LABUAN, SABAH, MALAYSIA March 15, 2026 – In a move to alleviate the rising cost of living amid global economic challenges, the MADANI government has announced a 50% rental discount for small traders in Labuan, extending relief measures similar to those introduced in Kuala Lumpur.
Minister in the Prime Minister’s Department (Federal Territories) Hannah Yeoh revealed the initiative in a media statement on March 14, emphasizing support for local businesses. This follows her earlier announcement of a 50% discount on hawker stalls and market rentals under the Kuala Lumpur City Hall (DBKL), benefiting over 10,000 small traders in the capital.
Under the Labuan Corporation (PL), the discount applies to commercial premises at Pasar Sentral Labuan, where nearly 517 traders will continue to enjoy the reduced rates until the end of 2026. Monthly rentals at the market range from RM35 to RM3,500, with the initiative carrying an annual financial implication of approximately RM450,000 for PL.
Building on this, the discount will now extend to 56 small traders at Medan Selera Labuan and Anjung Selera at the International Sea Sports Complex. This expansion involves a monthly cost of RM10,500 or RM123,000 annually to PL. Specific examples of the reduced rates include:
– Premises with RM450 monthly rent reduced to RM225;
– RM400 rent lowered to RM200;
– RM250 rent cut to RM125;
– RM200 rent slashed to RM100.
To qualify for the incentive, traders must first settle any outstanding arrears, ensuring the program’s sustainability while maintaining PL’s ability to deliver quality services to Labuan residents.
“This initiative reflects the MADANI government’s commitment to providing tangible relief to small traders without compromising PL’s operational capabilities,” the statement read.
In addition, PL is advancing digitalization efforts with the implementation of the OSC 4.0 (E-Submission) system, set to launch in June 2026. This online platform will streamline the submission of planning permission documents by developers to PL’s One Stop Centre (OSC), enhancing efficiency and governance to boost physical development in the Federal Territory of Labuan.
The measures come at a time when economic pressures, including inflation and global uncertainties, continue to impact small businesses across Malaysia. Labuan, as a key offshore financial hub and duty-free island, relies heavily on its vibrant local markets and traders to sustain community livelihoods.
Hannah Yeoh urged stakeholders to embrace these developments, noting that they align with broader goals of inclusive growth and administrative modernization.
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