Malaysia’s Offshore Financial Island & Maritime Gateway
Labuan, located off the coast of Sabah in East Malaysia, is a strategic island territory that functions as Malaysia’s offshore business and financial center, while also serving as a peaceful coastal escape rich in beaches, heritage, and marine biodiversity.
Formation & Historical Background
- Originally part of Sabah, became a Federal Territory in 1984
- Declared an International Offshore Financial Centre (IOFC) in 1990
- Historically used by British as a naval base and coaling station
- Now an emerging tax-friendly hub for business, finance, and logistics
Basic Information
| Category | Details |
|---|---|
| Official Name | Federal Territory of Labuan |
| Short Name | Labuan |
| Status | Federal Territory (since 1984) |
| Country | Malaysia |
| Location | Off the coast of Sabah (East Malaysia, Borneo) |
| Area | Approx. 91 sq. km |
| Population (2025 est.) | Approx. 100,000 |
| Main Ethnic Groups | Malay, Chinese, Kadazan-Dusun, Bruneian Malay, Expatriates |
Government & Administration
| Category | Description |
|---|---|
| Governing Body | Perbadanan Labuan (Labuan Corporation) |
| Chairman / CEO | Dato’ Dr. Fary Akmal bin Osman (as of 2025) |
| Federal Territories Ministry | Oversees administration (KL, Putrajaya, Labuan) |
| Legislation | Special status under Labuan Offshore Financial Services Act |
Towns & Areas
Labuan comprises Labuan Island and six smaller islets. Key urban areas include:
- Victoria (Labuan Town) – Main commercial and administrative center
- Kiansam, Layang-Layangan, Bebuloh – Residential and rural areas
- Pulau Burung, Pulau Papan – Small islands for marine tourism
Key Attractions & Landmarks
- Labuan International Business and Financial Centre (IBFC)
- Labuan War Cemetery – WWII Allied soldiers’ resting place
- Labuan Museum & Chimney Tower – Colonial and coal mining heritage
- Labuan Marine Park – Diving paradise with shipwrecks and coral reefs
- Peace Park & Surrender Point – WWII history site
- Layang-Layang Island – Famous scuba diving location (access by flight)
Economy & Livelihood
- Offshore Banking & Finance – Corporate tax advantages, trust funds, Islamic finance
- Oil & Gas Industry – Offshore platforms and logistics for Sabah/Sarawak coast
- Tourism – Beaches, diving, duty-free shopping
- Port & Shipping Services – Gateway for cargo between Borneo and global routes
- Fishing & Aquaculture – A significant livelihood in coastal zones
Transport & Connectivity
- Labuan Airport (LBU) – Domestic flights from KL, KK, Miri
- Ferry Terminals – Ferries to Kota Kinabalu, Brunei, Menumbok (Sabah)
- Public Transport – Vans, buses, taxis within island
- Port of Labuan – Strategic shipping port under Malaysian Marine Department
Education & Healthcare
- Universities: Universiti Malaysia Sabah (Labuan International Campus)
- Technical Institutes & Private Colleges
- Labuan Hospital – Main public hospital
- Clinics and offshore medical access available
Culture & Local Cuisine
- Mixed cultures: Bruneian Malay, Chinese, Bajau, Kadazan, and expats
- Local dishes:
- Ikan Bakar Labuan, Satar, Ambuyat, Coconut jelly
- Events:
- Labuan International Sea Challenge, Borneo Arts Festival, Ramadan Bazaars
Summary
Labuan is Malaysia’s offshore jewel—a finance-forward, sea-facing island where business meets biodiversity. Whether you’re setting up a tax-efficient corporation, enjoying beachfront leisure, or exploring World War II heritage, Labuan is a city-island with limitless potential and peaceful charm.