Labuan expects $800m private investment

Malaysia’s Deputy Prime Minister Tan Sri Muhyiddin Yassin

The federal territory of Labuan in East Malaysia, known as an offshore financial center, is expecting investments from the private sector at a value of $800 million “over the next few years,” according to Malaysia’s Deputy Prime Minister Tan Sri Muhyiddin Yassin.

The lion’s share of the investment will flow into the oil and gas sector as well as shipyard and engineering, he added, as part of the Malaysia government’s Economic Transformation Programme (ETP) to boost Labuan’s economy. Under the ETP, the Labuan Oil and Gas Master Plan is to be jointly undertaken by Malaysia Petroleum Resources Corporation (MPRC), Labuan Corporation and private industry players.

The Deputy Prime Minister said Labuan, as one of the country’s oil and gas hubs, should be given due attention with its potential to be a focus point for international players.

“The investment may not all come from the government and if the private sector is keen, we encourage it. Many ports in the country are not entirely from the government’s investment, and some ports we have even privatised and this will depend on the situation,” he said.

Currently, 65 per cent of Labuan’s exports are comprised of petroleum and gas-based products. Other export goods are methanol, flour, animal feed, seafood and ceramic tiles. Among the island’s major trade partners are Peninsular Malaysia, Sarawak, South Korea and India.

Malaysia’s ambitions for Labuan to become a financial centre to challenge Singapore and Hong Kong so far remained unfulfilled, but the island has become a major conduit for foreign direct investment into the surrounding economies, especially South Korea. It is thought that somewhere between one-third and one-half of the companies registered on the island are somehow linked to Korea. Many Korean companies themselves have invested back into Korea through Labuan.



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[caption id="attachment_5024" align="alignleft" width="300"] Malaysia's Deputy Prime Minister Tan Sri Muhyiddin Yassin[/caption] The federal territory of Labuan in East Malaysia, known as an offshore financial center, is expecting investments from the private sector at a value of $800 million "over the next few years," according to Malaysia's Deputy Prime Minister Tan Sri Muhyiddin Yassin. The lion's share of the investment will flow into the oil and gas sector as well as shipyard and engineering, he added, as part of the Malaysia government’s Economic Transformation Programme (ETP) to boost Labuan’s economy. Under the ETP, the Labuan Oil and Gas Master Plan...

Malaysia’s Deputy Prime Minister Tan Sri Muhyiddin Yassin

The federal territory of Labuan in East Malaysia, known as an offshore financial center, is expecting investments from the private sector at a value of $800 million “over the next few years,” according to Malaysia’s Deputy Prime Minister Tan Sri Muhyiddin Yassin.

The lion’s share of the investment will flow into the oil and gas sector as well as shipyard and engineering, he added, as part of the Malaysia government’s Economic Transformation Programme (ETP) to boost Labuan’s economy. Under the ETP, the Labuan Oil and Gas Master Plan is to be jointly undertaken by Malaysia Petroleum Resources Corporation (MPRC), Labuan Corporation and private industry players.

The Deputy Prime Minister said Labuan, as one of the country’s oil and gas hubs, should be given due attention with its potential to be a focus point for international players.

“The investment may not all come from the government and if the private sector is keen, we encourage it. Many ports in the country are not entirely from the government’s investment, and some ports we have even privatised and this will depend on the situation,” he said.

Currently, 65 per cent of Labuan’s exports are comprised of petroleum and gas-based products. Other export goods are methanol, flour, animal feed, seafood and ceramic tiles. Among the island’s major trade partners are Peninsular Malaysia, Sarawak, South Korea and India.

Malaysia’s ambitions for Labuan to become a financial centre to challenge Singapore and Hong Kong so far remained unfulfilled, but the island has become a major conduit for foreign direct investment into the surrounding economies, especially South Korea. It is thought that somewhere between one-third and one-half of the companies registered on the island are somehow linked to Korea. Many Korean companies themselves have invested back into Korea through Labuan.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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Personal Info

Donation Total: $10.00

 

 

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