Brunei darussalam in profile

In 1521 the Italian historian Antonio Pigafetta visited the Sultanate of Brunei. He described the Sultanate as a rich, hospitable and powerful kingdom with an established Islamic Monarchy and strong regional influence in the Java and Borneo archipelago. Today, almost five centuries later, a modern-day visitor would find much in common with that description by Pigafetta. Brunei is a wealthy country with one of the highest per capita incomes in the world, a well-established Islamic Monarchy true to its traditions, and a country which plays an important role in the affairs of its region. Brunei is situated on the North-West end of the island of Borneo and has a total area of 5,765 square kilometres. It has a common border with Sarawak, one of the constituent states making up the Federation of Malaysia. The country is mainly jungle with tropical forests covering about 70 percent of the area. Brunei is divided into four districts -- Brunei/Muara, Tutong, Belait and Temburong. The coastline extends for about 161 kilometres along the South China Sea. The people of Brunei are mainly Malay and that language is the official one of the State English is widely spoken and is also used in the education system. The country's estimated population is around 226,000. Malays make up around 155,000 and the Chinese 41,000. The non-Malay indigenous peoples, mainly Dusuns and Ibans, who live in the interior make up 11, 500. There are around 18,000 expatriates from Europe and elsewhere working in Brunei including guest workers from other South East Asian countries, notably Malaysia and the Philippines. A Short History The Brunei Sultanate rose to prominence in the 15th and 16th centuries when the country extended throughout Borneo and as far north as the Philippines. This golden age centred on two remarkable rulers. Sultan Bolkiah V and Sultan Hassan under their rule the Royal Court developed a splendour and ritual on a par with that of anywhere in the world and the territorial and religious influence of the country reached its peak. In 1847, the close relationship between Britain and Brunei was first formalised with a treaty for the improvement of trade relations and for both states to co-operate in the suppression of piracy. In 1888, North Borneo became a British protectorate and Brunei became a British protected state in 1906, Brunei accepted a further measure of British control with executive power going to a British Resident whose duty was to advise the ruler on all matters, except those concerning local customs and religion. Brunei was to remain under this Residency agreement until 1959, when a larger measure of domestic internal rule was granted by Constitutional agreement by that year. In 1971, full internal sovereignty was resumed and in 1984 the country resumed full political sovereignty with responsibility for its own external affairs and defence. Three key points need to be remembered about this stage in Brunei's history. - Brunei was never a colony and unlike its neighbours in South East Asia it did not experience a complete loss of sovereignty. In any event the British rule in Malaya was through the local sultans and consequently differed from the British colonial administration elsewhere. - During the whole period there was continuity within the ruling family, one of the worlds oldest dynasties, and loyalty to the Sultan remained the cornerstone of Bruneian politics in the protectorate period. - The involvement with Britain saw close links develop betweeen the two countries and at the same time Brunei was influenced by English Common Law, education and economic development. The Brunei of the 1980s with its mixture of Islamic culture sophisticated economic development and English Common Law framework, was deeply influenced by this period. Modern Brunei's political history centres on the constitutional changes that Brunei has seen in 1959, 1971 and 1984. Brunei has evolved into a full sovereign state playing an active role both in world politics and in international economic affairs. Two men have dominated modern-day Brunei -- the 29th Sultan, His Majesty The Sultan and Yang Di-Pertuan. Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah who has ruled since 1967. and His Majesty's father the 28th ruler Sultan Haji Omar Ali Saifuddien who was Sultan from 1950 to 1967 Between them they have led Brunei into full Sovereignty and improved social conditions dramatically, while retaining tradition and stability. The post-war period saw rapid and sustained expansion of Brunei's gas and oil industries, with a consequent increase in the country's infrastructure. A key fact in this development was a sound monetary and fiscal policy, without any excessively ambitious development projects. The most unfortunate event in the postwar years was an armed rebellion in December 1962, organised from outside the State This did not enjoy popular support and was soon quelled by loyal forces. Since that time the country has known internal peace. In 1984, Brunei resumed full sovereign status and took over responsibility for its own defence and foreign affairs from the United Kingdom. The country joined the United Nations, the Association of South East Asian Nations and the Organisation of the Islamic Conference. Today, Brunei is part of the community of nations conscious of its long history and the need to adapt to change. The National Development Plan Brunei's economy is dominated by the oil and liquefied natural gas industries and Government expenditure patterns. The Brunei Government is well aware of the inherent long-term problems caused by such a pattern and accordingly a series of national development plans have been implemented for the past twenty years. The main aim of the Fifth National Development Plan 1986-1990 is to build up a more diversified economy Previous national plans have been more concerned with improving the infrastructure. The current National Plan has nine objectives. These are: 1. To improve the quality of life of the people. 2. To maximise the use of natural resources. 3. To develop new export orientated industries. 4. To accelerate human resources development so as to meet the country's demand for an increasingly sophisticated economy. 5. To maintain full employment and increase the level of productivity. 6. To maintain a moderate rate of inflation. 7. To foster a dynamic, disciplined and responsible society with its citizens as agents for progress and development. 8. To encourage and nurture the development of Malays as leaders of industry and commerce. 9. To have a clean and healthy environment. Brunei's economy has performed well in the 1980s, although the macro-economic indicators are distorted by the depressing impact of the fall in oil prices during that period. Gross domestic product (GDP) per capita for the economy as a whole fell in the 1980s, following a dramatic 33.3 per cent growth rate in 1979 and a 67.4 per cent growth rate in 1980. This highlights the importance of oil and gas prices. The non oil sector of the economy, particularly construction, has shown a healthy growth, with a boost in the infrastructure and a conscious move to diversify the economy which is the hallmark of the Government's economic planning. The fall in oil revenue has had no effect on living standards which have continued to improve steadily during the decade. Finance Brunei's financial power, monetary reserves and investment portfolio have been the subject of much international speculation and comment in recent years. In brief, financial policy in the Sultanate is determined by five key rules: 1. The investment objective is to increase over time the real value of the nation's foreign reserves. 2. A policy of sound finance should be followed at home with inflation kept at low levels. The economy should not be allowed to 'overheat' 3. The supply of credit must be sufficient to encourage local industry and entrepreneurs to expand. 4. Brunei's financial strengths should be used as a platform to develop financial skills, thereby providing employment opportunities among its citizens. 5. The overseas investment policy should be constructive, long-term, mutually beneficial, and should avoid any adverse effects on the host countries' economies. The Ministry of Finance is in a relatively fortunate position compared to most of its counterparts elsewhere Brunei has a buoyant revenue base-in 1987 the Government had an actual revenue excluding investment income of B$2.7 billion and expenditure of B$2.4 billion. The small population means that Government expenditure can be controlled effectively and Brunei has run a policy of balanced budges for many years. There is no national debt. Brunei's monetary policy has been determined by linking the Brunei dollar to the Singapore dollar and there is parity between the two. The Ministry of Finance feels that the Monetary Authority of Singapore exercises sufficient caution that such a link will not be detrimental to the economies of both countnes. At the same time, this agreement is not seen as inhibiting the management of the domestic economy. Prime Minister's Office His Majesty The Sultan and Yang Di-Pertuan is the supreme executive authority in Brunei Darussalam. His Majesty has occupied the position of Prime Minister since resumption of independence in 1984. Brunei's administrative system is centred on the Prime Minister's Office which has provided the thrust behind His Majesty's aim to introduce greater efficiency in Government departments. In his National Day speech in 1987 His Majesty pointed out that it was essential to keep the country's administrative machinery up-to-date, in line with the development of Brunei as an independent nation. His Majesty has followed a combination of traditional and reforming policies, moving away from a structure of a chief minister and officials to a full ministerial system with specified portfolios. As Prime Minister, His Majesty is concerned with the day to day administration of the Government, in addition to being responsible for several departments within his portfolio: - The Royal Brunei Police - Adat Istiadat (Malay Customs) - The Public Services Commission - Councils of State - Audit - Establishment - Detention Centre - Anti-Corruption Bureau - Petroleum Unit - Broadcasting and Information The Prime Minister's Office is located at the Istana Nurul Iman, His Majesty's o{ficial residence, which has become a symbol of national pride. In keeping with ancient Brunei tradition, the Ruler's Istana is the seat of Government and here the Council of Cabinet Ministers meets under the presidency of His Majesty Health. The quality of health care in Brunei is very similar to most other rich countries. An affluent life-style combined with a successful record in preventative medicine improved water supply and sewerage disposal have meant that Brunei's health problems are not unlike those of developed countries such as the United Kingdom. the United States or Sweden. Malaria has been eliminated from Brunei since 1970, although it is still a problem in the rest of Borneo, cholera and smallpox have been eliminated and the country carries out regular immunisation programmes. It has substantially met the health requirements laid down by the World Health Organisation in its Health for All by the Year 2000 Programme. Planners at the Ministry of Health have had to cope with an upsurge of non-communicable diseases such as cancer, obesity and cardio-vascular diseases. AIDS, as yet, is not a major problem because of the country's strict religious, moral and traditional ways of life. However, the country is maintaining strict surveillance and taking preventative measures against the disease. Brunei has an infant mortality rate of 9.96 per thousand live births in 1986, and a life expectancy for men of 70.2 years and 72.7 years for women. The health service is free for Brunei citizens, with a very nominal charge for permanent residents and expatriate government servants and their dependants. Health care is a three-tier system, with health clinics providing secondary care and district hospitals the tertiary and specialised care. The most important medical facility in Brunei is the 550 bed central referral hospital in Bandar Seri Begawan, known as Raja Isteri Pengiran Anak Saleha Hospital (RIPAS Hospital). Built at a cost of B$162 million, this hospital provides diagnostic and therapeutic facilities for the whole country. In addition, there are hospitals at Kuala Belait, Tutong, Temburong and private facilities run by Brunei Shell at Seria. For medical care not available in Brunei, citizens are sent overseas, at the Government's expense. Brunei's health planners place great emphasis on primary health clinics and mobile services, particularly in the remote regions. The flying medical services go to 14 areas not easily accessible by land or river. In addition to health care the Ministry ol Health collaborates with the Ministry of Development in health related projects, for example the provision of rural sanitation and water supply 90 per cent of the urban and semi-urban population has piped water and 70 per cent of the urban population has sewerage sanitation. The Government has an ambitious water and sanitation programme for the rural areas In common with other advanced countries, Brunei is faced with a seemingly inescapable rise in the demand for health care and a continual rise in health costs. The Sultanate is in the fortunate position that it can afford to meet this increase and maintain the provision oL for example the best available drugs and equipment for the health services. The most serious problem facing the Ministry is a staff shortage. Most doctors and dentists in the country are expatriates and while Brunei is actively training its students on medical courses overseas, there is still a serious shortage For very specialised care Bruneians still have to be sent abroad. On economic grounds this is justifiable considering the investment in manpower and equipment that otherwise would be needed. The Ministry of Health is also involved in helping fight the abuse of drugs a programme which has been given priority by His Majesty The Sultan and Yang Di Pertuan. Culture, Youth and Sports The Language and Literature Bureau, one of the principal departments of the Ministry of Culture Youth and Sports, is responsible for promoting the development of the Malay language literature and culture of Brunei Darussalam. To this end, the Bureau is making various efforts to widen the scholastic use of the Malay language For example while degree level courses in Malay literature have been introduced at the Univesity, at the same time Brunei has hosted a number of important seminars on Malay language the role of literature in Islam and developments in Malay poetry. International poetry readings and competitions have been organised with strong support of the Bureau. In the absence of a national library, the Dewan Bahasa dan Pustaka library serves a wide range of needs. It has branches in all four distncts and provides a mobile library service in both urban and rural areas. Opened by Her Majesty Queen Elizabeth II in 1972, the Brunei Museum contains six gallenes including exhibitions ranging from natural history to oil and gas exploration. The Brunei Museum is also responsible for Brunei's Arts and Handicrafts Centre which encourages craft skills including the weaving of Brunei cloth. The Centre acts as a marketing organisation for a wide range of Brunei handicrafts. An unusual museum in Brunei is the Winston Churchill Memonal Museum which has one of the finest collections of Churchill memorabilia in the world. Another museum, Muzium Teknologi Melayu (Malay Technology Museum) was opened in February 1988. Established in 1982, The Brunei History Centre was founded to undertake research into the rich history of Brunei Darussalam. Among the areas of special emphasis are the genealogy and history of the Sultans of Brunei and the Royal Family. Sport is actively encouraged in Brunei and extensive sporting facilities are provided. The National Stadium is located in Berakas, near Bandar Seri Begawan. Football and badminton are the most popular games. Brunei has a highly developed welfare state and its administration is the responsibility of the Ministry of Culture Youth and Sports. The needy are especially well cared for and the state provides its citizens with non-contributory pensions from age 60 onwards. Oil and Gas Commercial production of oil commenced in Seria in 1929 and the industry has dominated the Brunei Darussalam economy since that time Oil and energy income as a proportion of gross national product has been falling in recent years. However, Brunei Darussalam has avoided some of the recent public finance problems faced by other rich oil states. The country has a small population, Government expenditure has been carefully controlled and development projects carried out on a prudent and sensible basis. Offshore oil production began in 1963 and now accounts for the vast majority of the Sultanate's exports. There are six offshore oil and gas fields- Champion, Magpie, South West Ampa, Fairley, Fairley Baram (a unitised field with Petronas Malaysia), Gannet and two onshore fields at Seria and Rasau. Production is carried out by Brunei Shell Petroleum in which the Government has a 50 per cent stake. Brunei Shell Petroleum is concerned with the exploration and production of oil and natural gas, oil refining and crude oil trading. The Companies within Brunei Shell are Brunei Shell Petroleum, Brunei LNG, Brunei Coldgas, Brunei Shell Tankers and Brunei Shell Marketing. Brunei Shell Petroleum Company explores and produces crude oil and gas. It owns the Brunei Refinery. The Government of Brunei Darussalam and the Royal Dutch/Shell Group are equal shareholders. Brunei LNG liquefies natural gas which it buys from BSP and in turn sells it to Brunei Coldgas. It runs the Brunei Refinery on behalf of Brunei Shell Petroleum. The Brunei Government owns 50 per cent and the other two equal partners are Royal Dutch/Shell and the Mitsubishi Corporation of Japan. Brunei Coldgas buys liquefied natural gas from Brunei LNG and arranges its transport and sale to Japanese customers. The shareholding is similar to Brunei LNG. Brunei Shell Tankers was set up in 1986 and has seven LNG tankers which it charters to Brunei Coldgas. The Brunei Government and the Royal Dutch/Shell Group are joint owners. Brunei Shell Marketing Company markets petroleum products and chemicals within Brunei Darussalam. The Government and Royal Dutch/Shell Group are joint owners Oil and gas reseres in Brunei at the beginning of 1986 were at their highest ever level but have declined over the last two years While pursuing its policy of conserving existing reserves, in an endeavour to find new fields the Brunei Government has encouraged other oil companies Woods Petroleum, Sunray and Jasra-Elf-to drill exploration wells. In 1972, what was at that time the world's largest liquefied gas plant came on stream at Lumut. Sales of 5 million tonnes a year of liquefied natural gas are sent to Japan under a 20 year contract which will expire in 1993. Education Half of the population of Brunei is under the age of 20 and the education ser vice within the Sultanate has seen a masive expansion in recent years. The concern over education and training within the country is reflected by the high profile given to young people. His Majesty's commitment to developing youth opportunity has meant that education within Brunei has been given high priority. The school and further education system is seen as producing the necessary skills for making the country more sophisticated and less dependent on outside expertise. Education is provided free from the age of five years for children who are citizens Non-Government schools are required to be registered with the Ministry of Education and follow the national curriculum as laid down by the Ministry of Education. Brunei's education system has been extended since 1985 by the foundation of the nation's own university-The University of Brunei Darussalam. At present, the University has 515 students in four faculties-Education, Science Arts, and Social Science and Management. By 1992, when the University's new campus is complete some 2,000 students ill be enrolled in degree and non-degree ourses The University of Brunei Darussalam throws into sharp relief some of the educational problems facing Brunei. The small population and the need to build up skills rapidly is reflected in the fact that the Jniversiry decided to concentrate initially on only a few disciplines since such degree courses as Law, Medicine, Dentistry, Engineering and Accountancy are readily available overseas. At the same time the University's academic staff are mainly drawn from outside Brunei. Agriculture Brunei's agriculture had a particularly difficult period in the 1970s Some two-thirds of the nation's livestock was wiped out in an epidemic and the opportunities provided by the public service and the oil industry accelerated a drift away from the land. The result today is that agriculture accounts for some 1 per cent of gross domestic product and 80 per cent of food is imported. These problems have concerned the Brunei Government considerably and in recent years the development of agriculture has been given priority within the National Plan. This is not only because of the strategic need for food self-sufficiency, but also because many Bruneian traditions have agrarian roots and could disappear if agriculture was no longer able to sustain them. The revival of agriculture centres on the ultimate aim of self-sufficiency wherever feasible in the shortest time possible. particularly for vegetables, poultry meat and beef Mechanisation is an essential part of the programme and the Government hopes to produce some 30 per cent of the nation's rice requirements through mechanisation of rice fields. A pilot project which began in 1978 on a 400 hectare site has already achieved success. In beef, part of Brunei's requirement is met by its cattle station at Willeroo in Australia's Northern Territory. This station is larger than the area of Brunei. It is some 5.793 square kilometres and ranks as one of the world's largest. Beef consumption has been rising steadily In cattle breeding, the Government provides assistance to farmers and services such as medicinal aids, grazing land and cash grants. Various specialities have been identified as possible growth areas within Brunei. The success story has been in egg production where the Sultanate has now reached more than 90 per cent selfsufficiency This has been carried out by the private sector with Government support, education and advice. The Brunei Government has encouraged agriculture through measures such as model farms, Government established farms, agricultural training and a strong advisory and support service backed by research from the Ministry of Development's Agriculture Department. Efforts are being made to recruit young people back to agriculture and the rural programmes are designed to help encourage people to stay in the industry. Infrastructure and Communication. Brunei's third and fourth National Development Plans placed considerable emphasis on building up the country'c infrastructure and communications. The road network has been expanded and modernised between the major population centres. There is a main highway, the Sultan Hassanal Bolkiah Highway, between Bandar Seri Begawan, Kuala Belait and Seria, and a new road between Muara and Tutong. The Government has an ambitious road building programme At present, there are some 1,50 kilometres of roads and the main highway runs the entire length of the State Roads are the responsibility of the Public Works Department. Brunei has one of the highest car ownership figures in the world and there are cheap loans available from the Government to help fund new car purchases. Communications into the interior are still mainly by river, with the Brunei, Belait and Tutong rivers playing an important role. There are two ports at Muara and Kuala Belait and these provide facilities for shipping throughout the region. Muara port is situated 28 kilometres from the capital, Bandar Seri Begawan, and has benefited from work carried out in recent years of widening the quay and improving deep water access. The Brunei communications authorities see port development as a catalyst for economic and property development alongside the actual ports. The other main component of Brunei's physical transport links with the outside world is Royal Brunei Airlines. This has expanded since it was founded in 1971, and today employs nearly 1,000 people the overwhelming majority of these Bruneian. Royal Brunei Airlines operates flights to Bangkok, Darwin, Hong Kong, Jakarta, Kota Kinabalu, Kuala Lumpur, Kuching, Manila, Singapore Taipei and from August 1988, Dubai. The airline has a fleet of Boeing 737's and Boeing 757's and projected passenger and cargo volumes show considerable increase into the 1990's. The Malaysian Airline System, MAS (partly owned by the Brunei Investment Agency), Philippine Airlines, Singapore Airlines, Thai Airways International and Merpati Nusantara also have flights to Bandar Seri Begawan. The Brunei International Airport serves some 500,000 incoming and outgoing passengers annually A massive investment programme-B$113 million over ten years-has made the airport one of the most sophisticated in the region. The new terminal building can now handle the 1.5 million passengers expected by the end of the century. Brunei's telephone system is sophisticated with two earth satellite stations, direct international dialling and a full range of telex and facsimile facilities. In 1980, an electronic telephone exchange with a capacity of 27,000 lines was introduced and Siemens, the West German telecommunications company, plans to install a further 47,000 lines by mid-1989. The rate of increase in telephones per head has been one of the fastest in the world. In 1986, there were some 33,000 telephones in Brunei. Defence The importance which Brunei attaches to national security is underlined by the fact that under the fifth Five Year Plan, 10 per cent of expenditure is allocated to defence. For its size Brunei has one of the most well equipped armed forces of any country in the region, with a land, air and sea capability. The Task Force of the Royal Brunei Armed Forces comprises land, naval and air forces grouped together as a brigade spearheaded by two infantry battalions. The Task Force is equipped with armoured reconnaissance vehicles and armoured personnel carriers, supported by Rapier air defence missiles For coastal patrol work, there is a flotilla of fast stnke vessels equipped with surface to surface missiles. Plans have been announced for the Air Wing to acquire fixed wing jet and maritime surveillance aircraft with a view to being operational in 1992. Bruneians between the ages of 18 and 23 will be recruited to be trained as pilots. The new aircraft will reinforce the Air Wing which at present comprises both armed and utility helicopters and provides helicopter support for other Ministries including the 'Flying Doctor' service. The Royal Brunei Armed Forces has forged close links with its immediate neighbours, particularly Singapore, Malaysia and Indonesia. Joint exercises are carried out with the armed forces of ASEAN countnes, and there is also close collaboration with other countries such as Britain and Australia. 1988 will see plans for one of the biggest ever joint exercises between Bntish and Bruneian forces, involving ships from the British Royal Navy and a British battalion from Hong Kong as well as all elements of the Royal Brunei Armed Forces. Foreign Aairs Among the principles which influence Brunei's foreign policy are support for the United Nations Charter, a growing role in ASEAN and membership of international organisations which strengthens links with other Islamic countries and with the Commonwealth. In 1984 Brunei Darussalam was admitted as the 159th member of the United Nation. In his acceptance speech, His Majesty The Sultan and Yang Di-Pertuan said Brunei fully accepted the obligations contained in the United Nations charter and, together with other nations, would strive to realise the aims and objectives of the United Nations. Brunei plays an active role in ASEAN, the Association of South East Asian Nations, whose other members are Indonesia, Malaysia, the Philippines, Singapore and Thailand. Brunei became the sixth member of ASEAN one week after resuming full independence. Brunei looks to ASEAN, the cornerstone in Brunei's foreign policy, to ensure territonal integrity, regional peace security and stability. Brunei supports ASEAN's plans for ZOPFAN, a Zone of Peace, Freedom and Neutrality. It has played an active role in meetings of ASEAN and is the current country co-ordinator for the ASEAN-Canada Dialogue. In his speech to ASEAN Heads of Government in Manila in December 1987, His Majesty The Sultan outlined the country's deep commitment to ASEAN: "Brunei has benefited much from our membership of ASEAN, and we look forward to the future confident that ASEAN will continue to strive for the security and stability of the region as well as for the economic advancement of our peoples. Brunei is committed to play its part within the constraints and limitations of our ability as the smallest member to ensure that ASEAN remains a viable and effective association". Brunei has a realistic approach to the Commonwealth and sees it as providing a valuable international forum in which small states can voice their views. Brunei has diplomatic relations with 42 other states and this number is increasing each year. Embassies or High Commissions are maintained in all ASEAN capitals as well as in London, Washington, New York, Riyadh, Cairo, Seoul, Tokyo, Geneva and, shortly, Canberra. A Permanent Mission to the United Nations is maintained in New York. In Bandar Seri Begawan there are now 15 resident missions. Brunei has now concluded agreements on the abolition of visa requirements with 14 countries. The Constitution and Legal System Brunei's political system rests on the twin pillars of the country's written Constitution and the tradition of Malay Islamic monarchy. An additional and underlying feature is the country's adherence to the rule of law, a system based primarily on the English Common Law System and the independence of the judiciary. Brunei's first written Constitution came into force in 1959 and since that date has been subject to important amendments in 1971 and 1984. The 1959 Constitution provides for the Sultan as the Head of State with full executive authority The Sultan is assisted by five councils-The Religious Council, the Privy Council, the Cabinet, the Legislative Council and the Council of Succession. It is noteworthy that the system of government, which was carried out in the traditional Malay manner of advice tendered through a Chief Minister and senior of ficials, was replaced in 1984 by a move to a Cabinet style of govennment, with The Sultan and Yang Di-Pertuan as Prime Minister The new style Cabinet system reflects His Majesty's commitment to a meritocratic and efficient administration. Brunei's legal system is based on the English Common Law System, with an independent judiciary, a corpus of written common law judgements and statutes, and legislation enacted by His ajesty The Sultan and Yang Di Pertuan. As in Malaysia and Singapore the criminal justice system is based on the Indian Penal Code and cases are tried either by magistrates or, for more serious cases, by High Court Judges. The language of the Courts is English and the High Courts sit every other month, between five and six sessions a year Interpreters are available for non-English speakers. Legal aid is provided in capital cases and is available in appropriate civil and other criminal cases. Brunei has an arrangement with the Government of Hong Kong whereby Hong Kong judges are appointed as judicial commissioners of Bnunei by His Majesty The Sultan and Yang Di-Pertuan. The appointment is for three years and one of the main arguments in favour of bringing judges in from outside is that due to Brunei's small population, it is important that they should not know members of the community who they may find themselves judging. This arrangement will continue for some time until Brunei has enough qualified lawyers, when it can appoint its own local judges. Sir Denys Roberts, the former Chief Justice of Hong Kong, has been reappointed Chief Justice of Brunei while the Chief Justice of Hong Kong is made the President of the Court of Appeal of Brunei Darussalam. In the Court of Appeal, the President sits with two other judges. The death penalty is still in the Brunei statute book but no occasion for enforcing it has arisen since 1953. His Majesty The Sultan and Yang Di-Pertuan has the power to exercise the Royal Prerogative of Mercy. Commecial Information FOREIGN INVESTMENT The importance attached by the Brunei Government to foreign investment was reflected in a comment by His Majesty The Sultan and Yang Di-Pertuan recently in a press interview His Majesty was asked about foreign investment and made the following statement: "We have always welcomed foreign investment. We are ready and willing to look at suggestions from would-be investors. We welcome participation by major multinational companies in the economic activity of our country. Such participation would have to be on the basis of sharing the benefits equally". CURRENCY AND EXCHANGE REGULATIONS The currency is the Brunei dollar (B$). Brunei and Singapore currency is mutally acceptable in both countries. The currency is managed by the Brunei Currency Board. The currency interchangeability arrangement has provided a cheaper means of financial trade between Brunei and Singapore than if there had been bank transfers instead. The Brunei currency is backed by assets of more than 100 per cent of its liabilities. CUSTOMS, DUTIES, AND IMPORT REGULATIONS Duties on imported goods may be specific or ad valorem. Generally, goods for industnal use are exempt from customs duty. Clothes, watches and jewellery attract duties of 10 per cent electrical equipment, timber, furniture motor vehicles and spare parts and photographic equipment, 20 per cent, and cosmetics and perfumes, 30 per cent. COMPANIES REGISTRATION Companies in Bnunei must either be incorporated or registered as a branch of a foreign limited company A limited company has the word Berhad (Bhd) at the end of its name There are similar restrictions to company names as pertain in the United Kingdom Companies that are incorporated in Brunei are governed by the 1956 Companies Act, Cap 39. This approximates to the 1948 United Kingdom Companies Act. A Registrar of Companies is appointed to, amongst other things, control the functioning within Brunei of companies registered locally or carrying on business within Brunei. A company must be registered with this office which is situated in the Law Building. Public companies should have a minimum of seven shareholders and two directors. Half the board should be either nationals of Brunei or be locally resident. As is the case in the United Kingdom, annual accounts of a public company must be sent to the Registrar Auditing requirements are increasingly in line with international standards to conform to those set by examining bodies which regulate the professions such as accountancy and law. Responsibility in the corporate sector is taken very seriously by the Ministry of Finance and its recent moves against fraudulent trading in banking are indicative of its determination to maintain ethical standards in business. Private companies in Brunei have a minimum of two, but not more than fifty shareholders. They can start business immediately upon registration, whereas public companies have to apply for a Certificate of Commencement of Business. Half the directors of pnvate companies must either be Brunei nationals or locally resident. EMPLOYMENT REGULATIONS Foreigners entering Brunei to take up employment require work permits from the Department of Immigration. Identity cards, issued by the same department, are also required and are renewed annually. LAND OWNERSHIP AND FOREIGN RESIDENCY Ownership of land is generally restncted to Brunei citizens. However, the granting of land on a lease basis for specific use to any foreign entrepreneur can be considered. TAXATION Brunei does not have any direct taxauon. There is no income tax and, within partnerships, income is similarly exempt from taxation. Individuals do not pay any capital gains tax and profits arising from the sale of capital assets are not taxable. Brunei has a double taxation agreement with Britain. Foreign income not remitted to Brunei is not taxable and His Majesty The Sultan has discretion to relieve individuals or enterprises of company taxation if it is felt that this is of public benefit. Limited companies are taxed at a rate of 30 per cent. Tax on petroleum operations is laid down by the 1963 Income Tax (Petroleum) Enactment. This is similar to the tax position in most oil producing countnes The generous tax treatment given to Brunei citizens is a consequence both of prudent financial housekeeping by the Government and its healthy oil, gas and investment income. BANKING Brunei Darussalams banking system is regulated by the 1906 British Banking Act. However, the Ministry of Finance intends to introduce new and more up-to-date regulations in line with modern practices designed to protect depositors and creditors. The development of a well regulated financial services sector within Brunei Darussalam is one of the Government's primary objectives. Traditionally, the banking system in Brunei Darussalam has been characterised by overseas banks which maintain branch of fices. The most significant banks, in terms of the scale of their operations, have been the Hong Kong and Shanghai Banking Corporation, The Standard Chartered Bank, Citibank, and now there is a local bank, the International Bank of Brunei Bhd. INSURANCE There are a large number of insurance companies operating in Brunei. Some are locally incorporated but the majority are branches of international insurance groups. The operations of insurance companies are monitored by the Economic Development Board. INFORMATION If you would like to know more about Brunei Darussalam, please contact: The Brunei Darussalam Information Desk Grafik Advertising (PT Tiara Alam Grafika), Jalan Riau 17 Jakarta 10310 Indonesia Tel: (021) 337956