Labuan Island Guide: Things to Do, Beaches and Wrecks

Labuan is a small island and federal territory just off the coast of Sabah, ceded to Britain by the Sultan of Brunei in the 1840s and now an offshore financial centre and duty-free port. The things to do in Labuan are low-key but distinctive: diving on Second World War and later shipwrecks, island hopping in the marine park, war memorials and quiet beaches. It suits divers, history enthusiasts and travellers combining Kota Kinabalu with Brunei.

The island is small enough to drive around in about an hour, so two or three days covers it comfortably.

Top things to do in Labuan

Dive the wrecks

Labuan’s waters hold four well-known wreck sites: the Blue Water Wreck, the American Wreck (the minesweeper USS Salute), the Cement Wreck and the Australian Wreck. Some date from the Second World War and others are later losses. Some are deep and suited to advanced divers only, so go with a local dive centre that can match the site to your experience.

Island hop in Labuan Marine Park

About 2 km off the southern tip of the island, Labuan Marine Park protects three islets: Pulau Kuraman, Pulau Rusukan Besar and Pulau Rusukan Kecil. Boat trips stop for snorkelling, swimming and beach time on Kuraman, which has the best sand. Fishing and anchoring on the reefs are banned. Seas are calmest in the drier months.

Labuan War Cemetery and the Peace Park

The Labuan War Cemetery and Memorial is the largest war memorial in Malaysia, with 3,908 Allied burials, more than half of them unidentified. It is a peaceful, well-kept site, and the annual Remembrance Day ceremony is held here. On the west coast, the Peace Park at Layang-Layangan and the neighbouring Surrender Point mark where Japanese forces in North Borneo surrendered to Australian troops in September 1945.

The Chimney and coal mining heritage

In the north of the island, the Chimney is a red-brick tower of around 32 metres built in the colonial coal mining era. Its exact purpose is still debated, and a small information centre beside it tells the story of mining at Tanjung Kubong from 1847.

Town sights and water villages

In Victoria, the Labuan Museum covers the island’s history from British rule to the war years and federal territory status, and the Marine Museum has aquarium tanks and shipwreck artefacts. Just outside town, Kampung Patau-Patau is a stilt water village of wooden houses joined by walkways, with homestays if you want to stay over.

Duty-free shopping

As a duty-free island, Labuan sells chocolates, perfume, cosmetics, alcohol and tobacco for less than mainland Malaysia. Most shops are around Jalan OKK Awang Besar, the ferry terminal and the Financial Park Complex. Check the allowances before carrying goods back to the mainland.

Beaches

The west coast has a long run of sand from Sungai Miri to Batu Manikar, with Layang-Layangan, Pancur Hitam and Pohon Batu among the easiest stretches to reach. Pantai Tanjung Batu, near the war cemetery, has toilets, changing rooms and snack stalls. Watch for jellyfish, and come for sunset rather than snorkelling.

Practical tips

• Hire a car or arrange a taxi for a half-day island loop; public transport is thin.
• The Labuan International Deep Sea Fishing Tournament is held each year, usually in April, and fills hotels.
• Ferries fill up around public holidays, especially Hari Raya, so book or arrive early.
• Some attractions, including the Bird Park, have closed temporarily in the past; check before making a special trip.

When to go and how it fits a trip

February and March are usually the driest months and October the wettest, so February to April is the best window for diving and island trips. Labuan pairs well with a wider Sabah trip, or as a stepping stone to Brunei. For more island ideas, see our guide to the best islands in Malaysia.