Brunei: A Sovereign State Or Territory?

Brunei, officially known as Brunei Darussalam, is a small yet wealthy country located on the northern coast of the island of Borneo in Southeast Asia. It is bordered by the South China Sea to the north and by the East Malaysian state of Sarawak on all other sides, which also divides the country into two non-contiguous regions. While Brunei gained independence from British rule in 1984, it is not a territory, but rather a sovereign nation with its own government and unique culture.

Brunei's borders with Malaysia

Brunei, officially Brunei Darussalam, shares land and maritime borders with Malaysia. The land border between the two countries is 481.3 km in length, while the maritime border stretches from the coastline of the two countries to the edge of the continental shelf in the South China Sea.

Brunei is located on the northwestern coast of the island of Borneo and is completely surrounded by Malaysia's state of Sarawak, except for its coastline with the South China Sea. The Sarawak district of Limbang bifurcates Brunei's territory into two non-contiguous segments, with the larger western segment containing the capital city of Bandar Seri Begawan.

The land border between Malaysia and Brunei can be divided into three sectors: the western, western Brunei Bay, and eastern sectors. The western sector stretches seaward from the terminus of the land boundary at coordinates 4°35′13.74576″N 114°4′33.50928″E. The western Brunei Bay sector consists of a boundary line in Brunei Bay between the mouth of the Pandaruan River and one of the mouths of the Brunei River. The eastern sector stretches seaward from the terminus of the eastern land border of Brunei's Temburong District at the mouth of the Bangau River.

The delimitation and demarcation of the Brunei-Malaysia border have been addressed through various agreements and exchanges of letters between the two countries. The Exchange of Letters in 2009 ended all territorial disputes between Brunei and Malaysia, settling issues related to maritime boundaries, the establishment of a Commercial Arrangement Area (CAA) for oil and gas, and the delimitation of territorial seas, the continental shelf, and the exclusive economic zones (EEZs) of both countries.

The land border between Malaysia and Brunei's Temburong District starts at the estuary of the Pandaruan River and runs the entire length of the river to its source. It then follows the watershed between the Temburong River on one side and the Limbang and Trusan rivers on the other until it reaches Brunei Bay. The northern terminus of this boundary is located at the mouth of the Sungai Bangau.

The Brunei-Malaysia border follows the watershed principle, with the border running along watersheds between various rivers, including the Belait, Tutong, Baram, Limbang, Brunei, and Temburong rivers. The border also proceeds through rivers such as the Sungai Mendaun, Sungai Melais, and Sungai Menunggul until its estuary at Brunei Bay.

The total land border length between Brunei and Malaysia is 528.45 km, of which 207.3 km was determined through five agreements between Brunei and Sarawak during the British colonial era. These agreements were affirmed by both countries in the "Exchange of Letters" on March 16, 2009. The remaining undelimited portions of the border were agreed to be determined using the watershed principle.

Brunei's maritime boundaries

Brunei, officially Brunei Darussalam, is a country in Southeast Asia, situated on the northern coast of the island of Borneo. It is bounded to the north by the South China Sea and on all other sides by the East Malaysian state of Sarawak, which also divides the state into two disconnected segments of unequal size. The western segment is the larger of the two and contains the capital city of Bandar Seri Begawan. Brunei has a coastline of 161 kilometres (100 mi) next to the South China Sea, and it shares a 381-kilometre (237 mi) border with Malaysia.

Brunei claims a 200-nautical-mile exclusive economic zone (EEZ) that overlaps with China's nine-dash line, as well as a 12-nautical-mile territorial sea and a continental shelf. It asserts its maritime jurisdiction over these areas. Brunei appears to claim the one land feature within its EEZ, Louisa Reef, though different members of the government have made conflicting claims. Louisa Reef is also claimed by China, Taiwan, and Vietnam, while Malaysia appears to have rescinded its claim. Brunei may also claim part of the area known as Rifleman Bank, which is fully submerged, as part of its extended continental shelf.

Brunei previously had a maritime boundary dispute with Malaysia, which surrounds it on three sides. This dispute was resolved amicably in 2009 after an exchange of letters that settled several sovereignty-related issues between the two countries. In the agreement, Brunei yielded to Malaysia some parts of its EEZ. Malaysia earned the right to develop Kikeh block, an offshore site that falls within Brunei's EEZ and has estimated reserves of over 700 million barrels of oil. The exchange essentially resolved the dispute between the two countries, with Malaysia's acquiescence to Brunei's EEZ and claim to Louisa Reef.

Brunei's status as a welfare state

Brunei, officially known as Brunei Darussalam, is a welfare state. The country has one of the world's highest living standards, thanks to its bountiful oil and gas reserves. The welfare system in Brunei can be summed up in two words: oil and gas.

Since the discovery of oil in 1929, money has been piling up in the country, and Brunei's welfare model was promulgated in the First National Development Plan (NDP) in 1955. The welfare benefits include:

• No taxes: Brunei does not require its citizens and residents to pay any form of taxes to finance the welfare benefits of the state. There are no income tax, goods & services tax (GST), or value-added tax (VAT).
• Free education: Brunei citizens enjoy free education in public schools from primary to tertiary level. Promising students are sent abroad to the UK and Australia on government scholarships.
• Free healthcare: Brunei citizens are entitled to free medical services, including consultations, operations, and surgeries. The government even covers the expenses of citizens who require specialised treatment abroad, including those of their accompanying family members.
• Pension scheme: The government places a heavy emphasis on taking care of the elderly. All citizens and residents above the age of 60 are entitled to a monthly pension.
• Housing schemes: The government actively advocates for a policy to ensure that everyone has the right to own a house. It provides land, low-interest loans, and interest-free loans for civil servants to build or buy houses.
• Subsidised petrol and amenities: As an oil-producing country, Brunei enjoys some of the lowest petrol prices in the region. The government also subsidises water and electricity tariffs, which have remained unchanged for decades.
• Subsidised food: The government imports rice from Thailand and sells it to the population at cost price. It also owns a huge cattle ranch in Australia to ensure a fresh supply of beef and mutton at low prices.
• Shell-fare: Shell Petroleum Brunei, one of the country's largest employers, provides corporate welfare to its employees and their dependents, including recreation clubs, free dental care, housing, and education allowances.
• Free cooking gas and excellent roads: Due to its proximity to oil fields, cooking gas is piped directly into homes in some towns, free of charge. Asphalt, a byproduct of oil refining, is used to build and maintain the country's roads.

In recent years, Brunei has continued to implement welfare reforms to reduce reliance on welfare benefits and ensure that assistance is given to those who truly need financial support. The country introduced a digitalised National Welfare System (SKN) to improve information sharing and enhance the effectiveness of its welfare programmes.

Brunei's economy and natural resources

Brunei's economy is almost entirely dependent on its exports of crude oil and natural gas, with revenues from the petroleum sector accounting for over half of its GDP. The country is the third-largest oil producer in Southeast Asia, averaging about 180,000 barrels per day, and the ninth-largest producer of liquefied natural gas in the world. Brunei's oil and gas industry is dominated by Brunei Shell Petroleum, a joint venture between the Brunei government and the Royal Dutch/Shell group of companies.

The country's economy is also supplemented by substantial income from overseas investment, managed by the Brunei Investment Agency, an arm of the Ministry of Finance. The government provides for all medical services and subsidises food and housing. Brunei's leaders are concerned that increasing integration into the world economy will undermine internal social cohesion, and have therefore pursued an isolationist policy. However, the country has also taken steps to diversify its economy away from oil and gas, with limited success.

Brunei's other industries include agriculture, forestry, fishing, and banking. In the early 21st century, the government embarked on a programme to develop the agricultural industry, and by the early 21st century, the country had become self-sufficient in the production of poultry and eggs and was approaching self-sufficiency in vegetables. Brunei is also one of the largest consumers of fish per capita in the world, and the government has implemented programmes to stimulate local fisheries and reduce imports.

The country's forestry industry is protected by legislation enacted in the late 20th century to restrict logging, and timber is not exported. Brunei's fishing industry increased its output by 25% during the second National Development Plan, which was launched in 1962.

Brunei's political system

Brunei is an absolute monarchy ruled by the Sultan, who is both the head of state and head of government. The country's political system is governed by the constitution and the national tradition of the Malay Islamic Monarchy (MIB), which combines Islamic law, Malay culture, and monarchical rule.

The Sultan of Brunei, currently Hassanal Bolkiah, holds absolute power and serves as the state's prime minister, finance minister, defence minister, and head of other ministries. The Sultan appoints the members of the Legislative Council, which is the country's unicameral legislature. This council has no legislative power and serves only in an advisory capacity to the Sultan. Brunei has not held any parliamentary elections since 1962.

The country's legal system is based on English common law, but Islamic law (Sharia) takes precedence in some cases. The Syariah court system, which previously handled only Muslim personal law cases, now has expanded jurisdiction to include serious criminal cases.

Brunei gained independence from British rule in 1984 and has since operated as a constitutional monarchy. The country's wealth is derived from its extensive petroleum and natural gas fields, and it has one of the world's highest standards of living. The Sultan provides extensive social services to the population, including free education and healthcare, which helps maintain political stability.

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