History
The name Labuan was derived from the Malay word 'pelabuhan' or 'labuhan' which means port or anchorage. In the early 19th century, the British had its eyes on Labuan as it has the potential to become a commerce and naval base. They also felt that Labuan could become a place of refuge for ships damaged by pirates.
However, the Territory was under the control of the Brunei Sultanate. The British then negotiated with the Sultanate of Brunei for Labuan among other things. On December 24, 1846, Captain G.R. Mundy, commanding H.M.S. Iris, took possession of Labuan, making it one of British Empire's smallest colonies. By 1847, the British government concluded a Treaty of Friendship and Commerce with the Sultan of Brunei and at the same time acquired Labuan.
When the island was ceded to Queen Victoria, there were only a few empty huts which were used by fishermen as a resting place. On August 1, 1848, Labuan was declared a free port and open to settlers. Port Victoria, now Labuan town, was chosen as the commercial area as naval officers considered that its anchorage to be the best for shipping.
However, the possession of Labuan as a colony did not meet the British's expectations. Acquired as a naval station, its port was seldom used as a base of operations. As an entreport, it also failed to attract heavy traffic except from the north coast of Borneo. Even its coal mines, located at the northern end of the island, were inefficiently operated due to the coal's worthless value.
Because of its failure, Britain wanted to abandon the colony. But they were afraid that other foreign powers would gain a stronghold in the area. However, by pulling out its presence, the British was afraid that other foreign powers would gain a stronghold in the area.
Labuan, by 1888 had become an embarrassment to the British. The public buildings were in shambles, no one wanted to stay there and the port received less and less traffic. Even the military had left the island 17 years earlier. Then on January 1, 1890, the British North Borneo Chartered Company took over Labuan. However, the fortunes of Labuan declined further.
In January 1906, the Colonial Office in London took over Labuan. The island became a part of the Straits Settlements - a British colony comprising Singapore, Penang and Malacca. During the next few years, Labuan continued to exist in its quiet way, still remaining a free port.
On January 1, 1942, the Japanese landed in Labuan without any resistance. On the third day, the Japanese formally took over Labuan and changed its name to Pulau Maida.
Three years later on June 10, North Borneo including Labuan was liberated from the Japanese Occupation when a Brigade of the Australian 9th Division landed on Labuan. At the time the island was freed from the Japanese, Port Victoria was in complete ruin. Practically every building in the town was destroyed by both naval and air bombardment. The Australians helped to rebuild Labuan as well as an entirely new wharf, known as Liberty Wharf.
Not long after that, Labuan ceased to be part of the Straits Settlement and became part of the North Borneo Colony under the Labuan Order-in-Council dated July 10, 1946. The island also lost its privileges as a free port and had to pay the same tariff conditions as the other ports in the Colony.
Due to these conditions, the island did not prosper. A decision to turn Labuan back to the status of a free port was made. On September 1, 1956, Labuan was reconstituted a free port by the Ordinance.
Among other things, the Ordinance states that 'Labuan means the Island of Labuan and its dependent islands: Rusukan Besar, Rusukan Kecil, Keraman, Burong, Papan and Daat. No customs import duty shall be payable upon any goods, other than intoxicating liquor, tobacco, cigars, cigarettes, and petroleum products, imported into Labuan. No customs export duty shall be payable upon any goods exported from Labuan. Customs import duty shall be payable upon all dutiable goods transported to other parts of North Borneo from Labuan. Customs export duty shall be payable upon all dutiable goods transported from other parts of North Borneo to Labuan'.
Up to August 30, 1963, North Borneo was administered under the provisions of the North Borneo Letters Patent. On August 31, 1963, North Borneo became self-governing and on September 16 the same year, the State - taking the name, Sabah - was made a State within the Federation of Malaysia.
On April 16, 1984, Labuan was proclaimed a Federal Territory of Malaysia. As a Federal Territory, Labuan comprises Labuan Island and the territories within 4.8 km of Labuan, including Pulau Rusukan Besar, Pulau Rusukan Kecil Island, Pulau Kuraman, Pulau Burung, Pulau Papan and Pulau Daat.
Economy
Labuan's economic growth mostly centred on the mining sector, which is largely represented by oil and gas production and the related industries. The sector is followed closely by the manufacturing and tourism sectors. Although the finance sector is still not a major economic contributor, its GDP contribution increased from 5.7% in 1991 to 7.1% in 1995. This is probably due to the increasing number of offshore companies that had set up office in Labuan, which is also an International Offshore Financial Centre (IOFC). T
he territory's GDP is estimated at RM145 million in 1991 and RM196 million in 1995. Labuan is expected to register an average GDP growth of 10.1 per cent per annum during the planning period 1995-2015. By the year 2015, Labuan's total GDP is projected to be RM1.335 million. The per capita income is also expected to go up from RM4.990 in 1995 to an estimated RM9,315 in 2015.
In all, Labuan will continue to prosper based on its aim to thrive as an IOFC, a commercial hub and tourist destination. Major GDP contributions are expected to be derived from the three sectors, namely tourism, finance and transport, with an estimated GDP share of 23.2%, 19.2% and 17.4% respectively in 2015. It is expected that the manufacturing and mining sectors will play a less significant role in the future.
Geography
The Federal Territory of Labuan comprises of one triangle-shaped island and six smaller ones. Situated at the north of Brunei Bay and faces the South Chine Sea, Labuan covers an area of 95 sq km. Most of the island is flat and undulating, the highest point being 85 metre.
Climate
Warm, sunny days and cool nights all year round with occasional rain in the evenings. Temperature ranges from 24°C to 34°C. Humidity is usually exceeds 82.3%. Annual rainfall is 3,500 mm.
Source:www.labuantourism.gov.my
