Amad Hassim and Mal Parad, aged 40 and 36, died at the scene from serious injuries following the 11.45pm mishap near the Masjid An-Nur traffic light junction.
Labuan police chief Supt Muhamad Farid Ahmad said the car was driven by 58-year-old man who escaped with light injuries.
A team of paramedics from the Labuan Hospital who rushed to the scene shortly after confirmed Amad and Mal had died.
Their blood and urine samples were also taken for tests.