Labuan Must Transform Economic Base To Embrace Tourism And Education

By Jailani Hasan LABUAN (Malaysia), April 25 (Bernama) -- The oil and gas (O&G) sector may well cease to be Labuan's main driver of growth and for this reason, there is a need to transform the economic base to also embrace tourism and education. Labuan Member of Parliament Rozman Isli said the sector had traditionally played an important role in the island's economy. "It has not only stimulated economic growth with revenue from exports, but also provided related business and supporting supply services to local entrepreneurs. "But the O&G sector, as the main driver of Labuan's economic growth, has gradually declined. "The island had also been heavily dependent on this sector and it is high time to drive the economy through to the more viable and promising areas of tourism and education," he added in his speech, when officiating the 19th Malaysian Malay Chamber of Commerce Labuan (DPMM) Annual General Meeting here on Saturday night. He said Labuan's O&G sector had been badly impacted by the global slump in oil prices, with more than 10,000 people with families leaving upon losing their jobs. "The enrolment at the Labuan International School, marked by children of O&G personnel, has also dwindled. At least 60 students have transferred to other schools, probably in their home states," Rozman said. He urged members of the DPPM, especially those with existing business activities, to remain resilient in view of current challenges. Labuan's economic situation, he said, will not be the same even in the face of a recovery in the O&G sector. "The focus must now be on the twin sectors of tourism and education which afford an economic spillover, alongside the greater purchasing power of a large pool of people," he added. Malaysian Minister in the Prime Minister’s Department Abdul Wahid Omar when in Labuan last week said the Economic Planning Unit (EPU) would give attention to the development plan to boost the tourism sector by improving and upgrading tourism facilities to lure more tourists to the island. Wahid also visited the islands of Kuraman and Rusukan Besar to see the potential of the two marine parks there. Meanwhile, Rozman reminded local entrepreneurs to be financially independent to ensure a stable cash flow and good track record. "When we have the capability and financial independence, it will enable us to grab business opportunities without constraints," he said. He also noted most parents focused on teaching their children to take up work in the government or private sector. "There is a call for strategies to reduce unemployment, particularly amongst youth, through the encouragement of entrepreneurship. Therefore, parents must also empower their children to venture into business and become entrepreneurs," Rozman said. -- BERNAMA