KOTA KINABALU, July 5 — The newly imposed customs regulations which restrict the amount of duty-free beer tourists can carry off Labuan will affect the island’s already struggling economy, warns Deputy Chief Minister Datuk Seri Panglima Jeffrey Kitingan.

Kitingan, who is the state agriculture, fisheries and food industries minister, said that while Labuan is under the federal government’s jurisdiction, he feels that as a public servant, he wishes to voice his concerns over potential errors or opportunities for improvement.

"Labuan’s duty-free status is a vital catalyst for tourism and local commerce. Abrupt regulatory changes, like limiting tourists to just four cans of beer, could potentially jeopardise the island’s economy,” said Kitingan.

Complainants have said that travellers could now only bring out four cans of beer and a litre of other alcoholic drinks while previously, they could buy a crate of 24 cans of beer tax-free.

He urged the federal government to open dialogue with the residents of Labuan to reassess the recent measures.

Recently, Labuan Chamber of Commerce (LCC) chairman Daniel Doughty said that complaints have been emerging over the tax-free alcohol allowance allowed off the island, affecting travellers who come to the island with the expectation of buying cheap alcohol.

However, it was also reported that the ruling is not new but has not been vigorously enforced until recently.

Doughty urged the Labuan Corporation (LC) to address the issue, saying the Labuan economy has suffered a significant decline since the pandemic struck.

Meanwhile, Kitingan, who is also the Parti Solidariti Tanah Airku (STAR) president, hoped that LC, under senator Tan Sri Anifah Aman can tackle these challenges and guide Labuan towards economic recovery.

"Even though Labuan is a Federal Territory and doesn’t have representation in the Sabah State Assembly, our shared history and geographical closeness underscore the significance of this issue for us in Sabah,” he said.

Kitingan also called on the federal government to share updates on the proposed bridge project that will connect mainland Sabah and Labuan.

"Even if this issue falls outside the Sabah government’s jurisdiction, it is a topic of substantial public interest, frequently spotlighted during election cycles. A bridge could be an instrumental infrastructure project that bolsters Labuan’s connectivity and economic dynamism,” he said.

Prime Minister Datuk Seri Anwar Ibrahim had previously said that the bridge was not a current priority for the government.