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Brunei Darussalam is on the north western shore of Borneo and shares a common border with the Malaysian state of Sarawak. Set like a crown slightly askew, 75 per cent of its 5,765 km² land area is covered by equatorial rainforest. The living standard of its population is sustained by oil and gas exports.
Brunei has four constituent parts called districts: Brunei-Muara, Belait, Temburong and Tutong. Several mukim compose a district and several villages compose a mukim. Headman of a single village is called ketua kampong and headman of a mukim is called penghulu.
The post, ketua kampong, is an elected office voted by people living in a village. A penghulu is elected by people living in a mukim. Both posts are open to contests for male candidates aged between 30 and 60. Office holders serve until they age 65.
Brunei's official language is Malay but English is widely spoken. Its official religion follows the Sunni strand of Islam. His Majesty The Sultan and Yang Di-Pertuan of Brunei Darussalam is the head of the Islamic faith. Other religions are also practiced in Brunei including Christianity and Buddhism.
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Short historical background
Sino-Indo-Islamic influences had shaped Brunei's culture. Historical findings suggest that the Brunei kingdom began more than 1,500 years ago, pre-dating Islam. Its earliest existence was believed to be a tributary province of the Java-based Majapahit Empire. After the disintegration of the Majapahit Empire, Brunei rulers took charge of their own territorial responsibility. Ancient Chinese texts referred Brunei as either Puni or Puli and documented its interactions with the Chinese Empire in the years 518, 523, 616, 669, 977, 1279, and 1369-1643 AD.
Imperial Chinese texts also indicated that Muslim influence was established in Brunei as early as 977 AD, and the employment of Arabic characters in Brunei's written language, hitherto Sanskrit, started before 1370. Imperial Chinese texts noted that Brunei's king named Awang Alak Betatar embraced the Islamic faith in 1371 in conjunction with his marriage to a princess from a neighbouring kingdom. As a territory administered by a Muslim government, subsequent Brunei sovereigns became known as sultans.
Brunei had signed a series of treaties with Great Britain since the 1800s, the one signed in 1888 marked the beginning of Brunei's status as a British protectorate that lasted for 96 years. Brunei resumes its independence as a sovereign nation-state on January 1, 1984. |
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Milestones since 2000 |
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Brunei induces widespread use of IT
Brunei's blueprint for the widespread use of information technology (IT) was mooted in 1997 and expressed in a project called the "National IT Strategic Plan 2000 and Beyond". Effective since 2000, the project promotes the use of IT in the public and private sectors, and is set to raise the level of IT literacy among the population and secure the supply of IT professionals to fuel economic growth.
The project is characterised by three objectives:
1. to create paper-less state bureaucracy and channeling of services
2. to introduce an electronic government (e-government) by 2005
3. to offer incentives for widespread IT adoption and e-business deployment in the public sector |
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Brunei establishes IT council |
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Brunei had established the Brunei National Information Technology Council (BIT) in 2000 in a bid to marshal resources to introduce e-government. The BIT Council also functions to motivate the private sector to use e-business models in running businesses. The proposed International Advisory Panel (IAP) comprising prominent IT figures from abroad advises the BIT Council on strategic IT issues.
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Brunei protects intellectual property rights |
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Brunei has passed five legislations that protect intellectual capital, effective since 2000, in a bid to induce the growth of knowledge-driven enterprises and lessen its dependence on the hydrocarbon sector.
1. Copyright Order 1999
2. Industrial Designs Order 1999
3. Layout Designs Order 1999
4. Trade Marks Act 2000
5. Trade Marks Rules 2000
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Brunei secures e-commerce and online users' interest |
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Brunei has passed four legislations, effective since 2000, in a bid to secure electronic business transactions and curb online instances that contravene public decency.
1. Electronic Transactions Order 2000
2. Computer Misuse Order 2000
3. Broadcasting (Class License) Notification 2000
4. Internet Code of Practice Notification 2000
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Brunei International Financial Centre (BIFC) |
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Brunei disclosed its ambition of becoming a financial service hub for banking, insurance, securities, and trust and corporate management on July 15, 2000. The Brunei International Financial Centre (BIFC) functions for this purpose and it features the use of both conventional and Islamic financial systems. It is equipped with relevant legislation and is supervised by the Ministry of Finance.
BIFC's remit in Islamic finance is based on the International Banking Order 2000.
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Aviation treaty |
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Brunei is one of the five signatories to the Multilateral Agreement on the Liberalisation of International Air Transportation, the first ‘open skies' air services agreement of its kind that binds several nation-states. The Agreement was signed on May 1, 2001. The other four signatories are Chile, New Zealand, Singapore and the United States of America.
To date, Brunei has signed bilateral air services agreements: with Singapore (June 5, 1997), the United States of America (June 20, 1997), and New Zealand (March 9, 1999).
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Brunei expands hydrocarbon sector |
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Brunei's hydrocarbon industry is set to host more players after the government had opened its offshore and onshore areas for bidding on January 29, 2001.
The deepwater Blocks J and K are enclosed in Brunei's Exclusive Economic Zone (EEZ) and cover an area of 10,000 km² whereas the onshore segment covers 2,500 km².
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Brunei establishes a national oil company |
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Brunei's oil exploration now extends internationally after the government established the Brunei National Petroleum Company (PetroleumBRUNEI) on November 5, 2001.
PetroleumBRUNEI manages the government's business interests in joint venture oil companies and formulates Brunei's hydrocarbon policy. Its remit to engage in hydrocarbon business overseas lessens Brunei's dependence on its domestic oil and gas reserves.
Oil was first struck in Brunei in 1929 but commercial production began in 1932.
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Brunei reactivates agency for in-bound investment |
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The Brunei Economic Development Board (BEDB), formerly part of the finance ministry, was restructured on November 26, 2001 after the government passed the Brunei Economic Development Board (Amendment) Order 2001. It is now a statutory body that runs on commercial logic. BEDB leads the diversification of the national economy and creates employment opportunities for Bruneians by attracting local and foreign investments.
BEDB disclosed its two-pronged strategy to reinvigorate Brunei's economic diversification on January 15, 2003. The strategy is expected to bring US$4.5 billion investment into Brunei and create 6,000 new permanent jobs by 2008. The first prong engages foreign investors to develop downstream and manufacturing industries in the Sungai Liang area in the Belait district and the Pulau Muara Besar in the Brunei-Muara district. The second prong opens four industry clusters to foreign investment: hospitality and tourism; transportation and logistics; business services; and financial services.
Laws that touched on business licensing, industrial activities and investments were also amended in 2001 in a bid to streamline the work of economic diversification.
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Brunei overhauls telecommunications and IT laws |
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Brunei has passed three legislations since 2001 in a bid to streamline its information communication technologies (ICT) industry.
1. Authority for Information Communication Technology Industry (AiTi) Order 2001 that establishes an independent statutory body to regulate Brunei's telecommunications and ICT industries.
2. Telecommunications Order 2001 that succeeds the Telecommunications Act 1984.
3. Telecommunications Succession Order 2001 that enables the Telecommunications Department (JTB) to transform into a corporate entity.
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Brunei strengthens trade bilateral with the USA |
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The Brunei-United States relations are set to open more areas in trade and investment after the two governments have signed the Trade and Investment Framework Agreement (TIFA) on December 16, 2002 in Washington, DC. TIFA sparks a series of trade-related Brunei-US cooperation on intellectual property rights, ICT, biotechnology, participation of SMES in trade and investment, tourism, and capacity building.
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Brunei signs air cargo treaty |
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Brunei is signatory to the Multilateral Agreement on the Full Liberalisation of All Cargo Air Services since February 2003.
The other signatory states are Singapore and Thailand. The Agreement allows airlines of member states to provide air cargo services in either or both directions from points in the territory of the member state granting the right, through any connecting points to destinations in other member states and beyond.
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Brunei introduces anti-terrorism law |
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Brunei criminalises the direct and indirect provision of financial assistance to terrorists after the government passed the Anti-Terrorism (Financial and Other Measures) Order in June 2003. This law also punishes persons who produce hoax terrorist acts.
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Brunei joins the regional combat against transnational crimes |
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Brunei is signatory to the Agreement on Information Exchange and Establishment of Communication Procedures since October 5, 2003. Member states now include Cambodia, Indonesia, Malaysia, the Philippines and Thailand.
The Agreement enables member states to cooperate in the fight against transnational crimes such as marine pollution, money laundering, terrorism and the trafficking of arms, goods and persons.
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Brunei consolidates education law |
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Brunei's future workforce is set to stay aligned with the demands of industry after the government has passed the Education Order in December 2003. The law holds the promise of streamlining Brunei's education system by delegating authority to newly-established agencies of the Ministry of Education. It requires public and private educational institutions of all levels to apply the national curriculum, which is prescribed in the national education system. The law also requires schools to host primary and secondary education for pupils with special needs.
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Brunei consolidates education law |
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Brunei's future workforce is set to stay aligned with the demands of industry after the government has passed the Education Order in December 2003. The law holds the promise of streamlining Brunei's education system by delegating authority to newly-established agencies of the Ministry of Education. It requires public and private educational institutions of all levels to apply the national curriculum, which is prescribed in the national education system. The law also requires schools to host primary and secondary education for pupils with special needs.
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Monetary body safeguards Brunei currency
The state's transactions with Treasury Bills and government securities with 30-year maturity are now exercised by the Brunei Currency and Monetary Board (BCMB) effective February 1, 2004.
BCMB functions as Brunei's monetary authority after the government passed the Currency and Monetary Order 2004 to replace the 1967 Currency Act. Its remit covers the issuing of currency notes and coins, maintaining international reserves to safeguard the value of the Brunei dollar and promoting Brunei's monetary policy.
The new law does not affect the Brunei-Singapore Inter-changeability Agreement that allows Brunei and Singapore to mutually accept each other's currency on a par.
Brunei introduces new economic blueprint
Brunei is set to streamline the workings of its economy after the government formed the ministerial-level agency, the Long-term National Development Planning Board, on February 23, 2004. As successor to the 8th National Development Plan 2001-2005 (8th NDP), the new planning board's remit covers a 30-year time frame and is assisted by a National Vision Working Committee.
Brunei reopens legislature
Brunei's state and society relationship is set to be based on a formalised structure of consultation after the government reopened the State Legislative Council on September 25, 2004. Its first agenda, after a 21-year absence, was the proposed amendment on the 1959 constitution.
The legislature's first meeting was held on October 21, 1959 at the Lapau (royal ceremonial hall); its last was on December 27, 1983 at the Dewan Majlis (the building that houses the legislature). The sovereign dissolved the legislature on February 13, 1984.
Brunei amends national constitution
The state powers of monarchy are now defined and hold pre-eminence in national law after the government amended the 1959 constitution on September 29, 2004.
The amendment also clarifies the functions of the State Legislative Council and existing agencies, and paves the way for the re-introduction of elected representatives.
The amendment also holds the promise of establishing three new agencies: the Pardons Board, the Council of Adat Istiadat (a body responsible for royal traditions and protocol), and the Interpretation Tribunal.
Brunei joins regional combat against corruption
Brunei is signatory to the Memorandum of Understanding on Cooperation to Prevent and Fight Corruption since December 15, 2004. Other signatories include Indonesia, Malaysia and Singapore.
Brunei upgrades employee recruitment law
The government has passed the Employment Agencies Order 2004 on December 20, 2004 in a bid to curb the illegal import of foreign labour. Home- and business-owners are now required to hire staff through accredited employment agencies instead of exercising direct hiring of foreign job seekers.
Brunei combats human trafficking
The government has passed the Trafficking and Smuggling of Persons Order 2004 on December 20, 2004 in a bid to remain aligned with international regulations and to supplement the powers of the Employment Agencies Order 2004.
Brunei signs ‘open skies' treaty with ASEAN member states
Brunei is signatory to the Multilateral Agreement on the Liberalisation of Passenger Air Services on December 27, 2004. As an ‘open skies' treaty that contains unlimited third and fourth freedom traffic rights, it enables Brunei-owned airlines to operate into the signatory states while carrying passengers from other non-signatories.
Other signatories to this treaty include Singapore and Thailand.
Brunei awards license to second mobile phone operator
Brunei's mobile telecommunications sector is now open to competition after the government issued a second operating license to a consortium called QAF Comserve Sendirian Berhad-Telekom Brunei Berhad on January 14, 2005.
Brunei streamlines aviation access to the UAE
Brunei's ‘open skies' policy now covers its air linkage with the United Arab Emirates after the two governments signed the bilateral liberalised air services agreement on April 19, 2005.
Brunei reshuffles cabinet membership
Brunei is set to improve its national administration after His Majesty Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah, The Sultan and Yang Di-Pertuan of Brunei Darussalam reshuffled a majority of members of the Council of Cabinet Ministers on May 24, 2005.
His Majesty The Sultan and Yang Di-Pertuan of Brunei Darussalam retains his posts as sovereign, head of state, and his three portfolios: prime minister, defence, and finance. His Royal Highness Prince Haji Al-Muhtadee Billah, the Crown Prince is now the senior minister at the Prime Minister's Office. His Royal Highness Prince Mohamed Bolkiah retains his post as foreign minister.
The new cabinet has six features. First, the ministerial and deputy ministerial appointments are valid for five years. Second, Brunei now has an energy minister based at the Prime Minister's Office. Third, two members of the cabinet now hold parallel ministerial posts: the foreign and finance ministries have two ministers each. Fourth, each of the following five ministries now has a deputy minister: the Prime Minister's Office, the Ministry of Communications, the Ministry of Development, the Ministry of Health, and the Ministry of Industry and Primary Resources. Fifth, all deputy ministers - except for one at the Ministry of Culture, Youths and Sports - are newly appointed members of the Council of Cabinet Ministers. Sixth, the offices of the state mufti and the attorney general now hold ministerial ranks.
Brunei signs more trade accords
Trade flows in goods between Brunei, Chile, New Zealand and Singapore are set to enjoy 90 per cent duty free after the four governments concluded negotiations for the Trans-Pacific Strategic Economic Partnership Agreement on June 3, 2005.
The Trans-Pacific SEP Agreement becomes effective on January 1, 2006. It holds the promise of reducing transaction costs on non-tariff barriers: sanitary and phytosanitary measures, standards and conformance, and customs procedures. It also legalises ‘national treatment' for companies from the four signatory states to compete for government procurement contracts above certain thresholds. Brunei is set to subsume the Trans-Pacific SEP Agreement's terms and conditions into national law within two years from that date.
The negotiations on June 3 also secured approval for the signing of two parallel, trade-inducing agreements: the Environment Cooperation Agreement and the Labour Cooperation Memorandum of Understanding.
Brunei merges local banks
Customers, insurance policy holders and investors of the Islamic Bank of Brunei (IBB) and the Islamic Development Bank of Brunei (IDBB) are set to enjoy better services after the government approved, in principle, the merging of the two banks and their insurance arms on July 7, 2005. As the biggest financial institution in terms of combined assets and deposits, the IBB-IDBB entity holds the promise of economies of scale that enables it to perform banking and insurance businesses both at home and abroad.
Brunei explores its tourism potentials
Brunei is set to reinvigorate its tourism industry after the government established the Brunei Tourism Board on July 11, 2005. The tourism arm of the Ministry of Industry and Primary Resources is also upgraded on the same day, which is now known as the Department of Tourism Development.
Brunei renames foreign office
The Ministry of Foreign Affairs now holds the trade remit after the government transferred the control of the International Relations and Trade Development Division from the Ministry of Industry and Primary Resources on July 8, 2005. Brunei's foreign office is now called the Ministry of Foreign Affairs and Trade, effective August 1, 2005.
The International Relations and Trade Development Division is in the business of coordinating Brunei's regional and international trade matters, and exercises its economic cooperation at bilateral and multilateral levels. It also shapes Brunei's short- and long-term domestic and international trade policies for the purpose of opening the national market and cementing market linkages with other states and non-sovereign actors.
Brunei strengthens economic links with Singapore
A system of relief now applies to Brunei individuals or organisations who are earning incomes from Singapore after the two governments signed the Avoidance of Double Taxation Agreement on August 19, 2005 in Singapore. The agreement enables the Brunei taxation system to allow income tax levied by Singapore to be credited against the tax due in Brunei. The net result is that the individual or organisation pays the higher of the two taxes.
Brunei strengthens economic links with Pakistan
A system of relief is set to apply to Brunei individuals or organisations who are earning incomes from Pakistan after the two governments agreed on the draft for the Convention on Avoidance of Double Taxation on August 20, 2005.
Brunei opens onshore areas for bidding
Brunei is set to expand its oil and gas exploration after the government opened two onshore areas for bidding on August 29, 2005. Blocks L and M hold 2,253 km² and 3,011 km² of areas respectively.
Brunei dissolves its 2004 legislature and introduces new membership
The State Legislative Council now houses 29 members after the government dissolved the previous sitting on September 2, 2005. New members comprise:
His Majesty Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah, The Sultan and Yang Di-Pertuan of Brunei Darussalam. He also holds the posts: Prime Minister, Defence Minister, and Finance Minister
His Royal Highness Prince Haji Al-Muhtadee Billah, the Crown Prince
His Royal Highness Prince Mohamed Bolkiah, the Minister of Foreign Affairs and Trade
The 11 cabinet ministers
Two from the nobility and one from the aristocracy
Seven prominent figures who achieved distinctions in business, religion and society
Five representatives from Brunei's four districts
Brunei strengthens human resources
Brunei's supply of specialist and professional workforce is set to increase after the government has allocated the B$250 million Human Resources Fund on January 10, 2006, which augments the current B$852 million Education and Human Resources Development Fund.
The $B250 million funding covers six aspects of Brunei's human capital:
Specialists and professionals
The three-tiered scholarship schemes
Unemployed graduates
School leavers
Skills and knowledge development
Entrepreneurial development
The funding also pays for the feasibility studies on the overseas employment inducement schemes, and the national service scheme. The B$250 million Human Resources Fund complements the National Development Plan, which hitherto focuses solely on physical infrastructure development.
Brunei establishes new Islamic bank
The IBB-IDBB entity, formed after the merging of two Islamic banks on July 7, 2005, is now called the Islamic Bank of Brunei Darussalam (IBBD), effective January 31, 2006. Integration process of the banks' assets and liabilities, management, operations, subsidiaries and staff is set for implementation in phases. IBBD is fitted with new remits that allow its banking business to operate overseas.
Oil consortia explore Brunei's onshore areas
Brunei's onshore areas that were open for bidding on August 29, 2005 are now set for oil exploration after the government has awarded the production sharing contracts (PSCS) to several companies on February 6, 2006.
The consortium, QAF Brunei Sendirian Berhad-Loon Energy Inc has received government approval for oil exploration in Block L, which covers an area of 2,253 km².
And Block M, which covers an area of 3,001 km² goes to the group comprising China Oil USA (Macao) Company Limited (ChinaOil), Valiant International Petroleum Limited, and Jana Corporation Sendirian Berhad.
Brunei-Singapore education link up
Brunei and Singapore each earmarks five schools, which are set for a twinning programme, after the two governments have signed a Memorandum of Understanding on Education on February 14, 2006 in Singapore.
The MoU provisions cover activities for people-to-people exchange comprising students and the teaching professionals from the two signatories. The MoU also enables the University of Brunei Darussalam (UBD) to expand its areas of cooperation with universities in Singapore.
Brunei strengthens link with Saudi Arabia
The Brunei-Saudi relations are set to deepen bilateral cooperation in economic, trade, and cultural affairs after the two governments have signed the General Agreement on Economic, Trade, Investment, Technical, Education and Cultural, and Youth and Sport Cooperation on May 22, 2006.
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