Labuan is a federal territory in East Malaysia. It is an island off the coast of the state of Sabah. Labuan's capital is Victoria and 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 nearby Bruneians and scuba divers. The name Labuan derives from the Malay word labuhan meaning anchorage.
The Federal Territory of Labuan comprises Labuan Island (75 sq km) and six other smaller islands (Pulau Burung, Pulau Daat, Pulau Kuraman, Pulau Papan, Pulau Rusukan Kecil, and Pulau Rusukan Besar), which have a combined total area of 91 km². The islands lie 8 km off the coast of Borneo, adjacent to the Malaysian state of Sabah and the independent state of Brunei Darussalam, on the northern edge of Brunei Bay facing the South China Sea.
Labuan Island is mainly flat and undulating and the highest point is only 85 meters. Over 70% of the island is still covered with vegetation. Victoria, also Bandar Labuan in Malay, is the major town and faces Brunei Bay; access is via ferry service to Brunei and Kota Kinabalu, as well as Labuan Airport The territory of Labuan is subdivided into administrative districts: Labuan was a part of the Sultanate of Brunei.