"This has always been the plan. The island was handed over to the Federal Government in 2002 by the International Court of Justice in a territorial dispute with Indonesia. "Now that things are settled, the island will be returned to the Sabah government," said state Tourism, Environment and Culture Minister Datuk Masidi Manjun. "There will be less red tape and we will be able to manage it more efficiently.”

One of the first issues to be looked into is the limit of 120 divers per day on the island.

This limitation was put into place in 2004, when all dive operators on Sipadan were told to move their structures from the island to conserve its delicate ecosystem and corals.

This regulation created much scepticism and controversy as the complex distribution of the diving permits often leaves tourists, who have travelled thousands of kilometres to get there, disappointed.

Environmental studies are now being conducted to assess the island's sustainability, and whether increasing the number of divers will damage the ecosystem. One proposal which is being looked into is to modify the restrictions to allow 120 divers in the morning, and another 120 in the afternoon each day.

"This will allow more divers to experience the underwater splendours of Sipadan without overburdening the island. "What's important is that we leave the island as pristine as possible." Mr Manjun added.