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Labuan must create and strengthen its own identity to be recognised as a unique and competitive economic destination, rather than mirroring the development models of other states or regions, said Deputy Minister in the Prime Minister's Department (Federal Territories) Datuk Lo Su Fui.

According to BERNAMA News Agency, the island has its own strengths and strategic advantages, particularly in international financial services, oil and gas, maritime and logistics sectors, which should be further refined to position it more distinctly on the regional and global economic map.

Lo emphasized that Labuan should not attempt to be everything at once. Instead, it is important to create a clear identity that highlights its uniqueness, strengths, and niche areas so that investors, businesses, and visitors understand what Labuan stands for, as mentioned at a dinner hosted by the Labuan Chinese Chamber of Commerce.

Labuan Corporation (Labuan Corp), the island's main development authority, will focus on accelerating digitalisation and the adoption of artificial intelligence (AI) in its service delivery system to improve efficiency, transparency, and ease of doing business. This move aligns with the federal government's push towards a digital government ecosystem, aimed at reducing bureaucracy, enhancing service responsiveness, and strengthening investor confidence.

Lo stated that digitalisation and AI are critical enablers for Labuan to remain competitive, efficient, and investor-friendly. He asserted that Labuan Corp must lead this transformation in its delivery system.

Improved connectivity remains a key factor in Labuan's long-term development. Lo reiterated that the long-standing proposal to build a bridge linking Labuan to the mainland should be considered as part of the Pan Borneo Highway project. Such a connection would facilitate the movement of people and goods, reduce logistics costs, improve access to essential services, and stimulate broader economic activities on the island.

Lo added that connectivity is a game changer and including the Labuan bridge proposal under the Pan Borneo Highway framework would significantly enhance Labuan's integration with Sabah and the wider Borneo economic corridor.

The federal government remains committed to addressing key development challenges faced by Labuan, including infrastructure gaps, the cost of living, and economic diversification, while ensuring that growth initiatives are sustainable and inclusive. Close cooperation between federal agencies, Labuan Corp, state authorities, and the private sector is crucial to realize Labuan's aspiration of becoming a resilient and distinctive economic hub within Malaysia and the BIMP-EAGA region.