RM1.6b Labuan project unaffected by change in govt

LABUAN: The RM1.6 billion tourism and mixed development project under the Labuan Development Blueprint 2030 will proceed despite the transition in government.
Earthworks for the project, which will include the country's first duty-free premium outlet, had begun early this year on 12.5 ha near the Labuan International Golf Club and would be completed in two months, BVA Development Sdn Bhd Managing Director Lester Toh told Bernama in an interview today.
The project is a joint venture between the local authority, Labuan Corporation, and BVA Development.
It will leverage on Labuan's status as a duty-free island and Malaysia's international financial hub. Among others, it will feature the RM75 million BVO Duty-Free Premium Outlet on 2.9 ha, scheduled for completion by the second quarter of next year.
"Ultimately, the low-hanging fruit will be business from neighbouring Brunei, as the people of Brunei, benefiting from a strong currency, can spend their weekend here for shopping," Toh said.
The developer also intends to create a reason for tourists and visitors from mainland Sabah to visit Labuan, possibly even staying overnight.
He said Malaysia's first duty-free premium outlet would attract tourists to the island as it offered branded items up to 20 to 30% cheaper compared with other premium outlets in the peninsula.
Luxury products to be sold at the BVO Premium Outlet include designer clothing, handbags, shoes, wine, alcohol, tobacco, perfumes and cosmetics.
Toh said the entire project would be completed in four years.
He noted the proposed bridge from Sabah to Labuan, also listed under the 2030 blueprint, would also help boost tourism by providing easy connectivity to the island.
On completion of the premium outlet project, BVA Development will start the second phase of development that consists of serviced apartments, a cinema, a hotel and a small-scale shopping mall with indoor theme park.
"The residential project is actually to lure foreign investors to buy properties in Labuan. The units will be marketed in China and South Korea, not so much for the domestic market," Toh said.
He said Labuan, being an international financial hub offering banking facilities, had potential to be developed further to be similar to Monte Carlo.
"There are only four cities in Asia offering banking facilities — Hong Kong, Singapore, Dubai and Labuan. The three other cities have done so well, and Labuan also has a huge potential to become a favourite destination for the rich and famous," he added. — Bernama