KOTA KINABALU: The Federal Territory of Labuan should be placed under a special development zone to give its people more autonomous right to decide their economic and development needs.

       Parti Bersatu Sabah (PBS) vice-president Datuk Peter Mak said Labuan's future can be better secured by granting it autonomy in managing its own economic and development affairs as a special development zone.

       "This can be done while Labuan continues to be under the purview of the Federal Government as the island needs the federal government's continuous support for its progress and development,” said Mak, who is also Labuan PBS chairman in a statement on Sunday (April 17).

       However, he said the crucial decision of autonomy and development of Labuan as a special development zone must be made by the people of Labuan themselves through a referendum.

       A referendum will allow Labuan, with its distinct characteristics different from its sister federal territories of Kuala Lumpur and Putrajaya, the opportunity to chart its own destiny in line with the overall development agenda of the country.

       Mak was weighing in on current discussions on returning Labuan to Sabah amidst the alleged failure of the federal government to develop the island as promised and envisaged, after its federalisation 38 years ago.

       He said Labuan PBS viewed the ongoing debates and deliberations with concern on the future of Labuan which is an international offshore financial centre (IOFC) and tax-free island.

       "We acknowledge and recognise that Labuan has developed under the federal administration, though it is below expectations with much more that needs to be done," Mak added.