Labuan
island, East Malaysia, 6 miles (10 km) off northwestern Borneo in the South China Sea. Commanding the entrance to Brunei Bay, it is roughly triangular. Its chief town, Victoria, on the southeastern coast, is a free port whose deep, well-sheltered harbour is the principal transshipment point for the state of Brunei, northern Sarawak, and much of western Sabah. Low-lying and well-cultivated, the island has an extensive road network and a large airfield. Its chief products are rubber, copra, and sago. In 1990 the island was declared a tax haven by the Malaysian government as the first step toward developing it into an offshore financial centre
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