Should Labuan Port be incorporated as GLC?

November 2, 2018

The government has been urged to look into the probability to incorporate Labuan Port under Labuan Corporation, to manage the port better and more efficient, for the benefits of the people here in this island.

It is important for the government to look into the matter by learning from Suria Capital Holdings Berhad (Suria) that has been incorporated in 1983 to be a government-linked company (GLC) under the state government of Sabah to run the ports in the state.

There are many benefits if Labuan Port that is currently managed by a single company, is turned into incorporation.

Suria and its subsidiaries collectively known as Suria Group is listed in the main market of Bursa Malaysia Securities Berhad since 1996 with its stock code of 6521.

Even though, the capacity handled by Suria in terms of its business operation is much bigger than Labuan Port; but there is an opportunity for Labuan Port to be listed in Bursa Malaysia should the latter is being incorporated. If not in the main board, it still can be in the second board provided that the facilities in the port were being upgraded; or new port is being built as planned by the previous government.

When Labuan Port is being incorporated and listed in Bursa Malaysia, then they have to issue their annual financial statement where each eligible individual in Labuan can buy the shares issued by the management in the stock market.

In that way, all the people in Labuan would share the benefits just like in Sabah should the traders and investors in the state intended to buy the shares issued by Suria.    

Of course, in the stock market, it is an open market; as anyone either from Labuan or outside Labuan can buy the shares, even foreign investors. If this plan is being implemented by the government, then everybody will be happy, as they share the benefits of the business in the port. 

The incorporation will end the monopoly by a single company in the port; its chairman, board of directors, chief executive officer and other important posts in the port will be directly appointed and monitored by the government to run the port.  

In the previous administration, Labuan Port Authority (LPA) should be implemented in the port by applying the Bintulu Port Authority Act extended to Labuan Port.

But, there is no further development regarding LPA until today.

To make Labuan Port better, whilst the inhabitants of Labuan Island share the benefits, the government can look into the option to incorporate it to be a GLC in Labuan, while scrutinizing the plan to implement the LPA.

But, will the government look into this matter soon? 

 

Photo: pixabay

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