LABUAN: The nearly year-old Labuan-Kota Kinabalu-Labuan express ferry service has been suspended since the weekend because of rising fuel costs and high landing fees at the Jesselton Jetty Terminal in Kota Kinabalu. LDA Holdings Sdn Bhd, the management company of the Labuan International Ferry Terminal, said the decision was made after operational costs became increasingly unsustainable for the ferry operator. He noted that while Malaysian passengers currently enjoy a 50% subsidy on ferry ticket fares, there is no corresponding subsidy for fuel, compounding operational challenges. "We hope the government will look into this issue, as it not only affects ferry operators but also has wider implications for travellers and the tourism sector,” he said. The suspension of the service is expected to impact tourism flow and connectivity between Labuan and Sabah’s capital, particularly for travellers who prefer a direct sea route.

Source: The Star April 02, 2026 14:05 UTC