Introduction to Labuan Island: Pulau Labuan, located at the junction of Brunei and Sabah, is an out-and-out shopping paradise. It is a free port. Shopping on the island is tax-free, and tobacco, alcohol, and electrical appliances are much cheaper than in Sabah. There are not many attractions on the island, the main ones are Labuan Arafa Mosque, Allied War Memorial Tomb and Brick Chimney.