KUALA LUMPUR: South Korea’s Silla Group, controlled by a wealthy family in the country, has set its sight on making Labuan its first overseas venture.
The firm, which owns seven subsidiaries involved in construction, property development and hospitality, has a budget of more than a billion ringgit for a potential investment in the island city.
Its top executives had travelled to the city last month to complete its first due diligence.
Present were Silla chairman Lee Jun Yong, Silla’s subsidiary, Dragon Hills Resorts chief executive officer HS Kim and a member of South Korean Parliament Kim Musong.
Labuan Corp chairman Datuk Seri Amir Hussien said Silla Group intended to build a duty free factory outlet, resort and hotels as well refurbish a golf course in the island.
He said the project could involve over RM1 billion in investment.
"Their project is in line with our goal of growing tourism industry in Labuan. That is one of our focus moving forward. We welcome this kind of investment," he said.
With huge investment budget, Kim said the firm can help turn Labuan into one of top tourism hotspots in the region banking on its strategic location at the center of Brunei, Sabah, Philippines, Hong Kong and China.
He said Silla Group hope the federal government would support Labuan's transportation needs such as the RM4 billion bridge connecting Labuan and Sabah as well as better sea transports with the use of high speed ferries and speedboats.
“Five years ago when I was a leader of South Korean Parliament, I had an official visit to Malaysia with 15 parliament members.
“Then I asked Ambassador of South Korea to Malaysia to arrange a meeting with Mahathir to give him my warm greetings. I totally respect him.
“Now I am very happy as Tun Mahathir returns to make Malaysia great, and hopefully the Prime Minister supports Labuan local government's economic agenda so that Silla Group can invest in the island to turn Labuan into a great tourism hotspot,” he said in an exclusive interview with New Straits Times.
Kim said better transportation system is key to attract more future foreign or domestic direct investments into Labuan.
"We would honestly invest but we need this kind of infrastructure to ensure our project provides returns on investment in the future," he said.
"I am sure once number of tourists grow here, Labuan's airport will also eventually become an international airport," he added.
/end