Brunei Darussalam

BRUNEI DARUSSALAM

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS BRUNEIANS
DEPENDENCIES
BIBLIOGRAPHY

Nation of Brunei, Abode of Peace

Negara Brunei Darussalam

CAPITAL: Bandar Seri Begawan

FLAG: On a yellow field extend two diagonal stripes of white and black, with the state emblem centered in red.

ANTHEM: National Anthem, beginning Ya Allah lanjutkan usia ("God bless His Highness with a long life").

MONETARY UNIT: The Brunei dollar (b$, or ringgit) of 100 cents is valued at par with, and is interchangeable with, the Singapore dollar. There are coins of 1, 5, 10, 20, and 50 cents, and notes of 1, 5, 10, 50, 100, 500, 1,000, and 10,000 Brunei dollars. b$1 = us$0.59165 (or us$1 = b$1.6902) as of 2004.

WEIGHTS AND MEASURES: Imperial weights and measures are in common use, as are certain local units, but a change to the metric system is slowly proceeding.

HOLIDAYS: New Year's Day, 1 January; National Day, 23 February; Anniversary of the Royal Brunei Armed Forces, 31 May; Sultan's Birthday, 15 July. Movable holidays include the Chinese New Year and various Muslim holy days.

TIME: 8 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Brunei occupies 5,770 sq km (2,228 sq mi) on the northwestern coast of the island of Borneo. Comparatively, the area occupied by Brunei is slightly smaller than the state of Delaware. It comprises two small enclaves separated by the Limbang River Valley, a salient of the Malaysian State of Sarawak, which surrounds Brunei on the e, s, and w. Brunei's total boundary length is 381 km (237 mi).

Brunei's capital city, Bandar Seri Begawan, is located in the northern part of the country.

TOPOGRAPHY

Brunei's western enclave contains most of the country's population, as well as the capital; the thinly populated eastern zone is mainly dense forest. The land generally consists of primary and secondary tropical rain forest, with a narrow coastal strip on the western enclave. The eastern enclave is more hilly, rising to 1,850 m (6,070 ft) in the nation's highest peak of Mt. Pagon in the extreme south. The longest river in the country is the Belait River which crosses through the western portion of the country; It has a length of 209 km (130 mi).

CLIMATE

The country has a tropical climate, with uniform temperatures ranging from 23–32°c (73–89°f). Humidity is high—about 80% all year round—and annual rainfall varies from about 275 cm (110 in) along the coast to more than 500 cm (200 in) in the interior. Rainfall is heaviest during the northeast monsoon season (landas), especially in November and December.

FLORA AND FAUNA

The country is largely covered by mangrove and peat swamp, heath, montane vegetation, and Dipterocarpaceae forest. The rain forest and swampland are inhabited by a plethora of small mammals, tropical birds, reptiles, and amphibians. Mammals include both wild and domesticated buffalo, honey bear, deer, and monkeys. Insects are abundant and sometimes harmful, in particular the malarial mosquito and biting midge.

ENVIRONMENT

The nation has an extensive oil industry with reserves that are estimated to last 20 years. The forests, which account for about 79% of Brunei's land area, are strictly protected by the government. According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 11 types of mammals, 25 species of birds, 4 types of reptiles, 3 species of amphibian, 6 species of fish, and 99 species of plants. Endangered species included the black-faced spoonbill, Sumatran rhinoceros, the Siamese crocodile, and the painted batagur. Brunei is a party to international agreements on ozone layer protection, endangered species, whaling, and ship pollution and has signed but not ratified the Law of the Sea.

POPULATION

The population of Brunei Darussalam in 2005 was estimated by the United Nations (UN) at 363,000, which placed it at number 166 in population among the 193 nations of the world. In 2005, approximately 3% of the population was over 65 years of age, with another 32% of the population under 15 years of age. There were 108 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 1.9%, a rate the government viewed as satisfactory, although there was concern about the high percentage of immigrants (over 30% of the population is foreign-born). The projected population for the year 2025 was 494,000. The population density was 63 per sq km (163 per sq mi).

The UN estimated that 74% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 2.78%. The capital city, Bandar Seri Begawan, had a population of 61,000 in that year. Other important towns are Seria, Kuala Belait, and Tutong.

MIGRATION

There is little emigration except among the Chinese minority. The government is battling considerable illegal immigration, especially from Indonesia and Sarawak. In 2005, the net migration rate was estimated as 3.45 migrants per 1,000 population. In 2000 there were 104,000 migrants residing in Brunei, which was almost one-third of the total population.

Under Brunei's immigration law children born to Brunei women in Brunei with foreign fathers are stateless. According to Migration News, in November 2000 there were about 5,000 such stateless children in Brunei.

ETHNIC GROUPS

Malays make up about 67% of the population. Minorities include an estimated 15% Chinese, 6% indigenous, and 12% designated as other. There is a small Caucasian minority, chiefly of English, Dutch, American, and Australian stock.

LANGUAGES

Malay is the official language. English is also widely spoken, as is Chinese. The principal Chinese dialect is Hokkien, with Hakka, Cantonese, and Mandarin dialects also in use. Many native dialects are spoken as well.

RELIGIONS

The Shafeite sect of Islam, the official religion, dominates nearly every aspect of public and private life. According to unofficial estimates, 67% of the population are Muslim. About 13% practice Buddhism, 10% are Christian, and 10% are tribal folk-religionists and members of other religious groups. Primary Christian denominations include Anglicans, Catholics, and Methodists.

Religious practice is controlled by the influential Religious Affairs Department. The constitution allows for the peaceful practice of other faiths, but non-Muslims, as well as non-Shafeite traditions, are restricted in practice. Religious groups are required to register even to have the right of assembly. Some zoning laws prohibit the use of private homes as places of worship. Proselytizing of non-Muslim faiths is prohibited. All students are required to study Islam in school, including students at private Christian mission schools, where Christian instruction is prohibited. The Melayu Islam Beraja concept, a national philosophy, discourages ecumenism and the general understanding of or openness to non-Muslim faiths.

TRANSPORTATION

Two seaports, at Muara and Kuala Belait, offer direct shipping services to Hong Kong, Singapore, and several other Asian ports. However, wharf facilities at the deepwater port of Muara, though expanded to about 550 m (1,800 ft) in the mid-1980s, remain inadequate. In 2005, Brunei had 8 liquefied gas tankers with a total capacity of 465,937 GRT. The Brunei River, which flows by the capital, is a major thoroughfare. However, the country's 209 km (130 mi) of navigable waterways are useable only by craft with a draw of under 1.2 m (3.9 ft).

In 2002, there were 1,712 km (1,063 mi) of main roads, of which 1,284 km (798 mi) were paved. Links between the capital and the other western towns are good. Road connections between Brunei and Sarawak are being built. Buses are inexpensive but unreliable. River taxis and cars are for hire. In 2003, the sultanate had 73,500 passenger cars and 15,550 commercial vehicles registered.

A 13-km (8-mi) railway is operated by the Brunei Shell Petroleum Co. In addition, there were two airports in 2004. As of 2005, only one had a paved runway and there were also three heliports. The national carrier, Royal Brunei Airlines, operates regular flights to Singapore, Hong Kong, Manila, Bangkok, Jakarta, Kuala Lumpur, and other cities. Some foreign airlines serve Brunei International Airport at Barakas, outside the capital.

HISTORY

From the 14th to the 16th century, Brunei was the center of a powerful native sultanate occupying what are now Sabah and Sarawak and extending northward through the Philippines almost to Manila. By the 19th century, much of this empire had been whittled away by war, piracy, and the colonial expansion of European nations. In 1847, the sultan concluded a treaty with Great Britain for the suppression of piracy and furtherance of commercial relations. In 1888, Brunei became a British protectorate, and in 1906 a resident British commissioner was established. By a 1959 agreement (amended in 1971), Brunei was recognized as fully self-governing, with Britain retaining responsibility for defense and foreign affairs. Brunei's first elections, held in 1962, resulted in a victory for the Brunei People's Party, militant nationalists who denounced Brunei's entry into a proposed federation with Malaysia, which had attained independence in 1957. Prevented from taking office, the nationalists, with Indonesian backing, revolted against Sultan Omar Ali Saifuddin in December 1962; the revolt was quickly put down with British assistance, but the sultan decided against federation in any case. From that time on, the sultanate has ruled by decree under a national state of emergency. In 1967, Sultan Omar abdicated in favor of his son, Muda Hassanal Bolkiah. Sultan Omar, who after his abdication remained as defense minister and assumed the royal title of Seri Begawan, died in 1986.

During the 1970s, Brunei emerged as the richest state in South-east Asia, profiting from its oil wealth and the steep increases in international oil prices. Much of this vast oil income was expended by the state on modernization and social services. Brunei renegotiated its treaty with the United Kingdom in mid-1978 and, on 7 January 1979, concluded a new treaty providing for independence within five years.

On 1 January 1984, the country attained full independence and was also proclaimed a member of the British Commonwealth. On 7 January 1984 Brunei joined the Association of South-East Asian Nations (ASEAN) and joined the United Nations in the same year. Brunei is also a member of the Organization of Islamic Conference.

In 1985 a new political party was formed, the Brunei National Democratic Party (BNDP), comprised predominantly of businessmen loyal to the Sultan. However, government employees were forbidden by the Sultan to join. The Chinese community was also excluded from membership. In 1986 an offshoot of the BNDP was formed, the Brunei National United Party (BNUP), which emphasized greater cooperation with the government. The BNUP favored the establishment of an elected prime-ministerial system, however. The BNUP's membership was open to Muslims and non-Muslims, but still excluded Chinese. In 1986, Brunei was solicited by the US government to aid the Nicaraguan Contras, but the $10 million donation was credited to the wrong bank account and never reached its intended destination. The donation was eventually traced and returned to Brunei with interest.

In 1988 the top two leaders of the BNDP, President Haji Abdul latif bin Abdul Hamid and Secretary-General Haji Abdul Latif bin Chuchu, were arrested as they were about to fly to Australia. They were held under the Internal Security Act, which allows detention for up to two years without charges being filed, and were detained until 1990. In May of that year, Haji Abdul latif bin Abdul Hamid died. In 1990 the government released six other political prisoners who had been detained since 1962.

Increasing emphasis on Melayu Islam Beraja (MIB) as a state ideology has resulted in the affirmation of traditional values due to increasing concern about an affluent and worldly younger generation. In 1991 the import of alcohol and the public celebration of Christmas were banned. His Majesty Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah celebrated 25 years on the throne in October 1992. Once taken to be the richest man in the world, as of 2001, the Sultan was listed by Forbes magazine as one of the fifteen wealthiest individuals in the world, with us$16 billion.

Brunei established diplomatic relations in 1993 with China, Vietnam, and Laos.

In 1998 Brunei's economy was hit simultaneously by falling oil prices, regional currency depreciation stemming from the region's economic crisis, and the collapse of the multibillion-dollar Amedeo conglomerate run by the Sultan's brother, Prince Jefri Bolkiah, who was removed from his post as the country's finance minister. However, tensions persisted between the Sultan and his brother, who fled to London. Upon his return in early 2000, the government sued him and dozens of other persons for misuse of public funds.

As the new century began, Brunei was looking for ways to diversify its heavily petroleum-dependent economy as its oil and gas reserves waned.

In November 1999, Brunei and the nine other members of the Association of Southeast Asian Nations (ASEAN), agreed informally to create a free-trade zone by eliminating duties on most goods traded in the region by 2010. When ASEAN met in November 2002, the Southeast Asian leaders and China began concrete talks to create what would be the world's largest free trade area, encompassing 1.7 billion people and trade valued at us$1.2 trillion. The free trade area is expected to take 10 years to implement but tariffs on some agricultural products could be cut by early 2003. Products covered by the early package include live animals, meat, fish, dairy produce, other animal products, live trees, vegetables, fruit, and nuts. Talks for trade in goods, services, and investments were due to be held in 2003.

On 16 December 2002, the Sultan met with US president George W. Bush, to strengthen trade between the two countries and to coordinate antiterror efforts in the wake of the 11 September 2001 attacks on the United States. The terrorist attack on a nightclub in Bali, Indonesia, on 12 October 2002 was also a warning that the Southeast Asian region was susceptible to, and perhaps a breeding ground for, the activities of international terrorist organizations.

Brunei, along with the People's Republic of China, Vietnam, Malaysia, Taiwan, and the Philippines, is engaged in a regional dispute over claims to the Spratly Islands, situated in the South China Seas, which are strategically important and may have large oil and gas reserves. In one incident of friction, in August 2002, Vietnamese troops based on one of the Spratly islets fired warning shots at Philippines military planes. On the eve of the ASEAN summit held in November 2002, ASEAN leaders and China signed a declaration of conduct, agreeing not to attempt to occupy the Spratlys. The pact was not binding, but it was hoped that it would help ensure regional security.

In September 2002 Brunei's second-largest newspaper, News Express, closed. Publisher, Peter Wong Lik Young, was arrested for tax evasion as he attempted to flee Brunei with his wife, leaving behind debts of more than three million euros. The remaining paper, the government controlled Borneo Bulletin, was then Brunei's only daily paper.

In September 2004 two significant events occurred: Crown Prince, Al-Muhtadee Billah Bolkiah, age 30, married 17-year-old Sarah Salleh before 2,000 guests; and, Sultan Hassanal Bolkiah re-opened Brunei's parliament with minimal powers, 20 years after it was suspended. The latter was considered a tentative step toward giving some political power to the citizenry.

GOVERNMENT

Brunei is an independent Islamic sultanate. The 1959 constitution (parts of which were suspended in 1962) confers supreme executive authority upon the sultan and provides for five Constitutional Councils: a Privy Council, Council of Cabinet Ministers, Legislative Council, Religious Council, and Council of Succession to assist him. The members of these bodies are appointed by the sultan. The chief minister (mentri besar ) is also appointed by the sultan and is responsible to him for the exercise of executive authority.

The Legislative Council was from time to time reconstituted until a Cabinet-style Government was introduced for the first time in 1984. An elected Legislative Council was being considered as part of constitutional reform, but elections were considered un-likely for several years. In August 2000, the foreign minister confirmed that a review of the constitution had been submitted to the sultan for approval, and that "an element of an election" was in this report. On 25 September 2004, Sultan Hassanal Bolkiah reopened parliament, 20 years after it was disbanded. The new parliament had 21 members, all of them appointed. The Sultan later signed a constitutional amendment, allowing for a 45-seat council with the direct election of 15 members of the next parliament. Elections were last held in March 1962. Future election dates were not available.

At his 1992 Silver Jubilee celebration the sultan emphasized his commitment to preserving Brunei's political system based on the concept of Melayu Islam Beraja (MIB), or Malay Islam Monarchy, as the state ideology. MIB combines Islamic values and Malay culture within a monarchical political framework with the monarchy as defender of the faith.

POLITICAL PARTIES

Parties were organized shortly after self-government was achieved in 1959. However, when the Brunei People's Party won 98% of the legislative seats in the country's only election, held in 1962, the sultan barred its candidates from office and outlawed all political parties under a continuing state of emergency. Political parties reemerged in the 1980s, but in 1988 they were banned and many of their leaders were arrested. At that time, the political parties were: the Brunei National Democratic Party (BNDP), founded in 1985, and the Brunei National United Party (BNUP), founded in 1986 by an offshoot of the BNDP. In contrast to the BNDP, membership in the BNUP was open not to Brunei Malays only, but to other indigenous people, whether Muslim or not. The Chinese were left with the option of forming their own party. (Under Brunei's restrictive naturalization policies only 6,000 Chinese had been granted citizenship.)

In 1995, the Brunei National Solidarity Party (PPKB in Malay), one of the initial parties that had been banned in 1962, formally requested authorization to hold a convention and elected Abdul Latif Chuchu, the former secretary-general of the BNDP, as its president. As of 2002, its president was Mohd Hatta bin Haji Zainal Abidin.

LOCAL GOVERNMENT

There are four administrative districts: Brunei-Muara, Kuala Belait, and Tutong in the western enclave, and Temburong in the east. Government is centrally controlled, but allowance is made for local tribal customs. District officers responsible to the ministers of home affairs administer each district. As part of the MIB ideology, village consultative councils have been introduced, making direct elections unnecessary. Instead, popularly elected headmen would function as mediators between the people and the central government. In June 1993 the Sultan stated "Brunei will strictly adhere to the MIB concept without resorting to fruitless political culture."

JUDICIAL SYSTEM

Brunei's judicial system is based on Indian penal code and English common law. There are five levels of courts with final recourse available through the Privy Council in London. Beginning with the courts of first instance, there are courts of Kathis that handle family matters such as marriage and divorce by applying Islamic law (Shariah). Lower courts called sultan's courts, presided over by magistrates, hear other ordinary cases involving minor disputes. Such cases may be appealed to the High Court, a court of unlimited original jurisdiction in both civil and criminal matters. The High Court is presided over by a chief justice and justices appointed by the sultan. Decisions of the High Court can be taken to the Court of Appeal, presided over by the president and two commissioners appointed by the Sultan. The Supreme Court consists of the High Court and the Court of Appeal.

In 1995, the right to appeal to the Privy Council in London was terminated in criminal cases. Th is final recourse remained available only for civil cases. In May 2002, a State Judiciary Department was established in Brunei, which is responsible for the administration of Brunei's judicial matters.

Certain provisions of the 1959 constitution have been suspended under the state of emergency since 1962.

ARMED FORCES

The Royal Brunei Armed Forces in 2005 consisted of 7,000 active personnel. The Army had 4,900 active members, whose weaponry included 20 light tanks, 39 armored personnel carriers, and 24 artillery pieces. The Navy had 1,000 personnel, whose major units were over six patrol/coastal vessels and four amphibious landing craft. Air Force personnel totaled 1,100 and whose primary equipment included a single transport and six training aircraft, and five support and eighteen utility helicopters. Paramilitary forces included a Gurkha reserve unit estimated at over 2,000 and 1,750 members of the Brunei Royal Police. Brunei's defense budget in 2005 totaled $357 million.

INTERNATIONAL COOPERATION

Brunei was admitted to UN membership on 21 September 1984, and is a member of ICAO, IMF, IMO, ITU, WHO, WIPO, the World Bank, and WMO. It is also a member of the Commonwealth of Nations, ASEAN, APEC, G-77, and the Organization of the Islamic Conference (OIC). Brunei became a member of the WTO 1 January 1995. The country is part of the Nonaligned Movement. In environmental cooperation, Brunei is part of CITES, the Montréal Protocol, MARPOL, and the UN Conventions on the Law of the Sea and Climate Change.

ECONOMY

Discovery of extensive petroleum and natural gas fields in the 1920s brought economic stability and modernization to Brunei. Today its economy, a combination of domestic and foreign entrepreneurship, government regulation, welfare programs, and village tradition, remained dependent on the oil and gas sector. Th is sector accounts for about 40% of GDP, almost 90% of exports, and about 90% of government revenues. Brunei's per capita GDP is one of the highest in Asia, estimated at us$15,000 in 2004.

Oil production peaked in 1980 at an estimated 270,000 barrels per day. Production was deliberately cut back since then to preserve the country's oil reserves, which were estimated to last through at least 2015.

Brunei, aware that its reserves will not last indefinitely, pours much of its oil revenue into international investments in order to provide for its future generations. The sultanate also uses the revenues to finance government spending. Free health care, education through the university level, and rice and housing subsidies are among the benefits that Brunei's people receive.

However, the practice of using oil money to finance investments and government spending—coupled with the sultanate's reliance on oil production and exports—ties Brunei's economic health closely to the health of the world economy itself. As a result, worldwide slowdowns tend to hit the sultanate hard. Brunei was still recovering from the effects of the Asian financial crisis of 1997–98 in 2005, as well as the 1998 collapse of the Amedeo Development Corporation (Brunei's largest construction company), both of which caused the country to slip into recession in the late 1990s. Fluctuations in oil prices also affect Brunei's economic strength. Brunei posted GDP growth in 2003 of 3%. Although GDP growth slowed to 1.75% in 2004, it was projected to return to 3% in 2005.

In early 2001, decrees designed to make investment in Brunei more attractive were put into effect by the Brunei government following a scandal in which key members of the Brunei sultan's family were accused of misusing public funds. A government-owned business, Global Evergreen Corporation, settled debts and took over public building projects tied to the scandal in 2002. The government was increasing efforts to promote Brunei as a destination for upscale tourism and ecotourism. Meanwhile, attempts to diversify the economy have moved slowly.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Brunei Darussalam's gross domestic product (GDP) was estimated at $6.8 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at us$23,600. The annual growth rate of GDP was estimated at 3.2%. The average inflation rate in 2004 was 0.9%. It was estimated that agriculture accounted for 5% of GDP, industry 45%, and services 50%.

LABOR

In 2002, Brunei had a workforce estimated at 158,000 members, of which up to 40% were temporary residents, made up of foreign workers and members of the military. In 1999, (the latest year for which data was available), the government employed 48% of the workers, with 42% of employees in the production of oil, natural gas, services, and construction. The remaining 10% of workers were employed in agriculture, fishing, or forestry. The estimated unemployment rate in 2002 was 3.2%.

Although all workers including government employees can join and form trade unions (excluding military personnel, police officers and prison guards) the government neither facilitates or encourages the establishment of unions. In addition, collective bargaining has no legal basis in the country and strikes are illegal. The country's oil sector accounted for all three of Brunei's registered unions, of which 5% of the industry's workforce was unionized. However, all three unions were inactive. Wages and benefits were set by market conditions.

Children under the age of 18 may only work with parental consent and the approval of the Labor Commission. The law prohibits employment of children under the age of 16. There are no reports of violations of these child labor laws. Although there is no minimum wage, most employees earn a generous living wage. The workweek is limited to 48 hours of work for five days, with two mandatory 24-hour rest days. The more than 100,000 foreign workers in Brunei do not receive the same conditions and wages.

AGRICULTURE

Temporary and permanent crops are actively cultivated on an estimated 6,000 hectares (14,800 acres), which represent 2.5% of total land area. Agriculture accounts for 3% of GDP and employs some 2% of the work force. Rice production is low (only about 1,000 tons per year), and Brunei imports more than 80% of its requirements. Urban migration and more profitable jobs in the oil industry have led to a shortage in farm labor. An agricultural training center, sponsored by Brunei Shell and the Department of Agriculture, was established in 1978 to encourage young people to return to the land. Crops for home consumption include bananas, sweet potatoes, cassava, coconuts, pineapples, and vegetables.

ANIMAL HUSBANDRY

Cattle, buffalo, hogs, goats, and fowl are raised. In 1978, McFarm (a Mitsubishi subsidiary) set up a cattle-breeding station in order to reduce meat imports. The government owns a cattle station in Australia that is larger in area than Brunei itself. Livestock within Brunei in 2004 included 4,675 head of buffalo, 2,353 goats, 6,800 pigs, 1,200 head of cattle, and 12.5 million chickens. Meat production that year was estimated at 20,600 tons, with poultry meat accounting for 77% of the total. The government also encourages livestock production through the Mitsubishi Cattle Breeding Project.

FISHING

Traditional fishing declined during the late 1990s and into the mid-2000s, with only 60% of home consumption provided by local fishermen. The Fisheries Department supplied a small trawling fleet, and continuing efforts were being made to develop both freshwater and saltwater aquaculture. Fish hatcheries were in operation on a six-hectare (15-acre) site near Muara. The annual fish harvest in 2003 totaled 2,157 tons, down from 7,405 tons in 1996.

FORESTRY

Forests cover an estimated 82% of the land area. Forest reserves constitute about 41% of the land area. Exports of timber are restricted. There is a small sawmill and logging industry for local needs. In 2003, Brunei produced about 229,000 cu m (8 million cu ft) of roundwood.

MINING

Brunei's mining industry was engaged primarily in the production and processing of crude oil and natural gas. Principal nonfuel mineral resources in 2003 were cement carbonate rocks, coal, kaolin, sand, gravel, and other varieties of stone. In 2000 construction started on a silica-processing plant to produce silica plates from the country's reserves of high-quality silica sands in Tutong District. In 2003, cement production totaled 235,000 metric tons.

ENERGY AND POWER

Commercial oil production, which began in 1929, dominates the economy. Production of crude oil in 2003 amounted to 196,000 barrels per day, of which 170,000 barrels per day largely consisted of low-sulfur crude oil. Output of liquefied natural gas (LNG) was about 26,000 barrels per day for that same year. As of 2002, exports of crude oil and natural gas accounted for 80–90% of all exports and more than 50% of gross domestic product (GDP). Exploratory drilling for new reserves continued, and capital expenditure on petroleum development remains high. As of 1 January 2004, proven reserves of oil totaled 1.35 billion barrels. After peaking at 240,000 barrels per day in 1979, crude oil production was deliberately lowered in 1988, through a self-imposed conservation quota of 150,000 barrels of oil per day, to extend the life of Brunei's reserves. There are seven offshore fields belonging to Brunei, of which the largest is the Champion field, with about 40% of the country's total reserves. Brunei opened its first deepwater drilling areas in 2001 and accepted bids by two international consortia. There were plans to expand LNG production by 4 million metric tons by 2008. Brunei continued to be a major supplier of liquefied national gas to Japan under 20-year contracts, the last renewed in 1993 by the then newly established Brunei Oil and Gas Authority. The LNG plant at Lumut, Brunei is one of the largest in the world.

Electric power and natural gas supplies are readily available at low cost. Installed electric power generating capacity was estimated, as of 1 January 2002 to be at 0.483 million kW, all of which used natural gas. In 2002, net electricity generation was estimated at 2.5 billion kWh. In the same year, consumption of electricity totaled 2.361 billion kWh. According to British Petroleum (BP), production of natural gas by Brunei in 2004, totaled 12.1 billion cu m. BP places the country's proven natural gas reserves at 0.34 trillion cu m (12.1 trillion cu ft), as of end 2004.

INDUSTRY

Industry is almost entirely dependent on oil and natural gas production. Brunei is the third-largest oil producer in Southeast Asia, after Indonesia and Malaysia, and the fourth-largest producer of liquefied natural gas.

Brunei Shell Petroleum (BSP), a joint venture owned by the Brunei government and Royal Dutch/Shell, is the country's main oil and gas production company, and is the largest employer after the government. It also operates Brunei's refinery. The refinery has a distillation capacity of 10,000 barrels per day, and generally fulfills petroleum product needs within the country.

Natural gas is mostly liquefied at a Shell Liquefied Natural Gas (LNG) plant, which opened in Brunei in 1972 and is one of the largest LNG plants in the world. Brunei sells about 90% of its liquefied natural gas to Japan, under a long-term agreement. In addition, Mitsubishi, a Japanese company, is a joint venture partner with Shell and the Brunei government in three companies: Brunei LNG, Brunei Coldgas, and Brunei Shell Tankers. Brunei also supplies liquefied natural gas to the Korea Gas Corporation.

Oil and gas exploration also are important industrial activities in Brunei, although deep water exploration activities have been on hold since 2003 because of a dispute with Malaysia. The French oil company ELF Aquitaine, which began petroleum exploration activities in Brunei in the 1980s, operates in the country as Total E&P Borneo BV.

Lagging the oil and gas industry considerably is Brunei's second-largest industry, construction. Since the collapse of Amedeo, a government-owned enterprise, Global Evergreen Corporation has taken over a number of projects, the Empire Hotel and Country Club, the Berakus Power Station, the DST Corporate Tower, and the Jerudong Marina. The construction industry was also stimulated by $1 billion made available by the government for projects in late 2001 and early 2002.

Brunei's small manufacturing sector includes production for the construction sector, sawmills, and brick and tile factories. Government support of small-scale projects in food and beverage processing, textiles, furniture making, and specialist optics has had limited results. Brunei also may establish a "cyber park" to encourage development of an information technology industry, and has announced plans to encourage the establishment of offshore financial institutions and Islamic banks.

SCIENCE AND TECHNOLOGY

Advanced science and technology have been imported in connection with development of the oil industry. Foreign technology expertise is employed in communications and other infrastructural programs. The Ministry of Industry and Primary Resources conducts agricultural research. The University of Brunei Darussalam, founded in 1985, has a faculty of science. The Technological Institute of Brunei, located in Bandar Seri Begawan, and the Jefri Bolkaih College of Engineering in Kuala Belair, offer engineering courses. Brunei hosted the sixth ASEAN (Association of South-east Asian Nations) Science and Technology week in Bandar Seri Begawan in September 2001.

As of 2002, Brunei had 282 researchers per million people actively engaged in research and development.

DOMESTIC TRADE

Most food products and other consumer goods come from Singapore, Japan, and Malaysia. Most of Brunei's beef is supplied by a government-owned cattle ranch in Australia, which is larger than Brunei itself.

Although oil and gas dominate Brunei's industrial activity, the country does have some activity in agriculture, forestry, fishing, and banking. Eggs and chickens are produced locally. Agriculture and fisheries are among the industrial sectors that the government has selected for highest priority in its efforts to diversify the economy.

FOREIGN TRADE

Brunei's reliance on oil and gas production require it to import a wide array of goods. Nevertheless, the dollar value of its exports are considerably greater than its imports, which has allowed the country to maintain strong foreign reserves. Exports totaled us$5.057 billion in 2004 and were projected to reach us$5.994 billion in 2005. Of the exports total, us$4.624 billion were oil and gas products in 2004; oil and gas exports were projected to total us$5.626 billion in 2005. Major trading partners for exports in 2004 were Japan (38.1%), South Korea (14%), Australia (11.2%), the United States (8.6%), Thailand (7.9%), Indonesia (5.9%), and China (4.5%).

Imports totaled us$1.338 billion in 2004 and were projected to rise to us$1.458 billion in 2005. Key trading partners for imports in 2004 were Singapore (32.7%), Malaysia (21.2%), the United Kingdom (8.3%), and Japan (7.2%). However, these figures include transshipments; most of Brunei's imports pass through Singapore en route to the company and thus fall under Singapore's total even if the products do not actually originate in the city-state. Japanese products dominate local markets for motor vehicles, construction equipment, electronic goods, and household appliances.

BALANCE OF PAYMENTS

Foreign reserves totaled us$534 million in 2004 and were projected to rise to us$590 million in 2005. Brunei had a trade surplus of us$3.769 billion in 2004; that figure was projected to grow to us$4.621 billion in 2005.

Brunei's account surplus was estimated by the International Monetary Fund (IMF) at us$4 billion in 2004, approximately 70% of GDP.

BANKING AND SECURITIES

The banking industry is controlled by the Association of Banks, in liaison with the government. In 1999, there were nine banks operating in Brunei. Of these, three were locally incorporated and six were foreign, among them the Hongkong Bank, Malayan Banking, Berhard, and Citibank. The International Bank of Brunei, in which the sultan has a 51% stake, is the larger of the local banks. The other, the National Bank of Brunei, was seized in 1986 by the government, which charged the majority shareholders with irregularities, and later closed in the early 1990s. Other banks are the Bairduri Bank, Sime Bank, the Development Bank of Brunei, the

Country	Exports	Imports	Balance
World	4,144.3	1,243.6	2,900.7
Japan	1,697.6	124.4	1,573.2
Korea, Republic of	463.7	29.3	434.4
Thailand	390.7	50.5	340.2
Australia	346.4	37.0	309.4
United States	321.2	143.1	178.1
China	276.3	60.5	215.8
Singapore	185.2	250.3	-65.1
Malaysia	152.8	251.8	-99.0
Indonesia	105.8	33.2	72.6
New Zealand	96.7	1.9	94.8
(…) data not available or not significant.

Overseas Union Bank, and the Standard Chartered Finance (Brunei) Berhad.

The managing director of the Brunei Investment Agency (BIA), Abdul Aziz Abdul Rahman, met France's Treasury director, Jean Lemierre, in mid-December, 1996 to discuss the possibility of opening a BIA office in Paris. BIA's French investments are currently managed from the agency's offices in London and Brussels. Approximately half of the country's revenue is now derived from the income from these investments.

The Brunei Investments and Commercial Bank, a subsidiary of the Brunei Investment Agency, acquired a 13.4% stake in the Australian Macquarie Bank in November 1996, making the BIA the largest single shareholder.

INSURANCE

In 2003, Brunei had four companies providing general and life insurance: American International Assurance Co. Ltd., BALGI Insurance, General Accident and Life Assurance, and Simi AXA Assurance Berhad.

PUBLIC FINANCE

The US Central Intelligence Agency (CIA) estimated that in 2003 Brunei Darussalam's central government took in revenues of approximately us$4.9 billion and had expenditures of us$4.2 billion. Revenues minus expenditures totaled approximately us$700 million.

TAXATION

Citizens of Brunei pay no income taxes and are the beneficiaries of generous welfare subsidies. However, Chinese, who make up an estimated 16% of the population, are excluded from citizenship, and these benefits. They are either stateless or hold British protected persons passports. Only corporations are subject to taxation. Taxation on petroleum income is subject to a 55% rate, while the standard corporate tax rate is 30% on earnings. There is a double-taxation agreement between Brunei and the United Kingdom, and with Indonesia. Exemption from taxes can be granted by the Sultan in Council to industries deemed essential for the country's development. By Income Tax Order 2001, companies granted a Pioneer Certificate, foreign or domestic, are exempted from the 30% tax for two to five years, depending on the size of their capital investment, specified in round dollar terms with an obvious eye to outside investors: for less than $250,000 the exemption is for two years; for $250,000 to $500,000, three years; $500,00 to $1 billion, four years; and above $1 billion, five years. Pioneer and export industries are exempt from customs duties on imports of raw materials and capital goods.

CUSTOMS AND DUTIES

Brunei levies tariffs ranging from zero to 30% on selected items including perfume, and has a single column tariff structure. The country joined ASEAN in 1984 and has reduced trade barriers with member nations.

FOREIGN INVESTMENT

The Brunei Investment Agency (BIA), which is part of the Ministry of Finance, manages the country's foreign reserves. Established in 1983, its mission is to increase the real value of the reserves through a diverse investment strategy. BIA offices in London and Brussels manage French and other European investments. Brunei in 2005 had holdings in the United States, Japan, Western Europe, and the Association of Southeast Asian Nations (ASEAN) countries.

The Brunei government encourages more foreign investment by offering tax incentives, and through its already attractive climate of requiring not personal income or capital gains taxes. However, foreign investors are encouraged to maintain some level of local participation in whatever enterprises they set up. At least half of the directors of any company must be residents of Brunei.

In late 2001, the government added $1 billion to funds available for investment. In 2002, earnings from Brunei's investments abroad for the first time exceeded its earnings from exports from its oil and gas sector. In 2002, the first exploration rights in deep-sea parcels in Brunei's Exclusive Economic Zone (EEZ) were awarded.

The UN Conference on Trade and Development reported foreign direct investment (FDI) of us$103 million in 2004. Although this was down sharply from the us$2 billion in FDI reported to have flowed into Brunei in 2003, the country's foreign reserves remain healthy. FDI stocks stood at us$7.548 billion in 2004 compared with us$7.445 billion in 2003, and in 2004 comprised 135% of GDP. About us$481 million in FDI funds left the country in both 2003 and 2004 for investments elsewhere.

ECONOMIC DEVELOPMENT

Two major themes shape Brunei's economic development plans: careful use of its oil and gas resources to prolong the capacity of the reserves, and gradual diversification beyond the petroleum sector.

While Brunei has successfully managed its reserves and invested much of its excess revenue abroad, efforts to diversify the economy have been sluggish, at best. Out of an interest in diversifying its economy, the Brunei's Economic Development Board announced plans in 2003 to use proven gas reserves to establish industrial projects. Two projects in 2005 were in the works: a 500-megawatt (MW) power plant to provide power for an aluminum smelting operation and a container hub at Brunei's Muara Port. Both projects depend on foreign direct investors.

Another challenge Brunei faces is balancing both its labor force and ownership of its businesses between its residents and foreigners. About 40% of the country's work force consists of foreigners, despite stringent immigration regulations set up to maintain the social cohesion of Brunei's society. One of the country's long-term goals is to encourage Brunei Malays to participate more in business leadership while at the same time maintaining its numerous relationships with multinational investors.

SOCIAL DEVELOPMENT

A provident fund and a universal old age and disability pension system are available to all employees who are citizens or permanent residents. Foreign workers are not eligible. The state provides free medical care, and remote regions are served by mobile clinics and a flying doctor service; there is also a school health service. There is an employer liability system for workers' compensation.

A major social change has been the increasing influence of Islam as a way of life. The extent of spousal abuse is not known. Women are denied equal status with men in many areas, including divorce, custody of children, and inheritance. However, the number of female students at universities has increased. Females are strongly encouraged to wear traditional head covering.

HEALTH

The state provides free medical care and remote regions are served by mobile clinics and a flying doctor service; there is also a school health service. There were eight hospitals, four of which are run by the government. In 2004, there were an estimated 101 physicians, 267 nurses, 14 dentists, and 27 pharmacists per 100,000 people. In 2005, the infant mortality rate was 13 per 1,000 live births. Life expectancy for that year was estimated at 74.8 years. Approximately 96% of the population had access to health care services and 90% had access to safe drinking water. Malaria has been eradicated from Brunei (although it remained a problem in adjacent Sarawak) and cholera is close to nonexistent. There is, however, still some risk of filariasis, tuberculosis, typhoid fever, and intestinal flu. The HIV/AIDS prevalence was 0.10 per 100 adults in 2003. As of 2004, there were approximately 200 people living with HIV/AIDS in the country. There were an estimated 200 deaths from AIDS in 2003.

HOUSING

Since the mid-1970s, the government has supported an ongoing housing program through the National Development Plan to encourage and support homeownership for all citizens. As of 2000, interest-free home loans were available to all citizens (there was no personal income tax within the country either), however, this may change as the government reconsiders the sustainability of its oil-based economy. Through the Landless Indigenous Citizens Housing Scheme (LICS), the government has constructed at least eight housing project sites to offer affordable, modern housing to low-income residents. In the period 1972–97, over 4,000 new homes were built through the LICS.

EDUCATION

The state provides free education from kindergarten up, including university training abroad. Education is compulsory between the ages of 5 and 12. Six years of primary school are followed by seven years of secondary education, the latter being divided into three years of junior secondary, two years of senior secondary, and two years of university preparation studies. The official policy is to promote bilingual education, Malay and English, in all government-supported schools. The academic year runs from August to May.

In 2001, about 44% of children ages three to five were enrolled in some type of preschool program. The same year, about 44,000 students were enrolled in primary schools and about 37,000 students were enrolled in secondary schools. The pupil-teacher ratio at the primary level was 13 to 1 in 2003; the ratio for secondary school was 11 to 1. In 2003, private schools accounted for about 35% of primary school enrollment and 11% of secondary enrollment. Foreigners generally attend private mission schools, the International School, and the Chinese School. Brunei Shell also funds several schools, and there are numerous religious academies.

There are two teacher-training colleges and five vocational technical schools, including an agricultural training center. Brunei also has a university, established in 1985, and institutes of education and technology. The University of Brunei Darussalam (founded in 1985) has faculties for education, arts and social sciences, science, and management and administration. In 2003, about 13% of the tertiary age population were enrolled in some type of higher education program. Many students, however, continue their education in foreign universities at government expense. The adult literacy rate for 2004 was estimated at about 92.7%, with 95.2% for males and 90.2% for females.

As of 2003, public expenditure on education was estimated at 4.4% of GDP, or 9.1% of total government expenditures.

LIBRARIES AND MUSEUMS

The University of Brunei at Gadon holds 29,000 volumes, while the Brunei Museum houses 60,000 volumes. The Dewan Bahasa dan Pustaka Library, established in 1963, is the primary public system. It sponsors four district branch locations in the country and a mobile library with 43 service points in 2002.

Notable museums include the Brunei Museum, which exhibits ethnology and the history of Borneo Island; the Malay Technology Museum; the Royal Regalia Gallery, a fine arts museum opened in 1992; and the Royal Brunei Armed Forces Museum, which features the world's fastest patrol boat.

MEDIA

In 2002, there were 90,000 mainline telephones and 137,000 mobile cellular phones in use throughout the country. Telephone service is generally considered to be of excellent quality. The government-operated Radio Television Brunei broadcasts radio programs in English, Malay, and Chinese, and television programs in Malay and English. While there are no other television stations in the country, three Malaysian television channels can be accessed by some viewers. Two satellite television networks are also available, offering about 28 different channels, including the Cable News Network, the British Broadcasting Corporation World News, and several entertainment and sports channels. As of 1998 there were 3 AM and 10 FM channels.

The only commercial daily newspaper serving Brunei is the English Borneo Bulletin, with a circulation of 25,000 in 2002. The government publishes the Malay weekly Peilta Brunei (2002 circulation 45,000) and a monthly English newsletter, Brunei Darussalam (14,000). There is one other Malay language press, the Media Permata, which circulates approximately 5,000 newspapers. The Straits Times of Singapore circulates widely in Brunei, as do Chinese papers from Sarawak.

In 2001 legislation took effect that places several restrictions on press freedoms. Editions of foreign newspapers or magazines with articles that were found to be objectionable, embarrassing, or critical of the Sultan, the royal family, or the government may be banned from the country. Journalists deemed to have published or written "false and malicious" reports may be subjected to fines or prison sentences. Magazine articles with a Christian theme have been censored. The government also retains the right to close down any newspaper without prior notice.

ORGANIZATIONS

There are four chambers of commerce in the country, including the International Chamber of Commerce and Industry in Bandar Seri Begawan. The Consumers' Association of Brunei (est. 2002) has worked to promote improvements in living conditions and legal rights of workers as well as serving as a consumer advocate group. There are some professional organizations, such as the Brunei Malay Teachers Association and the Women Business Council. There are also organizations promoting education and research in several fields, such as the Brunei Association for Science Education and the Medical Association in Brunei.

The powerful Religious Affairs Department permeates daily life; its activities include sponsoring Islamic pilgrimages and establishing village mosque committees. The Council of Women of Negara Brunei Darussalam, founded in 1985, strives to improve the economic, cultural, and social status of women. Nongovernmental youth movements in Brunei include the Brunei Youth Council, Boy Scouts, and Girl Guides. Sports facilities tend to be privately maintained, with some athletic groups sponsored through the Brunei Amateur Athletic Association. The Brunei National Olympic Committee coordinates activities for national youth sports federations.

There is a national chapter of the Red Crescent Society.

TOURISM, TRAVEL, AND RECREATION

Known for the abundance of flora and fauna in its rain forests and national parks, Brunei is growing as a unique tourism destination. Among Brunei's newest and most remarkable sights is the sultan's 1,788-room palace, built at a reported cost of us$300 million and topped by two gold-leaf domes. Native longhouses and trips up the Brunei and Tutong rivers are also tourist attractions. Visas are not required for stays of up to 90 days, but a valid passport and onward/return ticket are necessary.

In 2002, the US Department of State estimated the cost of staying in Brunei between us$123 and us$248 per day.

FAMOUS BRUNEIANS

Omar Ali Saifuddin (1916–86) was sultan from 1950 to 1967 and minister of defense from 1984 to 1986. His son, Muda Hassanal Bolkiah (Bolkiah Mu'izuddin Waddaulah, b.1946), one of the wealthiest men in the world, has been sultan since 1967.

DEPENDENCIES

Brunei has no territories or colonies.

BIBLIOGRAPHY

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Cleary, Mark. Oil, Economic Development, and Diversification of Brunei Darussalam. New York: St. Martin's, 1994.

Gunn, Geoffrey C. Language, Power, and Ideology in Brunei Darussalam. Athens, Ohio: Ohio University Center for International Studies, 1997.

——. New World Hegemony in the Malay World. Trenton, N.J.: Red Sea Press, 2000.

Leibo, Steven A. East and Southeast Asia, 2005. 38th ed. Harpers Ferry, W.Va.: Stryker-Post Publications, 2005.

LePoer, Barbara Leitch (ed.). Singapore: A Country Study. 2nd ed. Washington, D.C.: Library of Congress, 1991.

Malaysia, Singapore and Brunei. Oakland, Calif.: Lonely Planet, 1999.

Saunders, Graham E. A History of Brunei, New York: Oxford University Press, 1994.

Singh, D. S. Ranjit and Jatswan S. Sidhu. Historical Dictionary of Brunei Darussalam. Lanham, Md.: Scarecrow, 1997.

World Trade Organization. Trade Policy Review: Brunei Darussalam. Geneva, Switzerland: WTO; Lanham, Md.: Co-published by Bernan Associates, 2001.