Brunei
Brunei Coastline along the South China Sea and Bay of Brunei. @ C.Michael Hogan
Countries and Regions of the World Collection 
Brunei is a nation of 400,000 people in southeast Asia on the northern coast of Borneo. Brunei is two parts which are physically separated by Malaysia and surrounded landward by Malaysia, which country includes about one-third of the island of Borneo within its national territory.
Its major environmental issues include seasonal air pollution smoke/haze resulting from slash-and-burn forest fires in Indonesia.
Brunei is susceptible to typhoons, earthquakes, and severe flooding, although these events are infrequen
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Topgraphy of Brunei. Source: Wikimedia Commons. |
The Sultanate of Brunei's influence peaked between the 15th and 17th centuries AD when its control extended over [[coast]al areas] of northwest Borneo and the southern Philippines.
Brunei subsequently entered a period of decline brought on by internal strife over royal succession, colonial expansion of European powers, and piracy.
In 1888, Brunei became a British protectorate; independence was achieved in 1984.
The same family has ruled Brunei for over six centuries.
Brunei benefits from extensive petroleum and natural gas fields, the source of one of the highest per capita GDPs in Asia.
Brunei is close to vital sea lanes through South China Sea linking Indian and Pacific Oceans; two parts physically separated by Malaysia; almost an enclave within Malaysia
Contents
Geography
Location: Southeast Asia, bordering the South China Sea and Malaysia. Brunei is close to vital sea lanes through the South China Sea linking the [[Indian] Ocean] with the [[Pacific] Ocean].
Geographic Coordinates: 4 30 N, 114 40 E
Area: 5,765 km2 (5,265 km2 land and 500 km2 water)
Arable land: 2.08%
Permanent crops: 0.87%
Other: 97.05% (2005)
Land Boundaries: 381 kilometres. Border countries: Malaysia.
Per Letters of Exchange signed in 2009, Malaysia in 2010 ceded two hydrocarbon concession blocks to Brunei in exchange for Brunei's sultan dropping claims to the Limbang corridor, which divides Brunei. Nonetheless, Brunei claims a maritime boundary extending as far as a median with Vietnam, thus asserting an implicit claim to Lousia Reef
Coastline: 161 km
Maritime Claims: Territorial sea: 12 nautical miles. Exclusive economic zone: 200 nautical miles or to median line.
Natural Hazards: Typhoons, earthquakes, and severe flooding are infrequent
Terrain: Flat [[coast]al plain] rises to mountains in east; hilly lowland in west. The highest point is [[class="category_data" style="font-weight: normal; vertical-align: top">Bukit Pagon]]] (1850 metres). </span>
Climate: Tropical; hot, humid, rainy.
Ecology and Biodiversity
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Principal ecoregions present in Brunei are:
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Ecoregions od Brunei. Source: World Wildlife Fund |
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| Bandar Seri Begawan is the capital and largest city of the Sultanate of Brunei. The water village of Kampong Ayer lies within its boundaries. The village, whose houses stand on stilts, stretches about 8 km (5 mi) along the Brunei River; it is a self-contained settlement equipped with schools, police stations, clinics, a waterborne fire brigade, and mosques - all connected by walkways and bridges. |
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| The Sultan Omar Ali Saifuddin Mosque in the water village of Kampong Ayer is a major landmark and tourist attraction in Brunei. The structure was completed in 1958 in a mixture of Mughal and Italian architectural styles. Built on an artificial lagoon, the mosque is surrounded by lush gardens, fountains, and trees. Its most recognizable feature is the main dome covered in pure gold. From its marble minaret one can enjoy a panoramic view of the capital city. |
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| Sultan Omar Ali Saifuddin Mosque. Source: Sam Garza/Wikimedia Commons. |
People and Society
Population: 408,786 (July 2012 est.)
Many cultural and linguistic differences make Brunei Malays distinct from the larger Malay populations in nearby Malaysia and Indonesia, even though they are ethnically related and share the Muslim religion.
Brunei has hereditary nobility, carrying the title Pengiran. The Sultan can award to commoners the title Pehin, the equivalent of a life peerage awarded in the United Kingdom. The Sultan also can award his subjects the title Dato, the equivalent of a knighthood in the United Kingdom, and Datin, the equivalent of damehood.
Bruneians adhere to the practice of using complete full names with all titles, including the title Haji (for men) or Hajah (for women) for those who have made the Haj pilgrimage to Mecca. Many Brunei Malay women wear the tudong, a traditional head covering. Men wear the songkok, a traditional Malay cap. Men who have completed the Haj can wear a white songkok.
The requirements to attain Brunei citizenship include passing tests in Malay culture, customs, and language as well as the national Malay Islamic Monarchy (MIB) philosophy. Stateless permanent residents of Brunei are given International Certificates of Identity, which allow them to travel overseas. The majority of ethnic Chinese in Brunei are permanent residents, and many are stateless. An amendment to the National Registration and Immigration Act of 2002 allowed female Bruneian citizens to transfer their nationality to their children. In May 2006, the law changed to allow citizenship to permanent residents who have contributed to the country's economic growth, to women married to a citizen for 2 years, to women married to permanent residents for 5 years, and to children of permanent resident fathers after the age of 2 years and 6 months. According to unofficial sources there are approximately 20,000 "stateless" persons in the country, including persons born and raised in the country who were not automatically accorded citizenship and its attendant rights but were granted permanent resident status. In July 2009, the Land Code Strata Act, which allows permanent residents to own units of multistory property for a maximum of 99 years, came into force.
Oil wealth allows the Brunei Government to provide the population with one of Asia's finest health care systems. Malaria has been eradicated, and cholera is virtually nonexistent. There are five general hospitals--in Bandar Seri Begawan, Tutong, Kuala Belait, Bangar, and Seria--and there are numerous health clinics throughout the country.
Education starts with preschool, followed by 6 years of primary education and up to 7 years of secondary education. Nine years of education are mandatory. Most of Brunei's college students attend universities and other institutions abroad, but approximately 4,880 (2009) study at the University of Brunei Darussalam. Opened in 1985, the university has a faculty of more than 300 instructors and is located on a sprawling campus overlooking the South China Sea. A second university, Sultan Sharif Ali Islamic University, was established in 2007 and offers programs such as Islamic finance and law. As of December 2009, the university had about 300 students. Upgraded to university status as of October 2008, Institut Teknologi Brunei (ITB) began offering degree programs in addition to its "Higher National Diploma" programs and had about 700 students.
The official language is Malay, but English is widely understood and used in business. Other languages spoken are several Chinese dialects, Iban, and a number of native dialects. Islam is the official religion. While religious freedom is guaranteed under Brunei’s constitution, non-Islamic faiths face a variety of restrictions, including confiscation of religious materials intended for distribution and sale, and prohibitions on religious teachings in private non-Islamic schools. Christmas and other non-Islamic holidays are widely recognized in Brunei and many faiths are permitted to be practiced in private.
Ethnic groups: Malay 66.3%, Chinese 11.2%, indigenous 3.4%, other 19.1% (2004 est.)
Age Structure:
0-14 years: 25.5% (male 52,944/female 49,729)
15-64 years: 70.9% (male 141,121/female 143,977)
65 years and over: 3.5% (male 6,881/female 7,238) (2011 est.)
Population Growth Rate: 1.691% (2012 est.)
Birthrate: 17.74 births/1,000 population (2012 est.)
Death Rate: 3.39 deaths/1,000 population (July 2012 est.)
Net Migration Rate: 2.55 migrant(s)/1,000 population (2012 est.)
Life Expectancy at Birth: 76.37 years
male: 74.09 years
female: 78.75 years (2012 est.)
Total Fertility Rate: 1.85 children born/woman (2012 est.)
Languages: Malay (official), English, Chinese
Literacy: 92.7% (male: 95.2%; female: 90.2%) (2001 census)
Urbanization: 76% of total population (2008) increasing at a rate of 2.2% per year (2005-10 est.)
History
Historians believe there was a forerunner to the present Brunei Sultanate, which the Chinese called Po-ni. Chinese and Arabic records indicate that this ancient trading kingdom existed at the mouth of the Brunei River as early as the seventh or eighth century A.D. This early kingdom was apparently conquered by the Sumatran Hindu Empire of Srivijaya in the early ninth century, which later controlled northern Borneo and the Philippines. It was subjugated briefly by the Java-based Majapahit Empire but soon regained its independence and once again rose to prominence.
The Brunei Empire had its golden age from the 15th to the 17th centuries, when its control extended over the entire island of Borneo and north into the Philippines. Brunei was particularly powerful under the fifth sultan, Bolkiah (1473-1521), who was famed for his sea exploits and even briefly captured Manila; and under the ninth sultan, Hassan (1605-19), who fully developed an elaborate Royal Court structure, elements of which remain today.
After Sultan Hassan, Brunei entered a period of decline due to internal battles over royal succession as well as the rising influences of European colonial powers in the region that, among other things, disrupted traditional trading patterns, destroying the economic base of Brunei and many other Southeast Asian sultanates. In 1839, the English adventurer James Brooke arrived in Borneo and helped the Sultan put down a rebellion. As a reward, he became governor and later "Rajah" of Sarawak in northwest Borneo and gradually expanded the territory under his control.
Meanwhile, the British North Borneo Company was expanding its control over territory in northeast Borneo. In 1888, Brunei became a protectorate of the British Government, retaining internal independence but with British control over external affairs. In 1906, Brunei accepted a further measure of British control when executive power was transferred to a British resident, who advised the ruler on all matters except those concerning local custom and religion.
In 1959, a new constitution was written declaring Brunei a self-governing state, while its foreign affairs, security, and defense remained the responsibility of the United Kingdom. An attempt in 1962 to introduce a partially elected legislative body with limited powers was abandoned after the opposition political party, Parti Rakyat Brunei, launched an armed uprising, which the government put down with the help of British forces. In the late 1950s and early 1960s, the government also resisted pressures to join neighboring Sabah and Sarawak in the newly formed Malaysia. The Sultan eventually decided that Brunei would remain an independent state.
In 1967, Sultan Omar abdicated in favor of his eldest son, Hassanal Bolkiah, who became the 29th ruler. The former Sultan remained as Defense Minister and assumed the royal title Seri Begawan. In 1970, the national capital, Brunei Town, was renamed Bandar Seri Begawan in his honor. The Seri Begawan died in 1986.
On January 4, 1979, Brunei and the United Kingdom signed a new treaty of friendship and cooperation. On January 1, 1984, Brunei Darussalam became a fully independent state.
Brunei joined the Association of Southeast Asian Nations (ASEAN) on January 7, 1984--1 week after resuming full independence--and gives its ASEAN membership the highest priority in its foreign relations. The chairmanship of ASEAN will rotate to Brunei in 2013. Brunei joined the UN in September 1984. It also is a member of the Organization of Islamic Cooperation (OIC) and of the Asia-Pacific Economic Cooperation (APEC) forum. Brunei hosted the APEC Economic Leaders' Meeting in November 2000 and the ASEAN Regional Forum (ARF) in July 2002.
Government
Under Brunei's 1959 constitution, the Sultan is the head of state with full executive authority, including emergency powers since 1962 which is renewed every 2 years. The Sultan is assisted and advised by five councils, which he appoints.
A Council of Ministers, or cabinet, which currently consists of 14 members (including the Sultan himself), assists in the administration of the government. The Sultan presides over the cabinet as Prime Minister and also holds the positions of Minister of Defense and Minister of Finance. His son, the Crown Prince, serves as Senior Minister. One of the Sultan's brothers, Prince Mohamed, serves as Minister of Foreign Affairs. In May 2010, the Sultan appointed the first female Deputy Minister and elevated the position of both State Mufti and Attorney General to ministerial rank.
The Legislative Council, with appointed seats and minimal powers, was re-introduced following 2004 constitutional amendments issued by the Sultan. Later, a small number of the Legislative Council seats were indirectly elected by village leaders.
The Government of Brunei assures continuing public support for the current form of government by providing economic benefits such as subsidized food, fuel, and housing; free education and medical care; and low-interest loans for government employees.
Government Type: constitutional sultanate (locally known as Malay Islamic Monarchy)
Capital: Bandar Seri Begawan - 22,000 (2009)
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Administrative Divisions: 4 districts (daerah-daerah, singular - daerah);
Independence Date:1 January 1984 (from the United Kingdom) Legal System: Brunei's legal system is based on English common law, with an independent judiciary, a body of written common law judgments and statutes, and legislation enacted by the Sultan. The local magistrates' courts try most cases. More serious cases go before the High Court, which sits for about 2 weeks every few months. Brunei has an arrangement with the United Kingdom whereby United Kingdom judges are appointed as the judges for Brunei's High Court and Court of Appeal. Final appeal can be made to the Judicial Committee of the Privy Council in London in civil but not criminal cases. Brunei also has a separate system of Islamic courts that apply Sharia law in family and other matters involving Muslims. Brunei has not submitted an International Court of Justice jurisdiction declaration; and is a non-party state to the International Criminal Court (ICCt). |
Source: Johan van der Heyden/Wikimedia Commons |
International Environmental Agreements
Brunei is party to international agreements on Biodiversity, Climate Change, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, and Ship Pollution.
Water
Total Renewable Water Resources: 8.5 cu km (1999)
Freshwater Withdrawal: Total: 0.09 cu km/year. Per capita: 243 cu m/yr (1994)
Agriculture
Agricultural products: Rice, vegetables, fruits; chickens, water buffalo, cattle, goats, eggs
Irrigated Land: 10 km2 (2003)
Resources
Natural Resources: Petroleum, natural gas and timber.
Energy
Brunei's economy is almost totally supported by exports of crude oil and natural gas, which account for over 90% of GDP and over 50% of exports.
Brunei is the fourth-largest oil producer in Southeast Asia, averaging about 167,000 barrels a day in 2009. It also is the ninth-largest exporter of liquefied natural gas in the world (according to the Brunei Economic Development Board). Like many oil-producing countries, Brunei's economy has followed the swings of the world oil market. Economic growth has averaged around 2.8% in the 2000s, heavily dependent on oil and gas production. Liquefied natural gas output averages 895 million cubit feet/day. Overall oil production has declined in recent years, and growth rates have fallen significantly. Brunei’s oil reserves are expected to last 25 years, and natural gas reserves 40 years. However, new technology and potential onshore and deep sea fields are expected to add to the lifespan of the reserves.
Brunei Shell Petroleum (BSP), a joint venture owned in equal shares by the Brunei Government and the Royal Dutch/Shell group of companies, is the chief oil and gas production company in Brunei. It also operates the country's only refinery. BSP and four sister companies--including the liquefied natural gas producing firm BLNG--constitute the largest employer in Brunei after the government. BSP's small refinery has a distillation capacity of 10,000 barrels per day. This satisfies domestic demand for most petroleum products.
The French oil company Total (formerly ELF Aquitaine) became active in petroleum exploration in Brunei in the 1980s. The joint venture Total E&P Borneo BV currently produces approximately 35,000 barrels per day and 13% of Brunei's natural gas. As the principal operator of the recently resolved Brunei-Malaysia deepwater block CA-1, Total's production of oil and gas will be significantly increased in the future.
In 2003, Malaysia disputed Brunei-awarded oil exploration concessions for offshore blocks J and K (Total and Shell respectively), which led to the Brunei licensees ceasing exploration activities. The two countries have stated they have reached a joint production resolution to the conflict. Two on-shore blocks are being explored following awards to two consortia--both Australian-led operations. Australia, Indonesia, India, and Korea were the largest customers for Brunei's oil exports, consuming more than 70% of Brunei's total crude exports. Other countries, including New Zealand and China, each purchased more than 7% of Brunei’s total crude exports (2009 Brunei Darussalam--External Trade Statistics).
Almost all of Brunei's natural gas is liquefied at Brunei Shell's Liquefied Natural Gas (BLNG) plant, which opened in 1972 and is one of the largest LNG plants in the world. Some 90% of Brunei's LNG produced is sold to Japan under a long-term agreement renewed in 1993. According to BLNG, the agreement calls for Brunei to provide over 6 million tons of LNG per year to three Japanese utilities, namely to TEPCo, Tokyo Electric Power Co. (J.TER or 5001); Tokyo Gas Co. (J.TYG or 9531); and Osaka Gas Co. (J.OSG or 9532). The Japanese company Mitsubishi is a joint venture partner with Shell and the Brunei Government in Brunei LNG, Brunei Coldgas, and Brunei Shell Tankers, which together produce the LNG and supply it to Japan. Since 1995, Brunei has supplied 700,000 tons of LNG annually to the Korea Gas Corporation (KOGAS) as well. In the second quarter of 2008, total natural gas production reached 0.855 billion cubic feet per day. A small amount of natural gas is used for domestic power generation. Since 2001, Japan remains the dominant export market for natural gas. Brunei is the fourth-largest exporter of LNG in the world (according to the Brunei Economic Development Board) behind Indonesia, Malaysia, and Australia.
Economy
Brunei has a small well-to-do economy that encompasses a mixture of foreign and domestic entrepreneurship, government regulation, welfare measures, and village tradition.
Brunei's economy is almost totally supported by exports of crude oil and natural gas, which account for over 90% of GDP and over 50% of exports. The government uses its earnings in part to build up its foreign reserves. The Brunei Investment Agency manages the bulk of the nation's foreign investments, which are reported to have reached more than $30 billion. The country's wealth, coupled with its membership in the United Nations, Association of Southeast Asian Nations (ASEAN), the Asia Pacific Economic Cooperation (APEC) forum, and the Organization of Islamic Cooperation give it an influence in the world disproportionate to its size.
Per capita GDP is among the highest in Asia, and substantial income from overseas investment supplements income from domestic production.
The government provides for all medical services and free education through the university level and subsidizes rice and housing.
Brunei's economy enjoyed moderate growth in the mid-2000s, primarily due to high world oil and gas prices. However, Brunei's growth has fallen sharply in recent years. In 2009, GDP shrank from U.S. $15.6 billion (BND 20.4 billion) to U.S. $12 billion (BND 15.6 billion). Brunei continues to have one of the lowest GDP growth rates of any ASEAN nation; however, Brunei is also ranked as having one of the highest rates of macroeconomic stability in the world and the highest in Asia. Brunei’s conservative economic policies insulated it from much of the global financial crisis in 2008-2009.
The government sought in the past decade to diversify the economy with limited success. Oil and gas and government spending still account for most of Brunei's economic activity. Brunei's non-petroleum industries include agriculture, forestry, fishing, aquaculture, and banking. The garment-for-export industry has been shrinking since the United States eliminated its garment quota system at the end of 2004. However, with 75% of total garment exports valued at U.S. $66 million, the United States remains the largest export market for garments. The Brunei Economic Development Board (BEDB) announced plans in 2003 to use proven gas reserves to establish downstream industrial projects. In 2006, the Brunei Methanol Company, a joint venture between Petroleum Brunei, Mitsubishi, and Itochu, was established. The $400 million methanol plant, fed by natural gas, came on line in 2010. The plant has the capacity to produce 2,500 metric tons of methanol per day. The government has plans to build a power plant in the Sungai Liang region to power a gas-based petrochemical plant and other downstream industries that will depend on foreign investors. A second major project depending on foreign investment is on Pulau Muara Besar (PMB). In July 2011, BEDB announced the establishment of a U.S. $2.5 billion oil refinery and aromatics cracker project on PMB. Other targeted industries include petrochemical production, oil and chemical storage, and a marine supply base.
The government regulates the immigration of foreign labor out of concern it might disrupt Brunei's society. Work permits for foreigners are issued only for periods of 2 years or less and must be repeatedly renewed. Despite these restrictions, the estimated 100,000 foreign temporary residents of Brunei make up a significant portion of the work force. The government reported an estimated work force of 198,800 in 2010, with a derived unemployment rate of 2.7% (2010 Brunei Darussalam Key Indicators--BDKI).
Oil and natural gas account for almost all exports. Since only a few products other than petroleum are produced locally, a wide variety of items must be imported. Nonetheless, Brunei has had a significant trade surplus throughout the past decade. Official statistics show Singapore, Malaysia, the United States, and China as the leading suppliers of imports in 2009. The United States was the third-largest supplier of imports to Brunei in 2009.
Brunei's substantial foreign reserves are managed by the Brunei Investment Agency (BIA), an arm of the Ministry of Finance. BIA's guiding principle is to increase the real value of Brunei's foreign reserves while pursuing a diverse investment strategy, with holdings in the United States, Japan, Western Europe, and the ASEAN countries.
The government encourages foreign investment in Brunei. New enterprises that meet certain criteria can receive pioneer status, exempting profits from income tax for up to 5 years, depending on the amount of capital invested. The normal corporate income tax rate is 30%. There is no personal income tax or capital gains tax. However, foreign direct investment (FDI) outside the oil and gas industry remains limited.
One of the government's priorities is to encourage the development of Brunei Malays as leaders of industry and commerce. There are no specific restrictions of foreign equity ownership, but local participation, both shared capital and management, is encouraged. Such participation helps when tendering for contracts with the government or Brunei Shell Petroleum.
Companies in Brunei must either be incorporated locally or registered as a branch of a foreign company and must be registered with the Registrar of Companies. Public companies must have a minimum of seven shareholders. Private companies must have a minimum of two but not more than 50 shareholders. At least half of the directors in a company must be residents of Brunei.
The government owns a cattle farm in Australia through which the country's beef supplies are processed. At 2,262 square miles, this ranch is larger than Brunei itself. Eggs and chickens are largely produced locally, but most of Brunei's other food needs must be imported. Agriculture, aquaculture, and fisheries are among the industrial sectors that the government has selected for highest priority in its efforts to diversify the economy. The Philippines and China are currently involved with the largest joint projects with the Government of Brunei to increase agriculture and fisheries production. American firms are consulting on aquaculture projects.
Since 2002, the government has worked to develop Brunei as an international offshore financial center as well as a center for Islamic banking. Brunei is serviced by a large number of banks given its size. Islamic banking is growing, primarily in the Islamic bond (sukok) market. Offshore banking and business incorporation remains a small sector in the overall financial services market. Brunei is keen on the development of small and medium enterprises and has established a technology incubator to encourage the development of an information technology industry. Brunei has also promoted ecotourism to take advantage of the over 70% of Brunei's territory that remains primal tropical rainforest. Brunei is a participant and seeks to take a leadership role in the trilateral Heart of Borneo conservation initiative. While ecotourism is growing, the overall impact for economic diversification is limited.
A new monetary authority was established in January 2011 with responsibilities that include monetary policy, monitoring of financial institutions, and currency trading activities.
GDP: (Purchasing Power Parity): $21.11 billion (2011 est.)
GDP: (Official Exchange Rate): $15.6 billion (2011 est.)
GDP- per capita (PPP): $49,400 (2011 est.)
GDP- composition by sector:
agriculture: 0.9%
industry: 72.3%
services: 26.8% (2011 est.)
Industries: Petroleum, petroleum refining, liquefied natural gas and construction.
Currency: Bruneian dollars (BND)
