Brunei is a small country located on the island of Borneo in Southeast Asia. It is an independent Islamic sultanate, having gained independence from British rule in 1984. The country has a unique existence, as it is surrounded by the Malaysian state of Sarawak on three sides and the South China Sea to the north. Brunei's history is steeped in colonial influence, with the British signing a Treaty of Protection in 1888, making it a protectorate until its independence almost a century later. The country's current borders are a result of territorial losses to neighbouring regions and European powers, reducing it to its current size. Brunei's existence today is also tied to its vast petroleum reserves, which have contributed to its economic growth and likely influenced its decision to remain separate from Malaysia.
What You'll Learn
Brunei's independence from the UK in 1984
Background
Brunei, officially known as Brunei Darussalam, is a small country located on the northern coast of the island of Borneo in Southeast Asia. It gained independence from the United Kingdom on January 1, 1984, becoming a fully sovereign state. The country has a unique status as the only sovereign state entirely on the island of Borneo, with the rest of the island shared between Malaysia and Indonesia.
British Protectorate
In the 19th century, the Bruneian Empire began to decline, and they ceded territories to European powers. In 1888, Brunei became a British protectorate, seeking protection from further annexation by neighbouring powers. This treaty gave Britain significant control over Brunei's foreign affairs and prevented the Sultan from directly negotiating with nearby states. Over time, the British Resident assumed more administrative control than the Sultan, and Brunei's sovereignty was diminished.
Discovery of Oil
The discovery of oil in 1929 marked a turning point for Brunei. Petroleum production brought new significance to the country and became the foundation of its economy and wealth. This also played a role in Brunei's eventual independence.
World War II and Japanese Occupation
During World War II, from 1941 to 1945, Brunei was occupied by the Japanese. The Japanese established their administration and governed the country during this period. After the war, the British returned, and negotiations for Brunei's independence began.
Self-Government and Constitution
In 1959, Brunei achieved self-government, and the British Resident was replaced by a British High Commissioner. This marked the first step towards independence, with Britain retaining responsibility for defence and foreign policy. A written constitution was adopted, and a partly elected Legislative Council was established, although with limited authority.
Rebellion and Emergency
However, in 1962, a small armed rebellion against the monarchy occurred, which was suppressed with British assistance. This led the Sultan to declare a state of emergency and suspend most provisions of the constitution. The rebellion also influenced the Sultan's decision not to join the Malaysian Federation.
Treaty for Independence
In 1979, a significant treaty was signed between the United Kingdom and Brunei, agreeing that Brunei would become fully independent in 1984. This treaty addressed concerns about potential incorporation by neighbouring countries, as Malaysia and Indonesia assured they would recognise Brunei's independence.
Independence Day
Finally, on January 1, 1984, Brunei officially gained its independence from the United Kingdom, and an Islamic sultanate was proclaimed. The Legislative Council was suspended, and a ministerial form of government was introduced, with the Sultan assuming multiple ministerial roles. Brunei's independence was recognised internationally, and it joined the United Nations later that year.
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The country's vast petroleum reserves
Brunei's vast petroleum reserves have been central to its economy and development for the past 90 years. The country's oil and gas industries have fuelled its growth and development, with revenues from the petroleum sector accounting for over half of its GDP. As the third-largest oil producer in Southeast Asia, averaging about 180,000 barrels per day, Brunei's oil exports are vital to its economic health.
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 field in the Belait District in 1929, leading to a series of commercial discoveries. Brunei's first oil export took place in 1932. Since then, the country has continued to maximise the potential of its mature oil fields while also undertaking further exploration and development activities.
Brunei Shell Petroleum (BSP) is the largest oil producer in the country and contributes around 90% to Brunei's oil and gas revenues. The company is a joint venture owned equally by the Brunei Government and the Royal Dutch/Shell group of companies. BSP also operates the country's only refinery, which has a distillation capacity of 10,000 barrels per day, meeting domestic demand for most petroleum products.
In addition to its oil reserves, Brunei is also the ninth-largest producer of liquefied natural gas in the world. Almost all of its natural gas is liquefied at the Brunei Liquefied Natural Gas (LNG) plant, one of the largest LNG plants globally. Over 82% of the LNG produced is sold to Japan under a long-term agreement, with the rest supplied to the Korea Gas Corporation.
As of 2015, Brunei's proven oil and gas reserves were estimated to be sufficient to last until at least 2035. The country has also been investing in the expansion of its downstream industries to diversify its product portfolio in the oil and gas value chain. This includes the development of SPARK, a 271-hectare site established to become a world-class petrochemical hub.
The energy sector, including oil and gas, is the main contributor to the country's growth, with a 64.7% share of Brunei's GDP in 2022. The government has also recognised the need to diversify the economy away from oil and gas, with concerns about the social cohesion impacts of increased integration with the world economy. While there have been some efforts to develop non-petroleum industries, such as agriculture, forestry, fishing, and banking, oil and gas still account for most of the country's economic activity.
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The role of the Sultan of Brunei
Brunei is an absolute monarchy, with the Sultan of Brunei, Hassanal Bolkiah, serving as both the head of state and the head of government. Bolkiah is one of the world's few remaining absolute monarchs and the world's longest-reigning current monarch and head of state. He has ruled Brunei since 1967 and has been its prime minister since it gained independence from the United Kingdom in 1984.
As the prime minister, Bolkiah appoints himself to various ministerial portfolios. He has served as the Minister of Home Affairs, Minister of Finance, Minister of Defence, and Minister of Foreign Affairs. In 1991, he introduced the Malay Muslim Monarchy ideology, which positions the monarch as the defender of the Islamic faith.
Bolkiah has immense power and influence in Brunei. He has amended the constitution to make himself infallible under Bruneian law and has extended his authority through the Internal Security Act, which preserves his personal authority. Additionally, he possesses full executive authority, including emergency powers, and all state power is held by him and his family.
Bolkiah has also played a significant role in Brunei's foreign relations. He has negotiated with foreign leaders, including those from the United Kingdom, to maintain the country's independence and security. Brunei's media is largely owned or controlled by the royal family, and broadcasting is dominated by state radio and television.
Furthermore, Bolkiah has immense personal wealth, estimated at $30 billion as of 2023, derived from the country's oil and gas reserves. He regularly allocates land lots and housing to deserving residents under various government schemes.
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Brunei's history as a British protectorate
The British first became involved in Brunei in the 1840s through the exploits of James Brooke, who helped the heir to the Sultanate of Brunei, Raja Muda Hashim, to quell a rebellion in the province of Sarawak. In return, Brooke was granted the governorship of Sarawak and the title of Rajah. Brooke enlisted the help of the British Navy to rid the region of piracy, and in 1846, he was appointed as the Consul-General in Brunei.
In 1888, the British signed the "Treaty of Protection" with Sultan Hashim Jalilul Alam Aqamaddin, which made Brunei a British protectorate. This was done in response to geopolitical worries about the German Empire and the United States, and it gave Britain effective control over Brunei's external affairs. However, the treaty had shortcomings, and Brunei continued to lose territory, including the cession of Labuan Island to the British and Sarawak to James Brooke, now known as the White Rajah of Sarawak.
In 1905-1906, a Supplementary Treaty was signed, creating a British Resident, whose counsel was obligatory on behalf of the Sultan in all domains except Islamic ones. The Resident became the most powerful person in the Sultanate, with substantial administrative authority. In 1906, the British Residency system was implemented, and the British Resident took on the role of governance, while the Sultan's standing became more symbolic.
In 1941, during World War II, Brunei was occupied by the Japanese, and the British returned after the war. Negotiations for Brunei's independence began, and in 1959, self-government was achieved, with the British resident replaced by a high commissioner. A written constitution was adopted, and a partly elected Legislative Council was installed. However, this was interrupted by a revolt in 1962, which was suppressed with British help.
In 1979, the United Kingdom and Brunei signed a treaty agreeing that Brunei would become fully independent in 1984, and on January 1, 1984, Brunei gained its independence, ending Britain's protectorate over the country.
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The Brunei Civil War
Abdul Hakkul Mubin was furious about the death of his son and marched his men to the palace to confront the Sultan. He was denied the right to search the palace for Muda Bongsu, and in his rage, he killed everyone in the palace, including the Sultan. Abdul Hakkul Mubin then made himself the 13th Sultan. In an attempt to appease the previous Sultan's followers, he appointed Muhammad Ali's grandson, Muhyiddin, as the new Chief Minister.
However, this was not enough to satisfy the late Sultan's supporters, who urged the new Chief Minister to stand against Abdul Hakkul Mubin. Muhyiddin initially refused but eventually agreed, and his supporters started to create disturbances by poking spears into palaces and homes. Abdul Hakkul Mubin then moved his palace to Cermin Island, intending to wait out the crisis. However, once he had left, Muhyiddin declared himself the 14th Sultan, and the civil war began.
During the civil war, Abdul Hakkul Mubin fled to Kinarut in Malaysia, where he stayed for ten years, repelling repeated attacks by Muhyiddin's forces. Muhyiddin was concerned that the civil war was dragging on, so he sought help from the Sultan of Sulu, promising the land of eastern Sabah as a reward. The Sulu army was supposed to help Muhyiddin's forces but instead arrived after the final battle to take war booty and enslave prisoners. Infuriated, Muhyiddin ordered the Sulu army to leave without giving them eastern Sabah.
Muhyiddin eventually emerged victorious, and Abdul Hakkul Mubin was killed in the civil war. It is unclear to historians whether Muhyiddin asked for Sulu's help, but the Sultan of Sulu claimed that he had been promised eastern Sabah as a reward for his assistance. The dispute over eastern Sabah remains a legacy of the civil war.
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