With a population of approximately 50,000, Labuan is a duty-free port located 10km west of the Klias Peninsula. It was once a region of Brunei and was ceded to the British in 1846; after WWII it was ultimately made a part of Malaysian Federal Territory in 1984.

Due to its duty-free status, Labuan is a great place to shop – chocolates, cigarettes and alcohol are sublimely cheap and most visitors take advantage of the fact. It’s easy to get around the island due to the fact that Labuan boasts a good minibus network – buses are prompt and clearly marked so you won’t get confused; taxis are also plentiful.

The Financial Park shopping mall tends to draw in visitors as the duty-free retail haven has some pretty good bargains. Additionally, there’s a permanent market at the far western end of town and at the lower levels of the souk, Filipinos sell seashell models, stuffed turtles, leather bags, brassware, cloths and silks.