The tropical island of Labuan nestles in a group of 8 islands about 8 km off the coast of Sabah, and is 123 km from the capital city of Sabah - Kota Kinabalu.
Its central location makes it a crossroad between East Asia to the north and Australia to the south. This provides easy access to the international markets of the Asia- Pacific region.
The Federal Territory of Labuan has a total land area of 92 sq. km., and it enjoys an equatorial climate with average temperatures of around 26'C and rainfall of 3443 mm annually.
October 1st, 1990 marks yet another milestone in the development of the Malaysian financial system. Labuan was launched by the Government as an International Offshore Financial Centre (IOFC), complementing the onshore financial system centred in Kuala Lumpur. This will also enhance the contribution of the financial sector to the Gross National Product of Malaysia.
Besides being strategically located right in the hub of the expanding region, other prerequisites for the success of Labuan as an IOFC include: political stability (stable Government). stable currency with minimum or no exchange control, good infrastructual support facilities such as excellent communications and transportation system with other financial centres, and professionally qualified and experienced workforce.