LABUAN'S TRANSFORMATION AFTER JOINING MALAYSIA

By Jailani Hassan


In Conjunction With Merdeka Month Celebration

LABUAN (Malaysia), Aug 28 (Bernama) -- The people in the Federal Territory
of Labuan can now be proud of the development that they are enjoying, a far cry
from what
it was before the island became part of Malaysia in 1963.

Under the British administration, Labuan was no more than a fishing village
but today it is a cosmopolitan island with the International Offshore Financial
Centre status.

It all started with Malaya gaining independence on Aug 31, 1957, and the
formation of Malaysia with the participation of Sabah and Sarawak that followed
suit.

LABUAN SWEPT BY MAINSTREAM DEVELOPMENT

After 52 years of independence, and the rapid pace of development that the
nation underwent through comprehensive planning, Labuan too was transformed by
the mainstream development.

Another reason for Labuan's success is the stable political and economic
scenario and the unity of the various races living on the island that took
Labuan to the path of success.

"Now the focus in on strengthening the national unity to ensure the smooth
implementation of the national development agenda," said the head of the
Malaysian Business Chamber in Labuan Yussof Mohammad to Bernama in conjunction
with the 52nd Merdeka Anniversary Celebrations.

Labuan at one time was a British fort to fight the piracy menace. In 1890,
the island became part of North Borneo and in 1963 it became part of Sabah and
Malaysia.

SIGNIFICANT CHANGES

"The increase in population and the rapid economic growth brought urban
development, roads, railway tracks and the division of races according to their
economic trade, he said.

"Labuan, though a small island with a population of 85,000, has seen
significant development with world class infrastructure for 5 star events," he
said.

Labuan was once left out from the mainstream development. After being
declared as a Federal Territory on Feb 1, 1984, the Malay majority settlement
(from the Kedayan and ethnic groups) and the Chinese minority groups and now it
is an important trade and investment destination after it was given recognition
as an IOFC.

It is now also the focal point for students within and without Labuan since
the opening of the Labuan International Campus of Universiti Malaysia Sabah
(UMSKAL) and the Labuan Matriculation College.

TAX FREE STATUS

"With the tax free status, Labuan is forging ahead and now is at par with
many other states in Malaysia.

Yussof emphasized that Labuan's rapid development is due to the
comprehensive planning of the federal government.

The people of Labuan from the 27 villages can also sigh in relief as they
too are provided with all the amenities with almost all the kampung roads
surfaced and no longer dusty.

"What I can conclude is that, Labuan has transformed from a cluster of
traditional fishing villages into a leading tourism and investment hub in the
region.

The development is not only in the town centre but also in the outskirts
with almost all the villages enjoying basic necessities like electricity, water
and roads.

Labuan is also a haven for water based sports activities even at the
international level that includes deep sea fishing, jet ski and kayak around
Labuan island.

Among the interesting destinations on the island are the Labuan
International Sea Sports Complex, Bird Park, Botanical Garden, Labuan Museum and
the Marine Park.

Labuan is also set to emerge as the halal production centre with a Halal Hub
costing RM80 million in the pipeline.

CHANGES

Meanwhile, Kasim Mohd Noor, 71, noted that prior to becoming part of
Malaysia, the buildings here whether they were government offices, shops or
schools were made of wood and there were rarely buildings made from concrete.

"There were only English medium schools with only a handful teaching the
Islamic or Catholic subject. The childen including me walked with rubber shoes
to schools and a handful of children from well to do families cycled to school,"
he said.

Prior to joining Malaysia, Labuan was a backwater and was left out compared
with the other states.

"I can still remember that the Standard Chartered that opened in Labuan and
I was employed as a clerk there. This is the first bank in Labuan, he said,
adding that the Hongkong and Shanghai Bank followed suit and it is still there
today (Standard Chartered Bank ceased operations in Labuan in early 2009).

"But things changed fast after Labuan through Sabah joined Malaysia in
1963," noted Kassim who is now a port inspector at the Labuan Merdeka Port.

"I can say that the people of Labuan only felt the spirit of merdeka when
there was development at the town centres of villages," he said.

-- BERNAMA