Labuan: Labuan Corporation (LC) is stepping up efforts to participate directly in business ventures through asset capitalisation, as part of a broader strategy to achieve long-term financial sustainability and reduce reliance on annual government grants.

According to BERNAMA News Agency, its chairman Datuk Mohd Husni Mohamad Salleh said the initiative will optimise the value of LC's existing assets by transforming them into income-generating ventures, while also creating new employment opportunities for the local community.

'We are moving towards a more sustainable economic model where LC is not solely dependent on federal allocations. Asset capitalisation allows us to unlock the value of what we already own and reinvest it into viable business ventures,' he told Bernama today.

In line with this direction, Husni said LC is in the process of establishing Invest Labuan, a dedicated entity to spearhead investment activities as its commercial arm.

'Labuan Invest will lead the way in identifying, structuring and managing strategic investments, including partnerships with private sector players. This is crucial in ensuring that our ventures are professionally managed and yield consistent returns,' he added.

He said the move is also aligned with efforts to position Labuan as a competitive economic hub, leveraging its strategic location, established financial services sector and growing logistics and maritime industries.

Areas being explored include property development, port-related services, logistics, tourism infrastructure and renewable energy projects, which are seen as having strong potential to generate recurring revenue.

Husni noted that by adopting a more business-oriented approach, LC aims to strengthen its financial standing, enabling it to reinvest in public infrastructure, urban development and community programmes.

'At the end of the day, this is about creating a self-sustaining ecosystem where economic growth benefits the people through job creation, improved facilities and a more vibrant business environment,' he said.

LC will continue to work closely with federal and state agencies and industry stakeholders to ensure investment initiatives are aligned with national development goals and deliver long-term.