BRUNEI DARUSSALAM

(SOUTHEAST ASIA)
(Group IV)

BRUNEI
BRUNEI- is a sovereign state located on the north coast of the island of Borneo in Southeast
Asia.
BRUNEI DARUSSALAM

TOTAL POPULATION- 400,000

One of the highest GDP per capita and standards of living in Asia.
Economy dependent on oil and gas.
Education at the heart of the countrys long term development plans.
28th/142 countries for HE quality.
12 government institutions
6 private institutions.
University of Brunei Darussalam

CHALLENGES

Globalization
Economic development
Demographic Changes
Increase HE participation from 17% to 30% in 5 years.
Key research strengths include Biodiversity, Energy, and Food Security/Agro technology,
Asians Studies, Islamic Banking and Finance.

FLAG OF BRUNEI

The design was retained when the country gained full independence on 1 January 1984 as Brunei
Darussalam (State of Brunei, Abode of Peace). On the crescent and ribbon are Arabic
inscriptions translating as "State of Brunei, Abode of peace" and Brunei's motto, "Always in
service with God's guidance".

EARLY HISTORY OF BRUNEI

Brunei, independent Islamic sultanate on the northern coast of the island of Borneo in
Southeast Asia. It is bounded to the north by the South China Sea and on all other sides
by the East Malaysian state of Sarawak, which also divides the state into two
disconnected segments of unequal size.
The western segment is the larger of the two and contains the capital city of Bandar Seri
Begawan. Brunei achieved independence in 1984, after having been a British protectorate
since 1888.
About three-fifths of the population of Brunei is classified officially as Malay.
This category, however, includes not only ethnic Malays but also a number of the
indigenous peoples, namely the Dusun, Belait, Kedayan, Murut, and Bisaya (Bisayah).
Chinese make up about one-fourth of the population.

POLITICS AND GOVERNMENT OF BRUNEI

BRUNEIS POLITICAL SYSTEM

Is governed by the constitution and the national tradition of the Malay Islamic Monarchy,
the concept of Melayu Islam Beraja (MIB).
The three components of MIB cover Malay culture, Islamic religion, and the political
framework under the monarchy. It has a legal system based on English common law,
although Islamic shariah law supersedes this in some cases. Brunei has a parliament but
there are no elections; the last election was held in 1962.

FORM OF GOVERNMENT

Kingdom of Brunei Darussalam is a Country that has a style of government Absolute

Monarchy with the Sultan, served as the Head of State and Head of Government, serves
as a Prime Minister and Minister of Defense, assisted by the advisory council sultanate
and several ministers.
Brunei does not have a Legislative Council, but in September 2000 the Sultan convened
to determine the Parliament that was never held again since 1984.
Brunei became one of the most stable country in terms of politics in Asia.

MONARCHY

Monarchy has a King, Queen, emperor and empress.

The ruling position can be passed on the rulers heirs.
In some traditional Monarchies, the Monarch has absolute powers. (Swaziland, Brunei,
Oman, Qatar)
But a Constitutional Monarchy has a democratic government that limits the Monarchs
control. (United Kingdom, Japan, Kuwait, the Netherlands)

Examples of Countries with Monarchies today:

Saudi Arabia
Brunei
Qatar
Oman

Great Britain (Constitutional Monarchy)

Australia (Constitutional Monarchy)
Morocco (Constitutional Monarchy)
Bhutan (Constitutional Monarchy- new)

SULTANS OF BRUNEI

Muhammad Shah- Established the Sultanate of Brunei and was its first Sultan.

Saiful Rijal (8) - Nephew of the previous sultan, Abdul Kahar. Castile War (military
conflict between Spain and Brunei) broke out between Brunei and Spain.

Muhammad Ali (13) - Killed by his successor Abdul Hakkul Mubin, sparking the Brunei
Civil War.

Abdul Hakkul Mubin (14) - Started the Brunei Civil War by killing his
predecessor Muhammad Ali, and was in turn killed by Muhammad Ali's
grandson Muhyiddin, who succeeded him as sultan.

Muhyiddin (15) - Grandson of Muhammad Ali who avenged his death by killing his
predecessor bdul Hakkul Mubin, so ending the Brunei Civil War.

SULTAN HASSANAL BOLKIAH

Full Name: Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah ibni Al-Marhum

Is the 29th and current Sultan and Yang Di-Pertuan of Brunei. He is also the first and
incumbent Prime Minister of Brunei.
He succeeded to the throne as the Sultan of Brunei, following the abdication of his father
on 4 October 1967.
The Sultan has been ranked among the wealthiest individuals in the
world; Forbes estimated the Sultan's total peak net worth at US$20 billion in 2008.

HIERARCHY SYSTEM IN TRADITIONAL BRUNEI ADMINISTRATION

SULTAN
WAZIR
CHETERIAS
MENTERIS
RAKYAT
HAMBA

Cultures and tradition

ECONOMY OF BRUNEI

BRUNEI BEFORE THE DISCOVERY OF OIL

The economic situation in early Brunei depended on trade where exports were mainly of
raw materials.
14th century to 19th century
- Bruneis economy during this century was weak and poor because of the activities that
had been done by the different Sultans.
- When Bruneis shrunk in size and so did its economy, the foreign and the colonial
offices preferred it to be absorbed within Sarawak.

HOWEVER:

McArthurs Report
- It suggested that Brunei would become self-sufficient after an initial loan and would
become a prosperous state.

Brunei during 1906

- Residency System was introduced.
- British administration struggled to find ways to generate income for the government
treasury.
- The British administration had to scrap the land tenure system in order to generate
income for Bruneis coffers.
- The main exports of Brunei was Cutch, Sago and Coal.
- Other resources such as timber, dried prawns and arts and crafts brought in little
revenue.

UNTIL

1929- The discovery of oil in Seria proved significant for Bruneis economy and helped
preserve Bruneis sovereignty as a Malay Islamic Monarchy.

ECONOMY

Brunei Darussalam is a small country and rich, with a mixture of foreign and domestic
entrepreneurship, government regulation and welfare measures, and village tradition.
Its economy is almost dependent on crude oil exports and natural gas on the whole, the
result from the petroleum sector accounting for more than half of the Gross Domestic
Product. (GDP)
Bruneis per capita GDP far above many Third World Countries, with quite a lot of
income from overseas investments to increase income from domestic production.
Natural gas and oil are the major exports.
With money from these resources, Brunei is building new industries.
Farming and fishing are also very important.
There have been national economic development plans; oil and gas remain the main
source of national income. Steps are being made to establish a petrochemical industry.
In the Islamic banking sector, Brunei Islamic Trust Fund (TAIB) was established on 29
September 1991, while in 2006, the Islamic Bank of Brunei (IBB) and the Islamic

Development Bank of Brunei (IDBB) consolidated into Bank Islam Brunei Darussalam
(BIBD) with total assets of US$5 billion.
OIL AND GAS INDUSTRY

Brunei Shell Petroleum (BSP) is the chief oil and gas production company in Brunei.
This satisfy domestic demand for most petroleum products.
The French oil Company Elf Acquitaine started petroleum exploration in Brunei in
1980s. They have been discovered commercially exploitable quantities of oil and gas in
three of four wells drilled since 1987.

BRUNEIS TRADE

Bruneis economy was supported by its conquered Negeris in Borneo and the Philippines
which were rich in Natural Resources.

MODERN ECONOMIC CONDITION

Brunei is strengthening its economic ties with China. After the two countries established
a bilateral economic corridor to fuel investment and trade in 2014, the latest project that
has been added to the corridor is an aquaculture joint venture that China will invest in.
The Bank of China is planning to enter Bruneis financial market and open a branch in
the country.

According to Dato Paduka Timothy Ong, acting chairman of Brunei Economic Development
Board (BEDB) 2014. Brunei has three important features:
1. Brunei has an unrivaled record of stability: Political and Economic
2. Very successful oil and gas industry: Brunei Shell petroleum, TOTAL etc.
3. An economy in transition from an oil and gas industry to a knowledge base economy.
OIL AND GAS SECTOR:

The small, but oil-rich Sultanate of Brunei Darussalam on the northern coast of Borneo
could be one of the first collateral damages of prolonged low oil prices, experts find.
The countrys dependence on oil and gas income remains inappropriately high under the
given market circumstances, both the International Monetary Fund (IMF) and the Asian
Development Bank (ADB) find, as the Islamic nations efforts to diversify the economy
have been broadly fruitless so far.
Estimates by the BP World Energy Outlook are that Bruneis hydrocarbon reserves will
run out in 22 years in case no new reserves are being discovered.

BANKING MARKETS:

Islamic Bank of Brunei

- financial institution to offer savings and financing in accordance with Islamic principles.
- To meet increased demand for sharia-compliant banking services in the Sultanate.

INVESTMENTS AND PROJECT:

SPARK Industrial zone and a world class petro chemical hub.

Brunei Methanol Company- methanol plant

iCentre ICT incubators, in order to Brunei to be globally competitive even in small size
and limited manpower.
- Innovate ideas to support businesses and technology development.

Pulau Muara Besar (PMB) island project- it is a container port, export processing zone
and a manufacturing hub.

FOOD MARKET:

Brunei Halal Brand- One of the major suppliers of halal industry both foods and
certification worldwide.

TOURIST SITES:

The Royal Regalia Museum-exhibits related to commemorations of Bruneian sultans

were kept.
Ulu Temburong Eco tourism. National park known as a Green heart of Borneo.
The sultan Omar Ali Saifuddin Mosque- an Islamic mosque.
Kampong ayer- village in the water.
The Empire Hotel and Country club- a luxury hotel.

EVENT

2015 - ASEAN Economic Community (AEC). Progress in the Trans-Pacific Partnership

also bodes well for the Sultanate, although both initiatives are likely to increase
competition amongst signatories looking to position themselves as investment
destinations.

ISSUES AND DISPUTES

DISPUTES - Overlapping maritime areas in the South China Sea.

- Brunei claimed the Limbang territory in Sarawak, Malaysia

ISSUES - seasonal smoke/haze resulting from forest fires in Indonesia.

- Stateless persons
- Illicit drugs