The Sultanate of Brunei ceded the island of Labuan to the British Empire.

The Sultanate of Brunei or simply Brunei, also known as the Bruneian Empire, was a Malay sultanate centered around Brunei on the northern coast of Borneo in Southeast Asia. Brunei became a sovereign state around the 15th century, when it substantially expanded after the fall of Malacca to the Portuguese, extending throughout coastal areas of Borneo and the Philippines, before it declined in the 17th and 18th centuries. It became a British protectorate in the 19th century.

The Crown Colony of Labuan was a Crown colony off the northwestern shore of the island of Borneo established in 1848 after the acquisition of the island of Labuan from the Sultanate of Brunei in 1846. Apart from the main island, Labuan consists of six smaller islands; Burung, Daat, Kuraman, Papan, Rusukan Kecil, and Rusukan Besar.

Labuan, officially the Federal Territory of Labuan, is an island federal territory of Malaysia. It includes Labuan Island and six smaller islands off the coast of the state of Sabah in East Malaysia. Labuan's capital is Victoria, which is best known as an offshore financial centre offering international financial and business services via Labuan IBFC since 1990, as well as being an offshore support hub for deepwater oil and gas activities in the region. It is also a tourist destination for people travelling through Sabah, nearby Bruneians, and scuba divers. The name Labuan derives from the Malay word labuhan, which means "harbour".