The functions of Labuan Corporation in accordance with Section 4, Act 609 –Labuan Corporation Act 2001 are as follows:
To promote and stimulate the Federal Territory of Labuan as a tourist destination, duty-free area and trade center;
To promote, stimulate, facilitate and undertake economic and social development in the Federal Territory of Labuan;
To promote, stimulate and undertake the development of art, culture, sport and recreational activities in the Federal Territory of Labuan;
To promote, stimulate, facilitate and undertake the develelopment of tourism and infrastructure as well as residential, agricultural, industrial and commercial development in the Federal Territory of Labuan;
To perform all functions of a local government in the Federal Territory of Labuan;
To perform all functions of a local planning authority in the Federal Territory of Labuan;
To control and co-ordinate the performance of the activities mentioned in paragraphs (a), (b), (c) and (d) in the Federal Territory of Labuan; and
To co-ordinate the performance of the activities carried out by Government agencies in the Federal Territory of Labuan.