Administratively, the island forms the main part of the municipality of Balabac and is divided into 14 barangays (the other six barangays of the municipality are on other nearby islands): Balabac is home to various endemic species, of which the Philippine mouse-deer is an example.

Their livelihood includes farming, fishing and barter trading with the nearby Mapun and Sabah market centres.

Balabac is about 140 nautical miles from Mischief Reef, termed Panganiban Reef by the Philippines, which the mainland Chinese government occupied in 1995 and subsequently turned into one of its largest artificial islands within what the Philippines considers its 370 kilometres (230 mi) exclusive economic zone.

[2] Balabac hosts Naval Station Narciso Del Rosario of the Philippine Navy and will host the United States Military under the Enhanced Defense Cooperation Agreement (EDCA).

It is one of five locations covered by the expanded EDCA and is a part of the 2017 Tatag ng Imprastraktura Para sa Kapayapaan and Seguridad program to service military and civilian aircraft.