Labuan

Labuan is a federal territory of Malaysia comprising one large and six smaller islands off the coast of Sabah. The island is best known as a duty-free shopping destination with affordable alcohol, cigarettes, and chocolate, but it also offers excellent wreck diving sites from World War II, clean beaches that won the UN COBSEA Clean Beach Award 2008, and significant WWII historical sites including the Labuan War Cemetery with 3,900 recorded graves. The main town, Labuan Town (Bandar Labuan), is one of the cleanest and most pedestrian-friendly towns in Malaysia, making it easy to explore on foot without the chaos of larger Malaysian cities.

Labuan can be reached by air or sea. Labuan Airport has daily flights from Kuala Lumpur (operated by Malaysia Airlines and AirAsia), four daily flights to Miri (by MASWings), and several flights from Kota Kinabalu. The Labuan Ferry Terminal connects the island to Sabah and Brunei, with bicycle rental available at the terminal for RM5 per hour or RM20 per day. Ferry services to Brunei allow for easy cross-border day trips.

Labuan Town is small enough to explore comfortably on foot, and drivers are notably pedestrian-friendly compared to the rest of Malaysia. Bus services (including vans locals call 'buses') operate until 7PM daily with one-way fares ranging from RM1 to RM3. Bus routes cover major attractions: Route 3 to Labuan Hospital and Kiamsam, Route 4 to Layang-layangan Beach and Peace Park, Route 5 to Kerupang and famous seafood restaurants Anjung Ketam and Terumbu Warisan, and Route 6 to Lajau, Bird Park, and several beaches. Taxis are available at town center but require negotiating fares as no meters are used; contact Sri Ganti Taxi Service at 013-8838 882 or 019-8408 228. Scooter rental costs as low as RM38 per 24 hours, available at the ferry terminal.

Labuan has a tropical climate with daily temperatures averaging 28-32°C and two monsoon seasons: the South West monsoon from April to June and the North East monsoon from September to December. The island is free from hurricanes and typhoons, making it viable year-round. The International Sea Challenge in May offers sporting events including the Underwater Treasure Hunt, Jet Sport Challenge, Cross Channel Swim Challenge, and Big Game Fishing Tournament. Remembrance Day at the Labuan War Cemetery is held every November, attended by Malaysian and foreign war veterans.

Accommodation in Labuan ranges from budget hotels to resort properties. Budget options include Red Tomato Hotel near the night market at RM78, Hotel Pulau Labuan with A/C and WiFi at RM128-158, and Perdana Hotel at RM95. Mid-range options include Hotel Aifa (3-star, 5 minutes to airport and ferry terminal), Waterfront Labuan Financial Hotel (4-star with food court in front), and Tiara Labuan Hotel (4-star near Tanjung Batu beach). The only 5-star option is Grand Dorsett Labuan Hotel near Financial Park from RM475. For cultural immersion, consider homestays at Patau-patau II Water Village or Sungai Labu Village where you can experience Kadayan Malay village life and fishing activities.

Labuan is famous for affordable fresh seafood and unique local delicacies. The most famous local dessert is Coconut Pudding (RM6 each) found at Pulau Labuan Restaurant. BBQ chicken wings are a Labuan specialty sold at roadside stalls in Kampung Sungai Keling, with 6 wings costing RM9. Weekend market Pasar Tani (Saturday and Sunday) offers local kuih including kelupis, lamban, jelurut, and batik cake. Must-try items includeunjung (cone-sized rice flour desserts with green jelly fillings) and pulut panggang (glutinous rice with dried shrimp wrapped in banana leaves). Anjung Ketam at Tanjung Aru is the most famous seafood destination, known for crab curry, crab in butter milk, and boiled crab at RM15-30 per person. For budget dining, Island Tomyam offers Thai and Malay cuisine for under RM10 per person.

Labuan offers world-class wreck diving with four major sites: the Australian Wreck (atmospheric dive with rich coral and haunted reputation), American Wreck (WWII artifacts including bullet clips and depth chargers), Cement Wreck (shallowest, great for beginners with possible whale shark sightings), and Blue Water Wreck (intact Philippines fishing trawler from 1981). Note that no diving operators are based in Labuan; organize trips from Brunei or Sabah. Sport fishing around the six surrounding islands offers deep sea and coastal catches. Beaches at Batu Manikar, Pancur Hitam, and Layang-layangan won the UN Clean Beach Award 2008. Golf options include the 18-hole Labuan International Golf Club (championship course designed by Ted Parslow) and 9-hole Labuan Golf Club with driving range and tennis courts.

Labuan is generally a very safe town with low crime rates and minimal police presence. However, visitors should be aware that sex trafficking is a serious issue in Labuan and Malaysia more broadly; karaoke bars and pool halls are best avoided. Road safety requires caution as drivers are leisurely and jaywalking is common. Several attractions like Peace Park and Anjung Ketam are located in village areas where children play near roads. Road blocks are occasionally erected by the Road Transport Department (JPJ).

Labuan offers affordable travel with budget accommodation starting from RM78 per night. Local food is extremely well-priced: BBQ chicken wings (6 for RM9), coconut pudding (RM6), and seafood meals at RM15-30 per person. Bus fares range RM1-3 per journey. Scooter rental costs from RM38 per 24 hours. Duty-free items including alcohol and cigarettes are significantly cheaper than Peninsular Malaysia. A reasonable daily budget for a backpacker would be RM80-150 covering accommodation, food, and local transport.

From Labuan, logical onward destinations include Sabah (accessible by ferry or flight), Brunei (ferry service available), and Sarawak. The Labuan Ferry Terminal offers connections to Sabah and Brunei, making multi-destination Borneo trips feasible. Day trips to Brunei are particularly popular given the proximity.

Major WWII sites include the Labuan War Cemetery, Allied Landing Point, and Japanese Surrender Park, with Remembrance Day held every November. The Chimney is a 106-foot (30m) red brick artifact from the coal mining era (1847-1912) with a small nearby museum; entry is free. The Water Village (Kampung Air) features houses, shops, and mosques built on stilts over water, accessible by road and walkable on wooden bridges. Other attractions include Jamek An-Nur Mosque (largest mosque with grey futuristic architecture), Labuan Square (parade ground for celebrations), Labuan Muzium (9AM-5PM), and Labuan Marine Museum.

Labuan is a duty-free island, though prices are not as cheap as some expect. Items cheaper than elsewhere include pearls and crystals (made into jewelry, brooches, bracelets at Bazaar Labuan), imported cars (subject to export taxes), chocolate, cigarettes (half Peninsula price), alcohol, batik sarongs (RM10 is normal price), and fresh seafood (wet market near Bazaar Labuan or SBS Seafood in town center, frozen fish coated with flour at RM14 per bag). Things to avoid buying are computer goods and electronics, which can cost almost double Peninsula prices.

Labuan is well known for duty-free alcohol, and the island has a lively nightlife scene. Popular bars and entertainment venues include Some Place Else (SPE) at Grand Dorsett Hotel, Kings KTV, Strawberry KTV, Crossroads, Beyond 2000, Blue Wave, and Lido Cafe at Hotel Aifa.

Most hotels offer WiFi, and standard Malaysian mobile providers provide coverage on the island. Malaysia uses Type G power plugs (British-style) with 240V. Visitors should check with their hotels for specific WiFi arrangements and consider local SIM cards for data if needed.

The majority local population is Malay Muslim, so modest dress is appropriate, especially when visiting mosques and religious sites. As a close-knit community where everyone knows everyone, visitors should be respectful and mindful of local customs. The local Brunei-Kadayan Malay dialect differs significantly from standard Malay, though most locals can switch to standard Malay when needed.