Labuan - WikiHQ

Labuan (), officially the Federal Territory of Labuan (), is an island federal territory of Malaysia. It includes and six smaller islands off the coast of the state of Sabah in East Malaysia. Labuan's capital is Victoria, which is best known as an offshore financial centre offering international financial and business services via Labuan IBFC since 1990, as well as being an offshore support hub for deepwater oil and gas activities in the region. It is also a tourist destination for people travelling through Sabah, nearby Bruneians, and scuba divers. The name Labuan derives from the Malay word labuhan, which means "harbour".

History

Government

Labuan is one of the Malaysian federal government territories. The island is administered by the federal government through the Department of Federal Territories, a department under the Prime Minister's Department (Malaysia). Labuan Corporation is the municipal government for the island and is headed by a chairman who is responsible for the development and administration of the island. Labuan has one representative in each of the Lower and Upper Houses of Parliament. Typically, the current member of the parliament of Labuan will be appointed to become chairman of Labuan Corporation.

The island is represented in the lower house of parliament by MP Suhaili Abdul Rahman of PN (opposition) and in the upper house by Mohd Husni bin Mohamad Salleh.

Below is the list of administrators of Labuan Corporation from 2001 to the current date:

{| class="wikitable"

! Name

! Term begins

! Term ends

| Othman Mohd Rijal

| 2001

| 2003

| Suhaili Abdul Rahman

| 2003

| 2008

| Ahmad Phesal Talib

| 2008

| 2011

| Yussof Mahal

| 2011

| 2013

| Rozman Haji Isli

| 2013

| 2018

| Amir Hussein

| 2019

| 2021

| Bashir Alias

| 2021

| 2023

| Anifah Aman

| 2023

| 2025

| Mohd Husni bin Mohamad Salleh

| 2025

| Present

Administrative subdivision

The Federal Territory is administratively subdivided into the capital Bandar Victoria and 27 kampung (administrative villages), and which are ruled by appointed Ketua Kampung (headmen):

Bukit Kalam
Durian Tunjung
Tanjung Aru
Pohon Batu
Batu Arang
Patau-Patau 2
Belukut
Sungai Keling
Sungai Bedaun / Sungai Sembilang
Layang-Layangan
Sungai Labu
Pantai
Gersik / Saguking / Jawa / Parit
Sungai Buton
Kilan / Kilan Pulau Akar
Lajau
Rancha-Rancha
Nagalang / Kerupang
Bebuloh
Sungai Lada
Lubok Temiang
Sungai Bangat
Sungai Miri / Pagar
Patau-Patau 1
Batu Manikar
Bukit Kuda
Ganggarak / Merinding

Security

Security is the responsibility of the federal government, with naval patrol vessels, a garrison, and an air detachment based on the island. The vigilance of the local Coast Guard, Customs and Excise and Marine Police contribute to the maintenance of Labuan's reputation and status as an international offshore financial centre and free trade zone.

Demographics

Population and religion

thumb|right|[[An-Nur Jamek Mosque, Labuan|An-Nur State Mosque, 2021]]

thumb|right|Kwang Fook Kong Temple

According to Malaysia's Department of Statistics, Labuan's population was 86,908 at the 2010 Census and 95,120 at the 2020 Census. The ethnic composition in 2020 in Labuan was: Kedayan and Bruneian Malay (34,068), Kadazan-Dusun including/excluding Rungus (9,408), Bajau (6,866), Murut (1265), Chinese (9,843), Indians (891), Lundayeh and other ethnic groups (21,947), and non-Malaysian citizens (10,832). The majority of Chinese people in Labuan are from the Hokkien dialect group (but has been since decreasing due to migration to the Peninsula as well as overseas); however, there are also many Hakkas, most of whom are migrants or descendants of migrants from mainland Sabah as well as local-born Hakkas, whom are settled for more than 2 to 3 generations in the island dating as long as the colonial period, in which they came as stopover migrants or traders before embarking to the mainland (even when it was still an only island offshore municipality within Sabah state jurisdiction from 1963 to 1984) as well as a negligible minority of Fuzhounese from neighbouring Sarawak, mostly working as government staff and those posted in the petroleum and gas offshore industries and to a lesser extent a large minority of Dayaks also from Sarawak who are resident here and their local-born descendants whom are mostly ethnically Iban with pockets of Bidayuh and Orang Ulu residents.

Census the population of Labuan is 76.0% Muslim, 12.4% Christian, 9.0% Buddhist, 0.4% Hindu, 2.1% follower of other religions, and 0.1% non-religious.

{|class="wikitable sortable" style="margin: lem auto lem auto;"

|+ Labuan Ethnic Composition (2010)

|- style="background:#efefef;"

! scope="col" |Ethnic groups

! scope="col" |Ethnics

! scope="col" |Total

|rowspan="5" |Bumiputera

|Kadayan-Brunei

|34,068

|Kadazan-Dusun (including/excluding Rungus)

|9,408

|Bajau

|6,866

|Murut

|1,265

|Lun Bawang/Lundayeh and Other Bumiputeras <br /> (mostly Dayaks from Sarawak)

|21,064

|Rowspan="3" |Non-Bumiputeras

|Chinese

|9,843

|Indian

|891

|Others

|883

|Rowspan="1" |Non-citizen

|10,832

|Total

|95,120

Economy

thumb|left|Labuan Port

The economy of Labuan thrives on its vast oil and gas resources and international investment and banking services. Labuan is very much an import-export oriented economy. Virtually all of its commodities including crude oil, methanol, HBI, gas, flour, animal feed, sea products, and ceramic tiles are exported either to Peninsular Malaysia or overseas. Raw materials, parts, and equipments for industrial uses well as consumer products are imported. In 2004, the total value of Labuan's external trade reached MYR11.8 billion from only MYR5.0 billion in 1995 for a net trade surplus of MYR5.1 billion. Among its major trade partners are India, Peninsular Malaysia, Sarawak, and South Korea. 65% of its exports are petroleum and gas-based products.

The Gross Domestic Product (GDP) of Labuan is estimated at MYR3.63 billion in 2012 with a growth rate of 5.8 per cent. Labuan GDP per capita in 2012 is MYR39,682. The total employment for Labuan is around 39,800 in 2012. The main economic sectors in Labuan is service and manufacturing which contributed 94.6 per cent to the island GDP. The service sector consisted mainly of Finance and Insurance and Real Estate and Business Services. Meanwhile, the manufacturing sector consists mainly of oil and gas industry and support.

thumb|Labuan Financial Park complex, also known as Ujana Kewangan (UK) by many Labuanese.

The Labuan International Business and Financial Centre Labuan IBFC was created as Malaysia's only offshore financial hub in October 1990 and was operating under the name of Labuan International Offshore Financial Centre (IOFC). At the time it was established to strengthen the contribution of financial services to the Gross National Product (GNP) of Malaysia as well as to develop the island and its surrounding vicinity. The jurisdiction, supervised by the Labuan Offshore Financial Services Authority or LOFSA, offers benefits such as 3% tax on net audited results or a flat rate of Malaysian Ringgit (MYR) 20,000 to trading companies; low operational costs; liberal exchange controls; and a host of other advantages including readily available, experienced and professional service providers. In 2010 the notion "offshore" was excluded from all the statutes of Labuan due to world pressure on the tax havens and offshores.

Since its inception, the jurisdiction has expanded to become a base for more than 4,800 offshore companies and 68 licensed banks. The IBFC also has over 370 registered foundations, 100 partnerships, and over 63 licensed trusts. Labuan IBFC is embarking on an aggressive growth strategy to become the premier international business and financial centre in the Asia Pacific region.

Labuan's business focus is on five core areas: offshore holding companies, captive insurance, Shariah-compliant Islamic Finance structures, public and private funds, and wealth management. Labuan IBFC's position is further enhanced by the launch of the Malaysian International Islamic Finance Centre initiative in August 2006.

Development

Unlike other federal territory, Labuan is underdeveloped. The island's urban landscape is characterised by a mix of older buildings and limited modern architectural advancements. Key infrastructure projects, such as road networks and public transportation systems, are less advanced nor extensive, resulting in significant traffic issues during peak hours, particularly in the early morning and evening commutes.

Labuan-Menumbok Bridge

One of the most anticipated infrastructure projects is the proposed bridge connecting Labuan to Menumbok in mainland Sabah. Like Penang Bridge. Labuan-Menumbok bridge aims to enhance connectivity and stimulate economic growth by providing a direct link between the island and the mainland. The project is expected to reduce travel time, improve the movement of goods and people, and boost tourism in the region, reflecting their commitment to regional development and integration.

The proposal was first introduced in the 1990s. However, it has faced numerous delays due to fact that the feasibility studies for the project were outdated and needed to be updated for the project to proceed smoothly.

Transport

Labuan offers two primary modes of transportation for travel to and from the island.

Water ferry

thumb|alt=White ferry with "Labuan Express 2" painted on the side|A ferry from Labuan in [[Kota Kinabalu, Sabah]]

Labuan Ferry: One of the main routes is via water ferry services to Sabah and Sarawak. This ferry service is a vital link for passengers and vehicles, providing a convenient and scenic route across the island's strait.

In May 2024, Prime Minister Datuk Seri Anwar Ibrahim emphasised the need to update existing technical studies to reflect the current situation, such as upgrading works at the terminal, which costed RM22 Million. The funding is intended to enhance the facilities, infrastructure, jetty, and ferry ramp at the terminal. The Prime Minister said the estimated one-hour embarkation time could be reduced by addressing delays caused by immigration checks. He emphasised that efficient services from local enforcement agencies were crucial in resolving congestion issues at the terminal, rather than relying solely on new infrastructure.

Ferry services between Kota Kinabalu, Sabah, and Labuan were suspended after the COVID-19 pandemic in Malaysia. Initially scheduled to resume on 15 December 2024 from Labuan to Jesselton Point, further delays occurred due to a lack of readiness as Jesselton Point. The ferry service eventually resumed on 28 May, although connecting to Kota Kinabalu Port instead of Jesselton Point.

Air travel

Labuan Airport facilitates air travel to the major destinations. The airport hosts several airlines:

Malaysia Airlines: Provides regular flights to Kuala Lumpur, the capital city of Malaysia, offering connectivity to both domestic and international destinations.
AirAsia: Another major airline operating from Labuan Airport, AirAsia also offers flights to Kuala Lumpur, catering to budget-conscious travellers.
MASwings: A regional airline, MASwings, operates flights to Miri in Sarawak as well as Kota Kinabalu in the neighbouring state of Sabah, enhancing connectivity within East Malaysia.

These transportation options ensure that W.P. Labuan remains accessible and well-connected, supporting both the local population and visitors to the island.

Places of interest

thumb|upright|[[Chimney Museum|Chimney at the Colliery Fields]]

There are several attractions and places of interest in Labuan. The Labuan War Cemetery contains various war graves and memorials to the fallen of World War II. This includes British, Australian, Indian, Sarawakian, Bruneian, North Bornean, and Empire troops, with a total of 3,908 graves of fallen soldiers. A memorial service is held on Remembrance Day once every four years. The territory also has a memorial celebrating the surrender of the Japanese to the Australian Forces in 1945. Remnants of Labuan's history as a Royal Navy coaling station include the chimney, a well known local landmark. Labuan also contains a Labuan Maritime Museum.

Labuan is also the base for diving on four popular wreck dives: the Cement wreck, the American wreck (the first USS Salute), the Australian wreck and the Blue Water wreck.

Labuan has many schools. However, it has only one international school, Labuan International School. Other places of interest include the Labuan International Sea Sport Complex. Newly proposed is the Marina Centre and Labuan Square project which were completed in 2010.

Labuan's own institution of higher education is Universiti Malaysia Sabah Labuan International Campus, a branch of Universiti Malaysia Sabah in Sepanggar Bay, Kota Kinabalu. Labuan also has Kolej Matrikulasi Labuan, the only matriculation college in East Malaysia. All pre-university students from Sabah, Sarawak, and Labuan take their courses at this institution.

Labuan-war-cemetery.jpg|Labuan War Cemetery

Labuan Malaysia Clock-Tower-01.jpg|Replica Clock Tower of 1906

Labuan MuziumLabuan.jpg|Labuan Museum

</gallery>

Postage stamps and postal history

upright=0.55|thumb|1885 2c stamp

upright=0.55|thumb|Stamp of North Borneo overprinted "Labuan", 1897

A post office was operating in Labuan by 1864, and used a circular date stamp as postmark. The postage stamps of India and Hong Kong were used on some mail, but they were probably carried there by individuals, instead of being on sale in Labuan. Mail was routed through Singapore. From 1867, Labuan officially used the postage stamps of the Straits Settlements but began issuing its own in May 1879.

Although initially the design for the first stamp issue was proposed to be depicting a clump of sago palms, for economic reasons, the queen heads design was finally adopted, having been used initially for postage stamps of Grenada. The first stamps of Labuan therefore depict the usual profile of Queen Victoria but are unusual for being inscribed in Malay-Arabic (Jawi) and Chinese scripts in addition to "LABUAN POSTAGE". Perennial shortages necessitated a variety of surcharges in between the several reprints and colour changes of the 1880s. The original stamps were engraved, but the last of the design, in April 1894, were done by lithography.

Beginning in May 1894, the stamps of North Borneo were overprinted "LABUAN". On 24 September 1896, the 50th anniversary of the cession was marked by overprinting "1846 / JUBILEE / 1896" on North Borneo stamps. Additional overprints appeared through the 1890s. In 1899 many types were surcharged with a value of 4 cents.

The last Labuan-only design came out in 1902, depicting a crown and inscribed "LABUAN COLONY". After incorporation into the Straits Settlements in 1906, Labuan ceased issuing its own stamps, although they remained valid for some time. Many of the remainder were cancelled-to-order for sale to collectors and are now worth only pennies; genuine franked/post used stamps are worth much more.

Federal parliament seats

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

{| class="wikitable sortable"

!Parliament

!Seat Name

!Member of Parliament

!Party

!P166

|Labuan

|Suhaili Abdul Rahman

|INDEPENDENT

Notable residents

Hassan Sani, Malaysian and Sabah football player
Kelvin Teo, young entrepreneur and season 1 winner of reality show Love Me Do
Karen Kong, Hong Kong-based Malaysian pop singer
Suresh Singh, right-hand bowler who plays for the Malaysian cricket national team
Yussof Mahal, politician from Barisan National party and former Member of Parliament for Labuan

Notes

References

External links

Labuan – Travel information
Labuan Corporation
Labuan Tourism
Labuan Avitourism
Labuan International Business and Financial Centre, Malaysia