While the island is considered to be duty free, the things that are sold on the island is not cheap. However the following list is some of the items that are cheaper on the island as opposed to other places and they include;
Cars – Cars and especially the imported ones are quite cheap however you should be aware that if you require them to be transported out of the island then the cars will be subjected to certain taxes.
Cigarette – The prices of the cigarette here are actually half the price of the ones that are found in Peninsular Malaysia. Unfortunately they are not in demand as their flavors are not that desirable to some smokers.
Alcohol – Besides cigarette, the alcohol that is found here is also quite cheap and in fact if you compare the items that are sold here they are almost similar to the items that you would normally find at the airports.
Chocolate – There are a variety of chocolates that are sold on the island and some which are hard to find even in Peninsular Malaysia.
Pearls and Crystals – The pearls and crystals are made into jewelry such as bracelets, earrings, brooches, pendants and even buttons of the traditional Malay costumes. If you wish to purchase these types of jewelry then the best place for you to shop id at the Bazaar Labuan.
Batik sarongs – The reasonable price for the batik sarongs should be around RM10 which is also the normal price that should be sold in Malaysia. However if you find that the asking price is more than that, then just walk away as there are plenty of stores and stalls that sell this particular item.
Seafood – You are on an island and the most natural thing to buy here is of course seafood. The recommended places to buy this item us at the wet market which is located near the Bazaar Labuan. The seafood that you buy can also be packed in a way that is ready for flights, just ask the sellers to do so when you are purchasing the seafood. Another place that also comes highly recommended is SBS Seafood Sdn Bhd which is located in the centre of the town, if you are not familiar with the area just ask the locals or even the taxi driver and they will take you to the place. Besides the fresh food that is sold there, you should definitely buy the frozen fish that is coated with flour which will cost about RM14 per bag.
Items that you may want to stay clear away from are electronics and computer related items as the prices here are sometimes double the amount of what you would normally find in Peninsular Malaysia.