Brunei Darussalam

Geography

About the size of Delaware, Brunei is an independent sultanate on the northwest coast of the island of Borneo in the South China Sea, wedged between the Malaysian states of Sabah and Sarawak.

Government

Constitutional sultanate.

History

Brunei was trading with China during the 6th century, and, through allegiance to the Javanese Majapahit kingdom (13th to 15th century), it came under Hindu influence. In the early 15th century, with the decline of the Majapahit kingdom and widespread conversion to Islam, Brunei became an independent sultanate. It was a powerful state from the 16th to the 19th century, ruling over the northern part of Borneo and adjacent island chains. But Brunei fell into decay and lost Sarawak in 1841, becoming a British protectorate in 1888 and a British dependency in 1905. Japan occupied Brunei during World War II; it was liberated by Australia in 1945.

The sultan regained control over internal affairs in 1959, but Britain retained responsibility for the state's defense and foreign affairs until 1984, when the sultanate became fully independent. Sultan Bolkiah was crowned in 1967 at the age of 22, succeeding his father, Sir Omar Ali Saifuddin, who had abdicated. During his reign, exploitation of the rich Seria oilfield had made the sultanate wealthy. Brunei has one of the highest per capita incomes in Asia, and the sultan is believed to be one of the richest men in the world. In Aug. 1998, Oxford-educated Prince Al-Muhtadee Billah was inaugurated as heir to the 500-year-old monarchy.

Sultan Bolkiah began taking cautious steps toward democratic reform in Sept. 2004, when he reinstated Parliament for the first time since Brunei gained independence in 1984. He was widely praised in May 2005 when he fired four members of his cabinet, including the education minister, whose plan to expand religious education angered many parents.

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A tiny country with a small population, Brunei was the only Malay state in 1963 to choose to remain a British dependency rather than join the Malaysian Federation.

It became independent in 1984 and, thanks to its large reserves of oil and gas, now has one of the highest standards of living in the world.

Its ruling royals, led by the head of state Sultan Hassanal Bolkiah, possess a huge private fortune.

Overview

A country of dense forests and mangrove swamps whose people enjoy high subsidies and pay no taxes, Brunei is highly dependent on imports. Despite its immense wealth, most of the country outside the capital remains undeveloped and unexploited.

While oil and gas exports account for the bulk of government revenues, reserves are dwindling and Brunei is attempting to diversify its economy. It markets itself as a financial centre and as a destination for upmarket and eco-tourism.

About two-thirds of the people of Brunei are ethnic Malays, and these benefit from positive discrimination. The Chinese comprise about 16% of the population. There are also Indians and indigenous groups, of whom the Murut and Dusuns are favoured over the Ibans.

The Sultan Omar Ali Saifuddien Mosque is a major landmark of Brunei's capital, Bandar Seri BegawanSince 1962 the sultan has ruled by decree. In a rare move towards political reform an appointed parliament was revived in 2004. The constitution provides for an expanded house with up to 15 elected MPs. However, no date has been set for elections.

Brunei's financial fortunes have wavered. Shares and other assets were hit by the crash of the Asian financial markets in the late 1990s. In 1998 Prince Jefri's Amedeo conglomerate collapsed, leaving massive debts and precipitating a financial scandal.

Full name: Brunei Darussalam

Population: 413,000 (UN, 2012)

Capital: Bandar Seri Begawan

Area: 5,765 sq km (2,226 sq miles)

Major languages: Malay, English, Chinese

Major religions: Islam, Buddhism, Christianity

Life expectancy: 76 years (men), 81 years (women) (UN)

Monetary unit: 1 Bruneian dollar = 100 cents

Main exports: Crude oil, liquefied natural gas, petroleum products

GNI per capita: High income: $31,800 (World Bank, 2009)

Internet domain: .bn

International dialling code: +673

A chronology of key events:

15th century - Islamic sultanate of Brunei nominally in control of Borneo, including Sabah and Sarawak states of Malaysia, and some parts of the Sulu islands in the Philippines.

Oil exports are an economic mainstay. The Billionth Barrel of Oil Monument celebrates the industry1521 - Brunei visited by Spanish navigator Juan Sebastian del Cano.

1841 - Sultan of Brunei Omar Ali Saifuddin II rewards British army officer James Brooke for helping to quell a civil war by granting him control of Sarawak.

1846 - Brunei reduced to its present size after ceding the island of Labuan to Britain.

1849-54 - British destroy Malay pirates operating between Singapore and Borneo.

British rule1888 - Brunei becomes a British protectorate.

1906 - Brunei administered by a British resident, with the sultan having nominal authority.

1929 - Oil extraction begins.

1941-45 - Japan occupies Brunei.

1950 - Omar Ali Saifuddin III inaugurated sultan.

1959 - Sultan Omar introduces Brunei's first written constitution which enshrines Islam as the state religion and keeps Britain in charge of defence and foreign affairs.

Rule by decree1962 - Legislative Council election results annulled after leftist Brunei People's Party, which sought to remove the sultan from power, won all 10 elected seats in the 21-member council; sultan declares state of emergency and rules by decree.

1963 - Brunei decides to remain a British dependency rather than join the Federation of Malaysia.

1967 - Hassanal Bolkiah becomes sultan following the abdication of his father, Sultan Omar, who nonetheless remains chief adviser.

Independence1984 - Brunei becomes independent.

1985 - Government legalises the Brunei National Democratic Party (BNDP).

1986 - Brunei National Solidarity Party (BNSP) becomes legal; former Sultan Omar dies.

1988 - BNDP and BNSP banned.

1990 - Sultan Bolkiah introduces ideology of Malay Muslim Monarchy.

1995 - Government allows BNSP to operate, but the party is targeted for harassment and becomes inactive.

1998 - Sultan Bolkiah removes his younger brother, Prince Jefri Bolkiah, as chief of Brunei Investment Agency over concerns about his stewardship of agency; Sultan Bolkiah's eldest son, Prince Al-Muhtadee Billah, becomes heir apparent.

Royal scandal2000 - Brunei files civil suit against Prince Jefri Bolkiah for alleged misuse of

state funds. Case is settled out of court. Court documents reveal that he spent $2.7 billion on luxury goods over 10 years. Prince agrees to return all assets allegedly taken from state-owned investment agency.

2000 August - Brunei says it will retrain up to 25% of the workforce to diversify the economy away from oil and to develop alternative industries such as tourism.

2001 - Auction is held of more than 10,000 items belonging to Prince Jefri.

2001 November - As chair of Association of South East Asian Nations (Asean), Brunei hosts body's 2001 summit. Leaders pledge to cooperate in fighting terrorism but push back launch date for Asian free trade area.

2004 September - Sultan Hassanal Bolkiah reopens parliament, 20 years after it was disbanded. The new parliament has 21 appointed members. The sultan later amends the constitution to allow the direct election of 15 members of the next parliament, but no poll date is set.

2005 May - Major cabinet reshuffle ushers in younger faces and ministers with private sector experience.

2005 August - National Development Party registered as political party.

2007 February - Brunei, along with Indonesia and Malaysia, signs a "Rainforest Declaration", agreeing to conserve a large area of Borneo that is home to rare species.

2007 November - Former finance minister and Sultan's brother, Prince Jefri Bolkiah, loses appeal at Brunei's highest court and is ordered to return property, cash and luxury goods allegedly acquired through misappropriated state funds.

2007 December - Amnesty international criticises Brunei's corporal punishment laws. Reports say 68 foreigners were flogged in 2008 for immigration offences. Immigration rules were tightened in 2004 to prevent illegal stay of migrant workers.

2008 June - UK judge issues warrant for the arrest of Prince Jefri Bolkiah after he failed to attend a High Court hearing over allegations that he violated a court order to return billions of dollars in missing funds to the Brunei government.

2010 February - Brunei included in France's "blacklist" of tax havens. French businesses operating in Brunei face increased taxes at home.

2010 June - US adds Brunei to its human trafficking watch list as a destination for forced labour and prostitution.

2010 December - Malaysia and Brunei agree to jointly develop two oil areas off Borneo, ending a border dispute dating from 2003 which held up exploration.

Brunei Leader

Head of state: Sultan Hassanal BolkiahHassanal Bolkiah, one of the world's longest-reigning monarchs, became sultan in October 1967 after his father, Sir Haji Omar Ali Saifuddin, abdicated. He was crowned in August 1968.

In 1991 he introduced a conservative ideology called Malay Muslim Monarchy, which presented the monarchy as the defender of the faith.

Apparently aimed at pre-empting calls for democratisation, it is said to have alienated Brunei's large Chinese and expatriate communities.

In September 2004 the sultan reopened Brunei's parliament, 20 years after it was suspended. Observers said it was a tentative step towards giving some political power to the country's citizens.

The sultan was born in 1946 and was educated in Malaysia and Britain. He has two wives and is one of the world's richest individuals.

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