"There are no immigration controls or checks on passengers arriving by ferry and sea vessels at Menumbok or at the Kota Kinabalu ferry terminal, which are the entry points into Sabah from the island of Labuan, which is a Federal Territory.
"This is a serious loophole... foreigners, criminals and undesirable elements are known to have used this route to escape the law," the Minister in the Prime Minister's Department (Sabah and Sarawak Affairs) said during a dialogue with the Labuan Kadazan Dusun Cultural Association (Labuan KDCA) and Sabah residents on the island on whether the Menumbok loophole was an infringement of the Malaysia Agreement 1963 (MA63).
He claimed that non-Sabahans were also abusing the loophole to overstay or work illegally in the state, thus contravening immigration laws and the MA63 conditions.
This, he said, had led to the unfettered entry of undesirable elements and unqualified people.
"Dialogue participants argued that the Sabah government should take necessary steps to tighten the law or close the loophole so as to be in accordance with immigration laws and, at the same time, restore MA63 rights," he said.
Ongkili, who arrived here on Friday (Nov 26) on a three-day official visit, held a meeting with the Labuan Corporation and the Brunei, Indonesia, Malaysia, Philippines-East Asean Growth Area (BIMP-EAGA) earlier Saturday (Nov 27). - Bernama