THE RM86 million Labuan halal hub project has failed to achieve its objectives and will be revived to ensure its competitiveness, said Federal Territories Minister Khalid Abdul Samad.

Khalid said the revival plan would involve no government funding, as new investors had shown interest in investing in the halal hub development.

“The project seems to have been implemented without proper planning and direction,” he told reporters in Labuan today.

He said the complex, which was supposed to house factories producing halal products, had remained idle with no business activities being carried out.

“We were told the facilities cannot be utilised as they were not built according to the design specifications despite the huge amount of money spent.

“It is very unfortunate to note it seems like the thinking of the past – they do a project, they get money and the commission, and if the project fails, it does not really matter.

“We are now doing our part to revive the Labuan halal hub and come up with a better solution, so we can incorporate the true halal hub concept and have new players invest in the complex for their factories and halal products,” Khalid said.

Local dailies have reported that the Labuan Halal Hub Complex is at risk of being declared a “white elephant” due to its failure to attract investors.

Built on 7.28ha of land in Kiansam, the complex consists of an office building, a warehouse complex, and a processing plant, but industry players allege the warehouses were not built according to specifications.

Although its principal goal is to stimulate and encourage the growth of the halal industry in the country by providing halal warehousing, storage and distribution services from Sabah, Sarawak and overseas, no halal product manufacturer is operating at the complex.

The complex, a collaboration project between Labuan Corporation and the Federal Territories Ministry, has been managed by Labuan Halal Hub Sdn Bhd since November 11, 2011.

The hub was launched by former prime minister Abdullah Ahmad Badawi in March 2009.

The project’s first phase was completed in 2012 after the auditor-general’s 2011 report criticised the project’s management, noting that the halal hub building had remained idle and advising Labuan Corporation to appoint qualified company directors and high-ranking managers with vast business experience to ensure efficient operations. – Bernama, November 11, 2018.