuan: The Asian Development Bank's (ADB) official visit to Labuan has renewed attention on the duty-free island's strategic economic position as an offshore oil and gas support base, international financial centre and maritime gateway.
According to BERNAMA News Agency, the ADB delegation, led by its Southeast Asia Department director-general Nianshan Zhang, visited several key economic institutions and areas, including the containerised port operated by Megah Port Management Sdn Bhd (MPM), Labuan Corporation (LC), Labuan Financial Services Authority (Labuan FSA) and the Labuan Chamber of Commerce (LCC).
The delegation also included ADB senior country specialist Gary Krishnan and ADB Indonesia deputy country director Said Zaidansyah. During the visit, LC conducted a Labuan Economic Development briefing for the delegation, outlining the island's economic landscape, development priorities, investment needs and key growth sectors.
Nianshan stated that ADB's visit to Labuan was part of its engagement to better understand the island's economic landscape and potential areas of collaboration. He mentioned that ADB would also establish its branch office in Kuala Lumpur this year to work more closely with Malaysia and explore areas where ADB can support development priorities, including economic growth, infrastructure, sustainability and regional connectivity.
MPM managing director Datuk Seri Patrick Tiong emphasized that Labuan's real engines of economic growth remained its oil and gas sector and financial services-related activities. He highlighted that Labuan Port continued to serve as the island's economic gateway, with about 70 per cent of its cargo throughput comprising oil and gas-related materials, while the remainder involved non-edible and edible consumer goods as well as construction materials.
Tiong described Labuan Port as an important maritime gateway supporting the island's role as an offshore oil and gas service hub and the Labuan International Business and Financial Centre. The port also supports ship lay-up activities, offshore supply logistics, bunkering services and cruise vessel calls.
He noted that modern ports now play a far broader role beyond conventional cargo handling, functioning as integrated logistics gateways that support trade, tourism, industrial activities and regional connectivity. Strengthening Labuan's port ecosystem would be crucial in enhancing the island's competitiveness, particularly as Labuan continues to support offshore operations in Sabah waters and the wider region.
LC deputy chairman Simsudin Sidek pointed out the need for greater foreign investment participation to accelerate development, given the financial constraints faced by the local authority. He stated that LC plays an important role in facilitating business activities and supporting both domestic and foreign investments by ensuring that development proposals are guided, coordinated and aligned with the island's long-term economic direction.
LC deputy chief executive officer Fadzilah Mahmud mentioned that the proposed Labuan bridge was still under technical study and, once completed in November this year, ADB could also consider providing financial facilities to the appointed contractor.