Why do Labuan village heads reject returning the island to Sabah?

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Labuan Village Heads Reject Return to Sabah Due to Development and Autonomy Concerns

Labuan's 27 village heads have unanimously rejected any proposal to reintegrate the island into Sabah. Their primary reasons centre on Labuan's ongoing development as a federal territory and the belief that maintaining its autonomous status is in the best interest of its residents. They argue that such a move would be counterproductive to the progress the island has already made.
Continued Development as a Federal Territory

The village heads, through their spokesman Kamal Ariffin Khalidin, emphasized that Labuan has experienced significant development as a federal territory. They pointed to the continuous influx of development initiatives directed towards the island as evidence of its progress. This sustained focus from the federal government, they believe, is best served by maintaining Labuan's current administrative status.
Unique Administrative Structure and Services

Kamal Ariffin Khalidin highlighted Labuan's distinct administrative setup, noting that nearly 83 government departments operate as state administrative departments. This structure ensures residents have direct access to essential services spanning education, welfare, and economic development. He further clarified that Labuan Corporation holds a status akin to a state-level local authority, differentiating it from a mere district municipality.
Alignment with Residents' Best Interests

The village heads are convinced that Labuan's continued operation as a federal territory best serves the interests of its inhabitants. They cited the Federal Government's commitment to bolstering Labuan's economy, exemplified by the appointment of a minister in the Prime Minister's Department (Federal Territories) specifically to oversee the island's economic affairs. This dedicated oversight, they contend, underscores the benefits of its federal territory status.

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Why do Labuan village heads reject returning the island to Sabah?

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