Labuan is a Federal Territory of Malaysia located off the northwest coast of Sabah in Malaysian Borneo — a compact, duty-free island with a rich colonial and wartime history, a thriving offshore financial centre, stunning dive sites, and some of the best seafood in the region. Here are the essential facts.
92 km²
Main Island Area
~100K
Population
7
Total Islands
100%
Duty-Free
Geography & Location
| Official Name | Federal Territory of Labuan (Wilayah Persekutuan Labuan) |
| Location | South China Sea, off the northwest coast of Sabah, at the mouth of Brunei Bay |
| Coordinates | 5.28°N, 115.24°E |
| Land Area | 92 km² (main island — 95.7% of total land); 94.52 km² all islands combined |
| Total Area | 402 km² including territorial waters (40,165 hectares) |
| Islands | 7 — Labuan (main), Pulau Rusukan Besar, Pulau Rusukan Kecil, Pulau Kuraman, Pulau Papan, Pulau Burong, Pulau Daat |
| Highest Point | Bukit Merinding (less than 200m elevation) |
| Terrain | Coastal plains and low hills — predominantly flat, easy to traverse |
| Neighbours | Sabah (east), Brunei Darussalam (south), Sarawak (accessible by sea) |
Climate & Weather
| Climate Type | Tropical equatorial — hot and humid year-round |
| Temperature | 27–32°C (80–90°F) throughout the year |
| Rainfall | ~2,600mm annually |
| Driest Months | March – May (best for diving and island hopping) |
| Wettest Months | October – January (afternoon showers, rarely all-day) |
| Water Temperature | 27–30°C year-round |
People & Culture
| Population | ~100,000 (Department of Statistics Malaysia) |
| Density | 1,091 people per km² |
| Ethnic Groups | Bumiputera 85% (Malay, Brunei Malay, Kedayan, Bisaya), Chinese 12.3%, Indian 0.9%, Others 1.8% |
| Languages | Malay (official), English (widely spoken), Mandarin, indigenous dialects |
| Religion | Islam (majority), Buddhism, Christianity, Hinduism |
| Villages | 27 kampung plus Victoria (Bandar Labuan) town centre |
| Known As | "The Pearl of Borneo" |
Government & Status
| Political Status | Federal Territory of Malaysia (since 16 April 1984) |
| Previously | Part of Sabah (1963–1984), British Crown Colony (1846–1963) |
| Duty-Free | 100% duty-free island — no import duties on goods |
| Financial Centre | Labuan IBFC — Asia's leading midshore international business and financial centre |
| National Geopark | Recognised December 2021; 8 geosites, 35 million years of geological history |
Transport
| Airport | Labuan Airport (IATA: LBU) — 5 minutes from town centre |
| Flights From | Kuala Lumpur (2.5 hrs, AirAsia), Kota Kinabalu (25 min, MASwings), Miri |
| Ferry Terminal | Labuan International Ferry Terminal |
| Ferry Routes | Menumbok (30 min), KK (3 hrs), Brunei (~1 hr), Limbang, Lawas |
| Car Rental | From RM60/day at airport and hotels |
| Ride-hailing | Grab operates island-wide, most rides RM2–10 |
| Driving Loop | ~30km around the entire island; ~1 hour by car |
Money & Costs
| Currency | Malaysian Ringgit (RM / MYR) |
| ATMs | Available at Financial Park, town centre banks, near ferry terminal |
| Cards | Accepted at hotels and larger restaurants; carry cash for small shops and markets |
| Budget Meal | RM8–15 (kopitiam breakfast, hawker food) |
| Mid-Range Meal | RM25–60 (restaurant with seafood) |
| Beer (shop) | From RM3 per can (duty-free) |
| Beer (restaurant) | RM8–15 |
| Daily Budget | RM90–190 (budget) / RM260–490 (mid-range) / RM490+ (comfort) |
Key Attractions
| Wreck Diving | 4 sites — Cement Wreck, Blue Water Wreck, American Wreck (USS Salute), Australian Wreck (MV Tung Hwang). Dive guide → |
| Marine Park | Coral reefs and marine conservation area around surrounding islands. Marine park → |
| Geopark | 8 geosites across 402 km² — fossils, mud volcano, oil seepage, coal mining heritage. Geopark → |
| War Cemetery | Commonwealth War Graves Commission site, 3,900 burials from the Borneo campaign 1945. Landmarks → |
| The Chimney | 106-foot red brick mystery at Tanjung Kubong, linked to coal mining (1847–1911). Read the story → |
| Water Village | Kampung Patau-Patau — traditional Brunei Malay stilt houses over the sea. Visit → |
| Islands | 6 surrounding islands for hopping, snorkelling, and beach days. Island guide → |
| Golf | 18-hole par 72 championship course on 200 acres. Golfing → |
Annual Events
| April | Labuan International Sea Challenge (LISC) — maritime sports festival, 2,500+ participants |
| July | Borneo Arts Festival + Borneo Flora Festival |
| Aug/Sep | Merdeka Food Festival — Independence Day culinary celebration |
| November | Remembrance Day — Commonwealth ceremony at War Cemetery |
Key Historical Dates
| 1846 | Ceded by Sultan of Brunei to British Crown |
| 1847 | Coal mining begins at Tanjung Kubong — among the first in Southeast Asia |
| 1911 | Coal mines closed after a series of accidents |
| 1941–1945 | Japanese occupation during World War II |
| 10 Sep 1945 | Japanese surrender at Layang-Layangan (now Surrender Point) |
| 16 Apr 1984 | Declared Federal Territory of Malaysia |
| 1990 | Labuan International Offshore Financial Centre established |
| Dec 2021 | Recognised as Malaysia's National Geopark |
Plan Your Visit
Itineraries, budget guide, and everything you need for your Labuan trip.
Plan Your Visit →