Introduction

Lying out to sea from Brunei Bay and facing the South China Sea is the island of Labuan, an international offshore financial centre and East Malaysia's only deep-water anchorage.

Bandar Labuan is the main town on the island and the place where the airport and ferry jetty are. The main attractions are Labuan's tax-free status, wreck-diving and duty-free shopping.

Labuan is a Federal Territory governed directly from Kuala Lumpur. It is an important offshore financial centre, but also has major petroleum and gas installations which form an important part of the economy.

For recreation, Labuan is surrounded by picturesque islands, beaches and facilities for golfing, diving and yachting.