Labuan, officially known as the Federal Territory of Labuan, is an island federal territory located in East Malaysia. It comprises Labuan Island and six smaller surrounding islands situated off the coast of the state of Sabah. The name of the territory originates from the Malay word "labuhan," which translates to "harbour."
The capital of Labuan is Victoria, which serves as a primary offshore financial centre. Since 1990, it has provided international financial and business services through the Labuan IBFC and functions as an offshore support hub for regional deepwater oil and gas activities. Additionally, the territory is a destination for scuba divers and travelers passing through Sabah or visiting from nearby Brunei.