Labuan Island
A duty-free federal territory off Borneo, with war graves, four wreck dives and a quiet coastline.
Updated 20 October 2026
Labuan is a small island off the Sabah coast, about ninety square kilometres, ceded to Britain in 1846 and now a federal territory administered directly from Kuala Lumpur, which makes it duty-free and the reason many Malaysians visit at all. The town, Victoria, is low-rise and unhurried. The Labuan War Cemetery holds nearly four thousand Commonwealth graves, most of them unnamed, kept as a lawn under frangipani trees; the Peace Park at Layang-Layangan marks the Japanese surrender of Borneo. Divers come for four wrecks in the surrounding water - two from the Second World War and two later ships - which are the main reason the island appears on itineraries beyond the tax-free shopping. The beaches on the west side are quiet, there is a chimney of unknown purpose left from the coal-mining era, and a bird park.
History
From the 15th century the coasts of north and west Borneo, Labuan among them, belonged to the Sultanate of Brunei, and the British East India Company briefly occupied the island in 1775. On 18 December 1846 Captain Rodney Mundy acquired Labuan for Britain by the Treaty of Labuan with Sultan Omar Ali Saifuddin II, and the British hoped it would become the next Singapore (Wikipedia, Labuan).
What's there
- The war cemetery - nearly four thousand Commonwealth graves, most unnamed.
- Four wreck dives - two wartime and two later ships in the surrounding water.
- A duty-free town - Victoria, low-rise, with the tax-free shops Malaysians come for.
- The Chimney - a brick tower left from the coal-mining era, purpose unresolved.
When to go
March to October. Two days.
What to expect
The island is quiet and the attractions are spread out - a car or taxi is needed. The wreck dives are for experienced divers and visibility varies. Ferries can be rough and are cancelled in bad weather.
Nearby
Kota Kinabalu and Brunei are both a ferry away.
Key facts
Source: Wikidata, item Q214504, read on 18 October 2026.
What to pack for Labuan Island
Chosen from what this place is for. Tap a kit for the full checklist.
- Reef-safe sunscreen - High SPF that will not bleach the coral you are swimming over. Find on Amazon
- Your own mask + snorkel - A well-fitting mask is the single biggest comfort upgrade underwater. Find on Amazon
- Quick-dry towel - A microfibre towel packs small and dries in minutes. Find on Amazon
- Rash guard or thin wetsuit - Sun cover on the surface and warmth on longer or deeper dives. Find on Amazon
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Opening times, ticket prices and seasonal closures change - check the official source before you go: official site.


