According to the Madeira Tourist Board's website the island has very little crime.  It states that very likely the worst things that will happen to most visitors are generally "sunburns and hangovers".  However, the site also suggests that travelers to the island and to Funchal use common sense and practice certain safety tips to keep themselves free from crime.   Among its suggestions are making sure not to leave bags, cameras, or laptop computers (really anything of value) unattended at any time.  It also suggests being aware and alert while you are out and to pay particular attention to anyone who might brush up against you or who acts in an unusual manner. 

In the city of Funchal in particular, the tourism site does warn that drivers are not always careful and courteous towards pedestrians and that visitors out traveling by foot should be careful while crossing the street.  Cars are also known to park on sidewalks in the city, so it is also important to be careful while walking in the street while navigating around them.

There is little or no crime on Madeira Island, it is entirely safe at all times of the day or night