By social activist Remy Majangkim
KOTA KINABALU: Recently, the former UPKO President and Member of Parliament for Tuaran called for the return of Labuan to the state of Sabah.
To gain a better understanding, it’s important to provide historical context about the island of Labuan. Formerly known as Victoria Island, Labuan belonged to the Sultan of Brunei. It came under British protection through the Anglo-Brunei Treaty of 1847, establishing a trade and friendship agreement. This marked the involvement of the British East India Company in the region, distinct from that of the North Borneo Chartered Company.
Towards the end of World War II, Labuan became the focal point for the Allied forces’ invasion against the Japanese Imperial Army. The Battle of Labour was fought fiercely between the two armies and was ultimately won by the Australian Army, leading to its liberation.
After World War II concluded, Labuan was annexed to the Crown under the Labuan Order in Council 1946, alongside the North Borneo Order in Council 1946. Both orders came into effect on 15 July 1946, merging to form a new Crown Colony. Interestingly, Labuan has its own continental shelf. After the formation of Malaysia under integration and trusteeship with the Federation of Malaya, Labuan was included within the privy of the State of Sabah.
The State of Emergency was declared following the racial riots on May 13, 1969. Singapore declared its exit from Malaysia in 1965 and secured its independence from the British Parliament a year later.
During the height of the emergency, in 1984, the Chief Minister of Sabah, Datuk Harris Salleh, decided to annex the island to the Federal Government under the pretence of Federal Territories. His actions ultimately led to the downfall of the Berjaya Party and a loss in the elections. His action sparks a long debate behind closed doors on the legality and motivation for such action.
Currently, Labuan serves as a financial hub within the offshore financial system under the Labuan International Business and Financial Centre (IBFC). This development is significant because revenues generated from oil and other ventures are not subject to taxation under Malaysian law, allowing for a discreet financial portfolio.
In my analysis, the annexation of Labuan to the Federal Government as a Federal Territory during the emergency period is unequivocally unconstitutional. These can be argued in three points within the Constitution of Malaysia.
1) The right of property. Does the Sabah Government was compensated fairly in this exchange under Art. 13?
2) Does the Federal Constitution provide a provision to create a new state under Article 2?
3) Do the Federal Territories members before Malaysia Day as stipulated under Art. 1(3)(4)?
Note that the Federal Constitution reigns supreme under Art. 4, and any inconsistency should be null and void.
Members of Parliament of Sabah must ask and verify key questions to establish the validity and justification of the call for Labuan to return to Sabah. It’s important to note that the Menteri Besar of Selangor has also expressed a strong desire to return to Selangor, highlighting the significance of such regional matters.
So this will be an interesting development in the coming weeks. Have a great weekend.
