The Sultanate of Brunei is located in Southeast Asia. A
small-sized state is located on the island of Kalimantan, washed by
the South China Sea. It borders only with Malaysia.
Brunei is
an oil-rich sultanate of relatively small size with a population of
450,000 as of 2016, strategically located on the South China Sea,
close to the vital shipping lanes connecting the Indian and Pacific
Oceans. Its oil resources brought great wealth to the Sultan and
some of the locals, and the palaces and mosques are the best proof
of this. However, many Brunei, including those who live in the
village on the water (Kampong Ayer), still have a relatively simple,
albeit comfortable, livelihood.
The description of an
"oil-rich sultanate" might conjure up images of Dubai or Qatar, but
travelers with such expectations are likely to be disappointed.
Brunei doesn't have many grand man-made attractions, and while great
diving and jungle trekking is available, it doesn't have the
mind-blowing natural parks of the neighboring Malaysian states of
Sabah and Sarawak. Many people who visit Brunei are really only
doing so for the sake of the "country collection" or "passport.
Administratively, Brunei is divided into four districts
(daera):
Belite
Brunei Muara
Temburong - the district has no
land border with other districts, the territories are connected through
the bay
Tutong
Bandar Seri Begawan is the capital
and largest city of the country.
Bangar
Kuala Belait
moire
Pecan Tutong
Forest Park Peledeyan
Jungle Park and Research Center Kuala Belalong
Batan Duri Park
Ulu
Temburong National Park
Merimbum Historical Park
Seri Kenangan
Beach and Recreation Area
Sungai Basong Recreation Area
Tamu
Tutong - traditional handicrafts market
Berakas Forest Park and
Recreation Area
Bukit Shahbandar Forest Park and Recreation Area
Tasek Lama Forest Park and Recreation Area
Entry requirements
All EU citizens, Swiss and Liechtenstein
residents are allowed to enter the country visa-free for 90 days, and
Turks for 30 days.
As a country where alcohol cannot be
purchased, the Sultanate has quite strict restrictions. Non-Muslim
travelers are allowed to import 2 bottles of alcohol and 12 cans of beer
for personal use (only diplomats have more freedom). This amount must be
declared upon entry.
Embassy of Brunei Darussalam, Kronenstraße
55-58, 10117 Berlin. Tel.: +49(0)30-2060760, Fax: +49(0)30-20607666,
Email: berlin.germany@mfa.gov.bn. Open: Mon-Fri: 9:00 a.m. - 4:00 p.m.
Airplane
The Sultanate is quite easy to reach within Southeast
Asia. With the exception of London, all arrivals from Europe involve
changing at one of the major hubs. The current flight times and tables
can be found on the websites of the airlines mentioned.
Brunei's
airline Royal Brunei mainly flies to destinations in Southeast Asia.
There are connections to Bangkok, Hong Kong, Ho Chi Minh City, Manila,
Kota Kinabalu, Kuching, Surabaya, Jakarta, Singapore and Kuala Lumpur.
There are also Auckland (New Zealand) as well as Perth and Brisbane
(Australia). On the way to Europe are the destinations Dubai and Jeddah.
The only destination within Europe is London.
Malaysian Airlines
offers connections to Kuala Lumpur and Kota Kinabalu, but service is
abysmal. They also have flights to Europe in their program via code
sharing.
Malaysia's discount airline Air Asia has flights to and from
Kuala Lumpur in its program.
Finally, Singapore Airlines offers a
regular connection to Singapore.
Bus
There is a multiple daily
bus service between Miri in the Malaysian state of Sarawak and the city
of Kuala Belait in western Brunei.
Car/motorcycle/bicycle
There are several roads leading from the surrounding Malaysian state of
Sarawak to Brunei. The land border crossings are open from 6 a.m. to
midnight. Anyone coming from Sabah who wants to travel comfortably
overland to the Sultanate should remember that they have to cross
Sarawak, for which they receive a separate residence permit (no visa to
be applied for separately), which is valid for a maximum of 30 days.
For the border crossing to Brunei, the crossings near Miri near Sungai
Tujuh (Kompleks Imigresen Malaysia Sungai Tujuh) (6 a.m. - midnight) and
from Limbang near Kuala Lurah (Pejabat Kastam DiRaja Malaysia Tedungan,
Limbang) are available in the western part. You can expect a certain
waiting time here, especially on weekends. There are crossings into the
Temburong district from Limbang and Lawas. From Limbang you have to
cross the Pandaruan River, which also forms the border between the two
states (RM 8.00 or BND 4.00). From Lawas you also have to cross a river,
the Trusan, before crossing the border into Brunei. The entire journey
from Kota Kinabalu to Bandar Seri Begawan can be completed in one day.
However, you should expect 8-9 hours. Not only the route itself, but
also the two ferries and the checkpoints (three border crossings) take
time, especially on the busy weekends. The route would be Kota Kinabalu
-> Beaufort -> Lawas -> Bangar -> Limban -> Bandar Seri Begawan.
Ship
There are boat connections to neighboring Malaysia. In the state
of Sarawak, the northern towns of Lawas and Limbang are served. There is
also a boat connection to the independent Malaysian island of Labuan.
Sports sailor
The only deep harbor is that of Muara. For the
paperwork, you should first dock the dinghy at the Serasa Ferry Terminal
(5° 0′ 54″ N 115° 3′ 48″ E) (8 a.m. to 6 p.m.), then continue to the
Yacht Club Simpang, Tel. +6732787466. After BSB itself you are no longer
allowed to go up, at most as far as the Royal Brunei Yacht Club Kota
Batu.
It is easily possible to explore Brunei on your own with a rental
car. Prices start at 80 BND (400 BND for a whole week). There is
left-hand traffic. Maximum speed in urban areas 30 km/h.
There is a
public bus system, but only on the main roads, which mostly follow the
coast.
Boats operate to connect with Temburong District.
Hitchhiking is also possible in Brunei. Sometimes local drivers even
stop when you walk along the street.
The official language of Brunei, as well as the surrounding Malaysia, is Malay, English and partly Chinese are widely used.
The country's currency is the Brunei dollar (BND).
Specialties are:
Daging Masak Lada Hitam beef curry with chilli,
garlic, onion and Malay spices
Udang Sambal Serai Bersantan shrimp
with red curry and coconut milk.
Serondeng Padang chicken with
garlic, onion, chilli with some coconut milk and pandan leaves.
Brunei has no nightlife whatsoever. Most shops close at 8:00 p.m.
There are no bars or pubs. Alcohol is not sold. The only way to go out
are the many restaurants that are open until around 10 p.m.
Even
in the country's five cinemas, late-night shows rarely start after 8:30
p.m.
The hotels in Brunei are mostly in the medium to high price range (from 60 BND). Bandar Seri Begawan also has three hostels which are inexpensive and quite popular with backpackers. Pusat Belia is Brunei's only youth hostel. The condition of the building is simple and a little dilapidated, but acceptable. The rooms are gender-segregated and air-conditioned. An overnight stay costs 10 BDN.
The international dialing code for Brunei is +673. Country internet domain .bn
Drug offenses are punished with mandatory death sentences even for comparatively small amounts (although the last execution took place in 1957). Equally popular is corporal punishment, which is imposed as an additional punishment to imprisonment for a large number of minor offenses and is carried out regularly. Even overstaying your residence permit or working illegally is punished in this way. Homosexual acts are punishable by up to 10 years in prison. Since April 2019, death by stoning has been planned for Muslims. Holding hands or even kissing in public, even between straight people, is considered “immoral”.
Travelers entering from a yellow fever area require a valid
vaccination. Tetanus, diphtheria, polio and hepatitis A are recommended.
The emergency services in Brunei can be reached via the emergency
number 911.
Brunei Darussalam is a strictly Islamic country. You should definitely take this into account during your stay and follow the requirements regarding clothing, appearance and the ban on alcohol. “Avoid yellow clothing as the color is reserved for the Sultan.”
Post and telecommunications
The Brunei Post is reliable, but not
cheap. Parcel fee calculator (English).
Internet and mobile
communications are offered by DST. Their easi-PrepaidSIM is available
for free; you can also purchase data packages that are valid for 30
days.
Brunei was founded by Awang Alak Betatar, who converted to Islam in 1363 and became the first Sultan of Brunei under the name Muhammad Shah. According to legend, Awang Alak Betatar discovered the mouth of a previously unknown river while traveling and exclaimed "Baru nah!" (usually translated as "here!"), from where the name of the river, and later - the sultanate, came from. Subsequently, the name was transformed into "Barunai", possibly influenced by the Sanskrit word "varun" (वरुण), which means either "ocean" or the mythological "lord of the ocean". In the country's full name, "Negara Brunei Darussalam" (Arabic: دار السلام), "Darussalam" means "abode of peace" while "Negara" means "country" in Malay.
Brunei is located in Southeast Asia, on the northwestern coast of the island of Kalimantan and consists of two separate areas separated by approximately 30 km of Malaysian territory. In the north it is washed by the South China Sea. The sea coast is heterogeneous, in the northeast there is Brunei Bay with many islands, in the west a sandy sloping coast prevails.
Western Brunei is a rolling lowland, foothills are located in the south. The eastern part consists of the coastal plain, which is heavily waterlogged. The highest point is Mount Bukit Pagon, 1850 m.
There are no large lakes and rivers in the country. Among the medium-sized lakes is Merimbun, which is an integral part of the wildlife sanctuary of the same name. The rivers Brunei, Tudong, Temburong and Belait flow from the hills of the southern part of the country to the north, flowing into the South China Sea.
The climate is humid, equatorial. It is subject to strong influence of monsoons from the waters of the South China Sea. There are earthquakes. Small rivers flow from the highlands and hills north to the sea. The air temperature throughout the year fluctuates around +26 °C. More than 75% of the territory is covered with tropical rainforests. Also in the high tide on the coast of Brunei, mangroves are common.
The Bruneian state myth traces the existence of the state and its
ruling family back to 1363. This year Sultan Awak Alak Betatar is said
to have converted to Islam and thus founded the dynasty. However, this
is not historically proven. Between the 15th and 17th centuries, Brunei
- under Sultan Bolkiah, among others - ruled not only the northern coast
of Borneo but also the Sulu Archipelago and Palawan, which today belong
to the Philippines. This phase is considered the heyday of the state of
Brunei.
The Spanish sailor Juan Sebastián Elcano was the first
European to reach Brunei in 1521. Trade with the Europeans then
increased rapidly. Conflicts with Spain culminated in the Castilian War
in 1578.
A period of decline followed in the first half of the
19th century, accelerated by domestic disputes over the succession to
the throne, the expansion of European colonial powers and the increase
in piracy. Brunei's regional influence shrank. In 1842, the Sultan of
Brunei gave the Sarawak area to the British army officer Sir James
Brooke for his help in suppressing an uprising. He took the title of
rajah (king) and was able to gradually expand his territory at the
expense of the sultan. In 1847, when the island of Labuan fell to Great
Britain, Brunei had been reduced to almost its current size. In the same
year, the British concluded the Anglo-Brunei Treaty with Brunei, with
which Brunei transferred its foreign policy sovereignty to the British
Consul General in Borneo. On December 29, 1877, Sultan Abdul Mumin
granted the British North Borneo Chartered Company a concession for
15,000 Straits dollars and gave the trading company what is now Sabah.
In 1888 the remaining sultanate became a British protectorate and
belonged to British North Borneo. In 1905, a treaty of rule was signed,
according to which the Sultan was given British advisors whose advice
was binding. The Sultan only retained his own decision-making authority
in religious matters. In return, England guaranteed the continued
existence of the dynasty. Oil was discovered in Seria in 1929, and
production by Brunei Shell Petroleum Co began in 1932. Brunei quickly
became the third largest oil producer in the Commonwealth of Nations,
the oil revenues and the protectorate allowed the ruling family to
consolidate and disempower competitors. From 1941 to 1945, Brunei was
occupied by the Japanese army after the invasion of Borneo. In 1946 a
civilian government took over the government again in Brunei and Sultan
Omar Ali Saifuddin III. took over the leadership of the country after
the death of Sultan Ahmad Tajuddin. In the 1950s, oil and gas production
began off Brunei's coast. The income from the sale of raw materials
allowed the country to develop from an agricultural economy to a rentier
economy. At the same time, Brunei's neighbors, present-day Malaysia and
present-day Indonesia, were fighting for their independence. A party
called the Brunei People's Party emerged in Brunei in 1956, which called
for a unification of Sabah, Sarawak and Brunei under the leadership of
the Sultan of Brunei. Sultan Omar Ali Saifuddin III however, preferred
to work towards unification with Malaysia; He rejected democratic
participation. On September 29, 1959, under British pressure, the Sultan
adopted Brunei's first constitution. This provided, among other things,
for the formation of a Legislative Council as an indirectly elected
parliament. In the same year, a new protectorate treaty was signed under
which the British retained sovereignty over Brunei's foreign and defense
policy as well as internal security. Apart from that, Brunei was granted
self-government. In the first elections to the Legislative Council, the
opposition People's Party won almost all the seats, but the Sultan
continued to refuse to work with them. In December 1962 there was an
uprising by the People's Party and its military arm, the National Army
of North Kalimantan. He was crushed by British troops within a short
time. The People's Party was banned and the Legislative Council was
dissolved. At the beginning of the 1960s, the population of Brunei was
around 85,000 inhabitants, of which 40,000 were Malays, 25,000 Dayaks,
18,000 Han and 2,000 Europeans and others.
In 1965, negotiations
to join Malaysia failed because they could not agree on how revenue from
oil and gas production would be shared. The status of the Sultan of
Brunei vis-à-vis the other Malay rulers also remained unresolved. Sultan
Omar Saifuddien III abdicated two years later in favor of his son
Hassanal Bolkiah.
In January 1979, the British government under
Prime Minister James Callaghan and Sultan Hassanal Bolkiah concluded the
last protectorate treaty. It stated that responsibility for internal
security would be placed in Bruneian hands and that Brunei would become
an independent state on January 1, 1984. Since the complete takeover of
power, Brunei has been a Malay-Islamic monarchy that acts with soft
repression against critics and opposition members and integrates the
elite and middle class into a pension state with generous pension
benefits (co-optation).
In August 1998, the Sultan of Brunei
installed his eldest son, Prince al-Muhtadee Billah, as crown prince.
Brunei is the only absolute monarchy in Southeast Asia. The Sultan is both head of state and religious leader of Brunei. State and judicial power lies in his hands. Brunei's Sultan Hassanal Bolkiah has ruled the country since 1984 (or 1967) and is one of the longest-serving heads of state in the world. Ideologically, political life since the 1980s has been based on the concept of a Malay-Islamic Brunei, according to which the monarchy preserves the Malay language, culture and traditions as well as the Islamic religion and law and is a form of government intended by God that cuts across all classes and strata .
Brunei's political life is based on the 1959 constitution, which was
amended in 2004 and 2006, and the 1959 Proclamation of Succession and
Regency. The constitution serves as a legal means to consolidate the
Sultan's autocracy; the Sultan's power is not limited by human or civil
rights. Brunei's constitution is the only constitution in Southeast Asia
that does not define any fundamental rights other than the free exercise
of religion. There is neither women's right to vote nor men's right to
vote. The people have so few rights of participation that in the case of
Brunei one cannot speak of a constitutional monarchy.
The Sultan
does not share his political power with anyone. He is head of state,
head of the official religion, prime minister, finance minister, defense
minister and commander in chief of the armed forces. The entire judicial
system is also subordinate to him; Instead of a Ministry of Justice, as
Prime Minister he has an Office for Judicial Affairs attached to him.
The other ministers usually belong to the sultan's family. It stipulates
that only Malay Muslims are allowed to hold certain government
positions. Non-members of the Sultan's family, including members of the
Chinese minority, also work at the state secretary level.
The
Sultan can appoint an heir to the throne during his lifetime. If he does
not do this, the succession council will appoint a new sultan after his
death. If the sultan is still a minor, a regency council rules in his
place.
The Sultan is assisted by the State Council, the Council
of Ministers, the Religious Council, the Succession Council, the
Legislative Council and the Adat Istiadat Council. The Adat Istiadat
Council advises the Sultan on Malay customs and state ceremonies.
Representatives of the traditional nobility are primarily represented in
the State Council; It serves the Sultan primarily to ensure the loyalty
of the nobility. The Sultan has the right of initiative in the
Legislative Council. The Legislative Council has the right to assess
laws and examine the draft budget. However, the Sultan is allowed to
override the ruling of the Legislative Council and still bring rejected
laws into force. The 33 members of the Legislative Council are partly
appointed by the Sultan, partly they are members of the Council by
virtue of their office, and partly they are elected indirectly by the
heads of the villages and districts. Of the 33 current members (as of
2017) of the Legislative Council, 20 were appointed by the Sultan; the
other 13 are ex officio members, namely the Sultan, the Crown Prince and
eleven ministers. Of the 33 council members, three are women. The
legislative period is at the discretion of the Sultan. The members of
all other councils are appointed and dismissed by the Sultan without the
involvement of other state bodies.
Since the constitutional
amendments of 2004 and 2006, any proclamation by the Sultan becomes
immediately applicable law. The approval of the legislature is not
required; the constitution can also be changed by the Sultan by
proclamation. There is no provision for judicial review of laws or
regulations.
The first and so far only party in the history of Brunei that managed
to have a political program, an organizational structure and significant
membership numbers was the pan-Bornese Brunei People's Party. It was
also the only party that ran in elections with its own members. After
the 1962 rebellion, the People's Party was banned.
It has only
been allowed to form parties again since 1985. This requires approval
from the Ministry of the Interior, which can be revoked at any time. The
parties must report to the ministry annually on their activities. All
persons employed in the military, police or public service are not
allowed to join any party. For these reasons, there are only a few small
parties with a few hundred members that are tolerated by the Sultan for
foreign policy considerations.
In Brunei, village and district
leaders are elected by individuals rather than parties. Some members of
the Legislative Council are elected by village and district leaders.
The Bruneian legal system combines British common law with Islamic
law. It maintains a three-tier court system, with judges appointed by
the Sultan. There is no constitutional court as the Sultan can change
all laws and the constitution as he sees fit. Likewise, there are no
options to take action against the Sultan or the Bruneian state if you
as a citizen feel that your rights have been violated.
Sharia
courts were introduced between 1998 and 2000. Later, the applicability
of Sharia law was extended to the entire population, including
non-Muslims. Here too, there is a three-tier court system, of which the
Sultan is the chief judge. If there are conflicts in the decisions
between Sharia courts and secular courts, the decision of the Sharia
court takes precedence. In Brunei, the death penalty is the highest
punishment. It has not been enforced since stricter Sharia law was
introduced in 2014, nor has it been enforced under Western law since
independence in 1984. The same applies to the corporal punishment
provided for in Sharia law.
The Sultan, the Brunei royal family
and all persons acting on behalf of the Sultan enjoy unlimited immunity.
The Bruneian legal system is said to have a high level of
professionalism, which is partly due to the fact that many Bruneian
lawyers study in Malaysia or England. Despite Sharia law and the
immunity of the ruling family, Brunei occupies a relatively good place
in the World Bank's rule of law indicator.
After gaining independence from Britain in 1984, a criminal law based
on Islamic Sharia law and British common law came into force in Brunei.
In April 2014, the laws were changed to allow the death penalty by
stoning to be carried out regularly again. Murder, robbery, rape,
adultery and extramarital sexual relationships between Muslims, as well
as defamation of the Koran and public apostasy from Islam as well as
homosexuality, are punishable with death. The country's Sultan said:
“Brunei as a country blessed by Allah does not need permission from
anyone to want Islam as a national religion. Likewise, we don't ask
anything when we introduce Sharia as the basis of law. Allah shows us
the right path.” The punishments would also affect non-Muslims.
Observers see this as a concession to the country's Islamist forces.
The sale and public consumption of alcohol is prohibited. Foreigners and non-Muslims are allowed to import 12 cans of beer and 2 bottles of other alcohol (e.g. wine or spirits, no distinction is made according to alcohol content) into the country. This regulation applied per entry into the country, but since 2007 a new entry has been permitted at the earliest 48 hours after the last entry. After this regulation was introduced in the early 1990s, restaurants and nightclubs that sold alcohol were closed, but alcohol is still served in tourist hotels.
Freedom of religion is guaranteed by the constitution, but other laws and regulations effectively restrict this right. Followers of non-Islamic religions are forbidden from spreading their own faith. The import of non-Islamic texts such as Bibles and certain Islamic teaching materials is restricted by customs law. In addition, Christmas may not be celebrated publicly and other beliefs may not be taught in schools. Marriage between Muslims and non-Muslims is forbidden.
In 2014, the first phase of the Sharia punishment catalog was introduced. It provides for the death penalty for certain offenses, corporal punishment and amputations. In March 2019, further tightening was confirmed. This also makes the death penalty possible for homosexuality. Homosexuals are supposed to be stoned to death under Islamic law.
Brunei is an active member of the Southeast Asian community of
nations, ASEAN. The Sultanate is now a member of around 40 international
organizations, in addition to the United Nations, for example the
Organization of Islamic Cooperation (OIC), the World Health Organization
(WHO), UNESCO, the Asian Development Bank (ADB) and the Movement of
Non-Aligned States ( NAM). Further applications for membership in
international organizations have been submitted. This and close security
cooperation with Singapore are part of the measures Brunei is taking to
ensure its sovereignty.
Brunei has not joined the Organization of
the Petroleum Exporting Countries. Brunei nevertheless maintains the
closest relations with the monarchies of the Middle East, especially
with Saudi Arabia because of its holy sites. The country traditionally
maintains close relations with the former protectorate power Great
Britain, including good relations between the two monarchies. It
maintains good relations with the United States, European Union member
states, Australia and New Zealand, and Russia. Not only has the
relationship with the People's Republic of China, but also with Japan
and Korea, become more intense recently. Brunei nevertheless ensures
that the relationship with all East Asian partners remains balanced,
particularly in economic terms.
India and Thailand each currently
account for around 20% of Brunei's oil production of 120,000 barrels per
day. On the basis of long-term contracts, Japan currently purchases
around 75% of Brunei's LNG production. China has recently been actively
promoting the Sultanate and is now present in the Sultanate with almost
30 companies. The focus is on expanding infrastructure, agriculture and
food production. Brunei is interested in expanding economic relations
with Beijing and is therefore pursuing a policy of moderation, inclusion
and accommodation. Regarding the disagreements between some ASEAN
partners and China in the South China Sea, Brunei is taking a pragmatic,
mediating position.
Brunei’s foreign policy is based on
principles such as “non-interference” and “consensus” – the latter
applies especially to the Sultanate’s multilateral work. In addition to
the ASEAN Community, the most important foreign policy frame of
reference is cooperation within the Movement of Non-Aligned States.
Oil and gas wealth as well as high returns from foreign investments
through the sovereign wealth fund managed by the Brunei Investment
Agency (BIA) give the country considerable wealth and political
influence despite its small size.
The border dispute with
Malaysia was resolved in 2009.
Thanks to its natural resources, Brunei can afford a relatively
expensive security apparatus. The country has three services for
security purposes: the armed forces, the paramilitary Gurkha Reserve
Unit and the police, which also includes paramilitary units. Overall,
Brunei has spent an average of around 15% of its national budget on
security in recent years; in Southeast Asia, only Singapore has higher
per capita security spending than Brunei. A total of 11,400 people work
directly in one of the security services.
In 2013, Brunei's
military consisted of around 7,000 soldiers and officers. Soldiers must
only be ethnic Malays. While personnel costs make up about 60 percent of
the military's budget, Brunei also invests in sophisticated weapons
systems. The share of military spending has fluctuated between 6 percent
and 2.5 percent in recent years, with the fluctuation not coming from
spending but from oil and gas revenues. The military's role is to defend
the country from external attacks, to support civil authorities in the
event of a disaster and to maintain order internally. The Bruneian
military has participated in several UN missions over the past two
decades and maintains close cooperation with the Singaporean military.
The Gurkha Reserve Unit serves with 500 to 2,000 men to protect the
Seria oil field, public facilities and as a bodyguard for the Sultan. It
is the counterpart to the army in the event that the army does not
behave loyally to the Sultan, and it is responsible for any necessary
repression of opponents of the regime. One of the police's tasks is to
ward off terrorist threats, but they also have the option of detaining
critics without charging them. Crime is low, which is why violence or
repression by the approximately 4,400 police officers against the
population is rare.
Brunei is divided into four districts (Malay daerah) and urban areas,
which in turn are divided into districts (Malay mukim), villages (Malay
kampong) and places with longhouses. As of March 2019, Brunei has four
districts and 39 counties.
The heads of villages, longhouse
settlements and districts are elected by the local populations; However,
candidates must be approved by the government. They are subordinate to
the Ministry of the Interior, which has the authority to give them
instructions. Their primary function is to mediate between the
government and the population.
Gross domestic product (GDP) for 2020 is estimated at $12 billion. In
purchasing power parity terms, GDP is $29 billion, or $64,715 per
capita. In the ranking of countries according to their GDP per capita,
Brunei is ranked 9th and 2nd in Southeast Asia behind Singapore.
The United Nations Development Program lists Brunei as one of the
countries with very high levels of human development. Oil and gas
revenues have contributed more than half of GDP for many years, varying
from 76.1 percent in 1985, 57.5 percent in 2000 and 68.3 percent in
2011. They make 95 percent of export earnings and 90 percent of
government revenue. Oil production continues to decline and is currently
around 130,000 barrels per day, less than half of 2007 production.
Natural gas production has remained at about 1.2 billion cubic feet per
day for three years. Nevertheless, Brunei is determined to achieve
increases in oil and gas production again from 2018. Brunei still has
high reserves, estimated at 1.1 billion barrels of oil and 390 billion
cubic meters of natural gas as of January 1, 2012. Brunei can therefore
continue to finance its pension state for many years and has no
incentive to diversify or modernize its economy.
Brunei's economy
is growing well below average compared to the region and is currently
shrinking for the third year in a row. The real growth rate in 2015 was
−0.6 percent. There remain bureaucratic barriers to finding growth
opportunities outside of the energy sector. In addition, there is
growing unemployment, which recent official statistics show at around 9
percent. In addition, there is still rising youth unemployment and
hidden unemployment due to overemployment in the public sector.
On January 28, 2016, the European Commission presented a package of
measures to combat tax evasion, which, among other things, included
Brunei on the black list of tax havens.
In the Global
Competitiveness Index, which measures a country's competitiveness,
Brunei ranks 46th out of 137 countries (as of 2017–2018). The country
ranked 61st out of 180 countries in the Economic Freedom Index in 2020.
Brunei's economy benefits from enormous natural gas fields and oil reserves, which have given the state one of the highest per capita incomes in Southeast Asia. In 2005, the gross domestic product per capita was around 16,000 US dollars, with oil and gas production accounting for 55.9 percent. In 2010, GDP per capita was already over $31,000. The first oil fields were discovered near Seria in 1929. Offshore deposits were also developed in the 1950s. The production is in the hands of the company Brunei Shell Petroleum, in which the government has a 50% stake. The crude oil is mainly exported to Japan, South Korea, Taiwan and the United States. Natural gas is liquefied at one of the world's largest plants in Lumut and sold to Japan.
Around 80 percent of the food for the population is imported, but there are efforts to achieve self-sufficiency in agriculture. Local agriculture produces rice, fruits and vegetables. The production of rubber and the extraction and processing of pepper and animal skins are of little economic importance.
The currency of Brunei is the Brunei dollar with 100 cents. Its
exchange rate is frozen at 1:1 relative to the Singapore dollar. In
Brunei, banknotes from both countries are recognized as means of payment
and are also accepted in shops.
Since 2006, there has been a free
trade zone between Brunei, Chile, New Zealand and Singapore under the
name P4 Agreement. The country is also a member of the ASEAN Free Trade
Area.
In 2016, the state budget included expenses of the equivalent of
$4.61 billion, compared to revenues of the equivalent of $2.95 billion.
This results in a budget deficit of 10.4 percent of gross domestic
product.
There is no public debt in Brunei. Depending on world
market prices for oil and gas, 70 to 93 percent of the state budget
comes from revenue from the oil and gas business. The state reserves are
managed by the Brunei Investment Agency, which is part of the Ministry
of Finance.
In 2006, the share of government spending (in % of
GDP) was in the following areas:
Health: 1.9 percent
Education: 5.2 percent (2000)
Military: 4.5 percent
The
economic activities of the Bruneian ruling family are not part of the
state budget. These activities are completely non-transparent and cannot
be seen by outsiders. There is no data available on these activities.
The income from the sale of oil and natural gas allows Brunei to
largely avoid taxing its citizens. In addition, the education and
healthcare systems are available free of charge. The government provides
college scholarships, maintains a large public sector and state-owned
enterprises that pay attractive salaries, and subsidizes fuel, housing,
and food. In this way, the ruling family buys the loyalty of its
citizens and prevents demands for political changes or a desire for a
say.