Deputy finance minister Steven Sim said the report was needed for a thorough study and to find solutions.

“I have received a briefing on Labuan’s various economic issues and challenges faced by the business community and people as a whole.

“We want a full report on that and we will look at it thoroughly,” he said after visiting the Labuan customs department here today.

Sim said the report must include the issue of restoration of full duty-free status in Labuan.

“They have briefed us about the reinstatement of duty-free cigarettes in Labuan and the almost double amount of tax for vehicles purchased on this island after a certain period of time.”

Sim said the customs director-general will seek solutions to matters related to his department.

“We want to discuss with customs on how we can work together with the private sector (industry players) to further develop and facilitate business.

“Close cooperation between customs and the private sector will enable us to improve existing policies and boost the economy. This will in turn benefit the people.”

Sim was briefed on the Megah Port Management Sdn Bhd port-handling services, ship-to-ship activities by Victoria STS Sdn Bhd and the issue of the eroding duty-free status of Labuan by LCC chairman Daniel Doughty.