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Labuan
Putrajaya
Labuan, island and Federal Territory of Malaysia, located 9.7 km (6 mi) off the northwestern coast of the island of Borneo. The town of Victoria is the capital. The area of Labuan is about 100 sq km (about 40 sq mi).
In 1846, Labuan was ceded to Great Britain by the sultan of Brunei, as a base for the Royal Navy's campaign to combat piracy in the region. It was made a crown colony in 1848, but from 1890 to 1906 it was administered by the colony of North Borneo.
In 1907, Labuan was incorporated into a colony called the Straits Settlements. After being occupied and badly damaged by Japanese troops during World War II (1939-1945), the island in 1946 again became part of North Borneo, which joined Malaysia in 1963 as part of the state of Sabah.
From that year until 1966,Labuan was the headquarters of British Commonwealth forces during the confrontation with Indonesia along the border in Borneo. It retains a strategic role today as a Malaysian naval base.
The island's original economic development was as a transshipment point for trade from Brunei, North Sarawak, and West Sabah. Labuan was ceded to the federal government in 1984 by the state of Sabah and is being developed as an offshore banking center, the first of its kind in the region. Special legislation was introduced during the 1990s to encourage banking and related financial activities, and accompanying infrastructure has been installed.Population on year 1991 is 54,307.
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