[1][2][3][4][5] The town is an urban district within the wider city limits of Victoria which includes Labuan Port, a sheltered deep-water harbour which is an important trans-shipment point for Brunei Darussalam, northern Sarawak and western Sabah.

[citation needed] The rest of region predominantly features older housing, with some affluent residences situated near the Labuan Golf Club.

[1][11][3] The island was then occupied by Japan from 3 January 1942 until June 1945 and governed as part of the Northern Borneo military unit by the Japanese 37th Army.

[1][12] During the Battle of Labuan it was liberated by the 9th Division of Australian Imperial Force on 10 June 1945 and placed under a British Military Administration until 15 July 1946, when it was incorporated into the North Borneo Crown Colony.

It has a 1,500-seat convention hall adjoining a large shopping mall; these form a modern complex which enhances Victoria's status among International Offshore Financial Centres.

Victoria, Labuan features a tropical rainforest climate (Af), which is true for virtually all of Malaysia due to its close proximity to the equator, with constantly high temperatures and abundant rainfall over the course of the year.