Labuan is a rather flat island of 95 square kilometers located at the northwest coast of Borneo , north of Brunei and south of Kota Kinabalu ; capital of the state of Sabah. The name Labuan derives from the Malay word labuhan meaning anchorage. The island has a population of around , people, if which around 20 percent are foreigners. Though the island is mainly known as an offshore financial center, it also has quite a few nice attractions.
There are hotels on the island, but not so many resorts. The island resembles Penang Island in some areas, though Penang is much more popular among tourists. Labuan still has to be 'discovered', local government is working on promoting Labuan Island as a fantastic tourist destination. There are even plans to build a long bridge to connect the island to the mainland of Sabah and to expand the current airport so it can grow into an international airport which means more tourists arrivals.
Labuan is an offshore financial center and Islamic financial hub offering international financial and business services since In , Labuan was proclaimed a federal territory. In , it was declared an international offshore financial center and free trade zone it still is a tax free island. At the time it was established to strengthen the contribution of financial services to the Gross National Products GNP of Malaysia as well as to develop the island and its surrounding vicinity.
Right now there are over 6, offshore companies and around licensed financial institutions including world leading banks. Labuan Town can be explored on foot, but also by bus or taxi. Taxi drivers generally do not drive on the meter, which means you need to haggle on the price before entering the taxi. The islands lie 8 km off the coast of Borneo adjacent to the Malaysian state of Sabah and the independent State of Brunei Darussalam and are on the northern edge of Brunei Bay facing the South China Sea.
Labuan is mainly flat and Bandar Labuan, formerly known as Victoria, is the major town and port and faces Brunei Bay. History Labuan was part of the Majapahit Empire until its collapse in the 14th century. Then, it was ruled by the Sultan of Brunei until when it was ceded to the British in that year.
It was a strategic re-fueling station for British steamships and was subsequently established as a free port. Labuan was a British naval base used to fight the pirates in Brunei Bay and was also the only significant coal-mining center of the then British Empire in the Far East in The main town of the island was named Victoria, after Queen Victoria. During the Japanese occupation the island was renamed Maida Island. Labuan as part of Sabah, joined Malaysia in , and was subsequently declared as Federal Territory in Numbering slightly less are the Kedayan who claim Java origins.
There are also the local Chinese as well as immigrant Fillipinos and Indonesians. Shopping As a duty-free port, it offers great bargain shopping and is a haven for branded imports. Federal Territory of Labuan. It is made up of a cluster of seven small islands off the coast of East Malaysia, of which the homonymous Labuan Island is the largest.
It boasts excellent physical infrastructure with a state-of-the-art telecommunications system, which makes conducting international business transactions convenient. As a Commonwealth country, the Malaysian legal system is based on common law, which also extends to its federal territories, including Labuan.
All legal cases in Labuan are ultimately handled by the High Court of Sabah, with appeal resting with the Court of Appeal, and final appeal with the Federal Court of Malaysia.
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