The dilapidated 10-storey structure was deemed unsafe in 1997 and subsequently abandoned.

Labuan Corporation’s CEO Rithuan Ismail confirmed that the local authority’s board of directors had given the green light for the demolition this year or early next year.

“We will call for tenders as soon as we have the estimated budget for the demolition exercise,” he said in response to a post by Labuan Corporation chairman Anifah Aman in the Labuan Chamber of Commerce’s group WhatsApp.

He said the Labuan Corporation would collaborate with relevant government agencies, including the public works department and the department of occupational safety and health, to ensure the demolition process adhered to strict safety guidelines.

Hotel Labuan, a 150-room establishment, was once owned by the family of former Sabah chief minister Harris Salleh. It was shut down by the Labuan Development Authority, which is now known as Labuan Corporation, after it was discovered to be structurally unsound.

The hotel was once a thriving hub for both local and international visitors. It was a meeting spot for government leaders and politicians.

Rithuan hoped the new commercial development on the plot of land would bring economic benefits to the island and its residents.