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Wednesday, July 1, 2026
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Federal gov’t allocates RM454 million for water upgrades in Labuan

LABUAN: The Federal Government has allocated RM454.88 million for the repair and improvement of the 106.7-kilometre (km) water supply system in Labuan, with 37 km, or 35 per cent of the project, completed.

Minister in the Prime Minister’s Department (Federal Territories) Dr Zaliha Mustafa said the upgrades have yielded positive results, with water supply disruption complaints decreasing by 46 percent compared to 2023.

“This progress demonstrates that the initiatives are on the right track, according to officials,” she said in a speech read out by Department of Federal Territories director-general Datuk Noridah Abdul Rahim at the Labuan-level Wilayah Persekutuan Kita Carnival at Sea Sports Complex here today.

In addition, two solar farm projects in Tanjung Kubong and Kampung Bukit Kalam, with a combined capacity of 15 megawatts, have been fully completed, she said, adding that the projects would support the island’s daily electricity demand, which averages 70 megawatts.

She also shared another significant development, the proposed Labuan-Menumbok Bridge, which she described as a ‘game changer’ for the island, with potential spillover benefits for Sabah.

“In the recent Budget 2025, RM3 million has been allocated to the Public Works Ministry to conduct a feasibility study for the project.

“Previous studies are now considered outdated and insufficient for current planning needs…officials emphasised the new study must consider the real needs of Labuan residents, not just technical aspects,” Dr Zaliha said.

She also outlined several developments in transportation, including AirAsia’s increased flight frequencies for the Kuala Lumpur-Labuan route, and a new express ferry service between Labuan and Kota Kinabalu that is set to begin operations soon.

The Department of Federal Territories top officials are scheduled to meet with Sabah Chief Minister Datuk Seri Hajiji in Kota Kinabalu to discuss various issues related to Labuan, including the express ferry terminal, she added.

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