Labuan

Labuan, officially called the Federal Territory of Labuan, is a special island area that belongs to Malaysia. It is made up of Labuan Island and six smaller islands near the coast of Sabah, which is in the eastern part of Malaysia. The main town on Labuan is Victoria, and it is well-known for being a place where people and businesses from all over the world can do their finance and business work through something called the Labuan IBFC, which started in 1990.

Besides being a finance center, Labuan is also a popular place for tourists, especially people traveling through Sabah, visitors from Brunei, and scuba divers. The name Labuan comes from a Malay word, "labuhan," which means "harbour." This special island territory plays an important role in Malaysia as a financial hub, a support center for oil and gas activities, and a beautiful spot for visitors to enjoy.

History

Labuan was part of the Sultanate of Brunei for three centuries, from the 15th century until 1846. In 1846, the British took control of Labuan through a treaty with the Sultan of Brunei. The British wanted Labuan to be a naval base to protect their interests and stop pirates in the South China Sea.

During World War II, Japan occupied Labuan from 1942 to 1945 and renamed it Maida Island. In 1945, Australian forces recaptured Labuan as part of their effort to free Borneo.

In 1963, Labuan became part of Malaysia. In 1984, Labuan was transferred to the federal government to become an offshore financial centre, which it officially did in 1990.

Geography

Labuan is made up of the main island, Labuan Island, which is 91.64 square kilometres or 35.38 square miles, and six smaller islands: Burung, Daat, Kuraman, Big Rusukan, Small Rusukan, and Papan. Together, these islands cover a total area of 91.64 square kilometres (35.38 square miles). They are located 8 kilometres (5.0 miles) off the coast of Borneo, close to the Malaysian state of Sabah and north of Brunei Darussalam. Labuan Island is mostly flat with its highest point, Bukit Kubong, reaching 148 metres (486 feet) above sea level. More than 70% of the island is still covered in plants. The main town, Victoria, faces Brunei Bay.

Labuan has a tropical rainforest climate year-round. Temperatures usually stay between 25 to 32 °C (77 to 90 °F), rarely dropping below 24 °C (75 °F) or going above 33 °C (91 °F). The warmest time is from April to mid-June, and the slightly cooler time is from mid-January to February. Labuan often experiences thunderstorms, especially around October. The air is usually very humid, ranging from 63% to 96% throughout the year. The weather station is at Labuan Airport.

Islands

• Labuan Island
• Daat Island
• Papan Island
• Burung Island
• Kuraman Island
• Big Rusukan Island (Pulau Rusukan Besar)
• Small Rusukan Island (Pulau Rusukan Kecil)

Government

Labuan is one of Malaysia’s special areas managed directly by the national government. It is overseen by a special department connected to the Prime Minister's Department (Malaysia). The island has its own local government called Labuan Corporation, led by a chairman who helps take care of the island.

Labuan has representatives in Malaysia’s national parliament, one for each house. Usually, the elected representative also helps lead the Labuan Corporation.

The island is divided into the main town, Bandar Victoria, and 27 smaller villages, each with its own leader.

Security on Labuan is handled by the national government, with help from local coast guard, customs, and police teams. This helps keep Labuan safe as a special financial and business area.

Demographics

Population and religion

Labuan's population was 86,908 in 2010 and grew to 95,120 by 2020. The island is home to many different groups of people. In 2020, the largest groups were Kedayan and Bruneian Malay, followed by Kadazan-Dusun, Bajau, Murut, Chinese, Indians, Lundayeh, and others, including people from outside Malaysia.

In 2010, most people on Labuan were Muslim, with smaller numbers following Christian beliefs, Buddhist, Hindu, other religions, or having no religious affiliation.

Economy

Labuan's economy is strong because of its oil and gas and its special banking services for international business. The island mainly sells things like crude oil, methanol, gas, and other products to places in Malaysia and around the world. It also buys materials and goods from other countries to use and sell.

Labuan has a special area for international business and finance, started in 1990. This area helps businesses grow with low taxes and easy rules. It has many companies, banks, and services that help people and businesses manage their money and investments.

Development

Labuan is different from other areas because it has not developed much. The buildings there are a mix of older styles and there are not many new, modern buildings. Roads and public transport are not very advanced, which causes traffic problems during busy times of the day, especially in the early morning and evening.

Labuan-Menumbok Bridge

A big plan is to build a bridge connecting Labuan to Menumbok on the mainland of Sabah. This bridge would help people and goods move more easily and could bring more visitors to the area. The idea for this bridge was first suggested in the 1990s, but it has taken a long time because the studies to check if it is possible needed updating.

Transport

Labuan has two main ways to get to and from the island.

Water ferry

Labuan Ferry: You can take a water ferry to Sabah and Sarawak. This ferry is important for passengers and vehicles, giving a nice and easy way to cross the water.

In May 2024, Prime Minister Datuk Seri Anwar Ibrahim talked about updating old plans to improve the ferry terminal. This includes making the terminal better with new facilities and helping to make the check-in process faster. The Prime Minister said that having good services from local teams is important to avoid long waits at the terminal.

Ferry services between Kota Kinabalu, Sabah, and Labuan stopped during the COVID-19 pandemic in Malaysia. They were supposed to start again on 15 December 2024 from Labuan to Jesselton Point, but there were more delays. The ferry service finally started again on 28 May, but now it goes to Kota Kinabalu Port instead of Jesselton Point.

Air travel

Labuan Airport helps people fly to big places. The airport has flights from several airlines:

• Malaysia Airlines: Flights to Kuala Lumpur, Malaysia’s capital, connecting to many places both inside and outside the country.
• AirAsia: Another airline with flights to Kuala Lumpur, good for people who want cheaper tickets.
• MASwings: This regional airline flies to Miri in Sarawak and Kota Kinabalu in Sabah, helping people travel within East Malaysia.

These travel options make Labuan easy to reach, helping both people who live there and visitors.

Places of interest

Labuan has many interesting places to visit. The Labuan War Cemetery remembers soldiers who died during World War II from many countries, with over 3,900 graves. There is also a memorial for when Japanese forces surrendered to Australian troops in 1945. You can see old parts of a old Royal Navy coaling station, like the chimney, which is a famous landmark. The Labuan Maritime Museum shows the area's sea history.

Labuan is a good spot for diving at four famous wrecks underwater. The area has schools, including one international school, and a sports complex. There are plans for new projects like the Marina Centre and Labuan Square, finished in 2010. Students can study at Universiti Malaysia Sabah Labuan International Campus, a branch of a university in Kota Kinabalu, and at Kolej Matrikulasi Labuan, the main college for students from Sabah, Sarawak, and Labuan.

[Labuan War Cemetery](/wiki/Labuan_War_Cemetery)

Replica Clock Tower of 1906

[Labuan Museum](/wiki/Labuan_Museum)

Postage stamps and postal history

A post office began operating in Labuan in 1864 and used a special stamp to mark the date on mail. At first, people used stamps from India and Hong Kong, but these were likely brought by individuals rather than sold in Labuan itself. Mail from Labuan traveled through Singapore.

In 1867, Labuan started using stamps from the Straits Settlements. Then, in May 1879, Labuan began making its own stamps. The first stamps were planned to show sago palms, but instead, they featured the profile of Queen Victoria, similar to stamps from Grenada. These early Labuan stamps were special because they had words in three different writing styles: Malay-Arabic (Jawi), Chinese, and English ("LABUAN POSTAGE"). Because there were often not enough stamps, many were marked with extra prices between the 1880s reprints and color changes. The original stamps were carved carefully, but by April 1894, they began using a printing method called lithography.

From May 1894, stamps from North Borneo were marked with "LABUAN" to be used there. On September 24, 1896, to celebrate 50 years since Labuan was handed over, stamps from North Borneo were marked with "1846 / JUBILEE / 1896". More special markings appeared during the 1890s. In 1899, many stamps got a new price marked on them: 4 cents.

The last stamp design made only for Labuan came out in 1902, showing a crown and saying "LABUAN COLONY". After Labuan joined the Straits Settlements in 1906, it stopped making its own stamps, but old Labuan stamps could still be used for some time. Many leftover stamps were specially marked for collectors, and today they are worth very little, but real used stamps are worth much more.

Federal parliament seats

List of Labuan representatives in the Federal Parliament (Dewan Rakyat)

Notable residents

Labuan has been home to many interesting people. Hassan Sani is a well-known Malaysian and Sabah football player. Kelvin Teo is a young entrepreneur and the season 1 winner of the reality show Love Me Do. Karen Kong is a Malaysian pop singer based in Hong Kong. Suresh Singh is a right-hand bowler for the Malaysian cricket national team. Yussof Mahal is a politician from the Barisan National party and was a former Member of Parliament for Labuan.

Malaysia portal