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Labuan: Country and Foreign Investment


Labuan was ceded to the state of Sabah in 1963. Subsequently, its administration was handed to the Federal Government of Malaysia in 1984.

Malaysia consists of 13 states and the two federal territories of Kuala Lumpur and Labuan. Malaysia has a complex federal political system, with extensive local power still in the hands of nine hereditary sultans, who elect the head of state (entitled HM the Yang di-Pertuan Agong) every five years from among their number.

Legislative power in the hands of the bicameral parliament comprising the Dewan Rakyat (House of Representatives), with 192 members directly elected for a five year term, and the 70-strong Dewan Negara, or Senate, of whom 40 members are appointed by the Head of State and 30 members elected by the country's 13 regional assemblies.

Executive power is held by the Prime Minister, who is formally appointed by the head of state but in practice the leader of the largest party in the Dewan Rakyat. The Prime Minister governs with the assistance of an appointed ministerial cabinet.



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