Labuan History

Labuan had a glorious history under the rule of various empires. After the demise of the Majapahit Empire in the 14th century, Labuan came under the rule of the Brunei Sultanate. The British then officially declared Labuan a colony of the British Empire in 1849 and renamed it Victoria. The British lost its hold over Labuan in 1942 when the Japanese invaded the island. Britain resumed power over Labuan 3 years later and subsequently ceded the island to Sabah in 1963 when Sabah joined Malaysia. The administration of Labuan was handed over to the Federal Government of Malaysia in 1984. In 1990, Labuan was declared an International Offshore Financial Centre.



HISTORICAL BACKGROUND

EARLY DAYS

From the earliest times Labuan has had various cultural and religious influences. Traders and pilgrims from China on their way to India brought Buddhist influences. Islamic influence was brought by Arab merchants while Hindu influence came from the Majapahit Empire. There were also passing influences from Europeans who were involved in the Malacca trade; the Portuguese, Spanish and Dutch.

The first excavation in North Borneo took place at Pulau Burong, a small limestone islet off Labuan in 1960. Limestone was being quarried to fill the Labuan runway. In a tiny cave at Pulau Burong were found pottery, tools and human remains dating back to 2000 years. On another island off Labuan, Pulau Eno, were again found Sung and Ming pottery.

BRITISH COLONY

The modern history of Sabah commences with the occupation of Labuan by the British in 1846, making it one of the British Empire's smallest colonies.

It was on 24 December 1846 when Captain G.R. Mundy, commanding H.M.S. Iris, took possession of Labuan, "In the Name of Her Majesty Victoria Queen of Great Britain and Ireland under the Direction of His Excellency Rear Admiral Sir Thomas Cochrane, C.B., Commander-in-Chief".

The British had negotiated with the Sultanate of Brunei for Labuan among other things. by 1847 the British government concluded a Treaty of Friendship and Commerce with the Sultan of Brunei, at the same time acquiring the island of Labuan.

The British had wanted to turn the island into a powerful base where it could build up its commerce and naval power in the South China Sea. They also felt that Labuan could become a place of refuge for ships damaged by pirates. Piracy was rife in those days and Labuan could be the point form which Britain could fight the pirates. The discovery of coal on the island meant too that British ships could use it as coal depot. Its strategic position was seen as an entrepot for the trade of the North West coast of Borneo. As well, trade could be attracted from the Sulu islands and from Indonesia. It was a time of island taking for Britain. The British has obtained a Royal Charter from Queen Victoria for the Falkland Island Company to run the Falklands in 1852. Hongkong was occupied by British forces in 1841.

Before Labuan became a British Colony in 1846 she was under control of the Brunei Sultanate. When the Portuguese visited Brunei in the 16th century they were believed to have landed at Labuan. Apparently they had built a fort on the island but no relic remains there today. In 1775 when the English trading employees escaped and sought refuge at Labuan. They started a small trading post but this was soon given up.

When the island was ceded to Queen Victoria were no permanent inhabitants there. A few huts on beach were used by fisherman as a resting place.

Rajah James Brooke proclaimed Governor of Sarawak in 1841 also became Labuan's first governor.

On 1 August 1848 Labuan was declared a free port and open to settlers.

Port Victoria, now Labuan town, was chosen as the commercial area as naval officers considered that its anchorage to be the best for shipping.

Early Labuan was thickly covered with jungle and its marshy grounds meant that malaria soon became a most dreaded decease among the inhabitants.

As a colony and a settlement Labuan hardly lived up to its expectations. Its affairs were administered by a governor (Brooke was often away in Brunei, Sarawak, Sulu, Singapore and Siam) on 800 a year. The government also filled the posts of several other offices.

The revenue seldom collected was 3,665 while expenditure totalled 4,153. Revenue was chiefly raised from retail licences, duties on liquor and tobacco.

Obviously trade did not flourish as briskly as the Labuan founders had hoped. Prahus form Sulu and North East Borneo carrying pearls and bird's nests did not find it worthwhile to call at Labuan.

Coal, found at the northern end of the island, was worked by mining companies between 1847 to 1911. It was first worked by William Miles between April 1847 to July 1849, under contract for the Eastern Archipelago Company. He picked the surface of seams close to the water's edge. Miles also obtained the concession to import and sell liquor. A light railway track was built from the colliery at Coal Point or Tanjung Kubong to Port Victoria. One persistent problem that faced the coal mining companies was of labour. Often there were riots and strikes. Workers from Brunei and Malaya, and convicts from India, on finishing their contracts or had served their sentences left the island quickly. The lack of basic amenities and the prevalence of malaria were cited as the causes of discontent.

There was no shortage of interest in Labuan's coal as seen in the many mining companies. Among them were the Labuan Coal, the Amalgamated China Steamship and Labuan Coal and the Oriental Coal. Generally these companies were poorly managed.

The Oriental Coal Company of London and Keith paid a yearly rental of ?/font>1000 to the Labuan government for mining and the right of cutting timber, free of duty.

Opinion at the time was that Labuan coal was not of the highest quality. It burned more quickly than Welsh coal, made much more smoke, was badly hewn and badly washed. Highest output was about 5000 tons a week. In 1881 only 800 tons were produced.

Coal trade soon declined and coal carrying steamers sailed to the China coasts instead. At one time owing to lack of steamers calling at Labuan, the coal at Victoria had accumulated to 8000 tons. The coal station was closed by the navy because of disuse. Today the coal chimney at Tanjung Kubong or Coal Point is a relic of the coal mining days of Labuan.

About 500,000 tons of coal were produced during the 60 years that it was mined. Most of the mining land there has now been alienated for other uses.

When Labuan was opened to settlers in 1847, Brooke tried to persuade the Chinese and Brunei people from Brunei to come to Labuan but he was not successful. However Chinese merchants from Singapore started opening up shops in the settlement. Others started farming. Pepper was first grown by the Chinese. Besides vegetable gardening they also grew oranges, mangoes, mangosteens and pineapple in their orchards. Other crops grown were coconuts, betelnuts and sago.

The Labuan government was administered by a governor appointed by London and a nominated Legislative Council. More often than not one colonial servant held a number of posts at the same time, as Colonial Treasurer, Captain of the Port and Postmaster General.

Labuan suffered poor administration from the start. Sir James Brook, the first governor, left the administration of the colony to his deputy, the Lieutenant-Governor, William Napier. Successive governors were often ill with liver pains or fever or rheumatism. Most of them were also involved with petty squabbles with their subordinates.

In any case the Colonial Office's policy was that Labuan should be ruled with the minimum of funds. The tiny civil service initially was made up of nine officials. This number was further reduced in latter years. In 1881 the Labuan administration was run by five colonial servants.

Thus during the early days as a colony Labuan was mainly headed by inept governors. Colonial life on the island must have seemed so weird and wonderful as backdrop for the stories by Joseph Conrad and Somerset Maugham. One governor had obviously so little work to do that he took up the hobby of keeping cows. He was so successful in this that he started a butter making too.

The military consisted of three or four European officers and were garrisoned by Indian, Malays, Singhalese and local troops.

The population of Labuan in 1867 was about 4000, the majority being Muruts, Dusuns and Kedayans. There were also Malays from the Straits Settlements, 600 Chinese, Indian stallkeepers and 40 Europeans.

The poor health of the Labuan population at the time is seen in the numerous medical men appointed. There was the Colonial Surgeon, the Military Assistant Surgeon, a Naval Surgeon on board the gunboat and a civilian doctor stationed at Coal Point. Poor drainage was seen as the main cause for fevers, dysentery and malaria. Of course the excesses of coal mine workers also contributed to other ailments.

The possession of Labuan as a colony did not come up to expectations. Some had entertained hopes to nurturing it to Singapore's stature. Acquired as a naval station it was seldom used as a base of operations. The coal mine was inefficiently operated. As an entrepot it attracted little traffic apart from the north coast of Borneo.

Because of its failure Britain wanted to abandon the colony. However by pulling out its presence she was afraid that other foreign powers would gain a stronghold in the area.

By 1872 the British were seriously thinking of washing their hands of Labuan. It was suggested that the island be turned into a penal settlement. Others thought the colony should become a part of the Straits Settlements, together with Penang, Malacca and Singapore.

Initially the British North Borneo Chartered Company that was to rule Sabah for 65 years had wanted to administer Labuan as well for prestige reasons. Just before obtaining the Royal Seal for the Chartered Company in 1881, William H. Treacher set up his temporary office in Labuan. However, Treacher and the Labuan governor did not get on well and the former moved to Kudat, establishing Sabah's first capital.

Labuan by 1888 had become as embarrassment. It's public buildings were in a sorry state, it's staff drastically reduced and figures for both imports and exports decreased further. There had been no garrison on the island since 1871.

BRITISH NORTH BORNEO CHARTERED COMPANY

The Chartered Company was asked in July 1889 if it would take over Labuan. This the company did on 1st January 1890. The company governed Labuan in the manner as it did the rest of North Borneo although it still remained a colony. In 1897 a telegraph line from Labuan to Sandakan was completed. Sandakan was the capital of North Borneo at the time.

Petitions were sent to the Colonial Minister in London against the Chartered Company by disgruntled Labuan officials.

The Legislative Council was abolished by the Colonial Office as it had, for several years, met only once a year. It's members at on time, totalled three. The fortunes of Labuan declined further and there was friction among the Chartered Company officials and the Europeans from the coal company.

STRAITS SETTLEMENTS

The Colonial Office took over Labuan in January 1906. In 1907 it became part of the Straits Settlements, a British colony comprising Singapore, Penang and Malacca. It's first Resident under the Straits Settlements was M.S.H. McArthur.

During these years Labuan continued to exist in it's quiet way, still remaining a free port. The only duties were on petrol, spirits and tobacco. At this time the island's population was still about 4000. In the years just before World War II broke out it's annual expenditure figured about $200,000.

In 1941 Labuan's population totalled 8,963 and it's Resident was A.H.P. Humphrey.

WORLD WAR II

On 1st January 1942 the Japanese landed in Labuan. There was no resistance. The Resident received the Japanese at the Cables Offices. On 3rd January 1942 the Japanese took formal occupation of Labuan and changed it's name to Pulau Maida.

North Borneo was liberated from the Japanese Occupation on 10th June 1945 when a Brigade of the Australian 9th Division landed on Labuan. This was supervised by General Douglas MacArthur and the United States 7th Fleet. It was also on this day that North Borneo and Labuan came under the British Military Administration. Martial law was proclaimed by Lieutenant-General L.J. Morshead, General Officer, Commanding First Australian Crops.

Today about 2.5 kms from Labuan town is the War Cemetery. This cemetery commemorates the dead from Commonwealth countries who fought for Sabah in World War II. Among the 4000 dead buried here were men from Australian, New Zealand and British Armies.

For administrative purposes the colony of North Borneo was divided into Residencies, East Coast, West Coast, and Labuan and Interior. There were five District Offices in the East Coast Residency, four in the West Coast, and five in the Labuan and Interior Residency.

Because martial law was declared at the same time by the British in Sabah, Labuan, Brunei and Sarawak, many government departments and authorities were shared by all four territories. During this period the Legal Department was kept busy drafting proclamations. Officers were involved in prosecution and defence in trials of civilians. War criminals were tried in military courts held at Labuan by the Allies.

Temporary buildings took the place of hospitals that were destroyed at Sandakan, Kudat, Lahad Datu and Labuan. Medical supplies were brought in and distributed free to the people. The army supplied hospital equipment, clothing and bedding.

Labuan which was the first objective of the Allied Forces when liberation came was reduced to ruins; she was blasted from the sea and from the air. Port Victoria was completely devastated. later, the Australians built an entirely new wharf for Labuan, known as Liberty Wharf.

Practically every building in the town was destroyed by naval and air bombardment. All government buildings were destroyed except for the hospital, the experimental farm and the lighthouse buildings on Pulau Papan. Most of Labuan's coral roads were damaged by heavy vehicles during the war and required extensive repairs. Earlier, the Australian forces had also built a limited mileage of roads.

Before the war there were no airfields or services in North Borneo. During the occupation the Japanese built an airstrip of 2093 meters long and 27 meters wide in Labuan.

BRITISH NORTH BORNEO COLONY

Under the Labuan Order-in-Council dated 10th July 1946 Labuan ceased to be part of the Straits Settlements, and became part of the Colony of North Borneo. The island, meanwhile lost its privileges as a free port. The new British Crown Colony had a constitution regulated by letters patent under which a governor and Commander-in-Chief was appointed. Labuan in 1946 had a population of 9,253.

Overall reconstruction of Labuan took place after the town plan for the island was drawn. Among the first tasks were the building of two schools. The water supply of Labuan continued to be obtained from the bore holes sunk by the Australian Army in 1945. Improvements were made to these after the war. In 1951, 159 million litres of water were supplied to local consumers and to shipping.

A fisheries office was set up in Labuan to maintain better contact with the West Coast fishing industry. The Labuan airport was the first to be built in North Borneo. By 1951 the following airlines were using the airport: Malayan Airways, Qantas Empire Airways, Cathay Pacific Airways, Garuda Indonesian Airways and Air France. Apart from the links to domestic airports like Jesselton, Sandakan and Kuching there were also scheduled services to or from Singapore, Sydney, Darwin, Hong Kong, Manila, Jarkarta, Saigon, Brisbane and Noumea.

In the decade that Labuan was incorporated with North Borneo as a colony in 1946 she had to pay the same tariff conditions as the other ports. Under these conditions the island did not prosper. A decision to return Labuan to the status of a free port was made. And so on 1st Sept 1956 Labuan was reconstituted a free port by Ordinance.

Among other things, the Ordinance states that "Labuan means the Island of Labuan and it's dependent islands, Rusukan Besar, Rusukan Kecil, Keraman, Burong, Papan and Daat. No customs import duty shall be payable upon any goods, other than intoxicating liquor, tobacco, cigars, cigarettes, and petroleum products, imported into Labuan; No customs export duty shall be payable upon any goods exported from Labuan. Customs import duty shall be payable upon all dutiable goods transported to other parts of North Borneo from Labuan; Customs export duty shall be payable upon all dutiable goods transported from other parts of North Borneo to Labuan".

INDEPENDENCE

Up to 30th August 1963 North Borneo was administered under the provisions of the North Borneo Letters Patent. On 31st August 1963 the state became self-governing and on 16th September of the same year was made a state within the Federation of Malaysia. North Borneo took the name of Sabah.

OLD LABUAN, PEOPLE AND PLACES

When Labuan was ceded to Britain in 1846 there were no permanent inhabitants on the island. A few huts on the beach were used by fishermen as a resting place.

Labuan town in the early days consisted of a row of Chinese brick shops and a cluster of atap houses in the outskirts. Government House was built in 1852. A huge building, five feet off the ground, it had broad verandahs, polished ironwood floors and Chinese-tiled roofs. Gables and eaves lent an air of grandeur to the house. It's park extended to about one hectare.

British royal visitors to Government House were King Edward, Prince of Wales in March 1922, King George as Duke of York and a Duke of Kent.The government offices occupied two large low buildings, roofed with red tiles and piled off the ground. Six guns and 50 native police made up the Labuan army in 1881.

Although never made a full-scale convict colony the British frequently sent long-sentence prisoners from Hong Kong to work in the coal mines. The convicts were also made to repair roads and load ships. Many on the island feared that Labuan might be turned into a peael settlement.

In 1850 James Brooke stated that introducing Hong Kong convicts to Labuan would be beneficial to the island. He felt that their labour in coal mining, road making and jungle clearing would save expenses. He said that only a new jail need be built and a superintendent of convicts appointed; no increase of military was required.

Chartered Company records show that 50 convicts from Hong Kong arrived at Labuan on December 30th, 1850; on January 24th, 1852, 10 more came, and on October 5th, 1857, 60 more arrived.

Victorian colonial life was unconventional to say the least. As John Bill Ross in "Sixty Years Travel and Adventure in the East" wrote, "Some of the men sent out to the island on good salaries seemed to make it their object to do as little as possible in return for the money which they received; and as Labuan has an enervating climate, and is but a poor place for sport or other healthy forms of amusement, they naturally took to drinking and dissipation.

Within 20 years of Labuan becoming a colony her population grew from a handful of fishermen to about 4,000. However after a 100 years of colonial rule, by 1946, the population only stood at 9,253. When the island became part of North Borneo colony in 1946 population growth picked up, averaging about six percent per annum through the 1950s. It slowed down to 1.4 percent in the 1960s and rose again to 4.4 percent in the 1970s. Today Labuan has a population of approximately 26,500. The indigenous people that now inhabit Labuan are the Kedayans, Brunei and Kadazan.

It is not known when the Kedayans first came to Labuan. The Kedayans are a Muslim people and are probably of Sumatran or Javanese origin. They were originally agriculturists, planting rice, coconuts, vegetables, sugar cane, sireh and betelnuts. Some of them are also fishermen. An industrious people, the Kedayans are now found in the civil service and the private sector. The traditional dress of the Kedayan women is a long loose skirt and a jacket, both of dark blue with silver buttons. The hair is twisted in a knot at the back and covered by a red handkerchief. The men wear the Malay loose trousers and coat.

The Brunei's are also Muslim and were from Brunei town. They built their houses on piles over the sea.

Jungle produce collected by the Labuan people in the early days were bees wax, camphor oil, swallows' nests and gutta percha. These were exported to Singapore.

Silversmiths and brass founders, skilful tradesmen from Brunei sold their wares in Labuan. Brass gongs and kettles were in demand.

For entertainment, coal miners went to the Labuan Club, described by Maxwell Hall as a "lively meeting place". There was also the Government Rest House, this was a bit out of the way, being a mile and a half out of town. Officials made the resthouse an exclusive club, many Labuan residents and visitors were not allowed in. These went to a hotel kept by J.P. Keasberry in Victoria.