Labuan is well-known for its duty free especially alcohols. The main entertainment in Labuan is its night clubs and lounges. Although the majority of bars in Labuan are actually for prostitution, there a few that are not.
Some of the famous places where people go:
POPIN - (http://www.popin-labuan.com)
Some Place Else SPE at the Grand Dorsett Hotel
Kings KTV
Strawberry KTV
Crossroads
Beyond 2000 - one of the few bars in town that doesn't hire prostitutes
Blue Wave
Lido Cafe Hotel Aifa