Sandakan (səndəkänˈ) [key], city (1991 pop. 157,180), Sabah, Malaysia, on N Borneo, on Sandakan Harbor, an inlet of the Sulu Sea. It is the trade hub for an agricultural and lumbering region. Sandakan was the capital of British North Borneo (now Sabah) until 1947, when it was supplanted by Kota Kinabalu (Jesselton).
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