Brunei Darussalam

BRUNEI DARUSSALAM means “Abode of Peace.” It consists of two noncontiguous areas of Kalimantan on the coast of the South China Sea. They are separated by the Gulf of Brunei and, on land, by Sarawak, Malaysia. Brunei is the remnant of a larger sultanate. A hereditary monarchy since 1415, Brunei Darussalam became a British protectorate in 1888. In 1959, Brunei's first constitution provided for a mostly appointive Legislative Council. The last legislative election was held in 1962. Upon government refusal to seat the winners, Sheikh A.M. Azahari's Partai Rakyat Brunei (People's Party of Brunei) revolted. British troops quickly crushed the rebellion. Many leaders received asylum in Indonesia and Malaya.

The domestic and international repercussions have been felt for more than 40 years. Under the Internal Security Act, the sultans have ruled with emergency powers. In 1963, Brunei was the only British protectorate or colony that refused to join the proposed Federation of Malaysia. In 1967, Haji Hassanal Bolkiah became the 29th sultan. In 1970, the Legislative Council was reconstituted as a purely appointive body. In 1984, Brunei Darussalam regained independence and it joined the then-anticommunist Association of South-East Asian Nations (ASEAN). Political parties were tolerated in 1985–88, but government employees were not permitted to join. The legislature met only in 1984 and 2004. The sultan and family members hold the key cabinet portfolios.

Two-thirds of Bruneians are Muslims. The largest religious minority is Buddhist (mainly Chinese). Since 1991, Islamization of Bruneian society through Malaya Islam Beraja (MIB) or “Malay Muslim monarchy” ideology has intensified.

Economic stability came with the discovery of the Seria oil field in 1929. Extraction and processing of oil and natural gas are done by Brunei Shell Petroleum—a joint venture of the Brunei government and Royal Dutch/Shell. In 1973, Brunei opened the world's largest liquified natural gas facility. The Organization of Economic Cooperation and Development recognizes Brunei as a developed country. By 1999, Japan was importing half of Brunei's oil. Crude oil and natural gas production and processing account for almost 25 percent of the domestic labor force and about 50 percent of the Gross Domestic Product (GDP).

Otherwise, Brunei's local economy is dominated by the Chinese. In Asia, Brunei's GDP per capita is exceeded only by Japan and rivals that of Singapore. A [Page 93]member of the World Trade Organization (WTO), Brunei has not joined the Organization of Petroleum Exporting Countries (OPEC) but does not challenge OPEC pricing. Brunei claims an exclusive economic zone in the oil-rich South China Sea. In 2003, competing claims led to a naval dispute with Malaysia.

Free healthcare and nine years of education are guaranteed free for citizens of Brunei. Qualified students receive free higher education. Malay is the national language, but the educational system also uses English. In 1999, adult literacy was 94.3 percent for males and 87.3 percent for females.

In 2004, more than 100,000 foreign nationals were employed in Brunei. That number equals almost a third of the Bruneian population (365,000). The economy does not attract a sufficient number of Bruneians into key industrial and service jobs. Oil and natural gas reserves are not limitless, and capital exports have exceeded the value of oil and gas exports in recent years. Although losses incurred during the Asian financial crisis of 1997–98 harmed Brunei's economy, the effects were less severe than in Indonesia or Thailand.

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