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Gaya Interview: YB Datuk Rozman bin Datuk Haji Isli

Connecting Labuan to the World

As a Malaysian Member of Parliament representing Labuan, The Honourable Datuk Rozman bin Datuk Haji Isli truly understands the island in and out. Approachable, charismatic, energetic and athletic, Datuk Rozman shares with Gaya Travel Magazine how he intends to take Labuan to greater heights.

Being the person who initiated the idea of elevating the perahu larai (traditional local sailboat) into a symbol of Labuan, Datuk Rozman recognises that from a tourism standpoint, the island is located in up-and-coming region that tourists are starting to take notice, especially when it is close to the state of Sabah, and its capital Kota Kinabalu is only around two hours and a half by automobile. Labuan has pristine nature and small islands surrounded by clear water, hence possessing the right ingredients to become a getaway destination on this side of the world.

For its tourism industry to progress further, under the leadership of Datuk Rozman, Labuan is resolved in addressing the challenges that it faces through strategic decisions and actions.

Labuan’s tourism potential

In the last few years, the people of Labuan have started seeing tourism as an industry that brings great benefit. Previously, during the oil and gas boom, many entrepreneurs showed disinterest towards tourism since oil and gas proved more lucrative. However, due to the downturn faced by the industry of late, those who remain in Labuan began looking for new economic opportunities.

According to the Labuan Development Blueprint 2030 (Labuan Blueprint) issued by Labuan Corporation and Financial Centre, tourism is one of the newest industries that can propel the island forward. These days, many Labuan entrepreneurs have begun investing in tourism-related businesses, made evident by the existence of chalets dotting Labuan’s small islands. Some entrepreneurs also offer boats and facilities for sport fishing or angling to meet demand from locals and foreigners since Labuan’s waters are teeming with various types of fish. For these entrepreneurs to grow their businesses, they seek more tourists because the existing market is limited.

“My concern is when there is no significant increase in tourist numbers to patronise these businesses, the entrepreneurs might eventually flounder since they couldn’t increase the returns of their investment. These entrepreneurs have passion to run their businesses, but at the end of the day, bottomline matters. This is what I want the government to realise and ensure that the momentum in developing Labuan as a tourism destination is maintained and does not slow down, for example through disbursement of sufficient funds for large-scale events to be held on the island. These events must be continuously improved to attract more visitors so that the occupancy rate in Labuan does not fall precipitously,” says Datuk Rozman, addressing his concern.

Labuan, besides being a federal territory, is also the only dutyfree island on Borneo, which makes it unique.

Labuan is a shopping haven that offer cheaper prices since the goods are duty-free; however, to polish it into an actual shopping haven, we need investors to set up shop here,

notes Datuk Rozman.

“We already managed to attract an investor who is planning to open a premium designer outlet that is under construction in Kiansam, close to Labuan International Golf Club, comprising 70 outlet stores, making it Malaysia’s first duty-free premium design outlet to be based on an island, and the first design outlet ever to open in Borneo. If Labuan is better connected to the region and the rest of the world, the outlet is bound to be successful not only among tourists but also locals from main urban centres in Borneo like Kota Kinabalu and Miri,” he adds.

Being a tropical island, Labuan is blessed with tranquil sceneries. Besides Tanjung Kubong, located in the northeast corner of the island that offers beautiful view, another site that holds potential is Kinabenuwa, which is Labuan’s largest river flanked by mangroves, the place where the Ministry of Water, Land and Resources created the water reservoir that can be converted into a wetland park. However, being a reservoir, public has limited access to it, so new ways should be explored to turn it into a tourism attraction.

“On top of that, I see that the nine-kilometre stretch of beaches beginning from the northern tip of the island (Tanjung Kubong) all the way to Sungai Miri, close to Universiti Malaysia Sabah campus, holds great potential. There are many villages dotting that stretch, therefore developing the entire stretch is impossible. We should instead preserve it as naturally as possible and only develop suitable pockets of land found along the way to set up beach front facilities. Beaches in Labuan are beautiful but ought to be supported by facilities for the comfort of visitors – some could host restaurants and resorts, chalets and souvenir shops. We should also introduce activities similar to those found on Pantai Chenang in Langkawi. In the future, it is ideal if the whole stretch can be linked up and served by a track reserved specifically for lowcarbon vehicles and personal mobility devices such as bicycles, skateboards and battery-operated buggies, which necessitates investment. The track could even be commercialised. To that end, government still needs to facilitate it,” Datuk Rozman elaborates.

Touching on wreck-diving in Labuan, Datuk Rozman claims that the island offers among the best in the region, based on feedback received from advanced divers who travel globally just for underwater wrecks. A couple of years ago, Tourism Malaysia organised a familiarisation trip to Labuan for 30 wreck divers from the United States of America, Europe, the Philippines, Japan, Taiwan, and Australia. Though visibility was low during their visit, the divers were still impressed with their wreck-diving experience. The water is generally clearer as divers head towards the north of the island while the southern part is murky due to silt.

To attract tourists, Labuan does not have to compete with other more established island destinations like Langkawi, Phuket, Bali, and even Borneo, but instead complement them. “We need to ride on the richness of nature found in south Sabah as well such as rivers, beaches, proboscis monkeys, fireflies and mangroves that cover thousands of acres with bountiful sea and river produce like mangrove crabs and clams,” he opines.

Resolving the connectivity issue

Although Labuan has good infrastructure, Datuk Rozman admits that it still faces constraints in connecting to the rest of the region. For Labuan to become a tourism hub that complements the other industries already established in Labuan such as oil and gas and international offshore finance, connectivity remains an issue.

I strongly feel that there should be a bridge that directly links Labuan to Borneo mainland, especially Sabah so that connectivity can be significantly boosted.

"The bridge is expected to become a game changer that will transform Labuan’s position, making it closer to Kota Kinabalu and south Sabah. As a matter of fact, the latter could even become a hinterland for Labuan.

“The bridge is what Labuan needs right now. Government is still in the midst of planning the bridge to ensure its economic viability by carefully coming up with the right formula because building the bridge calls for participation and funding from the private sector. The bridge must bring in large returns so that financing it is worthwhile,” emphasises Datuk Rozman.

“The bridge should be designed in such a way that it becomes a Labuan icon. The plan shows that it is best for it to be built on the eastern coast of the island facing the west coast of south Sabah, which has shallow beaches that go deep into the sea, making land reclamation easier and cost effective. Relating to this, Labuan is also looking into developing a new ecologically sustainable township linked to the bridge, complete with residential areas suitable for Malaysia My Second Home (MM2H) visa holders. A big portion of the township will be green and includes replanted mangrove forest, wetland, and lagoon. So far, Labuan manages to attract a small number of MM2H visa holders because there are not enough services and amenities that meet their expectations,” he continues.

Another way for Labuan to remain connected is by air. Labuan currently receives direct flights from Kuala Lumpur, Kota Kinabalu and Miri, which are all domestic. In truth, Labuan Airport is ready to serve international flights since it has both domestic and international halls, including a 2.8-kilometre runway that can accommodate Boeing 777 anytime. Though Labuan Airport is capable in servicing flights coming from outside Malaysia, it still has not yet received any, except for chartered flights, due to load factor. Labuan needs to have more direct flights linking it to other major cities in ASEAN, including cities in mainland China due to their market size.

It is estimated that there are 100 million outbound Chinese travellers every year, so Labuan needs to tap this market.

“We are now aggressively approaching airlines such as AirAsia, which is renowned for connecting various destinations throughout Asia, to upgrade Labuan into a hub that complements Kota Kinabalu. Once the bridge is ready, it could strategically connect both Labuan and Kota Kinabalu airports. In the future, people could fly into Labuan, rent any kind of vehicle they desire, venture into Sabah by using the proposed bridge, then fly out from Kota Kinabalu Airport and vice versa,” foresees Datuk Rozman.

Future plan

When asked about what he wants Labuan to become in the next two to three years, Datuk Rozman is determined to implement the mentioned projects to help Labuan improve. “I am a strong advocate to the creation of the bridge that links the island to mainland Sabah because to me, the bridge is the missing link that will encourage more development. The land reclamation and creation of new township overlooking the coast of south Sabah will subsidise the bridge. This will be the main driver for Labuan’s tourism and economy. This area is also only five minutes from the airport. Those who stay on Sabah mainland could also access Labuan Airport easily,” reiterates Datuk Rozman.

With the bridge, he is confident that south Sabah would treat Labuan as the area’s urban centre, Labuan Airport as the area’s international gateway, and Labuan port as the area’s container hub. South Sabah is also developing rapidly, particularly Sipitang, which is similar to Pengerang in Johor, considering it is established as the centre for oil and gas downstream sector. All of these factors spur economic growth, population growth and strengthen Labuan’s position as the provider of services and logistical needs to the area, simultaneously enhancing Labuan’s tourism industry.

“So for the next three years, to turn these plans into reality, it is imperative for us to attract investments, driven by the private sector."

"But for investors to come and be confident of Labuan, we first need to have a strong enough draw. I believe the reclaimed land and bridge are the answers that Labuan needs for future growth.

“According to the Labuan Blueprint, by 2030, the island would have reached its target of 150,000 population. And when the bridge is ready, it will also boost the population on south Sabah’s side, akin to how Seberang Perai is to Penang or Iskandar Malaysia is to Singapore. Sabah will receive the spillover effect since the land there is cheaper for expansion of industries, including tourism. All these will benefit the country and region in the long run. This boils down to why Labuan was given to the federal government in the first place, which is to bring great benefit to Sabah in particular, and Malaysia as a whole,” says Datuk Rozman, concluding the interview.

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