Labuan: Megah Port Management Sdn Bhd (MPM) and the Labuan Port Authority (LPA) today signed the operation, facility and management continuation agreement and the leasing agreement aimed at further strengthening port operations and maritime services on this duty-free island. The agreements signed here on Monday will see MPM continuing to manage and operate Labuan Port for a six-year period from April 1, 2026, until March 31, 2032.
According to BERNAMA News Agency, MPM managing director Datuk Seri Patrick Tiong emphasized that the agreement underscores the federal government's continued confidence in the company's ability to manage and develop the port. In his speech at the signing ceremony, Tiong expressed gratitude to the Ministry of Transport (MOT) and the LPA for their trust and confidence in MPM's capabilities.
The signing was witnessed by MOT deputy director-general (policy) Datuk Normah Osman, LPA chairman Datuk Danyal Balagopal Abdullah, and MPM chief executive officer Idjal Tahir. Tiong signed on behalf of MPM, while Mizool Amir Mat Drus, general manager, signed for the LPA.
Tiong highlighted MPM's commitment to collaborate with LPA in strengthening Labuan's maritime ecosystem and restoring the island's prominence as a regional logistics and shipping hub. He noted Labuan's strategic location along international shipping routes and its role in supporting offshore oil and gas activities, as well as trade with Sabah, Sarawak, and neighboring countries under the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area.
MPM took over Labuan Port's operations in 2018 and has since implemented various improvements to enhance efficiency, safety, and service quality for port users. Under MPM's management, the port has improved its cargo handling operations, offshore logistics support, and maritime services, maintaining consistent collaboration with regulators and enforcement agencies.
The company continues to invest in operational upgrades and human capital development to improve productivity and service delivery at the port. MPM has been recognized by several industry bodies for its contributions to the logistics and maritime sector, receiving commendations for its commitment to operational excellence and port safety standards.
Labuan Port serves 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. Apart from container and general cargo handling, the port also supports ship lay-up activities, offshore supply logistics, bunkering services, and cruise vessel calls.
Tiong remarked that ports today play a broader role beyond cargo handling, serving as integrated logistics gateways that support trade, tourism, and industrial activities. As Labuan positions itself as an international business and financial centre, the port's role becomes even more critical in supporting the island's economic aspirations.
He added that MPM would continue enhancing port facilities, strengthening safety compliance, and expanding maritime services to meet the evolving needs of the shipping and offshore industries.