Layang-Layang or "Swallow Reefs" lies about 300 kilometre north of Labuan near the famous Spratly group of islands. It is a world class diving and fishing paradise. Some rate it as a "Big fish and wall diving Mecca of Southeast Asia".

Its coral walls plunge and staggering 2000 metres down to the floor of the South China Sea. Its warm waters are crystal clear with visibility averaging underwater world. Large shoals of pelagics, including massive numbers of barracuda, jacks and the hammerhead shark frequent these waters. By one tour operator account, an awesome school of hammerhead sharks numbering a hundred regularly visit Layang-Layang. Manta rays with fin spans of over 10 feet are also found here. Other residents include the Napoleon Wrasse, Hawksbill turtles, Dog tooth tuna, Giant hammerhead wrasse and the White tip reef sharks.

The island has a 1,067-metre airstrip and a comfortable 90 rooms three-star resort. Every room is air conditioned with private amenities and comes equipped with TV, fridge, extra size beds and a private oceanfront balcony. There is a 200-seat restaurant, full service PADI dive centre, a free form water pool and souvenir shop. This is every serious diver and angler's "must visit" island.