An introduction to Labuan
Labuan is a federal territory of Malaysia and the nation’s only offshore financial centre doing business through Labuan International Business and Financial Centre (IFBC). Labuan was under the rule of the Brunei sultanate in the 14th century and became one of the smallest colonies of the British Empire before being ceded to Sabah when it joined Malaysia in 1963.
The glorious and colourful history of Labuan is supplemented with some unusual and varied foreign influences, adding to its diverse cultural and religious heritage. The Chinese brought Buddhism to Labuan while on their passage to India; Arab merchants brought Islam and Hindu influences in whilst the area was under the Majapahit Empire; before more recently Labuan came under Brunei sovereignty. Portuguese, Spanish and Dutch traders have also brought fascinating European character to Labuan.
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Getting there
Labuan is set off the north west coast of Sabah and is one of the most accessible islands in the world today. It is well connected by air, sea, and land and via the information highway. It is also only a fifteen minute boat ride from Menumbok, on Sabah's coastal mainland. Plush, fast ferries make regular journeys to Labuan from the nearby Malaysian states of Sabah and Sarawak, as well as the Kingdom of Brunei too.
Surrounding Islands
A further six diminutive islands surround Pulau Labuan, each of which has its own unique identity and options for visitors. Divers from all around the world come to experience one of the world’s most breathtaking coral clusters peeping through the crystal clear waters around this idyllic cluster of islands.
Things to see & do: Wreck Diving
Pulau Labuan also offers sublime wreck diving experiences for explorers fascinated by history in the deep blue. Wrecks from the world over lie submerged in the waters here. Locals refer to the four main wrecks in colloquial terms, with both the 'Australian' and 'American' wrecks especially popular.
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Labuan Town
The tiny island's heartbeat centers on Labuan Town, formerly known as Victoria Town, which is considered by many to be a real gem of the South China Sea, with its particularly beautiful and secluded beaches. The Pohon Batu beach is the favourite hangout of locals for their tasty BBQ picnics. The beach comes alive with hawker stalls and live musical bands over the weekends. The picturesque beach is also fringed with cycling trails and picnic tables. Be sure to checkout Pancur Hitam too!
Labuan Marine Park
The Labuan Marine Park, located 2 km southwards from Labuan Island has some pristine white beaches, reefs, lush jungles and tranquil tidal pools. The vivacious marine life of its waters makes it a preferred spot for snorkelling and scuba diving.
War Memorial
Labuan is also a heritage site significant for its role during World War II. The loss of life is commemorated at Labuan's War Cemetery with other landmarks of the Allied Powers including the Japanese Surrender Park. Every November, Remembrance Day is marked in honour of the near 4,000 fallen servicemen buried in the site. Both Malaysian and foreign vets are present to commemorate the Allied soldiers killed in action during the war.
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History
Labuan was the site of coal mining in its early days. The island used to have a massive network of tunnels and deep wells built in the 18th century at the peak of its coal mining days. These tunnels were built to mine the rich coal ores found in this area. Many of these were closed down in the year 1911. Among these Tanjung Kubong tunnel is the only tunnel open to visitors and still has old bricks, pieces of rail tracks and rusty cables strewn across its length. Visitors can enter the low tunnel with a short rope and climb it all the way to the top.
Days out
Apart from these the International Sea Sport Complex, Bird Park, Botanical garden and museum square are some of the finest attractions in this land of Old World charm. A walk around Kampong Air or Water Village, an interesting rustic settlement on its shores can give tourists an insight into the way of life of the native settlers of Labuan.
Shopping
The town of Labuan has some modern shopping centres but is not necessarily a bargain hunter’s paradise. However some items like pearl and crystal jewellery may be cheaper in Labuan than in other places. The shopping centres hold annual shopping carnivals where you can strike some terrific bargains. The town is also a hub for duty-free goods and attracts many visitors from its neighbour Brunei. The town also has some modern shopping centres with their annual shopping carnivals.
Dining
A holiday in Labuan is incomplete without a taste of its crab delicacies. The most popular seafood centre in Labuan is at Anjung Ketam. This small food court is a favourite amongst locals and tourists alike for its fresh crab, lobster and other seafood delicacies. Its crab varieties are so much in demand that some dishes sell out as fast as they are cooked and require advance booking.
With treats for the eyes and food for the soul a holiday in Labuan is as relaxing and as satisfying as it can get, with a wide range of high quality hotels to round-off the perfect trip.
Search the widest range of accommodation options and resorts on the pearl of the South China Sea, Labuan with MalaysiaExplorer.net's booking partner - also find verified guest reviews™ and image galleries.

Complete your trip with our travel essentials checklist: Tours, Flights and Car Rental
- Tailor all aspects of your holiday or visit to Kuantan with comprehensive tour and package choices.
- Read our top tips on car rental to ensure you choose a suitable vehicle at a good price.
- Our guide to Malaysia flights is packed with advice and pointers on finding the best routes and super deals.
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