Labuan: The RM38 million Labuan Waterfront Development Project Phase One, originally slated for development solely along Victoria Harbour Beach, will now encompass two distinct locations. This change introduces an expansion to the Nagalang coastline, in addition to the initial site at the former wet market in downtown Labuan.

According to BERNAMA News Agency, Department of Federal Territories Director-General Datuk Muhammad Azmi Mohd Zain revealed that the Nagalang component of the project will emphasize eco-tourism and recreational development. This addition is designed to complement the waterfront project in the town center, enhancing the overall appeal and functionality of the waterfront development.

The proposal for this division into two locations has been submitted to the Economy Ministry and is currently awaiting final approval. Despite the expansion, the original scope and objectives for Victoria Harbour remain intact, with no plans for land reclamation, which would necessitate a significantly larger budget.

Prime Minister Datuk Seri Anwar Ibrahim initially announced the RM38 million allocation for the waterfront development during the presentation of Budget 2026 in October last year. The project was initially intended to transform the site of the former wet market at Victoria Harbour Beach into a vibrant waterfront area. Under the latest proposal, the development will be divided into two components: one remaining at Victoria Harbour and the other extending to the Nagalang coastline.