Labuan is called the Pearl of the South China Sea; on a less romantic and more commercial note, it is better known as an International Offshore Financial Centre (IOFC). It's one tropical island that successfully mixes business with pleasure.

Labuan Town

The island is located 8km off the western coast of Borneo and is easily accessible by air and sea. The main town is Bandar Labuan and its friendly people are mostly made up of Brunei-Malay descendants. There are also the local Chinese, Kedayan (they claim to have Java origins) and immigrant Filipinos and Indonesians.

Booming business centre

In 1990, Labuan was established as an IOFC and to aid the island in its growth as an offshore financial centre, the Financial Park Complex was built in 1996. The Park is a pulsating business centre that houses international offshore banks, insurance and trust companies.

A wide range of offshore financial products and services is offered such as banking, insurance, fund management, trust company, investment holding, company management and Islamic financing.

As a duty-free port, Labuan also offers great bargains and is a haven for shopaholics. The island offers a typically Malaysian shopping experience - one can either shop at a luxurious shopping complex or under the sky at the pasar malam (night market).

Vacation spot

Look no further for a sun, sea and sand vacation. The Labuan Marine Park, which is made up of three secluded islets (namely Pulau Kuraman, Pulau Rusukan Besar and Pulau Rusukan Kecil) is a great place to visit if you want to do nothing except work on your tan, or dive.

The white beaches of Pulau Kuraman make excellent picnic and sunbathing getaways, Pulau Rusukan Besar is ideal for snorkeling, swimming and picnicking whilst the untouched beauty of Pulau Rusukan Kecil makes it perfect for a back-to-nature camp.

Those who love angling should head to Labuan for its year-round fishing while the several shipwrecks surrounding the island coupled with beautiful marine life will keep the scuba-diving fan happy. The island has other attractions such as the Labuan Bird Park, Tanjung Kubong Tunnels, World War II Memorial and The Chimney.

History

The Majapahit Empire ruled Labuan until its collapse in the 14th century. The island then came under Brunei's rule. Early history recorded that the island functioned as a port of refuge from storms and pirate attacks for ships plying the Borneo waters.

In 1845, Sir James Brooke was appointed Labuan's first governor under its maiden administrative system. Two years later, coal was found on the island and commercial mining was carried out until 1911.

The British lost their grip on the island when the Japanese invaded Labuan in 1942. Labuan was then renamed Pulau Maida after General Maida, the chief commander of the Japanese forces in Borneo.

Three years later, Britain resumed its rule of the island and it was placed under the administration of the North Borneo Crown Colony, as Sabah was known then.

In 1956, Labuan was made into a duty-free island and in 1963; the British ceded the island to Sabah when the state joined Malaysia. On April 16, 1984 Labuan was declared a Federal Territory and subsequently an IOFC on Oct 1, 1990.

Today, Labuan is riding the waves of progress and is well known in the business community for its IOFC status. Not only that, this beautiful island possess vast potential to become a popular tourist destination.

More information about Labuan on the Internet:

1. http://www.lofsa.gov.my/lofsa5/index.htm
2. http://www.labuan.net