High Quality Content by WIKIPEDIA articles! Labuan is a federal territory in East Malaysia. It is an island off the coast of the state of Sabah. 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. It is also a tourist destination for nearby Bruneians and scuba divers. The name Labuan derives from the Malay word labuhan meaning anchorage.