Brunei And Malaysia: Two Nations, One History

Brunei, officially Brunei Darussalam, is a small country on the northwest coast of Borneo, completely surrounded by Malaysia apart from its coastline on the South China Sea. It is the only sovereign state entirely on Borneo, with the remainder of the island divided between Malaysia and Indonesia.

Brunei was a British protectorate from 1888 until it gained independence in 1984. During the formation of the Malaysian Federation, Brunei was invited to join but declined, partly because the Sultan of Brunei would have less power as an elected monarch and also because it wanted to retain control of its vast petroleum reserves.

Brunei's vast petroleum reserves

Brunei's economy is almost entirely reliant on its vast petroleum and natural gas reserves. The country's oil and gas industries have fuelled its growth and development over the past 90 years.

The history of the oil industry in Brunei began in 1899 when the first exploration well was drilled near the capital, Brunei Town. This was followed by the discovery of the Seria oil field in the Belait District in 1929, which led to Brunei's first oil export in 1932. Brunei Shell Petroleum (BSP) is the country's largest oil producer, contributing around 90% of its oil and gas revenues.

The energy sector is the main contributor to the country's growth, accounting for 64.7% of its GDP in 2022. Brunei's oil and gas industries have long ensured the country's economic development, with the country ranking 39th in the world for oil reserves as of 2016. The country holds 1,100,000,000 barrels of proven oil reserves, which is equivalent to 188 times its annual consumption. This means that, without net exports, there would be about 188 years of oil left (at 2016 consumption levels).

Brunei exports 91% of its oil production, with most of its exports going to Asian countries. The country's oil and gas revenues have allowed it to provide its citizens with one of the highest per capita incomes in Asia. However, this reliance on a single commodity also makes the country vulnerable to market fluctuations.

In recent years, Brunei has made efforts to diversify its economy by investing in the expansion of its downstream industries and developing sectors such as agriculture, fisheries, tourism, and financial services.

The Sultan of Brunei's position in the Malaysian monarchy

Brunei is a sovereign state and monarchy in its own right, and is therefore not part of Malaysia. However, it is surrounded by Malaysia on all sides except its northern coastline and has a complex history with the country.

The Sultan of Brunei is the monarchical head of state of Brunei and the head of government in his capacity as prime minister. The current Sultan, Hassanal Bolkiah, is one of the few remaining absolute monarchs in the world.

In 1984, Brunei gained independence from the UK, becoming a fully sovereign state. The Sultan's full title is His Majesty The Sultan and Yang di-Pertuan of Brunei Darussalam.

The Malaysian head of state is known as the Yang di-Pertuan Agong and is an elected monarch. The position rotates every five years between the nine royal families of Malaysia.

When Malaysia was formed in 1963, Sabah, Sarawak, and Brunei were invited to unite with Malaya to form the Federation of Malaysia. However, Brunei declined the invitation due to a dispute in the Borneo states over whether joining Malaya was a good idea.

One of the reasons for Brunei's decision was that the Sultan of Brunei would have had to hand over the rights to the country's vast petroleum reserves to the Malaysian government. Another reason was that the Sultan of Brunei would have had to wait 30-40 years before becoming the Yang di-Pertuan Agong of Malaysia, as the position is rotated and he would have been last in the cycle.

Therefore, the Sultan of Brunei's position in the Malaysian monarchy would have been as one of the nine royal families of Malaysia, taking turns to ascend the throne every five years. However, due to Brunei's decision not to join the Federation, the Sultan of Brunei does not have a position in the Malaysian monarchy.

Brunei's independence from British rule

Brunei, officially known as Brunei Darussalam, is a small country in Southeast Asia, situated on the northern coast of the island of Borneo. It is completely surrounded by the Malaysian state of Sarawak, apart from its coastline on the South China Sea.

Background

Brunei became a British protectorate in 1888 and was assigned a British resident as colonial manager in 1906. The country's vast petroleum and natural gas fields were discovered in 1929, and they have been the basis of its development and wealth since the late 20th century.

The Road to Independence

In 1959, a new constitution was written, declaring Brunei a self-governing state, while its foreign affairs, security, and defence remained the responsibility of the United Kingdom. However, a small rebellion against the monarchy in 1962 influenced the Sultan's decision not to join the Malaysian Federation while it was being formed. This rebellion was indirectly related to the Indonesia-Malaysia confrontation and was ended with British assistance.

Independence

Brunei gained its independence from the United Kingdom on January 1, 1984, becoming a fully sovereign state. The official National Day, which celebrates the country's independence, is traditionally held on February 23.

Today, Brunei is a constitutional absolute monarchy ruled by the Sultan, with a unicameral legislature, the Legislative Council, which is appointed by the Sultan. The country ranks "very high" on the Human Development Index (HDI), second only to Singapore among Southeast Asian states. It is a member of various international organisations, including the United Nations, the World Trade Organization, the Commonwealth of Nations, and ASEAN.

Brunei's economic and political stability

Brunei is not part of Malaysia. It is a sovereign state and was once a British protectorate.

Economic Stability

Brunei's economy is heavily dependent on its extensive petroleum and natural gas fields. Oil and gas account for approximately 90% of its GDP. The country's wealth is derived from its oil and gas production, which has transformed Brunei into an industrialised country. In 2024, Brunei's GDP surged due to oil and gas.

Brunei's economic freedom is characterised by a well-protected system of property rights, an efficient and fair judicial system, and a stable currency. However, the country's economy is also characterised by poor government budget management, which has led to widening deficits and a growing debt burden.

Brunei's regulatory environment may constrain the efficient operation of businesses, and the country imposes a variety of restrictions on investment. The score for monetary freedom is based on the weighted average rate of inflation over the previous three years and the government's manipulation of prices.

Political Stability

Brunei's political stability is maintained by the House of Bolkiah, which rules as a constitutional absolute monarchy. The current sultan, Hassanal Bolkiah, has been in power since 1967 and holds full executive authority, including emergency powers. Brunei's political environment is expected to remain stable in 2024-25 due to the sultan's well-entrenched autocratic rule.

The country has a unicameral legislature, the Legislative Council, which is consultative and appointed by the sultan. Brunei has a parliament, but there have been no elections since 1962. The country's legal system is based on English common law and sharia law, which supersedes common law in some cases.

Brunei's cultural and religious identity

Brunei's culture is heavily influenced by Malay culture and Islam. The country's official language is Malay, and the majority of the population are Malay. The remainder consists of Chinese, Indians, and indigenous groups such as Muruts, Bisaya, Dusun, and Kedayans.

Islam is the official religion of Brunei, and the country has implemented Sharia law since 2014. Muslims make up over 78% of the population, with Christians and Buddhists forming the largest proportion of non-Muslims. The constitution of Brunei states that "The religion of Brunei Darussalam shall be the Muslim religion according to the Shafi'i sect of that religion", although it also guarantees religious freedom, albeit with restrictions. The ruling monarch is depicted as the defender of Islam in the country under a system known as Malay Islamic Monarchy, while the state's Ministry of Religious Affairs officially promotes Islam in Brunei.

The cultural and religious identity of Brunei is closely tied to its history and geography. Brunei is located on the island of Borneo, with a coastline on the South China Sea. It is surrounded by the Malaysian state of Sarawak and shares a border with Indonesia. The country has a small population of around 455,858 as of 2023, with approximately 180,000 people living in the capital, Bandar Seri Begawan.

Brunei has a long history as a maritime trading power and was once a vast empire, with control over much of Borneo and the surrounding area. The country has vast petroleum reserves, which have played a significant role in its economic development and independence. Brunei gained its independence from the United Kingdom in 1984 and has since become an industrialised country with a high ranking on the Human Development Index.

In terms of cultural and religious practices, Brunei has a conservative interpretation of Islam, and the sale and public consumption of alcohol are banned. The country has a strict legal system that combines English common law with Islamic jurisprudence, including Sharia law. This has led to restrictions on the practice of other religions, with non-Muslim places of worship not allowed to display religious signs outside their premises and facing limitations on proselytising.

Overall, Brunei's cultural and religious identity is shaped by its history as a Malay Islamic Monarchy, with a strong influence from Islam and Malay culture, while also being influenced by its geography and natural resources.

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