Suhaili Abdul Rahman said the smart city concept is more suitable for larger cities like Kuala Lumpur, primarily to curb crime.

He said Labuan’s priority should be infrastructure projects that drive economic growth, such as constructing ports and expanding gas-based industries beyond methanol.

“Water and electricity are well managed, but what we need is a modern port to streamline the delivery of essential goods, which would also help lower the cost of living,” he told FMT.

“We also need to develop the gas-based industries to go beyond methanol so that job opportunities can be created.”

Yesterday, federal territories minister Dr Zaliha Mustafa said Chinese tech company Huawei has expressed an intention to invest in smart city technology in Labuan.

Zaliha said her ministry will also hold talks with other China-based technology conglomerates, such as Tencent, BYD, and Baidu, to find other avenues of collaboration.

However, economist Geoffrey Williams believes that Labuan must provide added value to all segments in its smart city implementation rather than just focusing on business interests.

He said the project’s success depends on meeting the needs of consumers and households, improving the quality of life, and reducing the cost of living.

“Without significant participation from consumers and households, it’s likely to fail,” he said, adding that comprehensive stakeholder engagement and thorough evaluation is needed.

Abu Sufian Yaacob of Universiti Malaysia Kelantan cautioned that while the smart city initiative could advance Labuan’s development, it also poses potential national security risks.

“High-powered technology could make espionage easier and compromise military secrets,” he said.