Labuan Island is mainly flat and undulating and the highest point is only 85 meters. Over 70% of the island is still covered with vegetation. Victoria, also Bandar Labuan in Malay, is the major town and faces Brunei Bay; access is via ferry service to Brunei and Kota Kinabalu, as well as Labuan Airport. Labuan is the main island of the East Malaysian Federal Territory. 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 a tourist destination for nearby Bruneians and scuba divers. The name Labuan derives from the Malay word labuhan meaning anchorage.
Labuan comprises Labuan Island (75kmē) and six other smaller islands (Burung Island, Daat Island, Kuraman Island, Papan Island, Rusukan Kecil Island and Rusukan Besar Island), which have a combined total area of 91kmē. The islands lie 8 km off the coast of Borneo, adjacent to the Malaysian state of Sabah and the independent state of Brunei Darussalam, on the northern edge of Brunei Bay facing the South China Sea.