SME ASSOCIATION LABUAN HIGHLIGHTS KEY CHALLENGES TO LABUAN CORPORATION

LABUAN, March 27 (Bernama) -- The SME Association of Labuan (SME Labuan) has raised pressing concerns faced by small and medium enterprises (SMEs) on the island.

Its president, Jefery Tan, said these concerns were shared with Labuan Corporation chief executive officer Mohd Sukuran Taib during a courtesy call at his office in Wisma Perbadanan Labuan today.

He said among the key issues discussed were regulatory hurdles, limited access to financing, and the need for digital transformation to improve business efficiency.

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"The process of importing materials from overseas remains cumbersome, requiring extensive approvals from multiple government agencies.

“The challenge is further exacerbated by the fact that key officers responsible for such approvals are not based in Labuan, leading to prolonged delays and increased costs for businesses operating on the island," he said to Bernama.

Tan said many local businesses also struggle to secure financing due to stringent lending criteria imposed by banks.

"Labuan Corporation (LC) could play a more active role in bridging the gap between SMEs and financial support by consolidating and promoting available incentives, grants, and funding programmes offered by various ministries and agencies.

"It is also important to leverage technology to streamline business operations, and processes such as the renewal of trading licences and parking payments should be made available online, thereby improving efficiency and reducing administrative burdens on SMEs," he said.

Tan said the SME Association Labuan hopes that these concerns will be addressed to foster a more conducive business environment for local enterprises and encourage further economic growth on the island.

--BERNAMA