Labuan (Malay: Labuan, Jawi: لابوان) or Labuan Island (Malay: Pulau Labuan, Jawi: ڨولو لابوان) is the main island of the Malaysian Federal Territory of Labuan. Labuan is best known as an offshore financial centre and a tourist destination for nearby Bruneians and scuba divers. The name Labuan derives from the Malay word labuhan meaning anchorage.

Geography

The Federal Territory comprises Labuan Island (75 km²) and six other smaller islands (Pulau Burung, Pulau Daat, Pulau Kuraman, Pulau Papan, Pulau Rusukan Kecil, and Pulau Rusukan Besar) that, together with Labuan, are 92 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 and are on the northern edge of Brunei Bay facing the South China Sea. Labuan is mainly flat and undulating and the highest point is only 85 metres. More than 70 percent of the island is still covered with vegetation. Bandar Labuan, formerly known as Victoria, is the major town and port and faces Brunei Bay.

History

Labuan was a part of the Hindu Majapahit Empire and, in the 14th century, came under the rule of the Brunei Sultanate.

In 1840 the British used the previously-uninhabited island as a base for operations against piracy and later as a station for the submarine cable between Singapore and Hong Kong. The Sultan of Brunei ceded Labuan to Britain in 1846, and the island became a Crown Colony in 1848. It was made a part of North Borneo on 1 January 1890, then on 30 October 1906 joined to the Straits Settlements. The first White Rajah of Sarawak, James Brooke was appointed commander-in-chief and Governor of the new territory.

During World War II, Labuan was occupied by Japan from December 1941 to June 1945 and governed as part of the Northern Borneo military unit by the Japanese 37th Army. Labuan was renamed Maida Island (Pulau Maida, 前田島 ^*) after Marquis Toshinari Maeda, the first commander of Japanese forces in northern Borneo. The island was retaken by Australian forces in the Borneo Campaign of 1945. Labuan assumed its former name and was under British military administration (along with the rest of the Straits Settlements), then joined to British North Borneo, on 15 July 1946, which in turn became a part of Malaysia as the state of Sabah in 1963.

In 1984, Labuan was transferred from Sabah to the central government and made a Federal Territory. In 1990, it was declared an International Offshore Financial Centre and Free Trade Zone.

Economy

The Malaysian government's attempts to turn Labuan into an international banking centre has had only limited success, but the government still offers incentives to try to lure in new investors. With land utilization geared more towards property and industrial use, there is little agricultural activity. Most of the island's prime land, waterfront and suburbs are utilised for residential and tourism development. A sizeable area on the southwestern side of the island is occupied by shipbuilding, manufacturing and oil and gas industries. Within recent decades Labuan has undergone significant improvements in infrastructure and services.

Population

The population of 78,000 (est. 2000) is mostly Malay, with minorities of Chinese, Kedayans, Filipinos, Indians, Bugis, Bajau and Expatriates.

Politics

Labuan would have joined the North Borneo Federation if it had materialised during the 1960's. During the late 1990's certain sections of the population raised the issue of independence from the Malaysian Federation, or at least greater autonomy or devolved government. This view was opposed by those who believe that independence is not economically viable and state that many services and industries depend on large government subsidies, such as Labuan Shipyard. Advocates of independence state the success of small countries such as neighbouring Brunei as proof that Labuan could function as a separate state. The majority of the population are generally content with the current political situation.

Defence

Defence is the responsibility of the federal government, with naval patrol vessels, a garrison and an air detachment based on the island. The local Police Force maintains everyday law and order. The Coast Guard and Customs and Exercise have a relatively strong presence on Labuan, due to the nature of its economic status as a Federal Territory, international offshore financial centre and free trade zone.

Attractions and places of interest

Postage stamps and postal history

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, then issued its own beginning in May 1879.

The first stamps of Labuan depict the usual profile of Queen Victoria, but are unusual for being inscribed in Arabic and Chinese scripts in addition to "LABUAN POSTAGE". Perennial shortages necessitated a variety of surcharges in between the several reprints and color 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 designs of North Borneo were printed in different colors, with "LABUAN" either engraved into the vignette or overprinted. On 24 September 1896, the 50th anniversary of the cession was marked by overprinting "1846 / JUBILEE / 1896" on the overprinted North Borneo designs. Additional overprints appeared through the 1890s. In 1899 many types were surcharged with a value of 4 cents.

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

External Links

• Labuan Offshore Bank Directory

Islands of Malaysia | Towns in Malaysia

Labuan | Labuan | Wilayah Persekutuan Labuan | Labuan (eiland) | ラブアン | Labuan | Лабуан | Labuan | 纳闽