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Everything You MUST Know Before Visiting Labuan, Malaysia

As someone who’s always on the hunt for the best vacation spots in Malaysia, it’s about time that I talked about Labuan Island. Normally, tourists know it for duty-free shopping, but that’s barely scratching the surface of what this island offers its visitors.

I’ve been to Labuan a handful of times to learn the best things to do on the island, where to stay, what to eat (labuan food), and more! With that being said, consider me your personal tour guide for the day as I run through everything you need to know before visiting the island.

Let’s get started!

Best Time to Go

Labuan Island features a tropical climate all year with some occasional rain showers, especially from October to March because of the Northeast Monsoon. So, avoid visiting during this season if you’re planning on doing water activities like snorkelling.

You can also time your visit during the Borneo Arts Festival in September to be immersed in the local art scene of the island. This is a great time to visit if you want to witness musical shows and dances during your visit.

Things to Know

Currency: Malaysian Ringgit

(Check the current exchange rate)

Languages: Malay and English

Calling Code: +60

How to Get Around

Taxis: Taxis are available on Labuan Island, especially in the city centre. It’s a great option for direct travel, as it can take you to key locations like the airport, ferry terminal, and other attractions on the island.

Buses: Taking the bus is a great way to get around the island on a budget. It features a systematic bus system that passes through essential points and attractions of the island, like the Labuan Hospital, the Sports Complex, the Manikar Beach Resort, etc.

Boats: You can also ride boats/water taxis to visit the neighbouring islands of Labuan from the Labuan International Ferry Terminal.

Car rentals: You can also rent a car if you want to follow your itinerary and have a more private experience exploring around the island.

Where to Stay on Labuan Island

Palm Beach Resort & Spa

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Address: 700, 87014 Labuan

Phone: +60 87-418 700

Pricing: $$

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The Palm Beach Resort & Spa is a top choice if you want to stay by one of the beaches of Labuan Island. Located along a long strip of pure sand, this resort will let you sleep while being serenaded by the rustling of palm trees and the crashing waves.

Of course, it also helps that their suites come with huge comfy beds and an AC unit to keep you comfy. Furthermore, the rooms have Wi-Fi, flat-screen TVs, minibars, heated showers, etc.

The hotel’s spa is one of its best facilities, as it will spoil you with relaxing massages and treatments. If swimming is more your speed, you can cool down at the massive outdoor pool while overlooking the glistening sea.

Dorsett Grand Labuan

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Address: F.T, 462, Jln Merdeka

Phone: +60 87-422 000

Pricing: $$$

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Dorsett Grand Labuan is the crème de la crème when it comes to hotels on the island. It’s a 5-star hotel that offers spacious, amenity-packed rooms, and premium facilities that’ll make you feel like royalty during your stay.

One of the best offerings here is the outdoor swimming pool, which lets you take in beautiful views of the marina. Plus, this hotel is located in the capital of the island, Victoria, so you’ll have the luxury of being near essential establishments!

Foodies will also love this place, as it offers an impressive buffet restaurant that features local and international dishes for breakfast, lunch, and dinner. Meanwhile, if you’re meeting with a business clientele, you can take them to the lounge where you can enjoy refreshing drinks.

Hotel Labuan Point

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Address: Lot 207508183, Jalan Okk Abdullah

Phone: +60 87-411 444

Pricing: $

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If you’re on a budget but location is your top priority, then Hotel Labuan Point should be on your radar. Located in the heart of Labuan, this hotel will provide you with the utmost accessibility to the island’s key locations, like the state mosque and the Financial Park Complex shopping mall.

For its cheap price, the rooms and facilities aren’t too shabby! Each spacious room is well-maintained and features all the modern amenities you can expect from a modern hotel, from landlines to AC units, en-suite toilets and baths, etc.

Lastly, the hotel offers a cool sky lounge and bar for those visitors seeking to cap off their day with drinks and upbeat music. Also, this spot offers some of the most breathtaking views of the city on the whole island!

Tiara Labuan Hotel

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Address: Jalan Tanjung Batu, 87007

Phone: +60 87-424 888

Pricing: $$

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Tiara Labuan Hotel is a great choice if you want to go all in with the island’s tropical vibes. Dotted with tall palm trees and featuring a huge outdoor swimming pool, this place is a complete contrast from the city—perfect for nature getaways!

This 4-star hotel features charming rooms that combine masterful woodwork and minimalist furniture. Moreover, each room comes with all the bells and whistles of a modern hotel room—from hot water to fast Wi-Fi.

Aside from the swimming pool, another highlight-worthy facility of Tiara Labuan is its steam/sauna room. It offers the utmost relaxation your body needs after a day full of exciting activities on the island.

Hotel AIFA

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Address: 700, Bandar Labuan

Phone: +60 87-424 888

Pricing: $

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Consider staying at Hotel AIFA if you want to stay in the Victoria area without burning a hole in your pocket. Also, if you book through their official website, you may even come across one of their regular promos to get an even sweeter deal!

It’s a 3-star hotel that’s well-equipped with comfortable and functional hotel rooms—some of which even provide spectacular views of the city! Also, it’s impressive how spacious these rooms are, considering their affordable prices.

Where to Eat in Labuan

Labuan Fisherman Harbour Restaurant

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Address: 700, Bandar Labuan

Phone: +60 87-408 226

Operating hours: Daily from 10:30 AM to 10:00 PM

Pricing: $$

Website

You can’t say you’ve experienced Labuan until you sample its seafood! For this, Labuan Fisherman Harbour has your back, as it offers fresh catches every day—all prepared in various flavourful ways.

It happened to rain during our visit to this restaurant, which made me draw towards their fish noodle soup, and boy was that the best decision! The tangy and slightly spicy broth perfectly complemented the fresh white meat of the fish—pure chef’s kiss!

However, we’ve got a feeling that their cheese-coated tiger prawns will catch your eye, and we won’t blame you! It’s the perfect blend of flavours, though I must say that it would be better if the prawns had a spicy marinade.

Red Onion House

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Address: 87000 Labuan Golf Course

Phone: +60 87-412 372

Operating hours: Daily from 10:30 AM to 10:00 PM

Pricing: $$

Website

Red Onion is a great family restaurant because that offers a wide variety of Western dishes even the pickiest eaters will love. It’s impossible to order something you won’t like, but if you want our advice, you MUST try their sizzling steak, drenched in gravy.

Don’t worry, though, as they also offer local delicacies if you want to be immersed in Malaysia’s rich cuisine. For instance, they offer a hearty bowl of laksa that’s filled to the brim with toppings like prawns, chicken, and tofu.

Looking for something to share with the entire table? You can opt for their bear-shaped pizza. Pair this with their chicken bolognese pasta for a match made in heaven!

Mortar Cafe Lounge

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Address: Bandar Labuan

Phone: +60 87-580 800

Operating hours:

  • Sunday, Tuesday to Thursday: 7:00 AM to 10:00 PM
  • Friday and Saturday: 7:00 AM to 12:00 AM
  • Sunday: 7:00 AM to 10:00 PM

Pricing: $$

Website

Mortar Cafe is one of the best places in Labuan to get Asian delights, thanks to its widely varied menu. They offer an amazing version of nasi lemak that includes all the fixings, from eggs to peanuts, cucumber slices, and everything in between.

If you’re looking for something warm and hearty for a rainy day, however, you have to order their spicy laksa! Aside from the massive prawns and fresh vegetables, what makes their version better is the addition of shredded fish.

You can’t go wrong with any of their signature drinks as well. But if you’re looking for something refreshing on a hot summer day, their seasonal fruit drink should be right up your alley!

Island Garden Food & Cafe

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Address: Lot U0253, Jalan Kemajuan

Phone: +60 14-668 1377

Operating hours: Daily from 6:00 AM to 10:00 PM

Pricing: $

Foodies on a budget who want to experience a variety of Malaysian delicacies must visit Island Garden Food & Cafe. This no-frills eatery features hawker stalls that offer local favourites like curry mee, fish soup, prawns, etc.

The stir-fried noodles with fresh veggies and massive prawns is a favourite! And if those aren’t enough to entice you, the thick and savoury homemade sauce that covers this entire dish elevates it to the next level.

The place also offers a unique atmosphere that tourists won’t usually find in more established restaurants. From rickety ceiling fans to plastic chairs and chatty locals, it doesn’t get more authentic than this!

Blue Wave Lounge & Restaurant

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Address: Jalan Merdeka, Bandar Labuan

Phone: +60 87-418 345

Operating hours: Daily from 4:00 PM to 1:00 AM

Pricing: $$

Website

Blue Wave Lounge & Restaurant is a fantastic option if you’re looking for a restaurant that can double as your nightlife destination in Labuan. It’s open until midnight every day, and they serve a wide variety of alcoholic drinks—including Guinness on tap!

However, the real highlight remains to be their dishes, and there are a lot to choose from. You can either feast on Indian food like mutton curry, naan, and tandoori chicken or opt for more familiar Western dishes like burgers and beef stroganoff.

Blue Wave is also one of the liveliest places to visit on the island during the nighttime, thanks to the friendly locals and the live bands that play every night. 

What to Do on Labuan Island

Admire the rock formations at Pantai Tanjung Batu

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Address: 87000 Victoria

Pantai Tanjung Batu is one of the best spots in Labuan to catch the most stunning views of Brunei Bay. As if the glistening sea wasn’t enough to make your jaws drop, this beach will amaze you further with its beautiful natural rock formations!

Discover Labuan’s coal mining past at The Chimney Museum

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Address: 87000 Labuan

Phone: +60 87-463 603

Operating hours: Daily from 9:00 AM to 5:00 PM

Even though it’s mostly known for its duty-free shops today, Labuan was once a coal mining town during the administration of the British North Borneo Chartered Company. 

This past is perfectly showcased in the Chimney Museum, which features exhibits that depict Labuan as the top coal producer in the region. You’ll also learn how its railway system was one of the first ones to ever exist in the country!

The main highlight, however, is the realistic diorama of what it’s like to be inside those mining tunnels back in the day. It’s equal parts terrifying and astounding to learn that people used to work under these harsh conditions.

Pay tribute to the fallen at Peace Park

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Address: 87000 Labuan

Operating hours: Open 24 hours

The Peace Park should be on your itinerary for two reasons: to pay tribute to those who have fallen during World War II and to spend a peaceful afternoon.

It’s among the most historical places on the island because it’s where the Japanese forces surrendered during the Second World War. This story is told through the granite stone that was brought from Japan to Malaysia to signify reconciliation and forgiveness.

Other than that, this place is favoured by locals during peaceful afternoons because of its serene ambience and beautiful greeneries.

Meet new feathered friends at Labuan Bird Park

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Address: 87000 Labuan

Phone: +60 87-463 544

Operating hours:

  • Tuesday to Sunday: 9:00 AM to 4:00 PM
  • Monday: 2:00 PM to 4:00 PM

Labuan Bird Park should be a non-negotiable if you’re visiting the island with kids or if you simply want to admire beautiful wildlife species. As the name suggests, this place houses a wide variety of birds, from peacocks to ostriches, chickens, and more.

Each cage is spacious enough for the birds to live freely, so you can admire them in their natural state. Furthermore, you can learn a bit more about them by checking out the visual aids featured in each cage.

Explore and meet the locals of Patau Patau Water Village

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Address: Unnamed Road, 87000

Patau Patau Water Village is a charming place that previews the simplicity of the locals’ lifestyles. It’s an impressive feat of architecture too, as the houses here are all built on stilts above the shallow waters of Labuan, interconnected by a wooden walkway.

You can simply get lost in the maze of walkways and catch glimpses of the sea. Throughout your walks, you’re bound to meet or at least be greeted by one of the friendly locals!

Discover Labuan’s aquatic scene at the Marine Museum

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Address: Kompleks Sukan Air Antarabangsa Labuan

Phone: +60 87-425 927

Operating hours: Daily from 9:00 AM to 5:00 PM

The Marine Museum is guaranteed to mesmerise you with its selection of beautiful and interesting aquatic species. This place is a love letter to the beautiful marine life that surrounds the island, as it houses 16 different galleries that showcase it.

These galleries feature massive aquariums that house colourful fishes as well as their vibrant coral homes.

There’s also an interesting gallery that’s purely dedicated to educating visitors on the many shipwrecks and artefacts found around Labuan’s surrounding waters.

Where to Shop on Labuan Island

One Stop Duty-Free Shop

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Address: Bandar Labuan

Phone: +60 87-421 178

Operating hours: Daily from 9:00 AM to 9:00 PM

Website

We can put any duty-free stores on the island here, but we chose One Stop because of its sheer size and variety. It’s the ultimate shopping destination for tourists looking to bring home tax-free goods, whether it be rare liquors, internationally-branded chocolates, etc.

Even better, this store regularly holds promotions throughout the year, making their prices even more attractive. Trust us, it’s impossible to enter One Stop Duty-Free Shop without buying something!

UTC & Labuan Central Market

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Address: Jalan Bunga Tanjung

Phone: +60 87-408 600

Operating hours: Daily from 8:00 AM to 5:00 PM

Website

You can’t leave Labuan without visiting its central market. This one-stop shop consists of multiple storeys that house hundreds of vendors that offer everything—from dried fish to fruits, vegetables, and more!

One of the bestsellers here is dried anchovies, which isn’t surprising, as it’s one of Labuan’s signature products.

This is also the best place to buy souvenirs such as keychains and other local handicrafts at their lowest prices. Also, you can’t go wrong with buying a locally designed shirt or a set of magnets!

3: Labuan Financial Park Mall

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Address: Jln Merdeka, Financial Park

Phone: +60 87-408 600

Operating hours: Daily from 8:00 AM to 5:00 PM

Website

Labuan Financial Park Mall is the beacon for shopaholics in the centre of the island’s capital. It features multiple floors, dotted with countless stores that offer everything from sporting goods to gadgets, handicrafts, clothes, etc.

A food fair is also held outside the mall at night, where you can sample some street foods and watch talented local acts!