Labuan, located in the South China Sea, about 8 km off the coast of Sabah is a charming island port. Once part of the Sultanate of Brunel, it was ceded to the British in 1846 following the discovery of rich coal deposits. Ruled by the British for 115 years, it joined the Federation of Malaysla in 1963. In 1984, the State Government of Sabah signed over the administration of Labuan to the Federal Government of Malaysia. A thriving duty-free port and international offshore financial centre, Labuan offers visitors a Botanical Garden dating back to its colonial days, a beautifully landscaped war memorial, a demanding 9-hole golf course and some of the world's most spectacular dive sites littered with numerous shipwrecks.

Labuan's clear waters and a wealth of World War II and post-war shipwrecks has made it the region's centre for wreck diving. Diving expeditions to Labuan's three major wrecks - American, Australian and Cement - can be organised through the local tour operators.