Budget 2024 to address Labuan’s water woes, boost Islamic finance

LABUAN — Community leaders have hailed the Budget 2024 for providing a solution to the prolonged water problems in Labuan and boosting the Islamic finance sector on the island.

Senator Tan Sri Anifah Aman said the much-needed allocation aimed to repair water pipes and other essential water-related infrastructure.

He emphasised that the lack of clean water supply has been a persistent concern and the allocation of funds promises relief to the affected residents.

When tabling the national budget on Friday, Prime Minister Datuk Seri Anwar Ibrahim said a total of RM1.1 billion has been allocated to implement solutions for the water supply issues in Kelantan, Sabah and the Federal Territory of Labuan.

Parti Bersatu Sabah Labuan chief Datuk Peter Mak said resolving the water problem is crucial not only for the residents but also for supporting and expanding industrial activities on the island.

“The move is expected to yield long-term benefits, including increased employment opportunities,” he said.

In addition to addressing water issues, the Budget 2024 includes measures to enhance Labuan’s status as an International Business and Financial Centre (IBFC), and Labuan entities engaged in activities related to Islamic Finance will enjoy a full tax exemption for five years, and this incentive is anticipated to boost Labuan’s position in the global offshore financing sector.

Anifah, who is also former Foreign Minister, said this incentive is expected to attract fintech investors specialised in Islamic finance, boosting Labuan’s potential and stimulating economic growth.

“The five-year tax exemption is a compelling incentive to attract investors into Labuan to engage in financial or trade activities related to Islamic Finance…when investors in this sector come to Labuan, the economy will flourish, creating high-value jobs and economic growth,” he said. — BERNAMA