The Federal Territory of Labuan comprises Labuan Island (75 km²) and six other smaller islands which are Pulau Burung, Pulau Daat, Pulau Kuraman, Pulau Papan, Pulau Rusukan Kecil, and Pulau Rusukan Besar.
Facing the South China Sea, Labuan is situated south-west of Sabah and to the north of Brunei Bay. One can visibly see nearby Sabah and Brunei which is accessible via ferry service.
It is one of three federal territories in Malaysia. The others are Kuala Lumpur and Putrajaya, located in Peninsular Malaysia. Labuan is recognised as an international offshore financial and business centre.
It is said that Labuan is derived from the Malay word used at the time, labuhan, which means port.
Offering a host of amenities, Labuan has become a popular island for tourists foreign and local. It boasts world-class resorts, sandy beaches, duty-free shopping, wreck-diving, golfing as well as several important World War II Memorials.