Labuan is a federal territory off the coast of Malaysian Borneo. It is made up of the main Labuan Island and six smaller islands, and is located off the coast of the state of Sabah. It is also a tourist destination for people traveling through Sabah, nearby Bruneians and scuba divers.
The Federal Territory of Labuan comprises Labuan Island (87.52 km²) and six other smaller islands (Pulau Burung, Pulau Daat, Pulau Kuraman, Pulau Papan, Pulau Rusukan Kecil, and Pulau Rusukan Besar), which have a combined total area of 91.64 km². The islands lie 8 kilometres off the coast of Borneo, adjacent to the Malaysian state of Sabah and the independent state of Brunei. Labuan Island is mainly flat and the highest point is only 85 metres. Over 70% of the island is still covered with vegetation.
Labuan's capital is Victoria and is best known as an offshore financial centre offering international financial and business services via Labuan IBFC since 1990 as well as being an offshore support hub for deepwater oil and gas activities in the region.
Labuan has a tropical climate with hot and humid conditions year round. Temperatures usually are around 32 °C during the day and around 24 °C at night. Although there is no distinctive dry season, the months of June to December in general are wetter than January to April, well, at least along the northwest coast. The months of November to January stand out in having more rain and the drier months are March and April. In general though, rain is possible anytime and sometimes up to 500 mm of rain a month is not unheard of.
Daily ferry connections operate out of the Serasa Ferry Terminal in the port town of Muara in Brunei, to Labuan. The journey takes about an hour and a half.
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