Labuan was once one of the smallest  colonial outposts of the British Empire and is now a Free Trade Zone under the Government of Malaysia. There are some interesting wreck dives near Labuan.

In Labuan there is a variety of accommodation (including luxurious resorts as well as economical in-town hotels) and the duty-free status of Labuan makes for some low prices on luxury goods. The diverse population of corals support hundreds of species of colourful coral dwelling fish and invertebrates and are intermingled with several species of mollusks including giant clams. Octopus can also be found here. Sponges and crinoids are found intermingled with corals or near coral patches and so are several species of marine algae (seaweeds). In or near the habitats created by these one finds a wide variety of interesting creatures including photographers’ favourites such as nudibranchs, lionfish, shrimp, lobsters, anemones, anemone fish, sea horses and a host of others.