25/12/2025

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THURSDAY | DEC 25, 2025

Call for comprehensive policy to uplift Labuan’s economy

LABUAN: A comprehensive and forward-looking policy framework is needed to revitalise Labuan’s eco nomy that will fully leverage its strategic location, federal territory status and established offshore financial ecosystem, said an academic. University Malaysia Sabah Labuan International Campus Inter national Finance Faculty Professor Dr Geoffrey Harvey Tanakinjal ( pic ) noted that Labuan, which became a federal territory on April 14, 1984, possesses unique characteristics distinct from Kuala Lumpur and Putrajaya, and has evolved into an international investment gateway since its declaration as an offshore financial centre in 1990. “Labuan has long played multiple strategic roles, as an international financial centre, an oil and gas hub, a duty-free island and a gazetted federal port, and its location in the South China Sea, adjacent to Sabah and Brunei, gives it significant geo political and geo-economic ad vantages,” he told Bernama yesterday. However, Tanakinjal noted that Labuan’s economic growth remains heavily dependent on the oil and gas sector, making it vulnerable to global commodity price fluctuations, while the weaker tourism performance and limited investment in new growth sectors have constrained broader economic expansion. “As such, a holistic policy is required to diversify Labuan’s eco nomic structure, attract strategic investments and build long-term economic resilience,” he advised. Tanakinjal said among the key rationales for a new policy is the over reliance on oil and gas, the under utilisation of Labuan’s duty-free and offshore financial status, and the KUALA LUMPUR: Data protection is vital and will become increasingly important in the years ahead as transactions become more digital and interconnected, Communi cations Minister Datuk Fahmi Fadzil ( pic ) said. “I think these kinds of concern are very warranted. I cannot speak for those agencies. But how we handle data and how we protect data will be increasingly important in the years

agrotourism initiatives. On education and the digital economy, he said Labuan could be developed into a digital nomad hub with high-speed connectivity and special visas, supported by the establishment of international satellite campuses in fintech, mari time and tourism, as well as investments in data centres and artificial intelligence. Tanakinjal said the imple mentation should be phased over five years, from 2025 to 2030, beginning with strengthening the Labuan IBFC ecosystem and logistics infra structure, followed by large-scale tourism, energy and agro projects and culminating in Labuan’s emer gence as a regional hub for data centres, artificial intelligence and hydrogen exports. “With the right strategic policies, Labuan can be repositioned not only as a revived centre of trade and investment, but also as a strategic national asset linking Malaysia to Asean and East Asian markets,” he added. “Labuan has the potential to become a new growth engine for East Malaysia and contribute meaning fully to the nation’s long-term economic development,” Tanakinjal said in conclusion.

duction of a digital asset sandbox to attract blockchain-based invest ments. In logistics, Tanakinjal said Labuan could be developed into a regional free trade and e-commerce hub, with port modernisation including cold chain

o Academic says holistic approach needed to diversify structure, attract strategic investments and build long-term resilience

facilities to support agrofood and fisheries exports to markets such as Japan, South Korea and China. “In the oil and gas sector, Labuan should move be yond upstream activities into downstream segments such as LNG bunkering, maritime fabrication and mainten ance, while simultaneously investing in renewable energy, including solar, off shore wind and green hydrogen,” he added.

island’s appeal for trade, tourism, and lifestyle activities. “Labuan also has strong oil and gas infra structure, including the Asian Supply Base, shipyards and fabri cation facilities, and has been gazetted as an international tran shipment hub suitable for logistics, re-exports and e-commerce,” he noted.

island’s untapped potential as a logistics, trade and tourism hub along major international shipping routes. Tanakinjal noted that Labuan’s position as a federal territory allows the federal government to implement targeted policies and special allocations directly, without state level constraints. He said the proposed policy aims to raise Labuan’s local gross domestic product growth to between 5% and 7% annually, create at least 10,000 new jobs by 2030, attract a minimum of RM5 billion in foreign direct investment over five years, and position Labuan as a regional hub for finance, logistics, tourism and new energy in Asean. Highlighting Labuan’s core strengths, he said the offshore financial ecosystem, regulated by the Labuan Financial Services Authority, provides a competitive platform for low-tax structures, Islamic finance, insurance, and fintech. Meanwhile, its duty-free status enhances the

He said Labuan could be repositioned as a duty-free lifestyle tourism destination, featuring well ness resorts, yacht marinas and MICE tourism, alongside niche offerings such as World War Two heritage sites and coral reef-based eco-tourism. In agro and food security, Tanakinjal said Labuan has the potential to become a national model through deep-sea aquaculture, seafood processing for export and

Tanakinjal said the new policy should prioritise these sectors – international finance, logistics and trade, oil and gas, new energy, tourism, agro and food security, education and the digital economy. In international finance, he said, Labuan International Business and Financial Centre should be streng thened through Islamic digital banking, green finance and fintech offerings, supported by the intro

Data protection ‘vital for govt, businesses and people’

Air Algerie direct flight set to spur business and tourism ties: Envoy PETALING JAYA: Air Algerie’s direct Kuala Lumpur flight from next year is expected to spur Malaysia-Algeria business growth and encourage more Algerian students to study in Malaysia. This Algiers-Kuala Lumpur service comes amid expanding trade and cultural exchanges between the two countries, Malaysian Ambassador to Algeria Datuk Rizany Irwan Muhamad Mazlan told Bernama on Tuesday. Algeria’s national carrier plans to launch three weekly flights on the route from March 29. “With this move, Air Algerie is not only tapping into a popular tourist destination but also establishing a strategic presence in a key economic hub of Southeast Asia. This direct route offers significant benefits for Algerian travellers, the diaspora, and businesses,“ Rizany said. “This service is timely in view of our growing relations with Algeria in all major areas,“ he added. With Malaysia becoming increasingly attractive to North African students, the new air link is expected to encourage more Algerian students to enrol in Malaysian universities and colleges. The airline will operate the Kuala Lumpur flight, about 13 hours, using its new Airbus A330 900neo. Air Algerie is acquiring seven A330-900s to support its international route expansion, with the first aircraft scheduled for delivery in November. – Bernama

World Bank, in its blog earlier this year, said the future of data protection is not just about safeguarding privacy but about enabling responsible data-sharing that drives progress across sectors. Strong frameworks ensure that the right data is shared with the right people for the right purposes. For instance, it said in healthcare, privacy preserving mechanisms allow researchers to collaborate across borders while safe guarding patient privacy. It is also to be noted that countries are increasingly mandating data storage within national borders due to concerns regarding national security and citizens’ privacy, said the bank.

And if we are not able to protect our data it will be a problem for us,” he told the Malaysian National News Agency (Bernama) in an exclusive interview recently. The interview was with Bernama editor-in-chief Arul Rajoo Duraj Raj, acting deputy editor-in chief of news services Mohd Shukri Ishak and executive editor of economic news services M. Saraswathi.

Hence, the minister stressed that it is important that data is well protected and securely encrypted otherwise it will pose a serious challenge for governments, people and businesses.

to come,” he said when asked on rising concerns among the general public on data leakages even within government agencies. “Data is the new oil. It’s the currency that will keep the wheels of the economy rolling.

Johor Plantations achieves 3 stars in FTSE Russell ESG Ratings PETALING JAYA: Johor Plantations Group Bhd (JPG) has achieved a 3-star environmental, social and governance (ESG) rating under the FTSE Russell ESG Ratings framework, marking a key milestone in the group’s sustainability journey. In addition, JPG is represented across several FTSE Bursa Malaysia indices. The group was listed in the FTSE Bursa Malaysia Mid 70 Index following the update on June 23, which consequently led to its inclusion in the FTSE Bursa Malaysia Top 100 Index. JPG is also included in the FTSE Bursa Malaysia Palm Oil Plantation Index and FTSE Bursa Malaysia Emas Shariah Index. 95.1%. SPOTT assesses 100 palm oil producers, processors and traders globally based on their public disclosure of organisation, policies and practices related to ESG issues. Meanwhile, the development of JPG’s flagship Integrated Sustainable Palm Oil Complex (iSPOC) in Sedili continues to progress steadily. The project is more than 60% complete and remains on track for completion in the first half of 2026.

The ESG rating supports JPG’s inclusion in the FTSE4Good Bursa Malaysia Index, following Bursa Malaysia’s announcement on Dec11, with the inclusion taking effect on Dec 22. JPG is also included in the FTSE Bursa Malaysia Shariah Index, reflecting the group’s governance standards and adherence to syariah-compliant operations.

JPG strengthened its global sustainability standing following the announcement of the 2025 SPOTT assessment in November 2025,in which the group ranked sixth, improving from 14th place in 2024, with an overall score of

Upon completion, iSPOC is expected to support the group’s downstream integration strategy and strengthen its long-term operational resilience.