Brunei's Development: A Country's Evolution And Status

Brunei is a small, wealthy country in Southeast Asia that gained independence from the British Empire in 1984. It is considered a developed nation, with a high standard of living and a higher life expectancy than many of its neighbours. The country's economy is supported almost entirely by exports of crude oil and natural gas, which also fund free healthcare and education for citizens. However, Brunei's heavy reliance on the oil and gas industry makes it vulnerable to market conditions and price fluctuations.

Brunei's economy

Brunei is a small, wealthy country that gained independence from the British Empire in 1984. It is considered a developed country, and its economy is a mixture of foreign and domestic entrepreneurship, government regulation, welfare measures, and village traditions.

The country's wealth is largely due to its oil and gas reserves, discovered in 1929. Oil and gas make up more than 80% of its exports and over half of its GDP. Brunei is the third-largest oil producer in Southeast Asia and the ninth-largest producer of liquefied natural gas worldwide. The country's oil production peaked in 1979 at over 240,000 barrels per day and has since been cut back to extend the life of its reserves. Brunei LNG, established in 1973, is one of the largest liquefied natural gas plants globally.

The government has prioritised diversifying the economy away from oil and gas, particularly as petroleum revenues have decreased since the 1980s. The government has been running a budget deficit since 1988, and the economy is vulnerable to petroleum price fluctuations. Brunei has faced economic challenges due to declining oil prices and reduced production for maintenance and repairs.

To reduce dependence on the oil industry, Brunei has focused on developing its service sector and incentivising foreign investment. The country has strengthened its economic ties with China and plans to launch a stock market in the coming years. Brunei's substantial foreign reserves are managed by the Brunei Investment Agency (BIA), which aims to increase the real value of the country's reserves through a diverse investment strategy.

Bruneians benefit from free healthcare, free education, and low-priced petrol. The government provides all medical services and subsidises food and housing. The country has excellent infrastructure, with well-developed roads and an efficient public transport system.

While Brunei's urban centres have developed rapidly, there is still a noticeable gap in the quality of life between these areas and the rural villages in the country's interior. As Brunei continues to modernise, it faces the challenge of preserving its indigenous cultures and unique traditions while improving overall quality of life.

Healthcare and education

Healthcare

The healthcare system in Brunei is managed by the Brunei Ministry of Health and funded by the General Treasury. It consists of 15 health centres, 10 clinics, 22 maternal facilities, and two private hospitals. Healthcare is charged at B$1 per consultation for citizens and is free for anyone under 12 years old. The government covers the cost of sending citizens overseas to access treatments and facilities not available in the country. The government also provides for all medical services and subsidises food and housing.

Brunei's human development index (HDI) improved from 0.81 in 2002 to 0.83 in 2021, and the country is rated 47th out of 189 nations on the UN HDI 2019. The life expectancy at birth in 2020 was 76 years, a vast improvement from 1961 when it was 55 years. However, the adult mortality rate has been rising over the past few years, and the leading causes of death in the country are cardiovascular disease, cancer, and diabetes. Obesity is also prevalent in the country, with 15.2% of adult men and 18.2% of adult women who are at least 18 years old being obese.

Education

Education in Brunei is provided or regulated by the Government through the Ministry of Education and the Ministry of Religious Affairs. The Ministry of Education administered or oversaw 232 schools at preschool, primary, and secondary levels, 12 technical and vocational institutions, and 7 universities and other tertiary-level institutions as of 2019. The Ministry of Religious Affairs administered 158 Islamic religious schools in the same year.

Compulsory education in Brunei can be of two types: general education, which takes twelve years and consists of preschool, primary, and secondary; and Islamic religious primary education, which lasts seven years and is compulsory for Muslim pupils. General education may be attained in government or private schools, while religious education is attained in government religious schools. English is the main medium of instruction in most primary and secondary schools, colleges, and universities, although Malay is used for Malay- and Brunei-related subjects.

Schooling for compulsory education is fully subsidised by the government for the citizens of Brunei and usually extends to post-secondary and university. The complexity of the country's educational system has increased over time, and numerous new efforts have been launched to enhance national identity and advance human resources.

Infrastructure and transport

Brunei's infrastructure is well-developed, with a vast network of roads and highways, air and sea transport, and some rail transport. The country's transportation infrastructure is dominated by its highway network, which consists of approximately 3,167 kilometres of roads and a coastal roadway that connects major towns. Brunei's road network is being expanded and modernised, with a focus on improving connectivity between logistics hubs. The country also has a high per capita car ownership rate, with an annual vehicle growth rate of 9%.

In terms of sea transport, Brunei has two major ports: a large, deep-water harbour at Muara and a smaller port at Kuala Belait. These ports offer direct shipping to several Asian destinations, including Hong Kong and Singapore. The Muara Port facility is being expanded to allow for larger container ships and increase cargo-handling capacity.

Air transport in Brunei includes the Brunei International Airport, which serves as the primary international entry point and the hub for the national airline, Royal Brunei Airlines. The aviation sector is currently undergoing upgrades, with plans to double passenger handling capacity and improve facilities.

Brunei also has a well-developed telecommunication system, with a high rate of telephone availability and direct links to most parts of the world via satellite stations. The country was connected to the internet in 1995, and the government is investing in the development of e-commerce and a countrywide multimedia highway.

Culture and traditions

Brunei's culture is predominantly Malay, with significant Chinese, Indian, and indigenous Bornean influences. The country's official language is Standard Malay, but the most widely spoken language is Brunei Malay, which differs significantly from Standard Malay in its pronunciation, lexis, and syntax. English is also widely spoken and written in Roman script. Mandarin Chinese is another commonly spoken language, owing to the country's sizable Chinese minority.

The family is the focal point of Bruneian social structure, with the extended family, including aunts, uncles, cousins, and close friends, playing a crucial role. Loyalty and respect for elders are highly valued, and children are taught to subjugate their desires for the good of the family. This hierarchical structure reflects the country's reverence for age and position.

Brunei's cultural roots can be traced back to the Old Malay World, a territory encompassing the Malay Archipelago. This heritage is evident in the nation's language, architecture, ceremonies, and customs that govern daily life. The introduction of Islam also significantly influenced the country's cultural landscape, adding its own distinct artistic forms to the mix. The nation's mosques and other Islamic sites feature intricate mosaics and gilded Holy Korans, showcasing some of the most impressive examples of Islamic art outside the Arab world.

Brunei's blend of cultures, customs, and beliefs is similar to that of Malaysia. The country's unique philosophy, known as Malay Islamic Monarchy, combines the best of Malay culture with Islamic teachings and a mutual respect between the ruler and the subjects. This philosophy fosters a strong sense of identity, unity, and stability, forming the backbone of Bruneian cultural identity. While Brunei is a predominantly Muslim country, it upholds a philosophy of respectful tolerance, allowing the practice of other religions and beliefs.

Brunei's Arts and Handicraft Training Centre showcases the country's traditional arts and handicrafts, including famous brocades woven with golden and silver threads. The Malay Technology Museum offers an in-depth look at the traditional lifestyles and crafts of Brunei's ethnic groups, including model houses, ancestral weaponry, hunting tools, and more. The Kampong Ayer Cultural and Tourism Gallery provides a glimpse into the history, lifestyle, and crafts of the Kampong Ayer people.

Foreign investment

Brunei has a well-educated, largely English-speaking population, excellent infrastructure, and a government intent on attracting foreign investment and projects. The country has taken steps to streamline the process for entrepreneurs and investors to establish businesses and has improved its protections for Intellectual Property Rights (IPR).

Brunei has an open economy that is favourable to foreign trade and foreign direct investment (FDI) as the government continues its economic diversification efforts to reduce its long reliance on oil and gas exports. FDI is important to Brunei as it plays a key role in the country's economic and technological development. The Brunei Economic Development Board (BEDB) is the government's frontline agency that promotes and facilitates foreign investment. BEDB is responsible for evaluating investment proposals, liaising with government agencies, and obtaining project approval from the government's Foreign Direct Investment and Downstream Industry Committee.

Brunei has amended its laws to make it easier and quicker for entrepreneurs and investors to establish businesses. The Business License Act (Amendment) of 2016 and the Miscellaneous License Act (Amendment) of 2015 have reduced the time and complexity of starting new businesses. There is no restriction on foreign ownership of companies incorporated in Brunei, and the corporate income tax rate is the same for both local and foreign-owned companies. However, at least one company director must be a Brunei citizen or permanent resident.

The government of Brunei actively encourages more foreign investment by offering pioneer status to new enterprises that meet certain criteria, exempting profits from income tax for up to five years, depending on the amount of capital invested. The normal corporate income tax rate is 10%. Brunei also offers business tax credits in specified sectors and has no income, sales, or export taxes, making it a welcoming climate for potential investors.

The country's stable political climate, strategic location in Southeast Asia, good telecommunications and airline connections, and ambitious climate change goals further enhance its attractiveness for foreign investment. However, it is important to note that the implementation of the Sharia Penal Code (SPC) in 2019, which includes harsh punishments for certain offences, has generated global controversy and is a consideration for potential investors.

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