KOTA KINABALU: The federal government has approved an allocation of RM1.3 million for the Kota Kinabalu Port jetty repair and upgrading works as a prerequisite for restoring the express ferry service between Kota Kinabalu and the Labuan Federal Territory.

Minister in the Prime Minister’s Department (Federal Territories), Datuk Seri Dr Zaliha Mustafa, said that improved connectivity between the two areas will stimulate growth across various sectors and strengthen East Malaysia’s economic bloc.

“...this express ferry service carries great significance as it is set to become a catalyst for the regional economic, social, and developmental networks, including reinforcing family ties, facilitating the community’s daily affairs, supply chains, and local socio-economic dynamics,“ she said.

She was speaking at today’s Kota Kinabalu-Labuan jetty and passenger ferry launching ceremony, officiated by Sabah Chief Minister Datuk Seri Hajiji Noor at Kota Kinabalu Port here.

The passenger ferry service operations were suspended for three years due to the COVID-19 pandemic.

Dr Zaliha said that students, patients, traders, and civil servants were affected during that period, and increased costs and longer travel times also impacted their welfare and daily productivity.

However, she said, the travel time between the two locations can now be reduced to around three hours compared to the previous five hours.

She said that over 400,000 trips were recorded via the sea routes, specifically Menumbok and Sipitang, in 2024 for various purposes, including employment, education, healthcare, and family matters, while more than 145,000 journeys were recorded in the first four months of this year.

“With the launch of this route, the total projected sea travels between Sabah and Labuan are expected to increase to 500,000. This will generate economic spillovers and revive the coastal economy, particularly in the food, transportation, accommodation, and retail sectors,“ she added.

Meanwhile, in his speech, Hajiji said the resumption of the ferry service would bolster the maritime transport network and reopen a vital route for people’s mobility and cross-regional economic development, also sending a clear signal of the government’s commitment to the people’s welfare.

He said that, besides the impact of the COVID-19 pandemic, service disruptions were also caused by factors such as unsafe jetty structures and the withdrawal of fuel subsidies for operators, adding that as an immediate solution, the ferry terminal was relocated from Jesselton Point to Kota Kinabalu Port, with operational management entirely handled by the port.

“This ferry service is expected to positively impact the state’s tourism sector, especially ahead of Visit Sabah Year 2026, while also opening new opportunities in trade and investment between Sabah and Labuan,“ he said.

He said the service resumption also marks the beginning of a stronger, more efficient, and sustainable maritime transportation framework, in line with the state’s aspiration to provide people-friendly and environmentally friendly facilities for future generations.